Reasoning of Cost Calculation Expediency at the Enterprise

The product calculation concept is represented in the article in terms of the production cost calculating expediency for the managerial accounting needs. The purpose of calculation is the formation of cost data, fitting for effective cost management. It has been noted that the production cost calculation is an important task of internal company planning, which is based on determining the value of the enterprise costs for the products manufacture and sale. The expediency of expenses determination has been substantiated and some components of the enterprise cost accounting system in the framework of management accounting have been described. It has been noted that correct cost price determination allows establishing the optimal production structure, aimed at achieving maximum profit. Cost optimization is closely linked to the system of providing the company with the necessary resources. Depending on the features of the technological process at work, a simple, order-based, pre-requisite or procedural cost calculation method, each based on the certain method of cost accounting and the calculation units choice, can be applied. In the framework of the conducted research, the system of economic calculations has been analyzed, which provides formulation and solving the following tasks: the calculation method choice, the indirect costs distribution methodology for the calculation objects choice, the total production cost calculating methodology choice. The advantages and disadvantages of management decisions options, based on practical experience, have been considered. Particular attention is paid to the indirect costs distribution. The systems of direct costing and absorption costing have been analyzed. The first system implies incomplete distribution (the unit production cost calculation is made only within the direct costs limits), while the second offers the full distribution, and with the attribution not to the manufactured products, but to the realized ones. The arguments which, in our opinion, confirm the cost calculation necessity despite the possible calculations inaccuracy, retrospective nature, and the need for additional analytical work funding have been given.