Complex expenses as subject of accounting and analysisJournal: Academic Bulletin "Economics and Region" (Vol.2, No. 45)
Publication Date: 2014-04-30
Authors : O. R. Laskavyi;
Page : 68-74
Keywords : production; products; resources; complex production expenses; efficiency of enterprise.;
The meaning of “complex costs”, its meaning in different sources, the difference from other similar terms, such as indirect, overhead costs were deeply examined in the article. Current practice of costs forming, costs sharing and write-off expenses on prime costs or financial results were generalized. The classification of complex costs and their characteristic according to the legislative Ukrainian documents were made. Complex costs are the costs that consist of several elements. In managing aspect a question arises concerning not the rate of these costs but in what proportions they may be formed for the enterprise efficiency. According to the current position of nowadays accounting, it may be indicated that in theory, complex costs are not detached as a category and appear as main or indirect costs and managers understand them as a shipping list. For general production costs, that are also complex costs, costing and distribution are in great importance. It deals with legislation because the prime cost is a base for taxes calculation, and expenses on sale and managing influence on financial result. That is why the correct presentation of complex costs has a great importance for managers and country. The notion of “complex costs” is used at such accounting and analytical issues as their distribution during self-cost calculation and at cost analysis according to elements. The distribution of complex articles is one of the most important problems at self-costs calculation of production. Each enterprise defines stable and changeable general costs individually, defines norms of spoiled production because of technical reasons and chooses the base of distribution for indirect complex costs. Having high production efficiency, an enterprise can have a low efficiency index. The contradiction can be explained by high general economic expenses, or their low performance. The expenses influence the enterprise, as to the product they form and as to its activity support. For different countries, the price for expenses elements can be different. For example, salary and material expenses in different countries may have different price meaning. That is why for calculation of transfer of certain management structure to an economy sector of another country or territory, it is necessary, to analyze complex general economic costs according the elements. Rather often, only production is transferred to another country, but general economy complex costs are reduced to minimum. It proves ones more, that notions “effectiveness of an enterprise” and “effectiveness of production” are different. General economy costs should be analyzed separately from production complex costs. Complex costs are very important for formation of production self-cost, determination of financial results of enterprise results of enterprise activity. As an object for accounting and analysis of complex costs they have some elements, they should not be ignored. Complex costs are very important for management accounts as they are taken into consideration at accounting both production and complete self-cost of production. Correct formation, distribution, and attribution of complex costs to some kinds of production is the basis for objective evaluation, uncompleted production and finished products, setting of self-cost of sold production and financial result. Information about the structure of complex costs is an important condition for economical usage of the resources and increasing production efficiency and economic processes.
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