PROBLEMS OF ACCOUNTING FOR COSTS, PRODUCTION COST AND WIP

Abstract

The subject of research in this article is the production cost accounting, some methods of cost accounting, as well as the problems of accounting for work in progress. Cost accounting can be viewed as a platform for information support and managerial control over decision-making in the field of cost, aimed at improving production activities and lean manufacturing.

Management accounting is a system for collecting and processing accounting data aimed at solving various management problems [5, p.180]. It can be added here that the formation of information on the cost of products is the basis of managerial cost accounting and users quickly monitor the composition of controlled indicators by place of occurrence.

The main goal of cost accounting is to create reporting indicators on the value of controlled parameters, and provide them to the company's management [5, p.180]

History knows attempts to use data for operational accounting of the cost of products, works, services for management, but they turned out to be unsuccessful, due to the fact that the information received could not be attributed to accounting [4]. The problem is that the accounting information itself is suitable only after the implementation of economic operations and is responsible for the veracity of the reporting only after the complete completion of accounting procedures - determining the balance and closing each account, turnover for the period for each of them.