LIST OF ABBREVIATIONS
TT
Acronym | Interpretation | |
1 | DN | Business |
2 | NVL | Raw materials |
3 | CPNVLTT | Direct material cost |
4 | CPNCTT | Direct labor costs |
5 | CPSDMTC | Cost of using construction machinery |
6 | CPSXC | General manufacturing costs |
7 | XDCB | Basic construction |
8 | CT, HMCT | Project, project items |
9 | Social insurance, health insurance, Social Insurance, Unemployment Insurance | Social insurance, health insurance, insurance unemployment, union dues |
10 | Production and business | Production and business costs |
11 | Fixed assets | Fixed assets |
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LIST OF TABLES
1) Warehouse receipt description table
2) Warehouse delivery note description table
3) Detailed description table of account 621CT_VP1811
4) Table describing ledger account 621
5) Outsourcing payment description table
6) Direct worker timesheet
7) Detailed description table of account 622CT_VP1811
8) Table describing ledger account 622
9) Social insurance, health insurance, unemployment insurance, and trade union contributions table 10) Fixed asset depreciation table
11)Detailed ledger description table of account 627CT_VP1811 12)General ledger description table of account 627
13)Summary table of production costs 14)Detailed book description table of account 154 15)Construction cost calculation table
LIST OF CHARTS, GRAPHS, DIAGRAMS, IMAGES
Diagram 2.1: Relationship between production costs and prices Diagram 2.2. Accounting for direct material costs
Diagram 2.3: Accounting for direct labor costs:
Diagram 2.4. Sequence of accounting for construction machinery usage costs
(Construction machinery team does not organize separate accounting)
Diagram 2.5. Sequence of accounting for construction machinery usage costs
(Construction machinery team organizes separate accounting)
Diagram 2.6. Sequence of accounting for construction machine usage costs ( In case the construction team has separate construction machines)
Diagram 2.7. Sequence of accounting for construction machinery usage costs
(In case of outsourced construction machinery)
Diagram 2.8. Accounting for general production costs Diagram 2.9. Accounting for aggregate production costs
Diagram 2.10. Sequence of assignment at assignment unit
(In case of lump sum)
Diagram 2.11. Accounting sequence at the contracting unit
(In case of lump sum)
Diagram 2.12. Accounting sequence at the contracting unit
(In case of lump sum expense item)
Diagram 2.13. Computerized accounting form Diagram 3.1. TECHCONS's organizational structure Diagram 3.2. Technological process
Diagram 3.3. Overview of the accounting system at the company
Diagram 3.4: Accounting entry sequence in the form of general journal entry
CHAPTER 1: INTRODUCTION
1.1. Reasons for choosing the topic
In recent years, the market economy oriented towards investment in infrastructure construction, traffic works, civil works, hydroelectric works, etc. have all received great attention from the state and are placed at the forefront of the current economic development. The speed of infrastructure economic development has therefore also developed rapidly, changing the face of the country day by day, hour by hour. That not only means that the workload of the construction industry (basic construction) has increased but also entails an increase in investment capital in construction. The problem is how to manage capital effectively, overcome the loss and waste of capital in the conditions of installation business having to go through many stages (from design, project establishment, construction to acceptance ...), the construction time lasts for many months, many years.
Therefore, production cost accounting and product pricing are an indispensable part of accounting work not only for businesses but also for society: For businesses, performing production cost accounting and product pricing is the basis for monitoring activities, thereby overcoming damage, promoting potentials to ensure that businesses always stand firm in the current competitive and risky market mechanism. For the state, production cost accounting and product pricing in businesses is the basis for the state to control capital for basic construction investment and inspect compliance with financial regimes and policies in businesses.
Realizing that problem, with the knowledge acquired at school and the time spent studying the practical accounting work at Techcons Construction Joint Stock Company, I have deeply researched the topic "production cost accounting and product costing at Techcons Construction Joint Stock Company".
1.2. Research purpose
Learn the theoretical basis of cost accounting and product pricing in construction enterprises.
Study and evaluate the current status of accounting work in general and especially cost accounting and product pricing at TECHCONS Construction Joint Stock Company.
From there, propose some solutions to improve the work of cost collection and product pricing at the company.
1.3. Research content
Learn the theoretical basis of cost accounting and product pricing in construction enterprises.
Study and evaluate the current status of accounting work in general and especially the work of cost accounting and product costing at Techcons Construction Joint Stock Company. From there, propose some solutions to improve the work of cost accounting and product costing at the company.
1.4. Research object and scope
- Research subjects:
Based on the research purpose of the topic, the research object of the thesis is the work of cost accounting and product costing at Techcons Construction Joint Stock Company, in which the cost aggregation process, cost allocation method and product costing at the company are studied in depth.
- Research scope:
Space: study the current status of production costs and product pricing at Techcons Construction Joint Stock Company.
Time: data for research and analysis of the current status of production cost accounting and pricing at Techcons Construction Joint Stock Company in the first quarter of 2016.
1.5. Research method:
o Document research method: Research specialized accounting textbooks, guidance documents, documents related to state regulations on accounting, Techcons' documents and books related to production cost accounting and product pricing.
o Observation method: use observation method to observe production process, organization and management methods at the unit.
o Interview method: Interview accounting staff to collect information about accounting work and document circulation process, methods of collecting production costs and calculating product prices at the company.
o Investigation method: Use investigation method to collect information on the application of State accounting standards at the Company.
o Expert opinion method: Consult with instructors, experienced accountants...
o Data synthesis method: Synthesize collected accounting data for analysis and evaluation.
o Statistical analysis method: Based on the collected data to analyze, compare, and contrast, thereby evaluating the advantages and disadvantages in the accounting work of collecting production costs and calculating product costs at the company, thereby finding the causes and proposing solutions to improve the accounting work of production costs and calculating product costs at Techcons.
1.6. Topic structure
The content of the topic is divided into 05 chapters as follows:
Chapter 1: Introduction
Chapter 2: General theoretical basis of production cost accounting and product costing in construction enterprises
Chapter 3: Overview of Techcons Construction Joint Stock Company
Chapter 4: Current status of production cost accounting and product costing of Van Phuc housing project - townhouse project lot O55-O60.
Chapter 5: Comments and recommendations.
CHAPTER 2: GENERAL THEORETICAL BASIS OF PRODUCTION COST ACCOUNTING AND PRODUCT COST CALCULATION IN CONSTRUCTION ENTERPRISES
2.1. Characteristics of the construction industry affect cost accounting and product pricing in construction enterprises.
Construction and installation is an independent material production industry of industrial nature and plays an important role in the economy. With the function of simple reproduction and extended reproduction of fixed assets for all sectors in the national economy, it makes an important contribution to the construction of infrastructure and the industrialization and modernization of the country. More specifically, construction activities include the following activities: new construction, expansion, restoration, renovation or modernization of existing works in all fields of the national economy (such as irrigation works, industrial zones, defense works, other civil works).
Production and business activities of construction enterprises have the following basic characteristics:
- Implemented on the basis of contracts signed with the investor after winning the bid or being designated as a contractor. In the contract, the two parties have agreed on the payment value of the project along with other conditions, so the nature of the goods of the construction products is not clearly shown, the handover of CT (project), HMCT (project items) or the completed construction volume reaching the technical stopping point to the contracting party is the process of consuming construction products. In case the contractor is paid according to the planned progress, the completed work part of the construction contract that the contractor reliably determines by the prescribed method is considered the completed product handed over.
- In the construction industry, the technical quality standards of the product have been specifically determined in the approved technical design documents, so the construction enterprise must be responsible to the investor for the technical and quality of the project.
- Construction products are large-scale projects with complex structures, unique characteristics, long construction time to complete the product as well as long usage value.
- Construction products are fixed at the production site, while the necessary conditions for production such as motorbikes, equipment, workers, etc. must move to the construction site. On the other hand, construction is also affected by the geological conditions of the project and the weather and climate conditions.
Due to local conditions, the management and use of assets and materials for construction projects is very complicated, requiring prices for each type of construction work for each territory.
- In construction enterprises, the contract mechanism is being widely applied with different forms of contract such as: Contracting for the entire project (contracting the entire cost), contracting for each cost item, thus forming a contracting party, a contracting party and a contract price...
From the above characteristics, accounting work must both meet the general requirements of the functions and accounting tasks of a manufacturing enterprise and ensure that it is suitable for the specific characteristics of the construction industry in order to provide accurate and timely information, advising leaders on the organization and management to achieve high efficiency in the production and business of the enterprise.
2.2. General issues in production cost accounting and construction product pricing
2.2.1. Production costs
2.2.1.1. Concept and nature of production costs
The production and business process of the enterprises is a process of purposefully affecting the input factors to create products which are certain works and construction items. In that process, the enterprises must mobilize and use financial and material resources.
Thus: CPSX is the monetary expression of all costs of living labor and materialized labor that an enterprise must spend on production in a period. In a manufacturing enterprise, these are the costs incurred to carry out production and construction activities in a certain period.
2.2.1.2. Classification of production costs
In business, production costs include many types with different economic nature, purposes of use... To serve the management of production costs for the purpose of calculating product prices, accountants need to classify production costs. There are many ways to classify production costs:
o Classification by cost item:
- Direct material cost: is the cost of raw materials that make up the physical entity of the construction product, including main and auxiliary materials.
- Direct labor costs: Are costs for labor directly involved in production activities, which can be outsourced labor or labor on the list. Including money