direct and direct fixed costs. The difference between revenue and direct costs will result in product profit. Product profit reflects the contribution of a specific product to the overall results of the enterprise without taking into account other general costs. Product profit after deducting the general fixed costs of the product will calculate the profit before tax and interest of each product. Compare the profits of different products, the product with higher product profit will be better and vice versa. The business performance report of each product type needs to be recorded for the actual costs incurred during the period. This report also needs to be prepared according to the estimated data to serve as a basis for comparison with actual implementation. The actual business performance report of each product type will be compared with the business performance report of each actual product type of the previous period and the business performance report of each product type according to the budget of this period, from which the differences are drawn out, with large differences and discrepancies that need to be focused on by the administrator to improve the situation. Good differences need to be promoted and expanded, on the contrary, bad differences need to be limited and eliminated. (Appendix 3.20 : Business performance report by product type). To compare and evaluate the performance of products, the author recommends creating a summary table of business performance reports by product (Appendix 3.21 : Summary report of business performance by product).
- Report business results by customer
The author recommends that CBTACN enterprises establish a Business Performance Report for each customer. The Business Performance Report for each customer is established on the basis of each customer's sales revenue with the cost of finished products sold and other direct costs of each customer. Other direct costs of each customer include the salary costs of staff and departments in charge of that customer, commissions of each customer and other direct costs for each customer... The difference between the revenue and the cost of goods sold and other direct costs of the customer is the customer's profit without taking into account the common fixed costs allocated to the customer. The customer's profit after deducting the common fixed costs of the customer will be calculated.
Profit before tax and interest of each customer. Customers with higher profits will bring more profits to the enterprise. From there, the enterprise has specific policies for each customer, with promotion, discount and incentive policies for each specific customer (Appendix 3.22: Business performance report by customer). Based on the Business performance report by customer, the accountant prepares a summary table of business performance reports by customer (Appendix 3.23: Summary report of business performance by customer) to serve as a basis for comparing costs, revenue and business results of customers with each other to determine which customers bring more profits to the enterprise, which customers bring less efficiency to the enterprise, from there, there are measures and policies suitable for the costs incurred by each customer, suitable for the discount and incentive policies for each specific customer.
- Report business results by each sales branch
CBTACN enterprises often divide the product consumption market into branches by region, the North, the Central and the South or by administrative boundaries. To evaluate the performance of each branch, according to the author, CBTACN enterprises should prepare a Business Performance Report for each sales branch (Appendix 3.24: Business Performance Report for each sales branch). The business performance report of the sales branch is determined on the basis of the sales revenue of the branch with the cost price of the products sold by the branch and other direct costs of the branch... The business performance report of the branch reflects the profit of each branch contributing to the overall profit of the enterprise without taking into account the common costs of the branches. The branch profit after deducting the common fixed costs allocated to the branch will calculate the profit before tax and interest of each branch. The branch with a higher profit level will operate more effectively. The business performance report of the branch is also prepared as a basis for comparison, analysis with the budget and comparison with the previous period's actual performance. To compare and evaluate the business performance of different branches, the enterprise prepares a summary report of business performance by branch (Appendix 3.25: Summary report of business performance by branch).
- Report on business results of the whole company
The business performance report of the whole enterprise is prepared to evaluate the overall business performance of the whole enterprise. The business performance report of the whole enterprise can be prepared by the total method or by the direct method. According to the author, enterprises also combine to reflect additional indicators to analyze the results of production and business activities on the business performance report of the whole enterprise so that managers have an overview of the revenue, expenses and results of the enterprise in a period. At the same time, the business performance report of the whole enterprise should be detailed for each month and accumulated to the reporting month to help managers have a basis for comparison and evaluation of the production and business results over the periods. This report form can be used to report business performance for each period (monthly, quarterly or 6 months) and can also be used to prepare a business performance report for the whole year. The business performance report of the whole enterprise can be prepared according to the comprehensive method (Appendix 3.26: Business performance report of the whole enterprise according to the comprehensive method) or according to the direct method (Appendix 3.27: Business performance report of the whole enterprise according to the direct method).
Thus, the business performance report of products, customers, branches or the entire enterprise will be the basis for evaluating the performance of the management department of each product, each customer, each branch. This is the basis for implementing responsibility accounting. For each different department (each product, each customer, each branch will be considered a department in the enterprise), it is necessary to evaluate the situation of using costs and revenues, with the aim of determining the performance of the departments, at the same time, having the basis for rewarding or reprimanding the management staff of that department, drawing experience for better performance in the following periods. However, it should be noted that the officer in charge of that department is only responsible for the costs and revenues that the department can control. For example, the branch director is only responsible for the costs and revenues that the director has the right to control, such as salary costs and salary deductions of the branch and other costs incurred at the branch, but the branch director will not be responsible for the cost of goods sold.
and CP BH, CP QLDN general allocated to branches. Realizing that, enterprises will have the basis to evaluate the business performance of each product, each branch, each customer or the whole enterprise accordingly.
3.3.4. Complete processing and analysis of cost information for cost management
In addition to setting standards, estimating, determining costs and determining business results for each department, enterprises need to evaluate the situation of cost usage and resource usage for production and business activities. To evaluate the situation of cost usage and operating results, enterprises also need to build a system of cost analysis indicators presented in section 1.2.4. Cost analysis with the decision making of cost management of the thesis, including cost - volume analysis
- profit, cost variation analysis based on cost norms and cost estimates, analysis and evaluation of performance of responsibility centers, cost variation analysis through cost reports and cost information for business management decision making.
In order to have a basis for effective cost information analysis, pricing and reporting of business results for each product, each customer and each branch, the author recommends that CBTACN enterprises should implement responsibility accounting. Responsibility accounting in CBTACN enterprises can be organized into departments such as :
- Department managing the production status of each product: each department managing the production of each product is a cost center, only responsible for the cost of the product.
- Department managing the business situation of each customer: each department managing each customer is a profit center, responsible for the costs and revenues related to each customer.
- Department managing the business situation of each branch: each department managing each branch is a profit center, responsible for the costs and revenues related to each branch.
- The department is the whole enterprise: is an investment center responsible for all costs, revenue, profits and investment results of the whole enterprise.
Responsibility accounting organization is also a basis for controlling and enhancing cost management in CBTACN enterprises. Calculating and analyzing cost information will help CBTACN enterprises evaluate the situation of cost usage, cost fluctuations and find positive and negative causes to have appropriate and timely measures to enhance cost management in the enterprise, bringing higher profits to the enterprise.
3.3.5. Choosing a cost accounting model in CBTACN enterprises
Currently, to organize the QA in enterprises, there are 3 basic models, which are the separate model, the combined model and the mixed model. Depending on the scale and workload, each CBTACN enterprise chooses a QA model suitable for the enterprise. According to the author, for large-scale companies such as joint stock companies, RTD companies... it is possible to implement a separate QA model, the QA department is independent from the financial department. In these enterprises, the workload of collecting actual costs incurred to provide financial information to the outside is very large. The need to provide QA information with methods, documents, accounting numbers and QA reports inevitably requires the formation of an independent QA department to provide systematic, regular and continuous information for cost QA in particular and QA in general. For small and medium-sized CBTACN enterprises, a mixed model should be used. That is, the KTTC department still performs normal tasks, but has an additional budgeting department, a project department and an analysis department to use KTQT information. The project department is undertaken by the chief accountant because the CBTACN enterprises rarely have projects. For medium-sized enterprises with large workloads, the budgeting department and the analysis department can be separated into two separate departments to ensure the objectivity of the information. However, for small-sized CBTACN enterprises, the budgeting department and the analysis department can be combined into one department to perform both budgeting and analysis tasks. Regardless of the model chosen, it must be suitable for the characteristics of the management organization, product production characteristics, financial mechanism and scale of operation of the enterprise. The accounting apparatus must be compact, reasonable, without overlap between KTTC and KTQT, and take advantage of KTTC information. The work of KTTC must be clearly defined.
and KTQT in each part of the work volume and specific accounting personnel organization, have close relationship with each other. Ensure staff qualifications, technical means for scientific accounting work.
3.4. Conditions for implementing solutions to improve cost accounting in CBTACN enterprises
3.4.1. On the state side
* Need to expand credit support for CBTACN enterprises
According to the survey of the CARD 030/06 VIE Project “Developing strategies to enhance the competitiveness of rural small and medium enterprises in the agricultural value chain: the case of the animal feed industry”, the area in which animal feed enterprises expect the most support from the government is the credit sector, including support in terms of interest rates and loan amounts for animal feed enterprises. Enterprises face many difficulties in accessing capital such as complicated procedures, lack of collateral, credit restrictions and high interest rates. According to the project survey, up to 47% of animal feed production enterprises surveyed believe that the government should support them to access enough credit as desired: of which 50% are large enterprises, 55% are medium enterprises and 35% are small enterprises [3, p75]. The survey also provides investigation results on the rate of enterprises in need of loans and the rate of enterprises that can borrow. The results in Table 3.11 show that nearly 70% of the surveyed animal feed production establishments borrowed credit, but only 55.6% of them borrowed the desired amount. The percentage of enterprises borrowing capital increased with the scale of production: with the rates being 58.8% for the small group, 73% for the medium group, and 85.7% for the large group, respectively. However, fewer small enterprises borrowed the necessary amount compared to medium and large enterprises (rates were 40%, 63.6%, and 66.7%, respectively).
Table 3.7: Credit loan information of enterprises by size [3,Tr70]
Scale | Total | |||
small | fit | big | ||
Percentage of enterprises borrowing credit | 58.8 | 73.7 | 85.7 | 69.8 |
Percentage of businesses that can borrow | 40 | 63.6 | 66.7 | 55.6 |
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Thus, the survey shows that CBTACN enterprises want to receive government support in the credit sector to ensure business capital and at the same time reduce interest costs, contributing to reducing business costs.
* The State needs to focus on managing the quality of animal feed.
Quality control of animal feed is considered the weakest link in the Vietnamese animal feed processing industry. According to the inspection results of the Department of Animal Husbandry on 408 animal feed samples, of which 200 samples were randomly taken at factories and production facilities, 116 samples did not meet the announced standards (accounting for 58%) and 208 samples taken on the market, 172 samples did not meet the announced standards (accounting for 82.7%). Thus, to achieve the long-term and sustainable goal for the development of the animal feed and livestock industry, the state needs to support enterprises in testing and improving the quality of animal feed by equipping specialized state management agencies with analysis and feed quality testing rooms; building a vertical animal feed quality management system with in-depth expertise; develop research and testing laboratories for animal feed, support enterprises in training testing staff, support enterprises in testing the feed they produce... At the same time, the state also strengthens the inspection and management of the quality of animal feed that has been put on the market.
* Building concentrated raw material areas
Raw materials for animal feed processing account for a high proportion in the cost of feed products. However, the Vietnamese animal feed processing industry is having to import most of its raw materials, 90-95% of raw materials such as soybeans and oil cake must be imported, and 95-98% or even 100% of refined raw materials such as mineral premixes, vitamins, colorants, and flavoring agents must be imported. However, in our country, there are almost no concentrated raw material areas. The requirement is that the state needs to build concentrated and stable raw material areas to ensure input for the animal feed production process. The specific task is to carry out planning to expand the area of raw material areas, develop high-yield crop varieties suitable for natural conditions.
of each region, develop irrigation systems for raw material areas, have mechanisms to encourage animal feed production facilities to directly sign contracts with farmers to invest in building raw material areas to grow corn, soybeans, cassava... to have a stable source of raw materials and commit to purchasing all raw materials for farmers, only then will we ensure stable input materials for animal feed production, reduce costs and reduce dependence on imported sources.
* Ensure stable output for animal feed and have a price stabilization mechanism
To ensure output for animal feed, the livestock industry needs to be developed stably. The State needs to develop livestock enterprises in the form of large-scale farms. Develop hygienic slaughtering industry and livestock product processing to meet market demand. The State also needs to have a program to encourage livestock farmers to use industrial feed to ensure hygiene, ensure nutrition and prevent diseases for livestock.
* Developing the international accounting system in enterprises
Vietnam should apply the experience of Japan, after World War II, from the 1950s to the 1970s of the last century, the Japanese government implemented programs to introduce and apply European and American international accounting to Japanese enterprises, thus contributing to the recovery, stabilization and development of the Japanese economy after the war. In Vietnam, the government issued Circular 53/2005/TT-BTC of the Ministry of Finance. The Circular guides a number of concepts and methods of implementing international accounting in enterprises. However, due to the mentality of enterprises in general and accountants in particular that management accounting is not mandatory, plus the understanding of the theory and application of management accounting is still weak, and the effects of international accounting in enterprise management are not yet seen, so although there is a guiding circular, it has not attracted the attention of enterprises to apply it in practice. Therefore, the state, specifically the Ministry of Finance, needs to, through the Vietnam Association of Accountants and Auditors, support enterprises in propaganda, training, research and implementation of putting international accounting into practice in enterprises.
3.4.2. On behalf of the Vietnam Animal Feed Association
It is necessary to enhance the role of the Vietnam Animal Feed Association (VAFA). This is not only