3. Fuel used in production
4. Motives used in production
5. Production worker wages
6. Social insurance of production workers
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7. Depreciation of machinery and equipment
8. Workshop management costs
9. Enterprise management costs
10. Loss in production
It can be seen that the cost items in the product cost price in this period basically remained the same as the accounting system in 1970, the only difference is that the two items "damage to defective products in main production" and "damage to production stoppage" were combined into one item "damage in production" and the item "cost of using machinery and equipment" was converted into "depreciation of machinery and equipment". The costs of repairing and maintaining production machinery and equipment were combined into the workshop management cost item.
Thus, this period still maintained the view that factory management costs were an item in the product production cost as in the 1970 accounting system. In addition, in addition to the cost items included in the factory cost of the product, there was also the circulation cost item, a new and direct name for the non-production cost of the previous 1970 accounting system.
Regarding accounting accounts and accounting methods , the accounts used to record expenses are type III accounts, including:
Account 30 – Main production and business Account 31 – Secondary production and business Account 32 – Workshop management costs Account 33 – Enterprise management costs Account 34 – Circulation costs
Account 36 – Estimated costs Account 37 – Production losses
In addition, cost accounting also uses related accounts such as: Account 21
– Raw materials, materials, Account 22 – Small labor tools, Account 24 – Finished products, Account 50 – Cash, Account 51 – Bank deposits, Account 60 – Payment to sellers, Account 68 – Social insurance payment, Account 69 – Payment to employees, Account 82 – Capital for basic construction…
The production cost accounting process during this period is summarized in diagram 2.7.
Account 21,22 Account 30 Account 24 Account 40
(1a)
(3)
(4)
TK 82
Account 31,32,33
(1b)
(2)
Account 50,51,60
TK 34
(1c)
(5)
Account 68,69
Diagram 2.7 Accounting for production and business costs according to the 1989 accounting system
Diagram legend:
(1) Collect the cost elements incurred into the debit side of the production and business cost accounts according to the economic function of the cost.
(2) Carry forward and allocate auxiliary production costs, workshop management costs and enterprise management costs
(3) Factory cost of finished products in stock
(4) Factory cost of products exported to consumers
(5) Allocate non-manufacturing costs to consumed products
The differences in the accounts used and the cost accounting methods of this period compared to the 1970 accounting regime are:
- The accounts “Main production” and “Sub-production” were renamed “Main production and business” and “Sub-production and business”. This renaming originated from the characteristics of the economy in this period, which had shifted from a centralized planning regime to a market economy regulated by the state. Production units no longer simply had the function of producing according to the state-assigned plan, but had to be autonomous in producing and consuming the products they produced.
- The cost of using machinery and equipment is not tracked in a separate account, although the depreciation of machinery and equipment is still a separate item in the cost of products. The depreciation cost of production machinery and equipment in this period is directly recorded in account 30 - Main production and business, while the cost of maintaining and repairing machinery and equipment is recorded in account 32 - Workshop management costs.
It can be seen that although the symbols of accounts and the method of accounting for depreciation of production machinery and equipment have changed, the cost accounting method of this period is basically the same as the accounting regime in 1970.
Regarding accounting books, during this period accountants continue to have to open detailed books for each item in the product cost and units continue to mainly apply the form of Journal - Voucher. Books related to cost and price accounting during this period include:
- Allocation table : Allocation table No. 1 - Allocation table of salary and social insurance; Allocation table No. 2 - Allocation table of raw materials, supplies and small labor tools; Allocation table No. 3 - Calculation and allocation of depreciation of fixed assets; Allocation table No. 4 - Calculation of cost price and allocation of labor for secondary production and business.
- List: List No. 4 – Collection of production costs by workshop; List No. 5 – Collection of factory management costs, circulation costs and basic construction investment costs; List No. 6 – Estimated costs; List No. 7 – List of losses in production.
- Voucher log : Voucher log number 7 - Collects production costs of the entire enterprise, summarizes production costs by element and detailed data on internal circulation.
Regarding the method of evaluating unfinished products , this period still commonly applies the method of evaluating by equivalent estimated output according to the average calculation method, and can choose to calculate according to actual cost, standard cost or planned cost like the period before 1990.
Regarding the method of calculating the cost of finished products, simple methods, step methods, order methods or standard methods are still applied appropriately to the characteristics of each specific unit.
Regarding the report on production costs and product prices , according to Decision No. 224 TC/CDKT dated April 18, 1990, the Ministry of Finance stipulates the periodic accounting reporting regime applied uniformly to state-owned enterprises, including the following reports:
Table 01/BCKT – Asset summary table Table 02/BCKT – Business results
Table 03/BCKT – Production costs by factor
Form 04/BCKT – Explanation of production and business results
It can be seen that during this period, the requirement for mandatory reporting on the situation of costs and prices was simplified and reduced significantly compared to the period before 1990, from 5 mandatory reports reduced to one report (Form 03/BCKT - Production costs by factor) and only had to be prepared annually and sent to financial agencies, competent agencies, banks and statistics. This change came from the transformation of the economy from a centrally planned to a market economy regulated by the State, the legal indicators for production and business units no longer existed as heavily as before, so the management of costs and prices was the responsibility of the production and business units themselves, not subject to centralized management by the State.
The above presentation shows that the cost and price accounting system in the period 1990 - 1995 had certain changes compared to the previous period.
1990, however, the basic features of the accounting method were still maintained as in the previous period. According to the author, the biggest difference between the cost and price accounting system in the period 1990 - 1995 and the period before 1990 was that it was more "loose" in implementing the responsibility of providing information to the State.
2.2.1.3. Cost accounting system from 1996 to present
The basic characteristic of the country's economy during this period is that Vietnam is in the process of international economic integration. Since the mid-1990s, Vietnam's economy has developed remarkably compared to the previous period, with many foreign investment projects in many fields. Foreign investment capital is increasing and playing an important role in the country's economic development. In July 1995, Vietnam officially became a member of the Association of Southeast Asian Nations (ASEAN) and signed the Agreement on the ASEAN Free Trade Area (AFTA). The roadmap to implement the Agreement is that Vietnam must gradually reduce and eventually eliminate import tax rates on goods originating from ASEAN starting from 1996 and must be basically completed by 2006. In addition, Vietnam is currently in the process of negotiating to join the World Free Trade Organization (WTO). With the goal of creating an open environment to attract foreign investment and integrate into the regional and world economy, during this period, the Vietnamese accounting system had many innovations.
On January 1, 1995, the Ministry of Finance issued the Enterprise Accounting Regime under Decision 1141-TC/QD/CDKT after being researched since 1994 and applied experimentally since 1995 in 642 enterprises with different scales, business fields and economic sectors. The process of innovating the Vietnamese accounting system did not stop there. On October 30, 1998, the Steering Committee for Research and Drafting of Vietnamese Accounting Standards was established under Decision No. 1503/1998/QD-BTC with the task of directing the research and drafting of Vietnamese accounting standards on the basis of international accounting standards issued by the International Federation of Accountants (IFAC) and applying them appropriately to the practical conditions of the Vietnamese economy with the deadline for completion being 2003. On March 14, 2000, the Minister of Finance decided to promulgate and announce the application of the Vietnamese Accounting Standards and Auditing Standards System under Decision No. 38/2000/QD-BTC. As of December 28, 2005, 26 accounting standards had been issued. In addition, a point of change
The fundamental innovation of the accounting system during this period was the 1988 Ordinance on Statistical Accounting, which was replaced by the Accounting Law passed by the National Assembly on June 17, 2003, creating a better legal basis for accounting activities. Based on the synthesis of circulars guiding the implementation of issued accounting standards, on March 20, 2006, the Ministry of Finance issued a new enterprise accounting regime under Decision No. 15/2006/QD-BTC replacing Decision No. 1141 TC/QD/CDKT. This new accounting regime has many fundamental and progressive innovations compared to the 1995 accounting regime, however, the contents of cost accounting remain almost unchanged.
Characteristics of the cost accounting system during this period are as follows:
Regarding cost classification , this period has a clear distinction between the economic content and the use of costs. If considered according to economic content, the total production and business costs of an enterprise are divided into 5 factors, including:
1. Cost of raw materials
2. Labor costs
3. Fixed asset depreciation costs
4. Outsourcing service costs
5. Other expenses in cash
If considered according to the function of costs, production and business costs are arranged into 5 items, including:
1. Direct material costs
2. Direct labor costs
3. General manufacturing costs
4. Selling expenses
5. Business management costs
In which the first three items are included in the product manufacturing cost, the last two items are not included in the product manufacturing cost but are directly included in the business cost to determine the profit and loss in the period. It can be seen that the cost items in the product cost in this period are consistent with the items.
costs in product costing according to international accounting practices and that is a very basic difference compared to previous accounting systems. Another important difference is that business management costs (formerly called factory management costs) are no longer included in the production cost of the product.
Regarding accounting accounts and accounting methods , the accounts used to record costs include the following basic accounts:
Account 611 – Purchases
Account 621 – Direct material costs Account 622 – Direct labor costs
Account 627 – General production costs Account 631 – Production costs
Account 632 – Cost of goods sold Account 641 – Selling expenses
Account 642 – Business management expenses
Account 154 - Work in progress Account 155 - Finished products
Account 911 – Determining business results
In addition, related accounts are also used such as: Account 152 - Raw materials, Account 153 - Tools and equipment, Account 111 - Cash, Account 112 - Bank deposits, Account 331 - Payable to sellers, Account 334 - Payable to employees, Account 338 - Other payables, Account 214 - Fixed asset depreciation, etc.
Because the inventory accounting method in this period can be carried out according to two methods: regular declaration and periodic inventory, the cost accounting and product cost calculation are also regulated differently according to these two methods. However, in reality, most manufacturing enterprises apply the regular declaration method. The production cost accounting process in this period is summarized in diagrams 2.8 and 2.9.
Account 152, 153
Account 621
Account 154 Account 155, 157
TK632
TK911
(1a)
(2a)
(3)
(4a)
(5)
Account 334, 338
Account 622
(1b)
(2b)
Account 214
Account 627
(1c)
(2c)
(4b)
Account 111, 112
Account 641
(1d)
(6)
Account 331
Account 642
(1e)
(7)
Diagram 2.8 Accounting for production and business costs according to Decision No. 1141-TC/QD/CDKT (Regular declaration method)
Diagram legend:
(1) Collection of cost items
(2) Carrying over and allocating product manufacturing costs
(3) Production cost of finished products stored in warehouse or sent for direct sale during the period
(4) Production cost of products consumed during the period
(5) Carry over cost price (cost of goods sold) of products consumed during the period
(6) Carry forward selling expenses incurred during the period
(7) Carry forward business management costs incurred during the period