- Fixed asset depreciation costs
6424 | x | |||
- Taxes, fees, charges | 6425 | x | ||
- Outsourcing service costs | 6427 | x | ||
- Other monetary expenses | 6428 | x |
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- Machine operator labor costs: Including salaries, wages, and salary allowances of machine operators. This expense is a variable cost because salaries are paid to machine operators based on the volume of work.
- Material costs include fuel (gasoline, oil, grease, etc.) and other materials used for construction vehicles. Material costs used for construction machinery are mixed costs.
- Production equipment costs and depreciation costs: are fixed costs because computer depreciation is done using the straight-line method.
- Outsourced service costs and other cash costs such as: outsourced motorbike repair, motorbike insurance, electricity and water costs... are mixed costs.
General production costs are mixed costs. Specifically, fixed cost elements are: workshop staff costs, material costs, production equipment costs, fixed asset depreciation costs. Mixed cost elements are both variable and fixed costs such as taxes, fees, charges, costs of purchased external services (electricity, water, testing, money transfer fees, etc.), other cash costs (entertainment, business expenses, etc.).
Business management costs are mixed costs. Specifically, fixed cost elements are: management staff costs, material costs, office supplies costs, fixed asset depreciation costs. Mixed cost elements that are both variable and fixed costs are costs of purchased external services (electricity, water, telephone, advertising, auto insurance, guarantee fees, money transfers, etc.), other cash costs (reception, business expenses, transaction fees, newspapers, postal items, etc.).
In this classification, a problem arises as to how mixed costs should be analyzed in order to be able to predict mixed costs relatively accurately.
will arise under specific conditions. To solve this problem, the Company can apply the high-low method or the least squares method to analyze mixed costs into fixed and variable elements.
3.2.2. Perfecting the organization and application of the accounting method of collecting production costs to serve cost management accounting.
3.2.2.1. Perfecting the accounting voucher system to serve cost management
According to the model of combining financial accounting and management accounting in the same accounting system, the company can use the initial information collected from documents according to the regulations of the financial accounting regime such as: Value added tax invoices, allocation tables, warehouse receipts, warehouse delivery notes, etc. To obtain detailed information, first of all, for mandatory documents, documents with detailed indicators must be recorded fully, clearly, and in detail according to the requirements of detailed cost accounting to serve the entire cost management accounting department. For detailed indicators that do not exist or are not specified on the documents, it is necessary to record additional or supplement the instruction documents. Instruction documents must be specific according to the indicators that directly serve the collection, processing and provision of internal management information.
Currently, the company has a system of documents built according to a relatively complete financial accounting regime and a relatively reasonable system of norms, so to serve cost management accounting, the company can design additional documents with an alarming part when reflecting fluctuations exceeding the norm of materials, labor, etc. These documents will provide timely and quick information to managers about the situation of using cost factors compared to norms and plans, thereby having appropriate solutions to save materials, labor, and capital in production. The company can design some of these documents according to Form 3.2.
3.2.2.2. Perfecting the system of accounts and accounting methods on accounting accounts
Basically, the construction of the accounting system in the company is still based on the accounting system issued under Decision 15/2006-QD/BTC. However, to serve the purpose of management accounting decision making, the cost accounting system in the company needs to be designed and constructed so that the accounts reflect the costs incurred according to the cost behavior.
Therefore, cost management accounting can use financial accounting accounts related to costs such as: Accounts 621, 622, 627, 642, ... but need to detail into separate variable cost and fixed cost accounts, then detail for each construction team and each project. For example:
Account 623B - Details for each construction team or project: Used to collect variable costs for using construction machinery.
Account 623D - Details for each construction team or project: Used to collect fixed costs for using construction machinery.
Account 627B - Details for each construction team or project: Used to collect general production variable costs.
Account 627D - Details for each construction team or project: Used to collect general production costs.
Account 642B: Used to collect variable costs of business management. Account 642D: Used to collect fixed costs of business management.
Table 3.2. Warehouse delivery note
WAREHOUSE DELIVERY NOTE
Date ….month….year Debit:…….. Credit:……..
- Full name of consignee:…………. Department: ……Construction team number ……
- Reason for export:……………………………………………………………..
- Issued from warehouse:…………………………. Location: …………………………
STT
Name, brand, specifications, quality of materials, condenser | Code | Unit of measure | Quantity | Unit price | Total amount | |||||||
Standard | Actual output | Over quota | Standard | Actual output | Over quota | Standard | Actual output | Over quota | ||||
A | B | C | D | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
Add | ||||||||||||
- Total amount: + Rate:………………………………………………….
+ Reality:……………………………………………………
- Confirmation of receipt of excess materials: Quantity…… Total Amount:…….
- Reason: ………………………………………………………………………….
Table 3.3 . Labor monitoring form for direct workers
LABOR TRACKING FORM FOR DIRECT WORKERS
- Construction team:…………
- Project: ………….
Date
Project categories | Unit of measure | Construction volume | Unit price of construction volume | Amount paid | Compensation for damages | Amount remaining to be received | ||||
Construction volume according to plan plan | Actual construction volume | Construction volume does not meet requirements bridge | Construction volume is paid maths | |||||||
Add | ||||||||||
Production costs after being collected will be transferred to account 154 - Details for each project, project item to calculate the cost of the project, project item, until completed and stored in the warehouse, then accounted for in account 632.
Thus, the design of a detailed accounting system of management accounting combined with the immediate use of a number of general accounts of financial accounting as above is suitable for the model of combining management accounting and financial accounting, which ensures the provision of information for managers to make timely and effective business decisions.
On the other hand, in the process of accounting for some cost aggregation operations that are still not in accordance with the current regime, it will affect the determination of the cost of the project, which will affect the determination of the bidding price in competition. The company needs to improve in the following direction:
At Thai Nguyen Traffic Construction Joint Stock Company I, when accounting for loan interest expenses for construction works, the accountant records it in account 635. Such accounting is incorrect.
in accordance with the current accounting regime. To comply with the accounting regime, the company's accountant should directly calculate or indirectly allocate loan interest for each project according to the loan capital ratio used for each project and account for it in account 627(8) - Details for each project. Only then will the cost of the project be accurately reflected and that is a reliable basis for determining the bidding price of the project in the next times. Account for loan interest expenses according to the following provisions:
When calculating interest expense, accountants record:
Debit account 627(8) - Details for each project Debit account 142, 242 (If allocation is required)
Credit account 111, 112, 338(8)... (Interest payable) If interest must be allocated to each project, the accountant records: Debit account 627(8) - Details for each project
There are accounts 142, 242
The current accounting of deductions based on social insurance, health insurance, union fees, and unemployment insurance is not in accordance with regulations. The company accounts for deductions based on the salaries of direct construction workers and construction machine operators in account 642 without accounting for them in account 627 - Details for each project. Therefore, when accounting for deductions based on the salaries of direct construction workers and construction machine operators, the company should account for them in accordance with the prescribed regime in account 627 - Details for each project. For deductions based on salaries, the company can directly aggregate or indirectly allocate them according to the salaries of workers for each project. Only then will the cost of the project be accurate. The company's accountant can account for deductions based on the salaries of direct production workers and workers operating vehicles and construction machines according to the following provisions:
Debit account 627(1) - Details for each project Debit account 334
Have account 338 (2,3,4,9)
3.2.2.3. Perfecting the cost management accounting system
Currently, Thai Nguyen Transport Construction Joint Stock Company I uses a cost management accounting system which is a detailed book of financial accounting designed according to the information requirements of financial accounting, so it does not meet the information requirements of management accounting, and is not effective in providing information for managers to make decisions because the detailed cost accounting books are only detailed according to cost factors, but not detailed according to the behavior of costs such as variable costs and fixed costs.
Based on the cost classification in management accounting, the Company's Cost Detail Book system also needs to be designed in detail into variable costs and fixed costs to be able to provide information for cost reporting and cost analysis of management accounting.
Thus, cost management accounting can design some detailed books as follows:
- Direct material cost details book: Tracks costs in detail for each project, each type of material and details according to cost behavior (Table 3.4).
Table 3.4. Direct material cost detail book
DIRECT MATERIALS COST DETAIL BOOK
- Account:
- Construction unit:
Document | Interpretation | TK corresponding | Debit account 621 | ||||||||
Total amount | Divide | ||||||||||
Number | Date | Variable cost | Fixed cost | CP mixed | Steel | Sand | Stone | Cement | |||
- Number of occurrences during the period | |||||||||||
- Add the number of broadcasts born in period | |||||||||||
- Name of project, project items:
…
- Credit account 621 |
- Direct labor cost details book: Details by project, by salary and details by behavior (Table 3.5).
Table 3.5. Direct labor cost detail book
DIRECT LABOR COST DETAIL BOOK
Account:
Construction unit:
Name of project, project items:
Document
Interpretation | TK corresponding | Debit account 622 | ||||||||
Total amount | Divide | |||||||||
Number | Date | Variable cost | Fixed cost | CP mixed | Product salary | Time wage | Salary allowance | … | ||
- Number of occurrences during the period | ||||||||||
- Total number of occurrences during the period - Credit account 622 | ||||||||||
- Detailed book of construction machinery usage costs, detailed book of general production costs, detailed book of business management costs: Track details for each project, for each cost element and for cost behavior (Table 3.6).