The system of cost accounting in economic theory is considered one of the most difficult to study. This category has a historically transitional character. The principles of cost accounting are governed by the law of value. Let's consider this category in more detail.
general characteristics
Self-financing is one of the tools that is used to solve socio-economic problems. It involves the use of value categories and indicators adequate to them. Self-financing is a method of eliminating the contradictions between consumer value and the price of a product under the conditions of functioning of a socially oriented market model.
Development features
The introduction of cost accounting began in 1922. Initially, it was called commercial. In process of enlargement of planned principles in the sphere of management, he became economic. Before, enterprises were financed by budget funds. Funds were allocated in accordance with the actual costs of releasing goods. With such funding , labor productivity almost did not increase. The introduction of cost accounting is aimed at creating an economic incentive for its growth. In addition, due to it, savings in financial, labor and material resources are provided .
Implementation specifics
In socialist practice, several attempts have been made to switch to such a financing system. However, they all failed. There were many reasons for this. The main of them was the lack of competition, competitiveness of economic entities - sellers, owners, consumers. In a market environment, cost accounting is a necessary condition for business development. It is becoming one of the most important economic instruments.
Principles of cost accounting
Organization of financing is based on:
- Cost recovery and profitability. Self-financing is a tool that provides all normally working organizations with reimbursement of production costs and income. Each company must make a profit sufficient to cover costs and generate free capital.
- Economic and operational independence. Each company is given the opportunity, at its sole discretion, to manage property, plan production, sell products, and hire employees. All enterprises on self-financing have their own bank account, receive loans. Organizations have their own balance sheet, reporting.
- Liability. The organization and its employees are responsible for non-fulfillment of obligations, irrational use of resources and other actions that are carried out in the process of work. If the company does not achieve the planned indicators, the quality of the goods decreases, a simple one is allowed, marriage and so on, then its income is reduced. This circumstance affects the relationship with customers, consumers, suppliers, creditors. Delays in payment, deliveries, and deductions to the budget begin. Accordingly, there are negative consequences for the business in the form of sanctions.
- Material interest. All operating expenses are covered by the company from its own funds. Thus, solvency and costs depend directly on profit. The better the company works, the more stable its financial situation. Effective performance is important to staff. This is due to the fact that an incentive fund is formed from income, which acts as a material incentive for employees.
- Ruble control. This principle means that the outcome of a company should depend on its contribution, and not on other reasons (inflation or the presence of a non-monetary market segment). Essential for such control is the procedure in accordance with which financing of capital investments is carried out. Investing in production, banking organizations contribute to a more complete mobilization of resources and increase work efficiency.
conclusions
As can be seen from the above provisions, the essence of the market model fully reflects exactly self-financing. The year is taken for the reporting period. At the end of the analysis of the achieved indicators. During it, the weaknesses and strengths of the adopted concept of enterprise development are identified. Based on the conclusions made, tasks for the next period are formed.
Model development
With this method of managing, the question arises of transferring the principles given above from the enterprise as a whole to a specific employee. This, in particular, is about the formation of an internal model that acts as a tool to increase labor productivity. Effective organization activity in market conditions is possible with a clear and properly organized interaction of all departments, the interest of teams and individual employees in achieving high performance. As practice shows, the promotion of cost-accounting as a method and principle of management at the primary link level, based on a comparison of results with expenses, does not directly and directly stimulate employees and does not strengthen their responsibility for the results of activities. In this regard, the approximation of the model to a specific employee is required. In other words, the goals and benchmarks of cost accounting are transferred to on-farm relationships.
Key Tasks
Internal cost accounting involves the financing of workshops, production units, services, departments and other units involved in economic relations. It is necessary for the efficient use of reserves and to achieve better results in the work of the entire company as a whole. The key tasks of internal cost accounting are:
- Strengthening the operational and economic independence of individual units with a simultaneous tightening of responsibility for the indicators achieved.
- Effective coordination of collective activities.
- Strengthening the interest of departments and employees in the results.
- Formation of the mechanism of property interactions between personnel and owners of the enterprise.
- Improving the payroll system. In this case, the basis will be the assessment of the final result of labor in the market.
- Improving the culture of production, working conditions and life of employees, strengthening social protection.
- Increasing social and labor activity of the team.
Internal cost accounting acts as an organic part of the overall enterprise management system. It is formed by combining the independence of the unit and centralized planning leadership, profitability and payback, liability and interest, the unity of interests of each employee and the whole team as a whole.