Problematic Aspects Relating to the Recognition of Indirect Production Costs

Rodica Cusmaunsa,Natalia Curagau

doi:10.53486/econ.2021.118.125

Abstract

This article examines some problematic issues regarding the recognition of and the accounting for the indirect production costs related to the service of the entity’s production subdivisions if the actual consumption costs are incurred during a reporting period, but the respective primary documents are received and/or accepted by the beneficiary in another reporting period. By using the research methods, such as document analysis and deduction, the authors have investigated the local researchers’ opinions, which resulted in formulating stronger conclusions and recommendations regarding the recognition and reflection of indirect production costs in the month of the effective consumption of their resources, as well as the way of declaring the respective value added tax.

Highlights

In the process of calculating the cost of the manufactured products and/or services rendered, an important aspect is the recognition of production costs, which must ensure: compliance with the basic principles of accounting; delimitation of costs for the management periods; documentary confirmation and bookkeeping method of analytical and synthetic records [9, p. 265].Conform art. 6 al Legii contabilității și raportării financiare nr. 287/2017, elementele contabile se recunosc în baza principiului contabilității de angajamente, care presupune recunoașterea elementelor contabile pe măsura apariției acestora, indiferent de momentul încasării/plății de numerar sau al compensării sub altă formă [4].Regulile generale de recunoaștere a costurilor de producție sunt stabilite în pct. 7 al Indiсаțiilor mеtоdiсе privind соntаbilitаtеа соsturilоr dе prоduсțiе și саlсulаțiа соstului prоdusеlоr și sеrviсiilоr [3]
This article examines some problematic issues regarding the recognition of and the accounting for the indirect production costs related to the service of the entity’s production subdivisions if the actual consumption costs are incurred during a reporting period, but the respective primary documents are received and/or accepted by the beneficiary in another reporting period
The current practice of reflecting the costs related to the consumption of electricity, heating, water, natural gas, sewerage, etc. in the month following their actual consumption upon receipt and / or acceptance of the primary documents is distorting the amount of the actual cost of the manufactured products, provided services and works performed during the respective reporting period

Summary

RECOGNITION OF INDIRECT PRODUCTION COSTS

Sunt examinate unele aspecte problematice privind recunoașterea și contabilizarea costurilor indirecte de producție, aferente deservirii subdiviziunilor de producție ale entității, în cazul în care costurile efective aferente consumului de resurse productive sunt suportate într-o perioadă de gestiune, iar documentele primare aferente sunt recepționate și/sau acceptate de către beneficiar în altă perioadă de gestiune. This article examines some problematic issues regarding the recognition of and the accounting for the indirect production costs related to the service of the entity’s production subdivisions if the actual consumption costs are incurred during a reporting period, but the respective primary documents are received and/or accepted by the beneficiary in another reporting period.

Introduction

Preliminary costs

Supporting documents

Conclusions