Abstract:

The most important indicator of the economic efficiency of production is cost which reflects all aspects of economic activity and accumulates the results of the use of all production resources. The rate of expanded reproduction, financial performance and the financial condition of the economic entity depend on its level. Therefore, this indicator remains a tool for accounting assessment and the basis for calculating financial results. Practitioners always needed to know the boundaries of cost in which in a particular market one can get predicted profits. With the beginning of market relations in our country a new concept of accounting system began to take shape; the attitude towards industry regulatory documents reflecting the specifics of the production process has changed in the accounting community. This is not entirely justified since each industry and organization functioning in it has its own specific features. Differences arise in many ways including the formation of the cost of finished products (works, services), the proportion of its economic elements. They are associated not only with the industry specifics of production processes but also with different levels of technical equipment and the peculiarities of objects of labor.