The features of machine-building enterprises lie primarily in the fact that one branch of machine-building combines production with different technological processes, different in the degree of combination, in the combination of technological operations, in the range of products.

However, all engineering enterprises have common features that leave their mark on the organization of cost accounting and costing.

These common features are:

– the cost of materials takes from 70-90% of the cost of production;

– raw materials are not used at machine-building enterprises;

– the technological process at machine-building and metalworking enterprises includes, as a rule, the following technological operations: procurement, processing, assembly. In addition, there are a lot of auxiliary shops;

– at machine-building enterprises, a wide range of rather expensive replaceable equipment is used, which requires significant costs for maintaining it in working condition.

In this regard, the range of cost items at machine-building enterprises is approximately the same and includes the following items:

– basic materials;

– purchased components and services of cooperative enterprises;

– auxiliary materials;

– returnable waste;

– fuel and energy costs for technological purposes;

– depreciation of special-purpose tools and fixtures and other special expenses;

– the cost of wages of production workers;

– deductions for social needs;

– expenses for the maintenance and operation of equipment;

– expenses for the repair of fixed assets;

– depreciation of fixed assets;

– overhead costs;

– business expenses.

The full cost of commercial products is determined not only as a whole for finished products, but also for individual parts of products, in the event of their possible sale.

The given nomenclature of articles is recommended by industry recommendations for cost accounting, costing at machine-building enterprises. This nomenclature can be changed depending on the organization of production, on the specifics of production at a particular machine-building enterprise. In particular, heavy engineering plants allocate costs associated with intra-factory movement of goods.

As a rule, large machine-building enterprises that produce products of complex design, in cooperation with other enterprises, receive from them part of the parts and assemblies used in the assembly of the finished product.

In this regard, as part of the calculation, such costs are allocated in a separate article. The same costing item reflects the costs of paying for the services of cooperative enterprises for the performance of certain technological operations for this enterprise.

Due to the high material consumption of products of machine-building enterprises, as a rule, the cost of basic materials is reflected in the costing by groups of materials.


For engineering enterprises that produce products in small batches, or in general individual products that are rarely repeated during the year, it is recommended to use the order-based method of cost accounting and costing.

As a rule, output at such enterprises is almost individual.

Planning the cost of such products, as a rule, is difficult, since there are no norms of expenditure necessary for planning for order fulfillment.

Preliminary development of such norms requires quite a long time, which is associated with additional costs. Therefore, cost planning is based on the accepted estimates.

Consequently, cost control during order fulfillment is difficult. Production associated with a specific customer requires a clear organization of accounting for actual costs. Transferring costs from one order to another is not allowed. In this regard, at such enterprises, when accepting an order for production, a special statement is opened for this order or a card file for order fulfillment, which takes into account all primary documents for writing off the costs of material, labor resources to the cost of this order. Thus, the cost accounting object and the calculation object for the order method are the same. The object is an order, regardless of the number of products not included in it. At the same time, several orders can be produced in the workshop, at the enterprise. This results in indirect costs. This, at a minimum, is general production and general business expenses. For such costs, it is necessary to develop the principle of their distribution between the objects of calculation. As a rule, they are written off to the cost of actually completed orders in the current month, that is, such expenses are not left in work in progress. Evaluation of work in progress is made only at direct costs.


At mechanical engineering and metalworking enterprises, which are distinguished by the simplicity of their products, the absence of an assembly operation, with the sequential processing of objects of labor on production lines, where the workpiece is at the input and the finished part is at the output, it is advisable to use the cost accounting method for costing and costing.

At enterprises producing simple parts or products (spare parts, tools), processing is carried out on production lines and includes a procurement operation and finishing operations. These production lines are set up to produce a given product. After the release of a certain series of these products, the production line can be reconfigured to produce another product.

The listed features of the same type of serial production make it possible to use the product-by-product method for calculating the cost. The object of cost accounting and the object of calculation is, as a rule, one product. In a direct way, they take into account the costs of basic and auxiliary materials, the cost of wages for production workers with deductions, the cost of maintaining and operating equipment, and compensating for tool wear. However, if several production lines are installed in the workshop, or if these production lines are reconfigured for the production of other products within a month, then indirect costs arise, the accounting object of which is the workshop as a whole. In addition, general expenses are also included in indirect costs.

The distribution of indirect costs between the objects of calculation is carried out in proportion to the base reflected in the accounting policy of the enterprise.

It should be noted that sometimes at small-scale production enterprises that produce the same type of products for sale, the products are bundled by the customer. The scope of supply includes several different items. In this case, the object of costing becomes a set of products.

With the piece-by-piece method at the enterprises of mechanical engineering, it is also possible to simultaneously use the step-by-step method. The need to use the progressive method arises at those enterprises where blanks are cast in foundries prior to metal machining.

With the cross-sectional method of costing, workpieces are carried out in two stages. First, the cost of steel smelting (iron casting) is calculated, and then the cost of liquid metal is included in the cost of the resulting cast billet.

Thus, at the enterprises of small-scale production, several methods of calculating the cost of production can be used simultaneously.


The largest share in terms of marketable output is occupied by machine-building enterprises that produce mass-similar products of complex design.

As a rule, such products are produced on a stream by sequential assembly of parts into units, and then units into a finished product. Such enterprises are distinguished by the production of the same type of products for a long time. This produces one model, but modifications may vary. At the same time, modifications have minor differences, replacement of models is extremely rare. All of the above features of mass and large-scale engineering make it possible to apply the standard method of cost accounting and costing.

Uniformity, non-replacement of production for a long time makes it possible to scientifically substantiate, correctly calculate the norms of resource consumption for the production of each part, assembly and product as a whole.

The normative method of cost accounting and costing is based on the use of scientifically based consumption rates to account for the consumption of resources.

The essence of the normative method of cost accounting and costing is that in the absence of deviations in the technological process, the actual cost of commercial output can be determined by multiplying the standard cost of a unit of production by the volume of production produced.

If any deviations from the normative consumption of resources occur, they are recorded. Then the actual cost of a commodity output can be calculated as the standard cost of this output plus or minus the registered deviations from the norms.

Advantages of this method:

v A sharp reduction in accounting operations for the primary registration of the consumption of various types of resources;

v Efficiency of obtaining the actual cost of commodity output (per shift, day, etc.);

v There is a real opportunity to automate the process of cost accounting and costing of products;

v Gives you the ability to quickly respond to deviations from the norms of consumption that occur during the production process, that is, it allows you to quickly manage costs.


The application of the normative method of cost accounting and costing is impossible without a scientifically based regulatory framework. The regulatory framework should include cost rates for each type of resource used for each part, assembly, product.

At the same time, cost rates should not only be scientifically substantiated during their development, but also changed taking into account the increase in the technological level of production, as well as the increase in the efficiency of production organization.

The cost rate is understood as the maximum allowable consumption of specific types of resources for the production of a unit of product. To apply the standard method, it is necessary to use the following main groups of production cost rates:

– consumption rates of materials, components, fuel and energy for technological purposes, that is, material rates;

– cost rates per unit of product and their corresponding prices, that is, labor standards;

– the rate of expenditure for the maintenance of production and management, that is, the rate of overhead costs.

The consumption rates of the main and auxiliary materials that make up the structural basis of the product are developed for each part with their subsequent generalization as a whole for the product. When establishing the rate of consumption of materials, the calculation of its losses during processing, the coefficient of use of materials is calculated. This coefficient shows the ratio of the weight of the finished product to the weight of the materials consumed for its production.

Material standards include fuel and energy for technological purposes, they are normalized per unit of production by type of technological process.

The norms of labor costs include the norms of the cost of working time and prices per unit of output in monetary terms. They are calculated for each production operation, and then cumulatively for a part, assembly, product.

Overhead rates have their own peculiarity of definition and use. They are not installed on every detail, but are developed as a whole for the product. They are set only in monetary terms.

According to the scope of application, all of the listed norms are divided into:

– individual, which depend on the characteristics of the organizational and technological level of development of the enterprise;

– sectoral, which depend only on the type of product and do not depend on which enterprise they are used in.

Individual and industry standards must be combined. This makes it possible to use advanced experience in engineering and technology.

Norms for direct costs (material and labor) can be set in two ways:

– the calculation and analytical method is based on the analysis of production conditions, on technological calculations;

– experimental-statistical method – data on the average consumption of resources for the previous period become the basis for calculating the norms.

Even if it is impossible to develop norms by the calculation-analytical method, the use of the second method should be accompanied by a deep analysis of the statistical series.

According to the frequency of action, the norms can be current , that is, valid in the reporting period, and average annual . In any case, the norms must be progressive, they must take into account the latest achievements in technology, technology, changes in the organization of production, they must be dynamic.

On the basis of the normative base, a normative calculation is compiled. At the same time, the regulatory framework should include:

1. Design specifications for the assembly (assembly) of products. The specification reflects the list of parts and assemblies included in this product.

2. Route sheet for the manufacture of parts and assemblies, which reflects the technological operations that these parts and assemblies go through.

3. Consumption rates of materials for the manufacture of each part.

4. Sheets of purchased semi-finished products and component parts and assemblies.

5. Labor cost standards in order to know how much to plan labor costs for this product.

6. Intra-factory statements of standard costs for maintenance and production management.

The standard cost estimate for the product is compiled in the following order:

1. First, only for direct costs, standard costing of parts is compiled.

2. On the basis of normative cost estimates for parts, normative cost estimates for assemblies are compiled. These calculations are also made only for direct costs.

3. A normative calculation of the product as a whole is compiled by adding the normative cost of assemblies and individual parts included in this product, the normative costs for assembling the product and the normative costs for maintenance and production management.

The objects of accounting are homogeneous groups of products for the main costs. In this case, a homogeneous group may include products of the same model and various modifications that differ slightly from each other in terms of material and labor costs.

The object of accounting for overhead costs is a workshop, or an enterprise, or a production line as a whole. The object of calculation is a homogeneous group of products. Cost accounting objects and costing objects are the same.

Normative cost estimates are used monthly to determine the standard cost of actual commodity output. With automated accounting for production output, it is possible to determine the standard cost of actual commodity output at the end of each shift and on a daily basis.

In order for normative costing to really become a tool for managing costs, it is necessary to organize the normative economy in such a way that it is sensitive to changing norms. If the normative base is not amended in a timely manner, this will lead to the loss of almost all the advantages of the normative method.

At machine-building enterprises that use the standard method of cost accounting and costing, special economic services are created to monitor the state of the regulatory framework. This is the so-called Bureau of Normative Calculations.


Deviations from the norms – this is the difference between the actual and standard expenditure of economic funds.

Identification of deviations should be prompt and complete. To ensure a systematic analysis of the cost and to prevent wastage of resources, as well as to eliminate losses, it is important not only to identify deviations from the norms, but also to establish specific causes.

As practice shows, the main share of deviations is accounted for by material costs.

Deviations from the norms of consumption of materials can be of two types: due to the replacement of one material by another, due to the replacement of prices.

Methodological guidelines recommend the following methods for detecting deviations from material consumption rates:

– method of signal documentation;

– part-by-part accounting of cutting;

– inventory method.

1. Signal documentation.

It involves the issuance of a special signal document in case of excess release of materials into production, as well as when replacing material. The very appearance of a signal document indicates the occurrence of deviations in the technological process and enables management to quickly respond to the elimination of these deviations. Signal documents at the end of the month are grouped into special statements in order to identify the impact of the replacement of materials on the cost of certain types of products.

This list is used to control the use of materials and conduct related economic analysis.

The advantage of this method is to provide the possibility of preventing waste of materials.

2. Batch accounting for cutting.

This method is used to account for the consumption of materials in mechanical engineering that are subject to cutting. Accounting for the consumption of such materials is made in the cutting chart. On the front side of the card is a cutting sheet of a standard form. If the cutting is given according to the standards, then the reverse side of the cutting sheet is not filled out, and the amount of material used is simply indicated on the front side.

If there are any deviations in the technological process, then the actual material consumption, the number of workpieces received are reflected on the reverse side of the cutting sheet, and on the basis of this information, the consumption coefficient for each part (workpiece) is calculated. The very presence of the filled back side of the cutting sheet already indicates the occurrence of a deviation from the norms of material consumption.

This method allows you to fix deviations, but it is impossible to prevent them.

3. Inventory method.

It is used for those types of materials, the consumption of which cannot be directly calculated (varnishes, paints, etc.). Deviations from the consumption rates of these materials are detected in various ways on the basis of data from periodic inventories of materials located at the workplace. The actual consumption of materials for production is determined as the difference between the sum of the balance of materials at the beginning of the period and their entry into production and the balance on the horses of the reporting period. Then, the standard consumption is determined by multiplying the number of finished products accepted by the Quality Control Department by the consumption rate.

Comparing the actual consumption with the normative one, deviations from the norms are determined.

This method is relatively easy, but it is inefficient. If a manufactured product is replaced during an accounting period, the resulting variances are difficult to allocate exactly between the cost of specific products. Therefore, this leads to averaging the actual cost of products.

Thus, almost all three methods of accounting for deviations from the norms can be used simultaneously.

Deviation from the norms of consumption of wages of production workers can be caused by the following reasons:

– change of the approved technology;

– non-compliance of materials and blanks with technical specifications and standards;

– discrepancy between the category of work and the contract of the worker.

Deviations from the norms of consumption of wages of production workers are drawn up with sheets for additional payment, which contain data on the nature of the deviation from technology or from established labor standards. The perpetrators, codes of parts or assemblies are indicated, and the data necessary for calculating earnings is provided.

Payment for downtime and marriage are drawn up in separate documents, but these deviations from the norms are taken into account under other cost items: “Marriage in production”, “General production costs”. Deviations from the norms of labor costs, recorded in the sheets of surcharges, are systematized by workshops, reasons and groups of homogeneous products.

In connection with deviations in the basic wages of production workers, deviations in additional wages also arise. The resulting deviations in additional wages are distributed among the products in proportion to the deviations in the basic wage.

All registered deviations in materials, wages are grouped in a summary sheet of deviations for the whole enterprise in the context of workshops and calculated product groups. This listing has two purposes:

For the management of the enterprise and its divisions, it carries information for making managerial decisions aimed at eliminating shortcomings in the organization of production technology, at finding and punishing the perpetrators;

· grouping all deviations that have arisen in the costing section and preparing these deviations for use in actual cost calculations.


Consolidated cost accounting has two options: semi-finished and non-semi-finished.

In each case, consolidated accounting is kept in a special statement of analytical accounting for production costs, compiled in the form of a turnover sheet. In this statement, records are kept in physical and cost meters for each homogeneous group of products.

The basis for filling out the statement are reports on the use of materials in production, statements on the distribution of wages, summary statements of deviations from the norms and other accumulative accounting documents. The amounts of deviations from the norms are fully attributed to the cost of commercial production. In the subject statement, expense items are indicated with the allocation under the article “Basic materials” of the costing groups of materials corresponding to those selected in the costing.

The predicate statement contains the following indicators:

1) the balance of work in progress at the beginning of the month;

2) recalculation of the cost of work in progress into an indicator corresponding to the level of norms established at the beginning of the month;

3) costs for the reporting period;

4) total costs with the remainder;

5) indices of changes in norms and deviations from norms;

6) writing off the cost of the final marriage;

7) writing off the cost of parts, assemblies that turned out to be missing or redundant during the inventory;

8) writing off the cost of commercial products;

9) the balance of work in progress at the end of the month.

Costs for all calculation items are divided into costs according to current norms, according to deviations from norms. And, if necessary, also on changes in regulations.

Work in progress in the inter-inventory period is most often determined by the balance method based on the data of the consolidated cost accounting sheet.

Work in progress at the end of the period is equal to work in progress at the beginning of the period plus the current month’s production costs minus the cost of the final scrap minus the cost of commercial output.

With the non-semi-finished method, with consolidated cost accounting, the actual availability of parts, assemblies, as well as various shortages (surpluses) are estimated according to the established cost items for the whole enterprise. At those enterprises where production costs are accounted for by separate workshops, the parts and assemblies actually located in them, that is, semi-finished products, are evaluated by cost items, taking into account the share of participation of each workshop for the manufacture of parts, assemblies. Data on the cost of the balance of work in progress by shop is then summarized for the enterprise as a whole and reflects the costs in work in progress with the division of the total amount into separate components by shop.

When using the semi-finished method, the evaluation of parts and assemblies is carried out for each workshop where they are available. Then, when they are transferred to other divisions, their cost is reflected in the item “Semi-finished products of own production”.

The sheet of summary accounting for production costs is the basis for compiling a reporting cost estimate for a certain type of product.

To determine the actual cost of the product, its standard cost for each costing article is multiplied by the deviations from the norms calculated in the consolidated cost accounting sheet, which are calculated by dividing the deviations from the norms and divided by the costs at current norms.

The resulting amount of deviations is added to the standard cost or subtracted for each costing item.

Be First to Comment

Leave a Reply

Your email address will not be published.