Types of deviations as objects of management in management accounting. Features of the rationing of complex costs

Paragraph 20 of PBU 10/99 determines that any enterprise has the right to independently determine in its accounting policy, including management. They can become part of the cost by type of business activity: production or sale of goods, provision of services, performance of work (letter of the Ministry of Finance No. 07-05-06 / 191 of 09/02/208). When developing an accounting policy, one should be guided by the Instructions for the chart of accounts.

Management costs include costs that do not have a direct connection with the production, sale of goods, services, works. If the costs can be linked to one of the lines of business activity, they are considered commercial (for example, wages and deductions for the head of the production department).

Management costs can be included in the composition if they are distributed in proportion to revenue for all types of manufactured products (sold goods, works, services). When developing an accounting policy, an enterprise (organization) must be guided by Law No. 129-FZ and clause 4 of PBU 1/2008.

To write off the conditionally variable part, there are 3 options:

• K 26, D 20 - if they relate to the main production
• K 26, D 23 - if they relate to auxiliary production
• K 26, D 29 - if they relate to a service economy or production

Administrative costs are included in the prime cost after the sale of products (goods) and are written off to “Sales” (account 90). B are reflected in line 040.

Some economists are of the opinion that administrative costs can be written off to D 91 if there were no sales in the reporting period.

Disputes with the tax office most often arise about spending on the services of management companies. If there is an agreement, a document confirming payment, and an act of acceptance of work performed, there should be no complaints. Tax authorities may consider this type of service economically unprofitable, aimed at tax evasion. Analyzing the decisions made in such cases by the courts, we can conclude that most entrepreneurs manage to prove that such expenses are justified.

Financial analysis of management costs

Management expenses in financial analysis are classified as conditionally constant, since their value does not depend on the volume of production. If the volume of manufactured (sold) products increases, per unit of goods increases due to scale.

Difficult economic conditions are forcing entrepreneurs to take a different look at the staffing of the administration. Business leaders are trying to combine the functions of departments in order to reduce the number of employees. This allows you to reduce the cost of salaries, rent, transport, office equipment, business trips. The amount saved is the amount of profit increase.

Some choose a different path - reducing wages, allowances and bonuses while maintaining the size of the administrative apparatus. This option is preferable, since it does not increase the unemployment rate, does not reduce the loyalty of employees.

A good option is to transfer part of the office staff to the "home" mode, which allows you to save on renting premises, utility bills, and official transport. Almost all staff can work via the Internet.

Competent allows you to use the optimization of administrative costs as a means of increasing profits. The funds saved on the optimization of the management apparatus can be invested in development, reorganization, renewal, and the introduction of innovations.

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The following levels of analysis allow you to explore the impact of the cost factor on profit in more detail. This is due to the fact that the total amount of consumption of any resource (in monetary terms) depends on the influence of two components:

• - unit price of this resource;
• - norms of resource consumption in physical terms per unit of production.

The second level of analysis involves the calculation of deviations in the price of resources. The third level of analysis allows you to find out how the profit was affected by the deviation of the actual consumption of a particular type of resource from the consumption provided for by the regulatory framework. Deviations identified at the second and third levels of analysis are subject to registration in the "standard-cost" system. Consider the procedure for their calculation and accounting.

Analysis of deviations by materials. As noted above, the standard cost of consumed materials depends on two factors - the standard consumption of material per unit of output (third level of analysis) and the standard price for it (second level of factor analysis). Let us determine the deviation of actual costs from the standard ones under the influence of the first factor - the prices of materials. The formula for calculating this deviation (LCD) can be represented as follows:

Um = (Actual unit price - Standard unit price) * Quantity of purchased material. (2)

Based on the data in Table. 1 and 2, we determine the size of the deviations of actual costs from the standard ones for paper and printing ink prices:

• - paper:
  • ?CM. 6 \u003d (2.8 - 3) * 11,100 \u003d -2220 rubles. (B) (3)
• - printing ink:
• ?CM. kr \u003d (1.1 - 1) * 19 OOO \u003d +1900 rubles. (H) (4)

The calculation of deviations is not an end in itself. An accountant-analyst is obliged to reveal the causes of adverse deviations that arise, so that in the future the responsibility for them will be assigned to the head of the corresponding responsibility center.

The second factor affecting the amount of material costs is the specific consumption of materials, i.e. their costs per unit of output.

The formula for calculating the deviation of actual costs from the standard for the use of materials? (IM) is as follows:

IM = (Actual material consumption - Standard material consumption) * Standard material price (5)

• - on paper
• ?THEM. b \u003d (19000 - 16700) * 1 \u003d + 2300 rubles. (H) (6)
• - printing ink
• ?Them. kr \u003d (11100 - 9200) * 3 \u003d + 5700 rubles. (H) (7)

Identified cost overruns can be associated, for example, with the poor quality of purchased materials. In this case, the responsibility for the identified deviations should be assigned to the purchasing department.

Next, we calculate the cumulative deviation of paper consumption from the standard, taking into account both factors. The cumulative material variance (?cov) is the difference between the actual cost of the material and the standard cost, taking into account the actual output

Owls. b = 20900 - 16700 = 4200 RUB. (H) (8)

It develops under the influence of two factors:

• - price deviations
• (?CM. b) + 1900 (H)
• (?Im. b) + 2300 (N) + 4200 (N)

We will perform similar calculations for printing ink. The sum of the cumulative deviation? cr in this case will be:

Asov. kr \u003d 31080 - 27600 \u003d 3480 rubles. (H). (9)

It builds up:

• - from price deviation
• (? Cm. kr) - 2220 (B)
• - material usage deviations
• (? Im. kr) + 5700 (N) + 3480 (N)

Before proceeding to the calculation of the following deviations, let's turn to accounting techniques. As noted above, a feature of the "standard-cost" system is the accounting of standard costs and, separately, the deviations of actual costs from standard costs that have arisen. To account for deviations, special analytical accounts are allocated.

The debt to the supplier for the purchased materials (Dt account 10 “Materials” Settlement account 60 “Settlements with suppliers and contractors”) should be accounted for at standard (accounting) prices: write-off of materials for the main production (Dt account 20 “Main production” Sett account 10 “Materials”) is made at standard costs adjusted for the actual volume of production.

Separately, the deviations that have arisen are reflected in the "standard-cost" system. For this purpose, any account can be used, for example, balance sheet account 16. This account reflects all deviations from standard costs - for materials, labor, overhead (indirect) costs. In this case, favorable deviations are recorded on the credit of the account, unfavorable - on the debit.

The actual amount of debt to suppliers of materials, formed on the credit of account 60 "Settlements with suppliers and contractors", will be an algebraic sum of two indicators - a term calculated according to established standards, and the resulting deviation.

The next stage of calculations is to identify deviations in the actual wages of the main production workers from the standard and to establish the reasons for their occurrence. The total amount of accrued wages in the hourly form of remuneration depends on the amount of time actually worked (the third level of factor analysis of profit) and the wage rate (second level of analysis). Accordingly, the size of the deviation of the actually accrued wages of the main workers from its standard value is determined by two factors - the deviation in the wage rate and the deviation in the number of hours worked, i.e., labor productivity.

Wage rate variance (?WWP) is defined as the difference between the actual and standard wage rates multiplied by the actual number of hours worked:

ZPst = (Actual Wage Rate - Standard Wage Rate) * Actual hours worked. (10)

Based on the data in Table. 1 and 2 we have:

ZPst \u003d (3 - 2.5) * 28500 \u003d + 14250 rubles. (H) (11)

Does this adverse variance depend on the head of the production unit? The answer to this question should give an accountant-analyst.

Deviation in productivity (?ZPpt) of labor is determined as follows:

HHW = (Hours Actual Worked - Standard Time to Actual Output) * Standard Hourly Wage Rate. (12)

The deviation in labor productivity will be:

ZPpt \u003d (28500 - 2.5 * 10OOO) * 2.5 \u003d + 8750 rubles. (H) (13)

The reasons for these deviations can be both objective (not dependent on the work of the shop) and subjective (depending on the activities of the head of the shop) in nature. They need detailed analysis.

CV = Actual wages of key workers - Standard wage costs based on actual production. (14)

Taking into account the data of the printing house, the cumulative deviation in terms of labor costs (WPs) will be determined as follows:

ZPsov \u003d 85500 - 62500 \u003d + 23000 rubles. (H) (15)

According to calculations, it was formed under the influence of two factors:

• - deviations in the wage rate
• (?ZPst) + 14250 rubles. (H)
• - deviations in labor productivity
• (? ZPpt) + 8750 rubles. (H) + 23,000 rubles. (H)

In management accounting, the write-off of wages accrued by the main production workers is reflected at standard costs, the identified deviations - on account 16.

At the next stage, deviations from the norms of actual overhead costs (OPA) are calculated. Variable and fixed overheads are analyzed separately. For this purpose, the standard rate of distribution of overhead costs is calculated (Table 8.).

Given in table. 8 rates are needed in order to further adjust the estimated ODA, taking into account the actual volume of production achieved.

Table 8. - Estimated and actual overhead costs, rub.

The deviation in general production fixed costs (? OPRp) is determined similarly to previous calculations - as the difference between the actual ODA and their estimated value, adjusted for actual output. The actual value of permanent ODA is 130,000 rubles.

Next, the value of constant ODA is calculated, which, according to the norm, should correspond to the actually achieved production volume. To do this, the actual volume of production in standard hours is multiplied by the overhead distribution rate:

ODA = 25,000 - 5 = 125,000 rubles (16)

Hence, the deviation of the actual fixed overheads from the estimated ones is

OPRpost \u003d 130000 - 125000 \u003d 5000 rubles. (H) (17)

Similarly, the deviation of variable overhead costs is calculated. The normative value of variable costs is:

25000 * 2 = 50000 rubles (18)

deviation occurred:

OPRper \u003d 52000 - 50000 \u003d 2000 rubles. (H) (19)

Returning to the technique of accounting records, we note that the write-off of overhead costs for the main production is carried out taking into account the standard rate and the actual output of products, calculated in standard hours. Identified deviations are taken into account separately (for example, on account 16).

The calculations end with an analysis of the deviations of the actual profit from the estimated one. This indicator (P) is calculated as the difference between the actual profit, calculated on the basis of standard costs (FC), and the estimated profit, also calculated on the basis of standard costs (SP).

The proceeds from the volume of books actually sold amounted to 400,000 rubles. The deductible joint venture will be equal to 118,000 rubles.

It remains to determine the size of the actual profit, recalculated taking into account the standard costs. This procedure is carried out because the sales department is only responsible for the quantity of products sold and its price, but not for the production costs incurred. Standard cost of one copy of the book:

(53000 + 75000 + 60000 + 150000) / 12000 = 338000 / 12000 = 28.1 rubles. / copy

The standard cost of the actual volume of sales is:

28.1 * 10000 \u003d 281000 rubles. (21)

From here, the FP is equal to:

400000 - 281000 = 119000 rubles (22)

The deviation of the profit indicator from its estimated value will be:

P \u003d 119000 - 118000 \u003d 1000 (B) (23)

The administrative expenses budget is necessary to manage the administrative and management expenses of the company. It is believed that if the company's management expenses exceed 5% of revenue, then this should serve as a signal for a serious analysis of the reasons for the current situation.

Administrative costs are the most difficult costs to directly relate to the business. This budget must necessarily be drawn up in the context of departments, because. this can greatly simplify its analysis in planning, monitoring, and summing up the results of budget execution.

The budget of administrative expenses may contain, for example, the following groups of indicators characterizing the effectiveness of the "Management" business process:

total corporate expenses;

the share of administrative expenses in revenue (or in total expenses);

general business expenses by divisions;

general company administrative costs.

When managing the budget for administrative costs, you need to find all possible ways to reduce them. These costs are not directly related to the production / sale of the company's products and services, but they have one very bad feature, which is that these cost items can grow even if the financial and economic performance of the business is declining.

Part of the budget items of management expenses are financed as services of third-party organizations, that is, the costs themselves are formed by the contractor, and the company pays for the services under the contract. You must immediately accustom yourself to the fact that, if possible, you need to control your contractors. To do this, you need to request detailed estimates of work, analyze alternatives, etc. In any case, the choice of a particular contractor must have a certain economic justification.

One of the items in the budget of corporate expenses is the cost of staff training. With regard to this article, a clear regulation must also be observed. As for the formation of this item of expenditure, there are several approaches. The first approach is to simply determine a fixed amount for training. This is often done in large companies.

On the one hand, training is a good thing, but what can such an approach lead to. At first, many show interest in learning and willingly enroll in various courses. But over time, there are fewer and fewer such applicants, despite the fact that there is a staff turnover and new employees come who need to be trained. But the budget for training is still allocated in the same amount, if not more.

And it turns out such a picture that the managers of the personnel department literally catch in the divisions "who want" to learn. Education becomes a voluntary-compulsory event and its effectiveness decreases. It turns out that in such a situation, personnel officers, as it were, are working out a plan for financing training, while not particularly thinking about the goals and effectiveness of training. By no means do I claim that absolutely everyone or even most large companies do this, but it happens.

Companies that are not burdened with excess money usually do things differently. They operate according to the regulations, according to which the divisions, if they want to train their employees, must submit applications in advance and coordinate the training plan with the personnel directorate. If the training plan is approved, then these costs will be allocated to the appropriate unit. That is, the amount of training costs is determined each time based on the needs, and, of course, taking into account the capabilities of the company. At the same time, a reserve can be planned in case information is suddenly received, for example, about some interesting seminar. But usually this is not a big reserve.

Thus, it is necessary to clearly understand that general business expenses must be monitored very strictly, tk. they are not standardized. One way to manage management costs, which applies to other non-standardized costs, is the introduction of a system of restrictions.

Restrictions can be introduced both on the total amount of administrative expenses and on the largest items themselves. Everyone is equal before the rules

Note: For more information about using the budget of administrative costs in managing a company, see Part I "Budgeting as a management tool" workshop Alexander Karpov .

Regulations for the budget of administrative costs

The budgeting regulation for management costs is essentially the procedure for planning, accounting, controlling and analyzing company-wide expenses, that is, those that are not directly related to the company's business. But on the other hand, it is clear that a certain infrastructure is needed for any company. In the budget of administrative expenses, in general, the cost of this administrative infrastructure is determined.

As for the budgeting regulations for administrative expenses, one of the problems here is that responsibility for these expenses, as a rule, is not distributed across the CFD, which means that it is transferred to a higher level, that is, to the level of an executive or general director. Thus, it turns out that the budget items of administrative expenses are directly affected by the first persons of the company, which imposes a certain psychological limitation on the control of these expenses by the financial directorate.

The finance department needs to learn to be suspicious of any expense, even if it is the CEO who initiates it (see Book 5, Finance's Role in Budgeting). Thus, it is necessary to ensure that the financial directorate begins to require a clear explanation of costs, including from top managers, and is not limited only, for example, to production units.

At the same time, the financial director must understand that the resistance in this case will be much higher than in the case of the same manufacturers or suppliers. After all, it is one thing to convince middle managers, and another thing for the CEO. This would also mean that the CEO must openly admit his mistake. In fact, it is obvious that everyone can make mistakes, but in the case of the CEO, everything is much more complicated.

It is understood that here you need to be able to go through a certain psychological barrier, but in fact, the CEO will appreciate such a step on the part of the financial director. Even if the CEO’s first reaction is indignation that his decisions are being discussed and questioned, he will still make a positive conclusion for himself that finally at least someone has begun to worry and try to control the financial and economic condition of the company.

Example of an administrative budget regulation

An example of the main functions that can be performed as part of the budgeting of administrative costs in the planning phase (see. Rice. 1):

budget expenditure planning;

formation of the budget of administrative expenses;

reconciliation and adjustment of the budget of administrative expenses;

preliminary approval of the budget for administrative expenses.

Fig.1. Example of a budgeting regulation for administrative expenses (in the planning phase)

An example of the main functions that can be performed as part of the budgeting of administrative costs in the accounting, control and analysis phase (see. Rice. 2):

collection of data for the actual administrative budget;

formation of the actual budget of administrative expenses;

analysis of budget execution of administrative expenses;

coordination and approval of the results of the analysis of the budget of administrative expenses.

Fig.2. An example of a regulation for budgeting administrative expenses (at the phase of accounting, control and analysis)

Note: For more information on the regulations for budgeting administrative expenses, see Part II "Regulations of the budgeting system" workshop "Business Budget Management", which is conducted by the author of this article - Alexander Karpov.

Administrative budget model

As noted above, quite often administrative and management costs tend to rise, and this growth can become unmanageable (see Book 1 "Budgeting as a management tool"). The main reason is the difficulty of rationing these cost items.

On the one hand, it seems clear that it is necessary to allocate resources to finance the company's management infrastructure, but, on the other hand, these costs are very difficult to directly relate to the business, unlike production and commercial costs.

One of the ways to combat the growth of administrative and management costs is the introduction of a strict system of restrictions (limits). Moreover, these limits can be introduced both for total administrative and management costs, and for individual items. In addition, part of the administrative and management costs are direct in relation to the units.

Therefore, limits on administrative and management costs can be introduced in the context of departments. In addition, these costs can be included in the budgets of the CFD so that they are taken into account when forming the FMP of the CFD (see Book 4 "The financial structure of the company").

In addition to limits, you need to constantly monitor and analyze administrative and management costs. Naturally, the analysis should be carried out for all other costs, but here the difficulty lies in the fact that it is difficult to assess both the volume and price components of these costs.

At the same time, it is necessary to pay attention to the fact that sometimes in some companies they are so carried away with the analysis of administrative and management costs that there are doubts about the effectiveness of spending time on such analysis and control. It turns out that there is enough time for "little things", but not for more important positions.

We can say that in such a situation a well-known psychological factor manifests itself. People are more willing to perform those functions that are the most simple and understandable. That is, it turns out that all departments seem to be actively involved in the budgeting process - they even write applications for stationery. And the Financial Directorate, with its stern and suspicious look, very carefully checks all these applications.

From the side you look - an almost perfect picture, because. everything seems to be working. It only turns out that at the same time, all kinds of paper clips are budgeted with microscopic accuracy, and much less attention is paid to more significant indicators, on which the final financial and economic condition of the company depends to a much greater extent.

Under no circumstances should this be allowed. One of the problems may be that the financial directorate is active in what does not require deep knowledge. To effectively manage the budgeting process, the finance department must know how all budgeting objects are arranged (see Book 5, The Role of the Finance Department in Budgeting). Otherwise, economists will deal mainly with paper clips.

Example of an Administrative Cost Budget Model

In this example of the administrative budget model, all items related to the support of the company's management infrastructure are presented (see figure below). Tab. 1). Some of the items in this budget model are consolidated from departmental requests.

Table 1. Example of an administrative budget

Budget item
Administrative and management costs (thousand rubles)		13 722	1 096	1 096	1 243	1 096	1 096	1 242	1 096	1 096	1 227	1 096	1 096	1 242
	Depreciation	1296	108	108	108	108	108	108	108	108	108	108	108	108
	Office rent	1 200	100	100	100	100	100	100	100	100	100	100	100	100
		600	50	50	50	50	50	50	50	50	50	50	50	50
	Management staff salary	8316	693	693	693	693	693	693	693	693	693	693	693	693
	Office expenses	120	10	10	10	10	10	10	10	10	10	10	10	10
	Communication services	360	30	30	30	30	30	30	30	30	30	30	30	30
	Travel expenses	1200	100	100	100	100	100	100	100	100	100	100	100	100
	Interest on a loan	0	0	0	0	0	0	0	0	0	0	0	0	0
	Property tax	570	0	0	147	0	0	146	0	0	131	0	0	146
	other expenses	60	5	5	5	5	5	5	5	5	5	5	5	5
Share of AUZ in revenue		8%	10%	8%	8%	7%	8%	9%	12%	15%	8%	7%	6%	7%
Payment of administrative and management costs (thousand rubles)		4 114	445	295	295	442	295	295	441	295	295	426	295	295
	Office rent	1 200	100	100	100	100	100	100	100	100	100	100	100	100
	Maintenance of buildings and structures	600	50	50	50	50	50	50	50	50	50	50	50	50
	Office expenses	120	10	10	10	10	10	10	10	10	10	10	10	10
	Communication services	360	30	30	30	30	30	30	30	30	30	30	30	30
	Travel expenses	1 200	100	100	100	100	100	100	100	100	100	100	100	100
	Interest on a loan	0		0	0	0	0	0	0	0	0	0	0	0
	Property tax	574	150	0	0	147	0	0	146	0	0	131	0	0
	other expenses	60	5	5	5	5	5	5	5	5	5	5	5	5
Administrative and management expenses		13 182	1 051	1 051	1 198	1 051	1 051	1 197	1 051	1 051	1 182	1 051	1 051	1 197
Payments for administrative and management costs with VAT		3 540	295	295	295	295	295	295	295	295	295	295	295	295

When planning some articles, the results of processing statistical information are used. It must be remembered that when negotiating the budget for administrative expenses, it is especially important to obtain a clear justification for each item. Otherwise, the effect of habituation may work. That is, if you miss an inflated cost item once, it will appear in all subsequent budgets.

It should be noted that this administrative budget may be linked to some other functional budgets. In particular, information on the salaries of administrative and managerial personnel can be taken from the salary budget. The amounts of transport costs, which in this case, of course, are associated with the management unit (servicing top managers and administrative and management services), can come from the budget for transport costs.

In the example budget for administrative expenses, there is such an item as interest on a loan. In this case, we are talking about a loan that is taken to replenish the working capital of the company as a whole. In principle, this cost item can also relate to processes and departments, if it can be clearly stated that the loan is taken, for example, for a large-scale advertising campaign or for the purchase of production equipment. True, in the latter case, the financial flow arising from the payment of these interests in the BDDS will not be related to the main, but to investment activities.

From the given example of the budget of administrative and management expenses, it can be seen that in this company, the periods of accrual of costs coincide with the periods of payment. Otherwise, it would be necessary to schedule the payment of administrative and management costs.

Note: For more information about the financial model of the budget for administrative expenses, see Part III "Financial budgeting model" workshop "Business Budget Management", which is carried out by the author of this article -

Many specialists in the budgeting process do not pay due attention to administrative costs. However, the controllability of such expenses plays an important role in the management of the company, as well as in the planning and analysis of the total amount of expenses. The peculiarity of administrative expenses is that they are not directly related to the volume of economic activity. Often, with a decrease in the volume of operations, one can observe an increase in administrative costs. How to solve this problem? A realistic budget for administrative costs should be drawn up.

"CLASSICS" IN METHODS

The budgeting process is multifaceted, so different methods are used to form expense items. The main thing is to approach budgeting taking into account the peculiarities of both the articles themselves and modern business conditions.

Consider key methods of formationadministrative budget.

First method- limiting administrative costs to a certain percentage. Examples:

• the number of managers as a percentage of the number of key workers;
• wage fund for managers as a percentage of the payroll of the main workers;
• administrative expenses as a percentage of sales, etc.

At present, this method is rarely used. It's pretty easy to explain. An integral part of modern technological processes is their automation, which leads to a decrease in the number of basic manufacturing workers. At the same time, the number of administrative and managerial personnel (AMP) remains unchanged. Under such conditions, the percentage of APM in comparison with the number of basic workers increases.

The opposite situation may arise. The enterprise carried out automation, the number of production workers decreased, the volume of production increased significantly. As a result, more orders from buyers are needed, new wholesale buyers need to be looked for, and sales markets need to be expanded. In this case, the company does not reduce the number of managers, but increases. Accordingly, costs are rising, and not only in payroll, in sales, marketing, logistics, legal and accounting departments.

Second method- post factum (from what has been achieved). The essence of the method: administrative expenses of the past period are indexed to the level of inflation. By applying this method, it is important to take into account changes in the structure And business processes in enterprises. For example, the following changes could have occurred over the past year: new divisions were created (active sales department, development department, tender procurement department), certain functions were outsourced (call center, marketing, accounting, security).

Third method- linking administrative costs to the final result (for example, the administrative budget depends on profit). Most owners and top management would prefer to use this method because it really effective. However, linking absolutely the entire volume of administrative expenses to the final result is difficult to implement. This method is best used when planning the payroll of the financial director, sales department.

Fourth Method- negotiable. The essence of the method: the administrative budget is planned strictly in accordance with the concluded contracts and the amounts stipulated in them for the purchase of stationery, office equipment, etc.

EXPENDITURE

The main items of administrative expenses are shown in the figure.

Consider the features of budgeting individual expense items.

Planning expenses for office workersYu And connection, you must first check whether they are used for nothing, for personal purposes. When working through these articles, they often set a limit on paper, the Internet and telephone conversations.

Formation of articles By transport costs provides for forecasting the costs of paying for the services of third-party carriers, maintaining your own vehicles (as a rule, we are talking about cars).

Often administrative expenses are not included in the budget development of information technologies, acquisition of software. If an economist raises this issue with the heads of administrative departments, he may insist on including such expenses in the budget being formed. In this case, the economist needs to initiate departments to think about what new effective software they could (want) use in their work and what it will give the company as a whole.

For companies that follow innovation, such an article can be quite significant: CRM, ERP, WMS systems, software updates in accounting. If a company already uses a system, then it will not be difficult to plan the costs of maintenance and updating, since the supplier company maintains the system, and the company transfers a monthly subscription fee.

Easiest way to plan your expenses rent, depreciation of buildings, structures, equipment: Depreciation rates are known and renewals of such fixed assets are rarely planned. As for the rent, the amount of expenses is specified in the contract.

With regard to the article under consideration, it is important to establish rule: heads of departments in the process of budgeting should decide what computer equipment needs to be updated and whether new office furniture is needed.

Before planning the purchase of a new computer, we recommend that you check whether existing computers are involved in the work.

Quite often, they do not include in the budget and Withlegal costs. However, if claims are currently being sent to counterparties, if litigation is already underway, you should plan for the costs of court fees, payment for expert services, and business trips for a lawyer (travel, accommodation).

IT IS IMPORTANT

A legal expense item in the administrative budget must be planned if the company ships products on credit, with deferred payment, works on prepayment with suppliers and contractors

Consulting services may be one-time, but companies now prefer to use the annual subscription service. As a rule, this is accounting.

If a company is required to undergo a mandatory audit, such costs are included in the budget. It is necessary to conduct a business case for the selection of a consultant/auditor, request detailed estimates and cost estimates for services.

To plan consumptionsfor settlement and cash services And banking services, you need to have information about the number of open accounts, bank tariffs for various services, traffic volumes Money on the account, volumes of other services.

It should be remembered that banks pay for their services on their own, that is, they write off the amount fixed in the contract from the company's account. You will not find standard acts of services performed, but you will be able to see such amounts on a bank statement. Banks charge an additional fee for issuing certificates, duplicate statements for the court. These amounts also need to be planned in the budget.

BUDGET OF THE PAYMENT FUND

A significant share in the budget of administrative expenses will be occupied by the payroll fund for administrative and managerial personnel. Like the administrative budget, the payroll budget should be broken down by structural divisions. PO it is advisable for each division to allocate:

• constantlywowPart- is formed on the basis of the staffing table, approved tariff scales and tariff rates;
• variablewowPart— bonuses based on motivation schemes. To calculate this part, it is necessary to obtain data on the indicators used in the motivation schemes of the relevant services.

Based on the specifics of the department, not all employees may have a variable part. Some work on a fixed rate, such as bookkeeping.

The variable part is not present in every calendar month. Possible nreachins:

• the accrual of the variable part is carried out upon completion of the project, and the project, for example, in January, will not be completed yet;
• the department has just been created and it is too early to talk about the variable part in the first months;
• quarterly bonuses are provided.

The principle of dividing wages into fixed and variable parts greatly simplifies not only the budgeting process, but also the analysis and adjustment of the budget. It will immediately be clear where the distortion occurred and what is its cause.

Motivation schemes provide for the deduction of bonuses for employees, but it is not recommended to include the amount of possible fines in the budget. This can demotivate employees, even if the company has strict corporate rules and fines to a certain extent always take place.

One of the mistakes in this budget process — maximum salary planningat workfees. For example, the state has ten employees, and the payroll is planned for ten people for the entire planning year, although at the time of the budget formation there are two vacancies. One will be filled in mid-February, the second - at the end of May. At the same time, the maximum possible premium is planned. This approach is fraught with financial losses.

First, they create excess reserves for the wage fund, while the money must be in circulation.

Secondly, when a similar situation takes place in all structural divisions, then in order to cover the costs, many companies takecredit, spend money on the examination of collateralized property, pay interest and commissions to the bank, and then it turns out that the company can pay salaries from its own funds, without a loan.

Let's imagine an example of a budget for the remuneration of administrative and managerial personnel of a large manufacturing enterprise (the main activities are production and wholesale sales).

Budget for salaries of administrative and managerial personnel

(as part of the budget of administrative expenses) for 2016, thousand rubles

No. p / p	Budget item	Plan for the year	Monthly plan
			January	February	March	total forІ sq.		total forІІ sq.
	Logistics Directorate
	Director of logistics
	constant part
	variable part
	Purchase department
	constant part
	variable part
	Transport Service
	constant part
	variable part
	HR Directorate
	HR Director
	constant part
	variable part
	Human Resources Department
	Recruitment department
	constant part
	variable part
	Department of labor rationing
	constant part
	variable part
	Financial Directorate	30 720,0
	CFO
	constant part
	variable part
	Financial department
	constant part
	variable part
	Accounting
	Planning and Economic Department
	constant part
	variable part
	Legal Department
	Software department
	constant part
	variable part
	housekeeping service
Total labor costs		71 038,0				17 790,0		18 449,0

HR Director: Ryzhova G. D. ___________

Head of PEO: Head M. V. _________

BUDGET FOR STAFF TRAINING

Today, companies tend to train not only sales staff, but also administrative and management personnel. Such training is aimed at compliance with corporate rules, team building, increasing loyalty, and developing leadership qualities.

IT IS IMPORTANT

The training budget is not a mandatory item of expenditure, therefore, strict regulations are required for this budget.

Exists two approaches to budgeting for education.

Firstan approach: management simply allocates a fixed amount for training. Based on its size, the specifics of the company and the views of the manager who will master this amount, the budget itself is formed.

If the amount of the budget for training is large enough, then there may be Negative consequences. At first, many employees, especially young people, show interest in learning and willingly sign up for various courses, seminars, and business trainings. Over time, there are fewer and fewer such applicants, but the budget for training is still allocated, because it is planned for a year. Training turns into a voluntary-compulsory event, its effectiveness is sharply reduced, which the responsible manager does not particularly think about. After all, if he does not spend the allotted amount this year, then next year the budget for these needs will be significantly reduced.

In order to prevent such waste, it is necessary to start planning the budget only after the training program developed by the personnel manager has been approved by the heads of departments (after all, it is their employees who will attend trainings and seminars) and will be approved by top management.

Second approach to the formation of the budget is based on the initiative on the part of employees. According to special regulations, the head of a structural unit planning to train his employees submits relevant applications in advance and independently coordinates the training plan with the top management of the company. If the director approves the training plan for such head of department, then the costs are charged to the appropriate department. In this case, the amount of training costs is determined based on the needs, taking into account the capabilities of the company.

It is advisable to plan a small reserve in the training budget in case information appears, for example, about some interesting seminar or something changes in the legislation.

The budget for the cost of personnel training (as part of the budget for administrative expenses), thousand rubles rub.

No. p / p	Budget item	Plan for the year	Monthly plan
			January	February	March	total forІ sq.		total forІІ sq.
	Payment for the services of a business coach
	Tuition fee
	Price for 1 hour (per student)
	Number of training hours per employee
	Number of employees planned for training
	Fee for handout
	Price of one set
	The number of employees who are provided with the distribution of handouts
	Investment costs
	Acquisition of software designed for personnel training
	Class room equipment costs
	Round table (1 pc.)
	Chairs (12 pcs.)
	Marker board
	Projector
	Reserve for training costs
Total

Financial Director: Medvedev V. G. ___________

This budget stipulates that training will be conducted by an invited business trainer, whose payment for services depends on the number of training employees and the number of training hours (according to the price list of the business trainer).

The learning process involves providing students with handouts. This makes training more effective, since the acquired knowledge can be applied directly at the workplace. Handout- an additional item of expenditure. Separate training centers the cost of handouts is included in advance in the cost of training one employee, so there may not be articles in group 4.1.2 in the budget.

If the company is planning training for the first time, then it is necessary to invest in the software and equipment of the classroom (group of articles 4.2). Such investmentexpenses are one-time in nature, carried out before the start of the educational process.

Planning for the purchase of fixed assets is based on information about the number of employees in one training group. The budget under consideration stipulates that there will be no more than 11 people in the group (plus one business coach). It is necessary to purchase 12 chairs and a round table of a certain size. If the company is large, then for budgeting you need to have training schedule. It is possible that it will be necessary to increase the number of people in the group if there are many people who want to be trained. Therefore, you will have to additionally purchase office furniture.

ROLE OF STAFFING

If an economist working on the budget knows that the company is developing, it is planned to open representative offices in the regions, enter new markets, he should receive a schedule for hiring staff, a schedule for opening retail outlets. It directly depends on such schedules in which months to plan an increase in the payroll, the cost of equipping new jobs, rent, communications, office supplies, and training. This has an impact on the value of budget indicators, on the final financial and economic condition of the company.

If it is planned to close a branch, reduce the staff for any reason, then the economist needs a schedule for reducing staff (transfer to another job, transfer to another entity etc.) and the schedule for closing offices.

Reception schedule A personnel to work - 2016

Structure	Job title	Number of persons	Planned salary per month, rub.	Month of admission
tin office	Programmer
	Head of Retail Department
	Contract Specialist
	Economist
	Sales Manager
	Merchandiser
	Driver-courier
Branch in the Krasnodar Territory	Branch Manager
	Sales Manager
	Accountant
Total

HR Director: Kazantsev A. L. ___________

ADMINISTRATIVE BUDGET

The budget for administrative expenses is recommended to be by departments, since this greatly simplifies its analysis (see the example of the budget of Innovation LLC; to simplify the presentation of material in the context of departments, only labor costs are presented).

When developing a budget, it is important to make it informative. The budget should be sufficiently detailed and not bulky. The task of the software used is to add up and decompose the budget by nesting levels, provide various variations sorting and sampling of data, ensure the convenience of control and analysis.

If each item of expenditure is assigned digitaleciphers, this will avoid confusion and ambiguous interpretations when identifying costs. Digital ciphers are convenient. For example, if an IEE economist needs to approve an application for payment for the purchase of a new laptop for the logistics department, he will put the appropriate code, and the specialist of the financial department, accepting the application for payment, will check whether such payment fits into the amount for this item in the budget.

Administrative budget for 2016 g., thousand rub.

No. p / p	Budget item	Plan for the year	Monthly plan
			January	February	March	total forІ sq.		total forІІ sq.
	Depreciation and rental of premises, equipment, office furniture and machinery
	Remuneration of administrative and managerial personnel
	Director General and Secretariat
	Logistics Directorate
	Director of logistics
	Purchase department
	Transport Service
	HR Directorate
	HR Director
	Human Resources Department
	Recruitment department
	Department of labor rationing
	Financial Directorate
	CFO
	Financial department
	Accounting
	Planning and Economic Department
	Legal Department
	Software Division
	housekeeping service
	Recruitment
	Training
	Communication services, Internet
	Fixed urban communication
	mobile connection
	Internet
	material support
	Stationery
	Consumables for printers, cartridges
	Small Office Supplies
	Other material support
	Public utilities
	Electricity
	Water supply and wastewater
	Garbage removal
	Heat supply
	Decontamination
	Security Services
	Fare
	Third party carrier services
	Repair and maintenance of own vehicles, including spare parts
	Insurance
	Employee insurance
	Property insurance (except for vehicles)
	Motor insurance
	Banking services
	Exchange difference
	Banking fees
	Services of the "Client-Bank" system
	Collection
	Interest on a loan
	Loan costs
	Other bank expenses
	Representation expenses
	Third-party company services
	Auditing services
	Consulting services
	Legal services
	Expert Services
	Post services
	State Post
	Delivery services
	Courier costs
	Travel expenses
	The costs of settling disputes in the judiciary
	Services for issuing electronic keys
	Subscription to professional literature, purchase of books
	Investment costs
	Software
	Purchase of off-the-shelf software
	Software development costs
	Office equipment
	Computer technology
	Printers, scanners, copiers, other peripheral equipment
	Keyboard, flash drives and other small appliances
	Other computer equipment
	Office furniture
	Executive class office furniture for directors and heads of departments
	Office furniture for ordinary employees
	Costs for equipping customer premises, halls, corridors, reception, conference room
	Flowers and landscaping costs
	Fines, penalties, forfeits for violation of own obligations
	Other administrative expenses
Total		86 086,8				21 136,0		21 705,5

Financial director: Medvedev V.G.___________

Head of PEO: Golovnaya M. V. ___________

"DELICATE" FEATURE

The administrative budget is one of the most “delicate” budgets. The employee responsible for such a budget should be as non-conflicting as possible. If we take, for example, the production budget, then no matter how the production director is opposed to the numbers, there are strict technological standards for materials and labor costs. In addition, there is comprehensive data on production in several structures: accounting, rationing department, financial and economic planning departments. These data are clearly documented, they are enough for budgeting.

As for the administrative and managerial personnel, the directors in charge of a particular area seek to obtain maximum funding just for your department.

First reason: having a maximum of opportunities, you do not need to ask in the future to pay the necessary, but not budgeted expenses.

The second reason- ambition: "Why should I, the director of personnel, have less funding than the director of logistics." Often, similar positions are occupied not only by the directors of areas, but also by the heads of departments, wishing in this way to consolidate their authority.

When the budgeting system encounters misunderstanding and resistance on the part of such leaders, neither the economist nor the head of the IEE will be able to remove this obstacle on their own. This issue will be outside their competence. The situation entails either suspension of the process of budgeting administrative expenses, or adaptation to certain "dissenters". The latter leads to a distortion of the methodology for calculating financial results. As a result, managers make erroneous management decisions, the company suffers losses. Means, the budgeting process shouldenoversee the generalsthdirectorAndwhether the owner of the company. The slightest resistance or violation of the regulations must be strictly suppressed.

In order to level conflicts, simplify the budgeting process, communicate the essence, goals, objectives and methods of budgeting to employees, it is necessary to conduct a separate seminar (Master Class) for administrative and managerial personnel on the issues of compilingIbudget. The seminar should be attended not only by heads of departments, directors of areas, but also by those employees who will deal with budgeting (from 1 to 3 people from each department, depending on its size and specific data). After all, it happens that the head of the department is responsible for the budget, but works with numbers, makes the necessary calculations, prepares data, interacts and consults with the PEO economist one of the subordinates.

CONCLUSION

As practice shows, quite often the formed budget does not correspond to strategic goals. The situation takes place in cases where the owner essentially manages the business himself, and the directors follow his instructions. The strategy as such is only in the mind of the owner. Only directors and some department heads have a vague and often subjective idea of ​​this "strategy". Solution one: strategy must be formalized(clearly defined) with the help of indicators that set the direction of development.

The strategy should be formulated for the medium term (3-5 years) and broken down by years. The wording "Conquer the market, increase sales" is not suitable. An example of the correct wording: “Increase sales by 2020 - at least 50 billion rubles. in year". For the first, 2016 year: “Achieve sales of 18 billion rubles. in 2016". In terms of such a strategy, a new structural unit is included in the budget - the department for working with retail chains. At the same time, the HR manager may insist on an increase in the budget for staff training. This is correct and logical.

E. S. Panchenko, business consultant

COURSE WORK

discipline: Management accounting

on the topic: Accounting for deviations by cost items and their analysis

Introduction

The concept of "deviation": favorable and unfavorable deviations

Deviations for the main work

Overhead variances

Elements of standard costs per unit of output

Deviation management

Conclusion

List of used literature

Introduction

cost accounting variance

In any activity where standards or targets are set, deviation is inevitable. We need to know not only the magnitude of the deviations of the actual results from the planned ones, but also the reason for their occurrence. Variance management is one of the management methods, which is based on identifying differences between actual and estimated costs or abnormal deviations in the organization's activities in order to focus management's attention on these deviations. Thus, the focus is not on normally running processes or estimated costs, but on emerging problems.

The subject of the work is the problem of deviations. Identification of causes and responsible persons.

The purpose of the work is to study the organization of management by deviations, to reveal the causes of deviations, to identify ways of management by deviations.

To achieve these goals, it is necessary to solve the following tasks:

-consider the essence of the normative method of cost accounting as a way to analyze deviations;

-study the methodology for calculating and analyzing deviations;

-show the technology for identifying deviations using an example;

-suggest ways to improve the organization of accounting for deviations.

In the event that deviation management is carried out at the enterprise, it is possible to resolve problems that hinder the achievement of the strategic goals set for the organization, for example, this can be:

-identifying a defective supplier;

-delays in deliveries and increase in their cost;

-untimely fulfillment of production tasks;

-the complexity of the corrective impact on reducing the growth of production costs;

-customer dissatisfaction with completed orders in terms of timing and quality;

-staff dissatisfaction;

In this paper, the main components of deviation control will be considered:

Making a management decision on deviations is the implementation of the actions necessary to:

-thirdly, to use the opened opportunities.

Daily generalization and analysis of deviations from the norms by cost centers and responsibility centers allows the heads of production departments to timely eliminate emerging problems in the organization of production and prevent the possibility of their occurrence in the future. In other words, the system of standard cost accounting creates the prerequisites for organizing production management according to deviations from the norms.

1 The concept of "deviations": favorable and unfavorable deviations

Deviation - an absolute deviation from the current current norms for the consumption of raw materials, materials, semi-finished products, wages and other direct costs for the manufacture of products and the relative magnitude of the discrepancies between the actual and estimated overhead costs.

Deviations are: positive (savings) and negative (overspending); accounted for and unaccounted for; material and value.

Negative deviations of direct costs are analyzed from the standpoint of compliance with technological processes, standards of organization and production management for specific products.

Positive deviations of direct costs are considered from the point of view of the validity of the norms and standards calculated per unit of output. Variances in fixed costs are analyzed for their response to changes in production volumes and adherence to flexible estimates.

The recorded deviations are also called documented. These include identified deviations: according to the signal documentation before the start of the production process; as the production task is completed; using calculations and formulas at the end of the reporting period (from several hours to several months).

Figure 1.1 - Types of deviations

Non-documented deviations from the norms in this reporting period are revealed by inventory methods of work in progress, finished and rejected products, materials and other material assets. The reasons for their formation can be: inaccuracies in the issue and calculation of the remaining materials; concealment of marriage; postscripts in the volume of manufactured products; damage, loss and shortage of semi-finished products, parts and products; inaccuracies in the inventory of residual materials and work in progress. Unrecorded deviations are determined at the end of the reporting period and indicate an insufficient level of organization of production and management accounting.

Material deviations occur in the procurement and production activities. They are distributed among the balances of materials, work in progress, finished products and products sold in this reporting period.

Cost variances are usually attributed to the cost of goods sold.

Base material deviations

Two main factors affect the variances in the cost of materials in the production of products: the price of materials and their quantity consumed in production.

Price deviations are determined by multiplying the quantity of purchased material by the difference between the standard and actual price per unit of materials:

(NC-FC)*SC (2.1)

where NC - standard price;

FC - actual price;

KZ - the amount of purchased material.

There are two approaches to calculating deviations:

According to the amount of purchased material. Then the deviations are distributed between the rest of the materials and the products sold;

According to the amount of materials used. In this case, all deviations are written off to the cost of goods sold.

The main reasons for deviations:

Negative rejection due to poor supplier performance

1.Negative variance due to market increases in supplier prices

2.Positive deviation due to low quality of the material detected during incoming inspection

3.Positive deviation due to the low quality of the material found during production process

4.Raising the price by the supplier for the urgency of delivery

5.Positive deviation due to non-compliance of the material with the technical process

Deviations from the norms for the use of materials are determined by comparing the actually consumed material with the standard consumption for the actual release. This principle is also fundamental in the preparation of a flexible cost estimate. The same is true for waste.

To identify deviations from the norms of consumption of materials, the following methods are used: documentation; batch use of materials with the identification of deviations in direct costs for the output of products; preliminary calculation according to recipes, subsequent calculations based on inventory data.

Each enterprise, in accordance with its technology and characteristics of materials, chooses its own system for detecting deviations. But in any case, the calculation is carried out according to the formula:

(NC-FC)*NC (2.2)

where NK is the standard consumption for the actual output of products;

FC - the actual amount of material used;

NTs - the standard price of the material.

A special place in the analysis of deviations by materials is occupied by the study various kinds waste. They are classified according to the following criteria:

allowable production waste occurs immediately during the processing process, they are included in the cost of materials, the actually received waste is compared with their standard value, the causes of deviations are determined;

production waste as a result of the final marriage - a part of the material that is damaged during the production process, is detected by comparing the finished product with the product put into production. In some industries, marriage is also considered as part of the cost standards;

production waste through the fault of the administration appears as a result of making erroneous decisions by managers, the absence or weakening of production waste control procedures.

Deviations in materials are summarized by the centers of their occurrence, operations, types of products and materials, for reasons, perpetrators and other signs.

Example 2.1

ABC uses a cost rationing system. The rates of variable costs per unit of output are: for materials 2 units for $3, for production labor $5 per man-hour, for variable overhead costs $3 per man-hour. During March, 25,000 units of materials were purchased for $74,750 and 20,750 units of materials were used to produce 10,000 units of finished goods. Direct labor costs were $49,896 (10,080 man-hours of direct labor), variable overheads were $34,776. With the help of the general model, we determine the deviations by materials.

Table 2.1 - Deviation by materials

Actual quantity of input resources at actual price (FC*FC) 020750*3,000=62250 Quantity deviation 2250

It is important to note that the amount of purchased materials (25000 units) differs from the amount of materials used in production (20750 units). Material purchase price variance was calculated based on 25,000 materials purchased, while material usage variance was calculated based on 20,750 materials used in production. Because of this difference, it is not possible to determine the value of the total dispersion. On the other hand, the same material deviation can be determined in the following way:

Materials-quantity deviation=(FK-NK)*NC=(20750-20000)(3,000)=62250-60000=2250

The main reasons for deviations:

1.Positive deviation due to poor control of the movement of materials between warehouses

2.Positive deviation due to low control of receipt to the shop and release of materials to production

.Positive deviation due to the purchase of low quality materials

.Positive deviation due to theft

.Deviations due to process changes

.Deviations due to changes in quality control requirements

Labor deviation

The total deviation of direct labor costs is defined as the difference between the actual and standard labor costs for produced units of output, excluding defects (both final and correctable):

total direct labor variance = actual time actual wage rate - standard working time standard wage rate. (3.1)

To assess the degree of implementation of the plan, management must know how much of the total deviation is due to changes in the cost of working hours, and how much is due to changes in wage rates.

Deviation in the rate of payment of direct labor costs = (actual rate - standard rate) · actual time of work. (3.2)

Deviation in labor productivity \u003d (actual work time - standard work time) standard wage rate (3.3)

Pay rate deviations are usually the responsibility of the Human Resources Department. This variance occurs when a worker is hired for higher or lower pay than expected in the plan, or certain jobs are performed by a higher (lower) paid worker. Shop inspectors are responsible for the deviation in labor productivity. An unfavorable performance variance can occur if an inexperienced worker is assigned a job that requires a higher level of skill. Management must analyze each situation on the basis of the prevailing circumstances.

Figure 3.1 - General deviation of direct labor costs

Deviations in the quantity of labor appear when labor is involved in production. They are set in much the same way as material variances, except that in the 3-column model, labor intensity and rate are used instead of quantity and price. The production unit is responsible for both the rates at which labor is paid and the amount of labor used. Therefore, the manufacturing unit must have explanations for why any labor variances occur.

Table 3.1 Possible reasons wage rate deviations and liability bearers

Reasons for wage variance and responsible REASON FOR RESPONSIBILITY Over-wage or over-manpower Production manager or collective bargaining agreement Unclear job requirements or over-salary Human resources department Overtime and poor production schedule Production planning department Causes of unfavorable labor intensity and responsibility variance CAUSES RESPONSIBLE STRUCTURE Poorly qualified workers Human resources department sterEquipment Failure Insufficient Materials Maintenance Department Purchasing Department

Unfavorable wage rate variances can be explained by wage increases; poor production planning and, as a result, the need for overtime work; use of a labor force requiring higher wage rates than anticipated. rest of the staff.

Table 3.2 Calculation of labor variances

Actual labor capacity in hours at the actual rate per unit (FT * FS) Actual labor input in hours at the standard rate per unit (FT * NS) Standard allowable labor input for a given volume at the standard rate 0Continuation of Table 3.2-Calculation of labor variances Rate deviation = 504 Labor variance = 400 The same values ​​can be calculated differently:

Wage rate deviation = FT(FS-NS)=(FT*FS)-(FT*NS)=504

Labor intensity deviation = (FT-NT) NS = 400

The main reasons for deviations in the wage rate:

1.Increasing the rate at the request of staff

2.Increasing the rate for overtime work

.Increasing the rate when averaging the rate

.Increasing the rate when using a worker of higher qualification

Deviation in labor productivity (OPT) is equal to:

OPT \u003d (LF - HF) * NSS (3.4)

NHA is the standard hourly wage rate.

The main reasons for deviations:

1.Increasing deviation due to poor quality materials

2.Increased deviation due to poor machine maintenance

.Increasing deviation due to the use of new equipment

.Increasing deviation due to process changes

.Change in deviations due to changes in quality control standards

The total labor deviation (OTD) is equal to:

OOT \u003d NZ - FZ (3.5)

NZ - standard costs for the actual output of products;

FZ - actual labor costs.

Manufacturing overhead variances

Manufacturing overhead variances are analyzed in terms of their behavior with respect to production volume, capacity utilization, in order to control the costs attributed to individual products.

Overhead variances are considered from the point of view of compliance with the actual production overheads, / their amount, distributed among the types of products according to predetermined absorption rates. At the same time, the actual overhead costs and the total absorption by the cost of products, finished or sold, are divided into fixed and variable components.

Fixed overhead variance is the difference between the standard fixed costs included in the cost of production and the actual fixed costs.

The amount of deviations can be affected by:

) actual expenses (in composition and quantity) that differ from the estimated ones;

) the actual output of products (in terms of assortment and volume), which differs from the estimated output.

These two types of variance are also called fixed overhead variances and volume variances.

The analysis of deviations for fixed overhead costs requires a comparison of the amounts of actual and standard costs for each budget item. A variety of reasons for deviations can be identified.

For example, unscheduled repairs, revision of wages for adjusters, etc. Since estimates are compiled for structural units, their execution is also analyzed by workshops and production sites. One of the main areas of analysis is the consideration of both controllable and uncontrollable overhead fixed costs. For these purposes, the standards should contain permissible deviations, where direct cost deviations that depend on this manager act as the reason. In order to distinguish controllable costs from non-controllable costs, the resulting direct costs are checked on the basis of the production process and these costs are classified by product.

Deviations in terms of production is the difference between the actual volume of production (FP) and the estimated output (SP) in the period under review, multiplied by the standard rate of distribution of fixed overheads (HC):

(FP-SP)*NS (4.1)

The formula is based on the assumption that fixed overheads do not change in relation to output over a short period of time.

Possible reasons for deviations can be caused by fluctuations in product demand, product mix, shortcomings in the supply of materials, inefficient labor, poor product quality, deficiencies in planning, management, production organization, equipment downtime and other factors. The magnitude of deviations in production volume is mainly influenced by deviations in efficiency and deviations in power.

Deviations in the volume of production in terms of labor efficiency is the difference between the output in standard hours (LF) and the actual labor time in hours (FC) for the period under review, multiplied by the standard rate of distribution of fixed overheads (HC):

(LF-PF)*NS (4.2)

Deviations in the volume of production by capacity is the difference between the actual labor time spent and the estimated labor time in hours (SC) in the period under review, multiplied by the standard fixed overhead (HC) distribution rate:

(PF-MF)*NS (4.3)

Variable overheads variances are determined by the difference between standard variable overheads (HP) and actual variable overheads (FR):

The total amount is analyzed by the following types: direct deviations (absolute) from the estimate; deviations adjusted for the actual amount of work (relative); efficiency deviations.

Absolute deviations are defined as the difference between actual and estimated costs. The analysis is carried out for each article. Separate calculations determine the deviations from those adjusted for the actual amount of the estimate. In this case, the variance is equal to the difference between estimated adjusted variable overheads (AVOC) and actual variable overheads (AFV):

SPNR-FPNR (4.5)

The source of information for analysis is the report on the execution of the estimate. For each of the budget items, there may be various reasons for deviations.

Deviations of variable overheads by efficiency - there is a difference between the output in standard hours (LF) and the actual labor time (LF) spent for the period under review, multiplied by the standard rate of variable overheads (HC):

(LF-PF)*NS (4.6)

The main reason for these deviations is changes in labor productivity. Variable overhead variances are calculated in a manner similar to labor variances. Typically, the manufacturing unit is responsible for any possible deviations of variable overheads from the standard. Unfavorable cost variances of variable overhead costs can be caused by a number of factors: the purchase of materials at prices that differ from the average; greater than expected consumption of materials; material theft. Unfavorable deviations of variable overhead costs for efficiency can be caused by factors such as: poor preparedness of workers; low quality materials; faulty equipment; suspension of work; unsatisfactory production schedule; weak control; insufficient time for personnel rest, etc. Where variable overheads are expressed in terms of direct time effort, the efficiency variance may be driven by the same factors that cause labor variance. However, in cases where variable overheads are expressed in machine hours, the deviation of variable overheads is due to a decrease in the coefficient useful action equipment.

Table 4.1 - Deviation for commissioning

Actual capacity of variable overheads in hours at the actual rate per unit (FE * FS) dispersion-4776 Efficiency deviation 240

Variable overhead cost (VCO) variance is:

OPV \u003d SNZ - FNZ (4.7)

SNZ - estimated overhead costs for the actual time of work of the main workers;

FNZ - actual variable overhead costs

Analysis of deviations is carried out item by item.

The main reasons for deviations:

1.Deviation due to work of auxiliary workers

2.Deviation for indirect material costs

.Deviation in electricity consumption

.Maintenance deviation

Variable Overhead Efficiency Variance (VOC) is:

OEPR \u003d (LF - HF) * NSR (4.8)

LF - the standard time in hours spent on the actual output of products;

FC - the actual time in hours worked for the period under review

NSR - standard hourly variable overhead rate.

The reasons for deviations, as we see, are related to the productivity of the main workers.

The fixed overhead (OCD) variance is:

OPR \u003d SPR - FPR (4.9)

SPR - estimated fixed overhead costs;

FPR - actual fixed overhead.

The analysis is carried out item by item in the context of cost centers.

The main reasons for deviations:

1.Change in the salary of middle managers

2.Appointment of additional leaders

.Change in indirect material costs

.Deviation in electricity consumption

5 Elements of standard cost per unit of output

In the literature on management accounting, it is defined as a system of standard cost accounting. As practice shows, variance analysis is an effective tool for controlling costs and the entire enterprise management system. Normative accounting can be used by an enterprise as a holistic concept that allows you to analyze the overall situation and make decisions. But if this is not relevant for the enterprise, it can apply the system partially (for example, a block of labor costs or material costs).

Normative cost accounting helps the enterprise to solve a number of issues. The main purpose of standard cost accounting is to:

) simplify planning and budgeting processes;

- identify deviations, their significance and nature, contribute to the development of regulatory actions;

) give a forecast of the expected costs and set prices on the basis of a pre-calculated cost of production;

) to simplify the cost accounting for the final product of production;

) monitor current activities, contribute to the evaluation of management effectiveness;

) establish (correct) goals to be achieved, outline ways to improve objects and processes.

Organization and procedure for calculating standard costs

Standard costs are carefully calculated predetermined (standard) costs, which are usually expressed per unit of finished product.

In the general case, standard costs include three elements of production costs, each of which, in turn, can be represented as two components - natural and cost for direct and variable and constant for indirect:

Direct material costs:

-Standard price of basic materials.

-Normative amount of basic materials.

Direct labor costs:

-Standard working time (on direct labor costs).

-Standard rate of direct wages.

General production costs:

-Normative coefficient of variable overhead costs.

-Normative coefficient of fixed overhead costs.

If we are talking not only about production, but also about general business expenses, then another (fourth) element should appear - general business expenses.

Many regulations are applied by the enterprise long time without changes. Only a change in the design or production technology of a product, modification or development of a new product necessitates a revision of the natural part of the standards. The price components of standard costs are updated more frequently to reflect the impact of inflation and other factors on the prices of purchased materials and labor costs.

The normative costs of basic materials are determined by multiplying the normative price of these materials by their normative quantity.

The standard price of basic materials is a careful estimate of the costs of a certain type of basic materials for the next accounting period. The purchasing agent is responsible for setting standard prices for all basic materials. When determining standard prices, he must take into account all possible price increases, quantitative changes in the material market, new sources of supply, etc. He also makes all actual purchases.

Standard quantity of basic materials - an estimate of the expected quantity that will be used. Such evaluation is one of the most difficult tasks in standard setting. It is influenced by the specific design of products, the quality of basic materials, the age and productivity of machinery and equipment, qualification and experience of workers. A certain marriage and losses are inevitable, and this must be taken into account when calculating the standard amount of materials. Typically, these standards are set by production managers or cost accountants, using engineers, material purchasing agents, and machine operators to develop them.

Normative direct labor costs are calculated by multiplying the standard hours of labor by the normative rate of direct wages.

Standard working time (in terms of direct labor) reflects the time required for each department, machine or process to produce one unit or one batch of products. In many cases, the target time per unit is a small fraction of an hour. Standard hours of labor costs should be reviewed if there is a replacement of machinery and equipment or a change in the qualifications of the workforce. Responsibility for the development of this standard lies with the manager of the relevant unit and the curator.

The standard direct wage rate expresses the hourly direct labor costs expected in the next accounting period for each function or type of work. In practice, direct wage rates are fairly easy to determine, since they are either fixed in the labor contract or set by the organization itself. Although a range of rates is provided for each category of workers, within which these rates differ, average standard rates are accepted for each operation. And even if the worker who made the product actually receives less, when calculating the standard direct labor costs, the standard wage rate is used.

General production standard costs are the sum of estimates of variable and fixed general production costs in the next accounting period. These estimates are based on standard coefficients calculated in the same way as the standards discussed earlier. However, there is one main difference: the standard coefficient of overhead costs consists of two parts - for variable and for fixed costs, which are calculated using different bases.

The standard coefficient of variable overhead costs is found by dividing the total planned variable overhead costs by the planned quantitative expression of a certain base, for example, the expected number of standard machine hours or standard labor hours. (Another base may be used if machine hours or standard hours are not an appropriate measure for variable overhead costs.) The formula based on standard hours is as follows:

Normative coefficient of variables ODA = (5.1)

The normative coefficient of fixed overhead costs is found by dividing the total planned fixed overhead costs by normal productivity (capacity), expressed in standard hours of labor costs:

Normative coefficient of constant ODA = (5.2)

Using normal capacity as a base gives confidence that all fixed overhead costs will be allocated to the product being produced when normal capacity is reached.

If the actual output exceeds the planned output and the standard labor costs are higher than normal, a favorable situation arises. In fact, fixed overhead costs per unit of output will be less than the standard. But if the actual output does not meet expectations (planned level), i.e. falls below normal capacity, then the planned amount of permanent ODA will fall on a smaller volume of production.

The use of cost standards in costing allows you to avoid calculating the cost of a unit (or batch) of products every week or month based on actual cost data. Having once determined the standard costs of basic materials, labor costs and overhead costs, you can calculate the total standard costs per unit of output at any time. Let us illustrate the application of the standard cost accounting system with an example.

The company has developed guidelines for a line that produces automatic pencils. The standard cost of basic materials is 0.025 m2 of special plastic per pencil and one movable mechanism per pencil. The standard prices for basic materials are CU10 per m2 of plastic and CU2.75 for each moving mechanism. Standard labor costs are 0.01 hours per pencil in the stamping shop and 0.05 hours per pencil in the assembly shop. The standard labor rates are CU8.00 per hour in the stamping shop and CU10 per hour in the assembly shop. Normative coefficients of overhead costs -12.00 MU per 1 hour of total labor costs for their variable part and 9.00 MU per 1 hour of total labor costs for the constant part.

The following shows how the calculation of the standard cost per unit of production by components is carried out.

Table 5.1 - Calculation of standard production costs for one automatic pencil

Components f.u. Main materials: plastic (10 f.u./m2 × 0.025 m2) 0.25 movable mechanism (2.75 CU/pc. × 1 piece) 2.75 Direct labor costs: stamping shop (0.01 h / pencil ×8 f.u./h) 0.08 assembly shop (0.05 h/pencil × 10 m.u./h) 0.50 General production costs: variable (0.06 h/pencil × 12.00* f.u./h) 0.72 permanent (0.06 h/pencil × 9.00** m.u./h) 0.54 Total standard cost per pencil: 4.84

*For the distribution base of the variable and fixed parts of general production costs in the example, the number of direct labor costs in hours (0.01 + 0.05 = 0.06) is taken.

Table 5.2 - The resulting deviations are determined as follows

№Types of deviationsCalculation of deviationsI. By materials1By the price of materials used (Standard unit price of material - actual price) * Quantity of purchased material2By quantity of materials used (Targeted amount of material per actual production output - Actual consumption of materials) * Standard price of materials By labor 1 By wage rates (Normal hourly wage rate - actual hourly wage rate) * actual hours worked 2 By labor productivity (Normal time for actual output - actual hours worked) * standard hourly wage rate production) * the actual volume of production output III. Overhead Fixed Overhead (Estimated Fixed Overhead Rate per Unit - Actual Fixed Overhead Rate per Unit) * Actual Output Variable Overhead (Estimated Variable Overhead Rate per Unit - Actual Variable Overhead Rate per Unit) * Actual Output

In order to be able to use the normative method with real returns, an enterprise needs not only to create a reporting base for rationing and cost planning. In addition, you need:

-ensure the collection of data on actual and standard production costs;

-registration and accounting in an expeditious manner of changes in norms and standards, deviations from the norms by places and reasons for their occurrence (workplaces, brigades, sections, stages, redistributions, workshops, etc.);

-control and generalization of data on actual losses and unproductive expenses, as well as unused reserves for improving the efficiency of activities; determination of a rational standard level of costs (cost) for production;

-calculation of the actual cost of products (works, services) based on pre-calculated standard costs.

At the same time, the reliability, accuracy and efficiency of accounting should be high. It is desirable to develop a personnel motivation system in such a way that it takes into account the assessment of the performance of departments and the enterprise as a whole, carried out within the framework of standard cost accounting.

Deviation management

Deviation management is a management technology based on the fact that:

minor deviations do not require adjustment of the management process;

overcoming minor deviations is possible by the performers themselves.

The intervention of the leader occurs only with a significant amount of deviations.

Basic principles of deviation management:

preliminary preparation of normative calculations based on technically justified standards for the main items of production costs;

accounting for current standards and determining their impact on the level of production costs or work performed;

accounting for actual production costs with their division into costs according to standards and with deviations from standards;

accounting for deviations of actual costs from the normative ones according to their places of occurrence, reasons and perpetrators.

Deviation management - management carried out in order to restore the normal course of the production process when deviations occur. With an appropriate organization, internal reports should contain data reflecting deviations from planned revenues, costs and other indicators at the time of performing a particular operation of the business process according to the areas of responsibility of specific managers. When managing by deviations, great importance is attached to the principle of materiality, i.e. managers focus on operations for which significant deviations are identified.

Deviations may be caused by changes in technology, regulations; alterations of poorly executed construction and installation works; irreparable marriage; lack of materials, fuels and lubricants, electricity, vehicles; breakdown of construction machines, equipment and mechanisms; lack of work front; downtime due to weather conditions; replacement of materials with more expensive ones; overspending of materials; correction of building structures received from suppliers; overexpenditure of the number of machine-shifts of construction machines and mechanisms; excess road transport; violations of labor discipline, etc.

The perpetrators of deviations from the norms can be the foreman, foreman and mechanic, work teams, the supply department, the site for the repair and maintenance of construction equipment, etc.

Main components of variance management:

Figure 5.1 - Components of managerial decision making

There are six such components:

1.Measurement is an assessment, often quantitative, of the various activities that a manager has done in the past or is currently doing. Without such an assessment, it is not possible to identify exceptions requiring intervention.

2.A forecast is an analysis of the assessments obtained during the measurement, based on an understanding of the organization's development objectives and extrapolation of the identified trends for the future.

.Selection - ensuring knowledge of the criteria that should be followed by management personnel in achieving the goals of the organization.

.Observation is the stage of assessing the situation, which gives the manager information about the current state of affairs.

.Comparison - the actual state of affairs is compared with the planned one, deviations from the norm that require attention are highlighted and brought to the appropriate level of management.

6.Decision-making is the implementation of actions necessary to:

1.first, regain control of the course of events,

2.secondly, to adjust the standards for evaluating business information in accordance with the changed situation,

.thirdly, to use the opened opportunities.

As a basis for comparison with actual values, you can use various options standards:

1.Ideal (theoretical) - calculated under the assumption ideal conditions: best market conditions, no losses, etc.

2.Normal - calculated for the average value for the period under review: the average level of norm tension, average prices, average output, etc.

.Current (expected) - calculated from the forecast of the situation for a certain accounting period: the expected volume of output or production conditions, the forecasted price level, etc.

.Basic - calculated for a certain moment, which is taken as the base (reference).

The main attention in the deviation management system is aimed at identifying deviations not by product types, but by the places of occurrence and establishing the fact of responsibility. This requires from the enterprise a new approach to the organization of on-farm accounting, planning, cost analysis, transfer to self-supporting not only shops, but also services, which will increase their responsibility for the formation of costs in places. Each service, department, workshop must have its own estimate, cost budget and meet it. In this regard, there is a need to organize cost budgeting. The cost management process should be aimed at timely detection of deviations from the norms, the limit and the creation of conditions for the interest of cost centers in their elimination, as well as a reasonable distribution of deviations among responsibility centers.

Figure 5.2 - The concept of a multi-layer enterprise cost management process

important question is the establishment of responsibility centers of the first level, that is, the primary expenditure of funds and enlarged responsibility centers of the second, third, etc. levels. Each responsibility center should be assigned only those costs that are directly controlled by this service. Control over direct costs is carried out by taking into account and analyzing deviations from the norms: documented and unformed, and for other cost items by comparing actual costs with planned ones at the end of the month. Great importance has not only an analysis of deviations from the norms, but also an analysis of changes in the norms, which, as a rule, are the result of measures aimed at improving production (with the exception of private adjustments of norms due to various kinds of errors). Using data on changes in norms and their causes, one can trace the dynamics of technical progress and the impact of production intensification on changes in costs.

On the basis of the idea of ​​deviation control, one can form the concept early warning systems for potential hazards . An early warning system is a special information system, thanks to which the management of an enterprise receives information about potential hazards threatening from the external environment and / or the internal environment of the enterprise itself, in order to promptly and purposefully respond to threats with appropriate measures. If, in addition to presenting data on possible dangers, the information system will have the ability to recognize opening chances, or positive opportunities, then we will talk about an early recognition system.

The elements of early warning systems are people, machines, and combinations thereof. A distinction is made between peripheral and central elements of an early warning system with corresponding specific information processes.

Early warning data are obtained at the moment when information about the state or development of certain processes and events in the external environment or at the enterprise becomes important, the impact of which is of great importance for the enterprise, including its survival, which indicates a high probability of these events occurring.

It is difficult enough to imagine how to determine the moment of acquisition importantof this or that information about the development of certain processes, it would seem that any source of perturbation is either constantly controlled or neglected. But let's go further.

The process of establishing an early warning system includes the following steps:

Definition of the area of ​​observation.

The starting points for building any early warning system are a clear understanding of the goals of the enterprise and a description of areas outside and inside the enterprise that can be a potential source of danger, i.e. serve as a cause of the crisis development of the enterprise, and can give special chances. External areas of observation can be, for example, specific markets and technological areas: internal - product programs, enterprise functions, etc.

Definition of early warning indicators.

Indicators should indicate as early as possible in the observed areas the development of phenomena that may signal possible dangers to the enterprise. Such indicators of the early warning system at the enterprise are the data:

-on receipt of orders;

-about prices in the supply markets;

About investments;

-about the demands of trade unions;

-on legislative initiatives

Determination of target indicators and intervals for their change for each indicator.

To recognize with the help of indicators of critical development in the observed area, it is necessary to have special meters, since we are not talking about identifying hitherto unknown sources of danger. Moreover, these dangerous and supercritical areas can be determined in advance.

Definition of tasks for information processing centers.

In allocating tasks within an early warning system and thus defining the structure, the following points are of particular importance:

Peripheral elements (sensors) that capture changes in indicators can be employees of all departments of the enterprise. In some cases, it is appropriate for some departments to centrally prepare and evaluate early warning signals last chance all the industrial troubles that happened to him. Creating a centralized division of controllers will not change anything, because in order to know about troubles, you need to work with them, and not ask about them in one division or another.);

in enterprises with a functional organizational structure, the tasks of centralized processing of early warning information are assigned to the departments of marketing or company-wide planning;

in enterprises with a divisional (product or regional) organizational structure, such signals are centrally processed within each division. Additionally, at the senior management level, information from departments, as well as signals from external sources, are collected together.

After all this, the following statement: in the form of preliminary calculations of the expected implementation of the plan in the framework of operational planning and as basic information for target and strategic planning, indicators that have the character of early warning indicators.

Conclusion

Deviation management - management carried out in order to restore the normal course of the production process when deviations occur. With an appropriate organization, internal reports should contain data reflecting deviations from planned revenues, costs and other indicators at the time of performing a particular operation of the business process according to the areas of responsibility of specific managers.

So, we found out that the deviation is "positive" and "negative". Both of these types of deviations adversely affect the activities of the enterprise. If we observe a negative deviation, then the enterprise did not work effectively enough. If the deviation is positive (which implies the effectiveness of the activity), then the standards were not well thought out and the organization has the resources to perform more work.

The main task of the deviation management is the timely prevention of wasteful spending of all types of resources, which is achieved by promptly accounting for deviations of actual costs from the current norms by business units, types of products, causes and culprits. To this end, accounting for production costs is carried out separately in terms of: costs according to the norms; norm changes; deviations from the norm.

Deviation management involves:

-Assignment of all elements of production costs to production service and functional divisions.

-The presence of internal cost accounting, which creates an objective interest in not being the culprit of the deviation.

-Creation of a rigid system of sanctions against the perpetrators of deviations, especially unformed ones.

-Availability of services and departments responsible for the correct and timely submission of information about deviations.

-Within each cost center, the analysis of deviations is carried out in the context of causes and perpetrators.

Setting up management accounting for deviations should be carried out individually for each company, taking into account the characteristics and specifics of its activities. A well-built system of management accounting for deviations will allow managers to quickly receive the information they need in the most convenient formats, which contributes to the timely adoption of correct management decisions.

To manage variances more effectively and ensure that variances from cost centers are identified and communicated, responsible managers and professionals should:

-develop a classifier of causes of deviations from the norms;

-ensure the interaction of management accounting specialists with the operational divisions of the enterprise and determine those responsible for deviations by groups of reasons;

-develop forms of signal documents and internal reports that record deviations from the norms; as well as determine the routes and the frequency of their movement.

To organize the accounting of deviations, it is necessary to develop codifiers for the reasons for deviations and those responsible for deviations. Reasons for variances can be internal or external, such as defective material purchased, defective business process operations, double payroll for unscheduled overtime. Responsible for deviations - managers and specialists who can influence the operations of the business process in order to eliminate the consequences of deviations and reduce the negative impact of these deviations. Their competence also includes the organization of preventive measures to prevent similar deviations in the future. The effectiveness of regulatory accounting increases if the emphasis shifts from punishing deviations from the norms to the operational management of these deviations.

A codifier of reasons for deviations and responsible for deviations is needed to order all deviations. It is like an address book, where addresses are fixed for transmitting information about deviations; The codifier makes it easier for shop workers to determine the nature of deviations and record them in the primary signal documentation or on electronic media. The use of the codifier helps to increase the efficiency of information transfer to department heads and specialists, which can help eliminate the causes that caused negative deviations. The presence of a codifier of reasons and those responsible for deviations makes it possible to increase the speed of managers' response to deviations that are within their competence, to systematize deviations by reasons for their subsequent analysis in order to ensure staff motivation.

Deviations from the norms should be analyzed. Favorable variance means cost savings; negative is caused by overexpenditure of resources. There is a certain relationship between favorable and negative deviations in the enterprise. Favorable variance in one responsibility center may lead to unfavorable variance in other responsibility centers.

Variance analysis not only allows you to identify a problem area (area of ​​inefficiency) that requires priority attention, but also identifies bottlenecks.

In some cases, the analysis of deviations helps to identify new opportunities, that is, reserves for improving the efficiency of employees, departments and the enterprise as a whole, which were not taken into account when determining the regulatory framework.

List of used literature:

1 Colin Drury, Management Accounting. Introductory course, Moscow, 2012

USAID Management Accounting 1. Tutorial", 2008

Vrublevsky N. "Accounting management accounting", 2010

Horngren C.T., Foster J.Sh. Datar "Management Accounting", St. Petersburg, 2007

Internet resources:

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