Dilfuza Tashnazarova
Samarkand Institute of Economics and Service
Abstract. The development strategy of our country sets the task of reducing losses in production and increasing the efficiency of resource use. International Standard (IAS 2) “Inventories” contains the rules for the formation of the cost of production. The development of a methodological procedure for the application of these rules is a topical issue. This article presents the current procedure for costing products and proposals for harmonization with international standards. The four-step calculation of the cost of production, which is currently used in our practice, has been critically studied. In the course of the study, shortcomings of the current methodology were identified, including insufficiently substantiated and disclosed the economic content of the coefficient, which is determined on the basis of dividing the actual costs for each cost element by the total planned cost. In addition, it was noted that the causal principle was not observed in the distribution of costs, the requirements for applying the rules in the best foreign experience of attributing direct material costs and direct labor costs to the cost of production according to the actual amount were not taken into account, and production overhead costs (POC) according to the budgeted size. To eliminate these shortcomings, an improved methodological procedure for the distribution of production overheads to the cost of production is proposed. In this case, it was proposed to perform a new methodological procedure, consisting of five steps, which includes budgeting and selection of distribution bases, distribution of POC by departments, redistribution of costs of service departments, calculation of the budgeted distribution rate of POC, as well as distribution of costs by type of product. There are rules for accounting for over-allocated or under-allocated of POC. These proposals serve to determine the correct value of the product and improve the quality and timeliness of decisions made.
Keywords: production cost, production overheads, budgeted production overheads, cost objects, indirect costs, inventories, cost allocation base