In manufacturing businesses, variable costs include direct materials costs, direct labor costs if paid per completed product, energy costs, fuel costs for running machinery, and other co
The rationale of the topic
In the context of economic integration, competition between companies becomes more and more fierce, not only competing in designs, but also competing in prices Therefore, the issue of cost savings is given top priority by business managers This is the key to helping the company succeed and stay on its path To improve business efficiency, each business is required to achieve its economic and financial goals, increase revenue and save costs In particular, the accounting process of gathering production costs and calculating product prices is an indispensable part to provide information for business administrators to make accurate and reasonable decisions to save costs, lower product prices to maximize profits
Soybeans or corn or rice are one of the consumer goods, also known as food; Therefore, there will be strict market requirements, so in order to win the trust of consumers, the products of companies doing business in this field are required to constantly improve the quality This is a long-term goal that needs attention, and along with it comes operational efficiency To promote the business operation efficiently, companies use various economic management tools, with accounting always considered the most important and effective tool With functions such as recording, calculating, reflecting, and monitoring the continuous fluctuations of materials, assets, capital, accounting uses both value and physical measurement Based on the business owner's understanding of the cost factors' usage, they can determine whether they are saving or wasting compared to the actual standards Therefore, companies can make decisions that are suitable for the development of production and business and the requirements of the business Therefore, accounting for gathering production costs and calculating product prices is indispensable when implementing accounting regimes in a market economy Due to the current situation of production cost accounting and product cost calculation at
An Phu Linh Co., Ltd., there are still some limitations, so finding solutions to save production costs and product cost calculations is really necessary Recognizing the importance of this area accounting work, through the internship process at An Phu Linh Co., Ltd., it has been shown that the company's cost accounting and product cost calculation has received a lot of attention and achieved many good results However, with the knowledge of an university student, along with my personal perspective, I think that accounting for production costs and calculates product costs needs to be researched and improved further From there, I chose the topic
"Accounting aggregates production costs and calculates product costs at An Phu Linh Company Limited" for my thesis research project.
Literature review
There have been many published research projects on Accounting aggregates production costs and calculates product costs; including university graduation theses, master's theses, articles, scientific topics, etc Each project has different perspectives, scopes, specific research objects and certain contributions Some recently published case studies include:
The graduation thesis of Le Thi Anh Van - Thang Long University on the topic "IMPROVING THE AGGREGATION OF PRODUCTION COSTS ACCOUNTING AND PRODUCT COSTING AT NORTHERN CONSTRUCTION AND MECHANICAL INVESTMENT JOINT STOCK COMPANY " in 2023 has systematically reviewed general theories on production costs, product costing, and applied them to evaluate the current situation of accounting for production costs and calculating product costs at the Northern Investment Construction and Mechanical Company The thesis has conducted practical surveys on accounting for production costs and calculating construction product costs at the company From there, in- depth research and analysis of the current situation of accounting aggregates production costs, calculating product costs, evaluating the advantages and disadvantages of accounting for production costs, and calculating product costs at the company were carried out
Nguyen Thu Phuong's graduation thesis at Lam Dong University on the topic
"RESEARCH ON THE AGGREGATION OF PRODUCTION COST
ACCOUNTING AND PRODUCT COSTING AT CKTGROUP VIETNAM CO., LTD., HOA BINH." in 2022 evaluated the current situation of the company in terms of aggregating production cost accounting and calculating product costs The thesis aimed to propose solutions to improve the aggregation of production cost accounting and product cost calculation at the company, in order to develop pricing policies and directions for the company's growth
Graduation thesis in 2022 of Nguyen Thi Thuy Hien at the Banking Academy with the topic: "SOLUTIONS TO IMPROVE THE MANAGEMENT OF PRODUCTION COSTS AND REDUCE PRODUCT COSTS AT VIETPHAP PAPER JOINT STOCK COMPANY" The author collected and processed information on financial reports, learned about management accounting work on production costs, and the company's existing cost reduction methods Offer many solutions to improve and minimize existing limitations
Or the graduation thesis on the topic "IMPROVING THE AGGREGATION
OF PRODUCTION COST ACCOUNTING AND PRODUCT COSTING AT VAN LOC VINA INDUSTRIAL CO., LTD." completed in 2023 by Tran Phuong Ha, a student at the Banking Academy, provided a development direction for Van Loc Vina Industrial Co., Ltd for the period 2023-2026 It also proposed solutions to enhance certain aspects in the process of orientation and development of this company
Based on the research studies conducted, I have observed that the majority of the studies have only provided solutions and recommendations for the government in general and specific companies However, the reasons and conditions for implementing these solutions and recommendations are also limited Therefore, this research will build upon existing theoretical foundations and delve into more details regarding the causes and conditions necessary to implement the proposed solutions Additionally, the topic of production costs and product costing at An Phu Linh Co., Ltd has not been thoroughly researched Therefore, I have decided to conduct a study on accounting for aggregate production cost and product costing at this company.
Objective of the research
The main goal of the research project is to further improve the theoretical aspect of organizing accounting work to collect production costs and calculate product prices in the context of fierce competition in the soybean market Along with that are a number of proposals to solve problems encountered in accounting practices according to state-issued regulations
First, research the basic theory of accounting aggregate production costs and calculating prices at manufacturing enterprises
Second, find out the current status of accounting aggregate production costs and product cost calculation at An Phu Linh Co., Ltd From there, clarify the advantages, limitations and causes that exist in the accounting stage of gathering production costs and calculating product prices at the company
Third, make proposals to improve the accounting of production costs and product cost calculations at An Phu Linh Co., Ltd.
Object and range of research
Theoretical basis and current status of accounting work to collect production costs and calculate product costs of manufacturing enterprises from a financial accounting perspective
- Scope: The research topic focuses on aggregating production cost accounting and calculating product costs from a financial accounting perspective at
An Phu Linh Co., Ltd., applying the accounting regime according to Circular 200/2014/TT-BTC issued by the Ministry of Finance
- Timeframe: The research project will primarily concentrate on collecting and studying the main transactional activities that occurred in the year 2023.
Research methods
Primary data: Obtained through interviews and consultations with leaders, managers, and accounting staff to assess the current situation and propose solutions to improve the aggregation of production cost accounting and product costing
Secondary data: Collected through research, reading, and studying studies with similar topics in the field of accounting in Vietnam and at An Phu Linh Co., Ltd b) Qualitative research method
Interview and consult with leaders, managers as well as employees in the accounting department to come up with solutions as well as the company's development orientation in accounting and gathering product cost and product costing c) Quantitative research methods
Focus on synthesizing and analyzing the system based on detailed books The ledger accounts have been compiled and provided by the company's Accounting Department.
Structure of the Thesis
The thesis consists of 3 chapters:
Chapter 1: The theoretical basis of aggregating production cost accounting and calculating product costs in manufacturing enterprises
Chapter 2: The current situation of aggregating production cost accounting and calculating product costs at An Phu Linh Co., Ltd
Chapter 3: Solutions to improve the aggregation of production cost accounting and product costing at An Phu Linh Co., Ltd.
THE THEORETICAL FOUNDATION OF COST
Basic issues in production costs and product costs
1.1.1 Basic issues in production costs
Cost is an economic concept associated with the production and circulation of goods From the perspective of management accounting and financial accounting, there are different perceptions of costs In financial accounting, costs are understood as resources expended or sacrificed to achieve specific objectives in the business production process
According to Vietnamese Accounting Standard No 01 (VAS-01): "Cost is the total value of items that reduce economic benefits in the accounting period in the form of cash payments, deductions from assets, or the incurrence of liabilities leading to a decrease in owner's equity, excluding distributions to shareholders or owners."
Production cost is the monetary expression of all expenses related to living labor, animal labor, and other necessary expenses that a business must incur in the process of production and business operations to achieve the purpose of creating products, services, and is accounted for a certain period
In other words, production cost is understood as the total amount that a business uses to produce a product or provide a service for sale to consumers Production costs may include things like labor, raw materials, or consumable supplies In economics, production costs are defined as the expenses incurred to obtain production factors such as labor, land, and capital necessary in the process of producing a product
1.1.1.2 The classification of production costs i
The classification of production costs varies based on their economic content, functional nature, and the location of their occurrence Each business also has its unique production and operational characteristics, leading to specific cost classification methods Some commonly used approaches include:
Based on purpose and function, production costs include:
- Direct Material Costs: All expenses related to materials used directly and reasonably to create products (components of products), labor services This category includes main material costs, auxiliary material costs, fuel costs, and purchased finished goods
- Direct Labor Costs: Includes payments to workers directly involved in the production and manufacturing of products, as well as deductions for employee benefits and legal requirements such as social insurance, health insurance, union fees, and unemployment insurance
- Manufacturing Overhead Costs: These are costs related to servicing and managing production within workshops or production teams They encompass expenses such as workshop staff costs, material costs, production tool costs, depreciation of fixed assets in workshops, electricity costs, water costs, and outsourced services
According to this classification based on content and nature, production costs are divided into five main categories:
According to this classification method, costs are divided into different factors, with each factor including expenses that share the same economic content There is no distinction made based on where these costs originate or the purpose or utility of each cost This classification method focuses solely on costs that occur initially, without considering internal cost transfers Production costs are divided into five cost factors:
- Material Costs: These include all expenses related to materials used in production, such as raw materials, auxiliary materials, fuel, spare parts, tools, and other material costs
- Labor Costs: This factor encompasses expenses associated with labor, including wages paid to workers, as well as contributions for social insurance, health insurance, and union fees
- Depreciation of Fixed Assets: This factor includes the depreciation costs of all fixed assets used in production activities, such as machinery, equipment, and facilities
- Outsourced Services Costs: These are expenses incurred for services obtained externally to support production operations, such as utilities, maintenance, repair, and other services
- Other Cash Costs: This category includes any other cash expenses related to production activities that do not fall into the aforementioned categories, such as expenses for meetings, conferences, or client entertainment
Based on the method of cost accumulation and the relationship with cost objects, costs are divided into Direct Costs and Indirect Costs
- Direct Costs: These are costs directly related to the production or provision of specific products, goods, or services They are assigned directly to each cost object
- Indirect Costs: These are costs associated with the overall production or provision process involving multiple products, goods, or services To determine the indirect costs for each cost object, accounting must use an allocation method appropriate for each cost driver
Based on the relationship between costs and activity volume (production volume)
This method considers how costs fluctuate with changes in the level of activity or the quantity of products or services produced According to this classification, the costs of production and business operations of an enterprise are divided into three types:
- Variable Costs (VC): Variable costs change in direct proportion to changes in the level of activity or the quantity of products or services produced As production volume increases, variable costs increase, and as production volume decreases, variable costs decrease Examples include raw materials, direct labor, and utilities directly related to production
In manufacturing businesses, variable costs include direct materials costs, direct labor costs (if paid per completed product), energy costs, fuel costs for running machinery, and other costs directly related to the production process
Variable costs can be categorized into two types: variable costs and fixed costs Variable costs, also known as direct costs, change in direct proportion to the level of activity In contrast, fixed costs, also known as indirect costs, remain constant regardless of the level of activity
The accounting system utilizes various types of ledgers and reports in
General Journal and General Ledger
Total cost of main products
Cost of initial defective main products
Total incurred production costs during the period
Value of recovered by-products
Value of ending defective main products
In today's increasingly developing economy, businesses are not only competing with domestic rivals but also facing market "invasion" from foreign enterprises Manufacturing companies themselves always pose questions such as: How to reduce production costs? What measures to implement to lower costs? How to increase profits? Saving production costs and reducing costs are among the top priorities for these types of enterprises Therefore, improving accounting for production costs and product costing is essential
Chapter 1 of the thesis has presented theoretical issues regarding the aggregation of production costs and product costing accounting in manufacturing enterprises From a financial accounting perspective, the thesis has discussed methods of accounting for production costs, evaluating defective products at the end of the period, and calculating product costs according to Circular 200/2014/TT- BTC
The issues studied in Chapter 1 of the thesis will serve as a basis for evaluating the current situation and proposing solutions to improve the aggregation of production costs and product costing accounting work at An Phu Linh Limited Company.
THE CURRENT SITUATION OF AGGREGATING
Overview of An Phu Linh Company Limited
2.1.1 Company formation and development process
- Full name: An Phu Linh Limited Liability Company
- Short name: An Phu Linh Co., Ltd
- Company Director: Mr Dinh The Quyet
- Address: No 94A, Hoang Ngan street, Trung Hoa, Cau Giay, Hanoi
An Phu Linh Company Limited is an enterprise established on March 29, 2005; business registration certificate number: 0101636715 issued by Hanoi Department of Planning and Investment Office at No 94A, Hoang Ngan Street, Trung Hoa Ward, Cau Giay District, Hanoi The company's warehouse is located at Dai Kim Urban Area Project, Nguyen Xien, Dai Kim Ward, Hoang Mai District, Hanoi
With 10 years of experience, the company has truly matured and grown in its core business activities, which include supplying equipment such as sheet piles, steel beams, and machinery for civil construction projects (cranes, pile drivers)
With a modern fleet of vehicles and specialized equipment, dynamic and professionally operated mechanisms suitable for the market economy, and a team of professional leaders, engineers, technical staff, and skilled workers
With the core values of "Reputation - Quality" and "Professionalism," An Phu Linh Co., Ltd aims to collaborate with partners both domestically and internationally in the construction industry
2.1.2 Production and business characteristics of the company
An Phu Linh Co., Ltd is a leading supplier and distributor of directly imported products in the raw materials and food industry Products provided are imported directly from leading manufacturers in the world, ensuring a diverse source of goods, good quality, and fully meeting customer needs
An Phu Linh Co., Ltd specializes in wholesale and retail of soybean seeds, green beans (whole and peeled), red beans, corn kernels (for popcorn) products imported from the US and Canada The company is importing and distributing, supplying unlimited quantities to the domestic market Products meet superior standards compared to other units, with competitive prices
- Sell and rent Larsen piles
- Construction of pressing and pulling sheet piles
- Sales and rental of shaped steel
Diagram 2.1: Diagram of the management apparatus of An Phu Linh Co., Ltd
2.1.3.2 Functions and missions of departments a, Director
+ The Director is the head of the Company, sets company policies and supervises the company's managers He is also the one who sets big goals for the company and tries to provide enough resources to achieve those goals
+ Manage, use and preserve operating capital and implement necessary measures to manage and protect the company's assets and equipment
+ Decide on issues related to the company's daily operations
+ Organize the implementation of the company's business plan and investment plan;
+ Promulgate internal regulations of the company
- The Deputy Director is responsible for assisting the Director in managing and directing the company's activities according to the Director's instructions At the same time, the Deputy Director also proactively and actively implements assigned tasks, urges and supervises departments to achieve optimal work efficiency c, Planning Department
- Make business plans At the same time, draft and sign economic contracts
- Monitor production activities and plan implementation progress of affiliated units
- Research and evaluate competitors in the market d, Technical Department
- Monitor the production and business performance of units within the company
- Manage the use, repair, and procurement of machinery and equipment to serve the company's production activities
- Design packaging and designs to be beautiful and suitable to consumer tastes
- Check the quality of finished products before selling them to the market
Under direct management from the technical - planning department, subject to mobilization to the site command boards to assign specific tasks Below the teams are teams specializing in each job Each team leader is a high-level worker who is directly responsible for the construction
Perform warehouse work, support import and export, and arrange goods in the warehouse e, Accounting Department
+ Organize accounting and accounting statistics, accurately and fully reflect arising data on the company's business situation
+ Manage the company's finances and assets according to State ordinances and unit regulations
+ Open a book to monitor business activities and compare investments
+ Collect costs and calculate product prices
+ Manage, inspect, guide and implement accounting regimes
+ Provide information about the company's business situation to the board of directors f, Sales Department
Undertake tasks related to materials, import, and product consumption
The company, with a moderate scale and its business scope focused within the city of Hanoi, utilizes a centralized accounting system
Within the company's internal structure, the accounting department not only contributes to managing and reporting business activities but also advises the board of directors on financial planning, capital sources for each quarter and fiscal year Therefore, the accounting department receives significant attention from the company to achieve the highest efficiency
Under the centralized accounting model, the company's accounting department performs all accounting tasks from document collection, verifying validity, and classifying initial documents to journalizing, conducting entries in the software, cost calculation, and preparing financial statements The company's sales department is responsible for guiding and executing initial entries (receipt, preliminary verification of documents reflecting economic transactions related to its activities) and sending those accounting documents to the central accounting department of the unit
Each employee in the accounting department is clearly assigned their duties, functions, and authorities, and they all fall under the supervision of the chief accountant to establish close relationships and mutual interactions while being both independent and interdependent The functions and duties of each accounting staff member are as follows:
Diagram 2.2 Accounting apparatus at An Phu Linh Company Co., Ltd
- Chief Accountant: General management of the work of the accounting reporter, responsible to the Director for all activities of the department
+ Implement financial and accounting policies and regulations
+ Check the legality of various types of contracts
+ Check the settlement and handling of shortages, bad debts and other damages
+ Carry out training and improve the professional skills of accountants in the department
- General accountant: Synthesize data from accountants, prepare monthly reports, balance cash receipts and expenditures, depreciate fixed assets, prepare
Tax, salary and social insurance accountant
Debt, payment accountant Treasurer management reports on the company's financial and business situation to Report to the board of directors
- Tax, salary and social insurance accountant: Perform tasks agreed in the labor contract In addition, trey must directly work with the Tax department when problems arise Timekeeping, salary accounting, insurance deduction accounting, and allocation of construction worker salary costs according to each incident
- Payment and payable accountant: Tracking and reconciling incoming and outgoing contracts, reconciling accounts payable at the end of the month to match completed values, invoice values, accounts receivable, and accounts payable
- Treasurer: The individual responsible for managing funds within the company, collaborating with the accounting department to reconcile the use of funds and verify the cash balance on the books with actual cash on hand
2.1.4.2 The organization applies accounting policies and procedures
- Current accounting year: The Company begins its accounting year on January 1 and ends on December 31 every year
- The currency used in accounting records is: Vietnam Dong
+ Principles for evaluating fixed assets: Original cost
+ Tangible fixed assets depreciation method: Depreciate fixed assets in a straight line
- Evaluation principles: Warehoused goods are determined according to the actual purchase price
- Inventory accounting method: The company applies the regular declaration method
General diary; Account ledger; Account details books
Diagram 2.3 Accounting procedure at the enterprise
- Ex-warehousing price calculation method: The company applies the weighted average method
- VAT calculation method according to the deduction method
Documentation system: Enterprises can proactively develop and design accounting document forms but must meet the requirements of the Accounting Law and ensure clarity and transparency
Account system: The company applies Circular 200/TT-BTC of the Ministry of Finance issued on December 22, 2014
- The company prepares annual financial reports according to management requirements
- Financial reports include 4 forms according to Circular 200/2014/TT-BTC of the Ministry of Finance, issued on December 22, 2014:
+ Balance sheet form No B01- DN
+ Report on business results, form No B02-DN
+ Cash flow statement form No B03-DN
In addition, to meet the inspection needs of regulatory agencies, the company also requires the accounting department to prepare additional tables such as:
- Detailed report on debt balance of the entire company
Form of accounting books in businesses: The applied accounting form is the general journal form, accounted for on Fast accounting software The book templates are designed according to the prescribed form and structure and are compatible with accounting software.
Current situation of accounting aggregates production costs and calculates
2.2.1.1 Object to collect and classify production costs
Determining the object of production cost collection is the first and most important task of accounting for aggregate production cost and calculating product cost The object of collecting production costs is the scope and place where costs arise where accountants must aggregate costs An Phu Linh Co., Ltd produces products on the basis of contracts signed with customers and partners, and the Company also produces products according to market needs Therefore, to facilitate the calculation of product costs, accountants at the Company determine the object of collecting costs by product, that is, all costs related to product manufacturing
An Phu Linh Co., Ltd is one of the leading importers and distributors of agricultural products in Vietnam because of its diverse and rich products and works based on customer satisfaction And to achieve that desire, the organization of accounting to properly and accurately gather and allocate production costs and calculate the full value of production costs is important in the management of costs and prices to serve the needs of customers Inspection and supervision of the legality and validity of costs incurred by each department
At An Phu Linh Limited Liability Company, based on the actual situation of the company and the unified regulations of the manufacturing and import-export industries as well as the current accounting policies, the company has classified production costs into the following expense categories:
- Account 621 – Direct raw material costs: consists of only one raw material, which is "Southern beans" or also known as "bucket beans" which has the effect of creating the product entity This raw material is purchased by the company or brought by customers
- Account 622 – Direct labor costs: Includes all main salaries, secondary salaries and allowances of a salary nature and salary deductions (social insurance, health insurance, unemployment insurance, union incentives) of workers directly involved in production
- Account 627 – Production overheads: Includes costs incurred related to production management activities in workshops and production groups:
+ Cost of tools and equipment
+ Depreciation costs of fixed assets
At An Phu Linh Co., Ltd., accounting for Direct raw material costs, Direct labor costs and Production overheads are all done on computers using FAST accounting software Therefore, payments to employees are made in the accounting department That is, the calculation of salaries, bonuses, allowances and salary deductions payable to employees is performed by the accounting department
Because the object of production cost accounting at An Phu Linh Co., Ltd is each workshop and group, the company has used two methods of aggregating production costs: the direct collection method applied to direct raw material costs, and indirect allocation method according to direct raw material costs for production overheads and direct labor costs
2.2.1.2 Accounting for aggregating direct raw material costs
For An Phu Linh Co., Ltd raw material costs are mainly the main raw material costs At the same time, raw material costs also account for a large proportion of the Company's total production costs, as well as in product prices The main raw materials used for production at the Company's workshop are southern beans, also known as bulk beans
Figure 2.1 Monthly inventory movement summary
Source: Accounting Department – An Phu Linh Company Limited
During processing, raw materials are separated according to industry technical standards From there, finished beans are divided into different types Based on image 2.1 It can be seen that from the main raw material, Southern beans, different finished products can be produced, and these finished products are all used account 1551 for accounting purposes
The calculation of ex-warehousing price is based on the average method of the entire reserve period, that is, when ex-warehousing, the accountant temporarily calculates the ex-warehousing price of the previous period, at the end of the month, the accountant calculates the ex-warehousing price of this period This period's average price is used as the basis for bookkeeping as well as determining direct material costs and cost calculations
Documents used: production orders, material usage norms, warehouse receipts, warehouse delivery notes, raw material import and export tables and raw material purchase invoices
Account used: account 621 – direct material costs
- TK62111 – direct material costs – Screening workshop: soybeans
- TK62112 – direct material costs – Ep extrusion workshop: soybeans
Accounting books: general book, detailed account 621- direct materials costs
Accounting order: The company accounts for detailed direct raw material costs for the product: soybeans When an agent places an order, the sales department transfers the ordering plan to the production department On the basis of the item, the production department reviews the inventory at the factory producing this item and the inventory of raw materials to make a production plan and assign it to the department in charge of production at the factory From the production plan of the production department, the production department calculates the number of raw materials needed for production The volume of raw materials used is determined on the basis of estimates based on raw material usage norms
The main raw material of bean products is southern beans, also known as bulk beans Using bulk beans as the main raw material will produce finished bean products such as type 1 soybeans, type 3 soybeans or Crock Bran, Due to the characteristics of each product and the norms for each type of raw material Materials are all different As introduced, Southern goods are direct raw materials, so they will be accounted for: Debit account 62111 or account 62112/ Credit account 152 When entering warehouse delivery notes on FAST, the accountant does not have to enter unit price and amount because calculate the ex-warehousing price using the average method at the end of the period At the end of December, information about southern bean raw materials (presented in Appendix 1) was as follows: Inventory at the beginning of December: 47,075 kg, value: 646,911,671 VND Warehoused in December: 14,563,400 kg, value 248,308,039,971 VND
Exported during the period 14,349,682 kg, value 244,843,810,147 VND Total quantity exported in December: 26,263 kg So the warehouse value of 26,263 kg of Southern beans is calculated as follows:
Average unit price of southern beans
Table 2.1: Delivery note dated December 8, 2022
NGÀY 08 THÁNG 12 NĂM 2022 Nợ: 62111 Số: PX5617/21 Có: 1521
- Họ và tên người nhận hàng: địa chỉ (bộ phận):
- Lý do xuất kho: Xuất 1 conts đỗ theo Bill PRRHCM111980 SSW104194
- Xuất tại kho (ngăn lô): DO02 - Kho Đỗ Miền Nam địa điểm:
CÁCH, PHẨM CHẤT VẬT TƯ,
1 Đỗ Miền Nam (hàng xô) DO301 kg 26,263.00 15,764.00 414,009,932
- Tổng cộng số tiền (Viết bằng chữ): Bốn trăm mười bốn triệu, không trăm linh chín nghìn, chín trăm ba mươi hai đồng chẵn
- Số chứng từ gốc kèm theo: 0
Ngày tháng năm NGƯỜI LẬP PHIẾU
Source: Accounting Department – An Phu Linh Company Limit
Actual price of raw materials released from warehouse = 15,746 x 26,263 = 414,009,932 VND Đơn vị: Công ty TNHH An Phú Linh Địa chỉ: Số 94A, phố Hoàng Ngân, Phường Trung Hòa,
Quận Cầu Giấy, Thành phố Hà Nội, Việt Nam
(Ban hành theo Thông tư số 200/2014/TT-BTC Ngày 22/12/2014 của Bộ Tài chính)
The accountant will account for this transaction as follows:
At the end of the period, the accountant will transfer to the corresponding account, which is Account 15411 as follows:
Similarly, for Account 62112, after undergoing the production process to become finished products at the Screening workshop, the finished products obtained will become the next raw material for the pressing process at the Compacting workshop Therefore, the accounting entry for the production output on December
At the end of the period, accounting will transfer to Account 15412
With the current use of FAST software, information will be automatically computed in the FAST software, and unit prices will be updated automatically in warehouse issue slips, general ledgers, and journals, without the need for manual data entry Recording and accounting for direct raw material cost transactions also become more straightforward with the use of FAST software This facilitates the process of calculating and accounting for incurred transactions more efficiently and quickly; especially for a company with nearly 20 years of experience like ours, where transactions and costs often amount to billions of VND Opening two accounting accounts to account for incurred transactions in two workshops of the company will also help clarify and classify incurred costs in each workshop, thereby enabling accountants to easily account for costs incurred in the production process with fewer mistakes or errors However, when calculating the average unit price of outgoing inventory for Southern beans – the company's primary and sole raw material, the company opts for the weighted average method Therefore, it will inevitably face the situation of raw materials being stored in the warehouse for too long, leading to spoilage and unusable
Table 2.2: Detailed book of account 62111 December 2022 Đơn vị: Công ty TNHH An Phú Linh Địa chỉ: Số 94A, phố Hoàng Ngân, Phường Trung
Hòa, Quận Cầu Giấy, Thành phố Hà Nội, Việt Nam
(Ban hành theo Thông tư số 200/2014/TT-BTC
Ngày 22/12/2014 của Bộ Tài chính)
Tài khoản: 62111 - chi phí nguyên vật liệu trực tiếp: PX SÀNG – ĐỖ TƯƠNG Đối tượng: - Loại tiền: VNĐ Ngày, tháng ghi sổ
Số phát sinh Số dư
Ngày, tháng Nợ Có Nợ Có
Xuất 1 conts đỗ theo Bill PRRHCM111980 SSW104194 1521 414,009,
Xuất 4 conts đỗ theo Bill PRRHCM112184 SSW104194 1521 1,656,03
Xuất 5 conts đỗ theo BillNAM5676958A 300896 1521 2,061,89
Xuất 2 conts đỗ theo NYCHCM112181 SSW104431 1521 823,322,
Xuất 3 conts đỗ theo NAM5498003A SSW104431 1521 1,229,46
62111 - CP NVL trực tiếp: PX
62111 - CP NVL trực tiếp: PX
62111 - CP NVL trực tiếp: PX
62111 - CP NVL trực tiếp: PX
62111 - CP NVL trực tiếp: PX
62111 - CP NVL trực tiếp: PX
62111 - CP NVL trực tiếp: PX
(Ký, họ tên) KẾ TOÁN TRƯỞNG
Ngày tháng năm GIÁM ĐỐC (Ký, họ tên, đóng dấu)
Source: Accounting Department – An Phu Linh Company Limited
Table 2.3: Detailed book of account 62112 December 2022 Đơn vị: Công ty TNHH An Phú Linh Địa chỉ: Số 94A, phố Hoàng Ngân, Phường Trung
Hòa, Quận Cầu Giấy, Thành phố Hà Nội, Việt Nam
(Ban hành theo Thông tư số 200/2014/TT-BTC Ngày 22/12/2014 của Bộ Tài chính)
Tài khoản: 62112 - chi phí nguyên vật liệu trực tiếp: PX ÉP ĐÙN – ĐỖ TƯƠNG Đối tượng: - Loại tiền: VNĐ
(Ký, họ tên) KẾ TOÁN TRƯỞNG
(Ký, họ tên, đóng dấu
Source: Accounting Department – An Phu Linh Company Limited
Số phát sinh Số dư
Số hiệu Ngày, tháng Nợ Có Nợ Có
12/22 /2022 Xuất thành phẩm sản xuất 155
12/23 /2022 Xuất thành phẩm sản xuất 155
12/23 /2022 Xuất thành phẩm sản xuất 155
12/24 /2022 Xuất thành phẩm sản xuất 155
12/26 /2022 Xuất thành phẩm sản xuất 155
PX ép đùn - ĐỖ TƯƠNG
PX ép đùn - ĐỖ TƯƠNG
PX ép đùn - ĐỖ TƯƠNG
Table 2.4: Ledger account 621 December 2022 Đơn vị: Công ty TNHH An Phú Linh Địa chỉ: Số 94A, phố Hoàng Ngân, Phường Trung
Hòa, Quận Cầu Giấy, Thành phố Hà Nội, Việt Nam
(Ban hành theo Thông tư số 200/2014/TT-BTC Ngày 22/12/2014 của Bộ Tài chính)
Tài khoản: 621 - chi phí nguyên vật liệu trực tiếp Đối tượng: - Loại tiền: VNĐ
Diễn giải TK đối ứng
Số phát sinh Số dư
Số hiệu Ngày, tháng Nợ Có Nợ Có
Xuất 1 conts đỗ theo Bill PRRHCM111980 SSW104194 1521 414,009
Xuất 4 conts đỗ theo Bill PRRHCM112184 SSW104194 1521 1,656,0
Xuất 5 conts đỗ theo BillNAM5676958A 300896 1521 2,061,8
2022 Xuất thành phẩm sản xuất 1551 101,114
2022 Xuất thành phẩm sản xuất 1551 163,473
2022 Xuất thành phẩm sản xuất 1551 33,134,
2022 Xuất thành phẩm sản xuất 1551 221,617
2022 Xuất thành phẩm sản xuất 1551 116,166
Xuất 2 conts đỗ theo NYCHCM112181 SSW104431 1521 823,322
Xuất 3 conts đỗ theo NAM5498003A SSW104431 1521 1,229,4
62111 - CP NVL trực tiếp: PX SÀNG - ĐỖ TƯƠNG 15411 0 10,241,
62111 - CP NVL trực tiếp: PX SÀNG - ĐỖ TƯƠNG 15411 0 36,978,
62111 - CP NVL trực tiếp: PX SÀNG - ĐỖ TƯƠNG 15411
62111 - CP NVL trực tiếp: PX SÀNG - ĐỖ 0TƯƠNG 15411 0 433,67
62111 - CP NVL trực tiếp: PX SÀNG - ĐỖ TƯƠNG 15411 0 7,935,0
62111 - CP NVL trực tiếp: PX SÀNG - ĐỖ TƯƠNG 15411 0 336,02
62111 - CP NVL trực tiếp: PX SÀNG - ĐỖ TƯƠNG 15411 0 17,008,
62112 - CP NVL trực tiếp: PX ép đùn - ĐỖ TƯƠNG 15412 0 102,12
533,385,107 0 31/12/ PKT204 31/12/ 62112 - CP NVL trực tiếp: PX 15412 0 507,85 25,533, 0
Source: Accounting Department – An Phu Linh Company Limited
2.2.1.3 Accounting for aggregating direct labor cost a) Contents
For manufacturing enterprises that require labor, direct labor costs at the company are calculated based on the wages of production workers during the period The basic wage is determined based on the labor contract signed with the employees The company applies a form of wage payment for both employees and production workers based on actual working hours The calculation of wages is based on the number of days the workers actually work multiplied by the daily wage rate The disadvantage of the company's wage calculation system is that it encourages workers to rely on attendance, with the mentality that as long as they show up and work the required number of days, they will receive the full salary However, due to the nature of the work at An Phu Linh Limited Liability Company, tasks requiring direct labor such as converting raw materials into finished products are performed by modern technological machinery Loading, unloading, or transporting tasks are handled by personnel hired by the company from external sources b) Documents, accounts used, and accounting ledger
Account used: account 622 – direct labor cost
Accounting ledger: General ledger, detailed ledger for account 622 – direct labor costs
62112 - CP NVL trực tiếp: PX ép đùn - ĐỖ TƯƠNG 15412 0 25,533,
(Ký, họ tên, đóng dấu) c) Accounting methods
General comments on cost aggregation and product Costing at An Phu
As a business with nearly 20 years of experience, An Phu Linh Limited Liability Company has been steadily asserting its position in the field of processing and manufacturing various products such as soybeans, flaxseeds, rapeseeds, and cereal grains like corn and rice Specifically, in recent years, the company's production and business efficiency has been continuously increasing, achieving
= 17.535,45 30,650 optimal capital utilization, and improving the quality of life for its employees This success is attributed to the tireless efforts of all staff, led by the Board of Directors
With a commitment to innovation and continuous modernization of technological processes, coupled with professional and efficient management practices, the company has contributed significantly to the achievement of its overarching goals
The accounting system, documents, and ledger
The accounting system, documents, and ledger at the company are structured to align with its business operations and adhere to the relatively detailed accounting framework set by the Ministry of Finance This facilitates clear and accurate management of production and business activities The accounting document system employed by the company is straightforward, tailored to the company's production and business characteristics, and compliant with the regulations of the Ministry of Finance Accounting documents are stored in accordance with the principles of content order and chronological order The ledger system is simple, easy to record, and convenient for cross-referencing between accounting departments Additionally, the accounting department is equipped with landline telephones, computers, photocopiers, and printers, which greatly facilitate daily operations
Building standard production costs and calculating product costs
The company has begun implementing management accounting in the estimation of production costs and the determination of product pricing It has developed a standard cost system and unit cost based on appropriate economic and technical standards to assess the production and business situation during the period and to propose measures to improve labor productivity and minimize costs to the maximum extent
The accounting of direct raw material costs
The company has opened two detailed accounts for account 621 - direct raw material costs These two sub-accounts are for the two main types of products manufactured by the company The company aggregates costs separately for each product, which aligns perfectly with the company's method of cost aggregation based on products This division of tracking accounts facilitates management, auditing, evaluation, and direction for the company's production activities
Accounting for production overhead costs
The company has opened detailed accounts for each specific cost type within the general production costs, which facilitates easy and convenient accounting The company aggregates general production costs for all products initially, then utilizes the method of allocating costs based on direct raw material costs to distribute these costs to each product This method helps save time for accounting and simplifies the tracking of cost aggregation
The accounting process for calculating product costs
Due to the application of advanced machinery and technology, the majority of products are consistently completed according to plan by the end of each month
As a result, the company has few, if any, defective products at the end and beginning of each accounting period This simplifies the process of cost calculation significantly because the cost of goods sold equals the production costs incurred during the period Since the cost calculation period is monthly, the accounting department can effectively monitor production costs, promptly detect instances of waste or inefficiency, and implement appropriate measures to address them, ensuring timely management requirements are met
During my internship at An Phu Linh Limited Company, I conducted in- depth research into the entire accounting process of the company as a whole, as well as the process of aggregating production costs and calculating product costs in particular Overall, the cost accounting work has been well executed, but there are still some details that have not been completed
Regarding invoice documentation, the process of transferring documents between departments is slow, and there are instances of incomplete invoice accounting The general accounting department has properly organized all documents according to each transaction However, in cases where invoices are received later, the internal accounting department sends the documents back to the sales department for the addition of new invoices to the original set Unfortunately, the sales department removes the pinned documents and reorganizes them differently If the general accounting department does not carefully review them, it can easily lead to the omission of new documents
Regarding the organization of the accounting department
The company's accounting department aims for simplicity There are four accountants in the company, including one chief accountant, one general accountant, and two accounting staff Despite the company's relatively large annual revenue (several hundred billion VND per year) and its operation in two different sectors (construction and agriculture), the accounting team is small As a result, each accountant is tasked with a considerable workload This heavy workload can sometimes lead to challenges in managing all accounting tasks effectively Accountants may struggle to keep up with all the transactions, leading to occasional errors or delays in their work
Alongside the company's excellent implementation of subdividing accounting accounts to track cost aggregation and product costing processes, there are still some account categories that the company has not prioritized For instance, regarding Account 155 "Finished Goods," the company currently uses a fourth-level account, TK1551, for all types of finished products This approach makes it challenging to track specific raw materials or direct inputs for each product Therefore, I suggest expanding TK1551 to more than four digits Similarly, for the costs of defective production, the company currently employs two accounts:
TK15411 for the screening workshop and TK15412 for the pressing workshop, corresponding to the incurred costs in both workshops However, I noticed that the company also has another account, TK62713, used to account for costs arising in both workshops Using three accounts for production costs across two corresponding accounts may lead to confusion and difficulties in accounting and transferring work in progress costs
Accounting for direct labor costs
The company's accounting practice of including the wages of laborers involved in loading and unloading products into inventory as direct labor costs is not appropriate because this group does not directly participate in the production process of the products
Inventory Valuation Method: The company employs the weighted average cost method, also known as the monthly moving average cost method, which is a commonly used approach by many businesses However, since the quantity of raw materials purchased varies over time, there is a risk of materials remaining in inventory for an extended period, leading to spoilage and wastage Particularly, the company exclusively uses Southern beans as its primary raw material Therefore, if the primary raw material spoils, it not only results in wastage but also hampers the production process, leading to inefficiencies in business operations
2.3.2.2 Cause of restrictions a) Subjective reasons
Regarding invoices and documents, there is sometimes a lack of understanding between departments in their working methods Specifically, the Sales Department and the Accounting Department, despite being adjacent, have not yet agreed on a unified approach to facilitate both sides Additionally, the volume of company transactions is quite significant Therefore, small contracts are sometimes forgotten, leading to delays in processing those documents
Concerning the accounting department, due to the shortage of personnel, the company's management does not want to add more staff to the accounting department, as they feel the current employees can handle the workload However, the scale of the enterprise is increasing, meaning that expanding the scale of the accounting department is necessary
Regarding the accounting system, adding a new account to the company's accounting system requires many cumbersome procedures Therefore, the company maintains its existing accounts and does not open new ones
IMPROVEMENT SOLUTIONS FOR INTEGRATED
Company development direction
In the current global development context, along with the continuous changes in economic relations between Vietnam and its international partners, opportunities for Vietnamese enterprises to experience significant growth have emerged
However, opportunities always come with challenges Vietnam's economy is heavily influenced by the global economic situation Given the ever-changing global economy, even minor conflicts between major countries like the US, China, and Japan can significantly impact Vietnam's economy Therefore, to establish a solid position in the future, the goal of An Phu Linh Limited Liability Company is not only to expand horizontally but also to deepen its development The company aims for rapid but stable development in key business areas Hence, the company has set some long-term goals as follows:
- To become a leading company in the field of supplying soybeans and renting sheet piles at reasonable prices and with excellent product quality Always be the number one choice in customers' minds when it comes to soybeans and sheet pile rental
- To build a stronger and larger company, breaking away from the self- sufficient family management style, aiming for a professional working environment with tight internal cohesion Create stable employment and increasingly high income for workers
- Increase sales volume: Expand relationships with customers, create a good impression by improving product quality and offering attractive after-sales policies
- Encourage word-of-mouth advertising by not only gaining the trust of products to their friends, acquaintances, and partners Word-of-mouth advertising is the most effective and cost-efficient method
- Implement discounts and promotions for new customers or long-standing customers to incentivize purchases
- Improve management quality and the quality of company employees
- Enhance the skills and provide regular training on accounting software for accountants
- Optimize internal processes, ensuring smooth and efficient collaboration among departments.
Solutions to improve accounting for aggregate production costs and
3.2.1 Requirements for improving accounting for aggregate production costs and product costing at the company:
The continuous objective of improving accounting for aggregate production costs and product costing is to maintain the achievements made, address existing issues, and ensure compliance with regulatory requirements while meeting the management needs of the company and contributing to cost savings and reducing product costs
To achieve this, the improvement must meet the following requirements:
- Improving cost accounting and product costing is an urgent requirement, but it must be achieved without adversely affecting the company's production and business operations Additionally, it must always adhere to the accounting principles and standards established by the government
- Furthermore, the improvement in cost accounting and product costing must be tailored to fit the characteristics of production and processing, as well as the actual situation of the company
- Enhancing cost accounting and product costing is also aimed at providing timely and comprehensive information to the company's leadership, serving management decision-making
- The improvement should aim to establish a streamlined and efficient accounting system
- All enhancements must be implemented based on scientific principles, ensuring effectiveness in both financial and operational aspects while remaining feasible
3.2.2 Some solutions to improve the accounting process of aggregating production costs and calculating product costs at An Phu Linh Limited Liability Company
To avoid loss or incomplete accounting due to missing invoices, it is essential for departments to establish a unified approach to work effectively with documents For a company like An Phu Linh Co., Ltd with nearly 20 years of experience, generating transactions worth billions of dong is common Particularly for significant transactions, careful preservation of invoices and documents is crucial However, it's evident that there are still limitations in the current approach to handling documents Rearranging documents in different formats can easily lead to loss during work, causing difficulties in accounting and reconciling transactions This can hinder the accounting department's ability to review and report on transactions accurately, affecting the company's ability to control profit, loss, revenue, and expenses for each business period
Understanding the importance of document management, I propose the following solution: For documents that have been accounted for and pinned together, any additional documents should be attached using paper clips and noted They should not be rearranged entirely, as this increases the risk of missing transactions and wastes the accounting department's time in reorganizing documents Keeping the original documents and adding notes to new ones will help the accounting team understand the timing and nature of the transactions This simplifies the accounting process, allowing accountants to spend more time reviewing and reconciling transactions, as well as devising strategies for the company's development This approach aims to ensure the company's continued growth and market stability in both domestic and international markets
3.2.2.2 Regarding the organization of the accounting department
Nowadays, most companies use accounting software However, human factors remain the most important element leading to success and work quality Therefore, regular training to enhance the skills of accounting staff is crucial The company needs specific programs to improve the professional expertise, computer knowledge, and accounting software skills of its employees In the current Vietnamese accounting context moving towards International Financial Reporting Standards (IFRS), accounting staff also need to continuously update and enhance their knowledge in all aspects related to the profession, actively participate in training courses to improve individual professional skills Regularly improving and sharing skills and experiences with colleagues in enhancing professional skills and knowledge is essential Having an attitude of seeking, learning, and equipping oneself with practical experience contributes to the formation of professional skills and qualities necessary to become a professional practitioner Especially in this era of global economic development, training for the accounting team at the company is essential
To ensure that accounting tasks are carried out quickly, accurately, and with fewer errors, hiring additional accounting staff is relatively necessary Although there is the assistance of machinery, humans are still the important factor in providing directions for development in the company's work process This is especially important when the company aims to expand its scale, enhance its position in the Vietnamese and international markets Therefore, hiring additional staff, especially for the accounting department, is extremely necessary When hiring new employees, the staff can help each other in their work through sharing and assisting each other in the process, especially in accounting for high-value transactions, which require many stages of verification and reconciliation The workload is quite large, but currently, the accounting department has only 4 employees Therefore, hiring additional staff is extremely necessary Although this may increase the company's costs, the work efficiency will be better if managed and distributed properly
Currently, the accounting system at the company has some important accounts detailed up to 4 digits However, to more accurately track the various components of the product, the company should consider expanding the accounting system beyond the current 4 digits For example, account 1551 – Finished goods, is currently used by the company to account for 11 types of products Therefore, to more precisely track the various costs of materials, I propose expanding account
155 as follows: Account 1551-1: Type 1 soybeans, Account 1551-2: Type 3 soybeans Through this, tracking and aggregating costs for each type of product can be performed more simply and accurately Or for unfinished production costs, currently, the company uses 2 accounts for unfinished production costs: account
15411 for the screening workshop and account 15412 for the pressing workshop However, the company also uses account 62713 for the common production costs of both workshops, and at the end of the period, transfers it to one of the two accounts mentioned above It is noted that using 3 accounts for production costs related to 2 corresponding accounts for unfinished production costs will cause difficulties and confusion in accounting and transferring unfinished costs Therefore, the company should consider opening another account 15413 - Common unfinished production costs, used to reflect common production costs incurred during the production process
Opening additional accounting accounts not only helps the company classify products more easily but also helps management to understand the level of cost usage of each product, especially for TNHH An Phu Linh, where there is a considerable quantity of products Therefore, opening corresponding accounts for each product can help the company's accounting department easily classify the costs incurred during the use of that product to create new items to deliver to customers
At the same time, it helps the accounting management department as well as the Board of Directors of the company to review the business process based on the incurred costs, in order to change plans and find new production directions to increase the efficiency of using input costs
3.2.2.4 Improving the accounting of direct labor costs
The company is currently accounting for the costs of stevedore employees in account 622 This is incorrect because account 622 reflects payments to labor directly involved in the production process, while stevedore employees do not participate in the production process of finished products and all tasks are carried out with the assistance of machinery and modern equipment in the workshops Wrong accounting in such a way will make it easy for the company to confuse with salary deductions or deductions based on salary when accounting for wages for workshop managers Additionally, accounting for stevedoring costs in account 622 will make it difficult for the accounting department to track profits and losses when these costs are not included in the cost of goods sold for inventory Therefore, I propose the company to account for stevedoring costs as follows:
It can be seen that whenever the company purchases additional raw materials, the accounting department will need to hire additional employees for stevedoring and transportation to warehouses and workshops Therefore, accounting for the costs of stevedore employees in account 152 – Raw materials is highly appropriate
Especially for TNHH An Phu Linh, each production cycle only uses one raw material, which is Southern soybeans Therefore, whenever there are additional purchases of raw materials as well as incurred costs during the purchasing process such as transportation costs, stevedoring costs, the accounting process becomes easier as there is no need to allocate transportation costs for each type of item
Furthermore, accounting for stevedoring costs for employees in account 152 will make it easier for accounting to determine the cost of goods sold because based on the incurred costs, accounting can provide more suitable costs for each product to ensure that the total costs incurred match the revenue received, avoiding losses or excessive inventory, thereby formulating reasonable cost strategies to generate significant profits without compromising the quality of goods in the production and business process
Some suggestions regarding the conditions for implementing solutions
The aforementioned are all the shortcomings in the accounting of production costs and product costing at An Phu Linh Limited Liability Company The improvement directions I proposed are based on the regulations on accounting and finance of the Ministry of Finance and the characteristics of the company However, for the improvement efforts to truly bring about effectiveness, input and contributions from all levels, sectors, and departments are necessary for genuinely effective accounting work
Given the changes in the country's economy and the policy of economic openness, enterprises should devise accounting measures that are suitable for the business characteristics of the company They should update standards, regulations, circulars, and new accounting guidance, and apply scientific and technological advancements to the company's accounting practices
Furthermore, the company should enhance the training of its accounting team to ensure that they are not only proficient in professional skills but also able to quickly update themselves on new government policies affecting businesses There should be closer guidance from the company's leadership on departments and units to evaluate work efficiency, ensure appropriate use of human resources, and guarantee stable and effective business operations The company's leadership should have a clearer understanding of the role of management accounting in production management and operations They should regularly request the accounting department to prepare cost and pricing management reports to propose suitable business directions for the company's development
When facing difficulties in implementing new documents, regulations, or decisions, the company's leadership can seek advice and accounting support from external financial consulting organizations or hire accounting personnel from these organizations to conduct regular training sessions to enhance the skills of the company's accounting staff Despite the costs associated with such support or training sessions, they are highly effective in enhancing the capacity of accounting staff and improving the quality of managing business operations at the enterprise
The company should establish reasonable remuneration policies to encourage employees to work and implement policies for motivation, commendation, and timely discipline Additionally, there should be regular training sessions to improve professional skills and knowledge for employees
Global economic integration has provided opportunities for the development of domestic economic components However, it has also presented numerous challenges due to intense competition and pressure faced by businesses This poses an urgent issue for the State: how to not only fulfill commitments regarding international economic integration but also ensure the development of all domestic economic components The State needs to create a level playing field for businesses to participate in activities freely Additionally, it should establish a coherent, equitable, and favorable legal framework for enterprises, continuously improve and amend legal documents to be in line with the current economic situation, and issue specific regulations and guidelines for businesses to easily implement
The State should participate in building an accounting system as a guide, providing direction without deeply intervening in accounting activities, as managing the macroeconomic economy is the State's responsibility Businesses are currently facing difficulties in accessing capital, high interest rates on loans, land lease fees, and unusually high operating costs, leading to difficulties in competing in the market economy Therefore, businesses hope to receive support from the State in terms of demand-driven capital, adjusting interest rates, and implementing mechanisms that are stable and more flexible to alleviate the difficulties faced by manufacturing enterprises The State should promptly and decisively adjust inappropriate policies and directions
3.3.3 Suggestions to the Ministry of Finance
As the direct management authority for economic and financial affairs, the Ministry of Finance needs to continue collaborating with the Government to improve the legal framework, ensuring convenience for existing and developing enterprises The Ministry of Finance should continue refining accounting regulations to align closely with international accounting standards, providing opportunities for Vietnamese enterprises to utilize and access the latest accounting methods Given that accounting regulations and standards have been issued and used by enterprises, it is recommended that the Ministry of Finance make reasonable adjustments, changes, and improvements to develop economic activities suitable for the realities of businesses and to enhance its guiding and directional role
Moreover, when making new decisions, the Ministry of Finance should allocate specific timeframes for enterprises to timely update and adjust policies to be relevant To avoid errors in the application of circulars and decrees, the Ministry of Finance should issue detailed guidelines for enterprises to easily access, understand, and effectively implement these policies
The Ministry of Finance should also collaborate with tax authorities to assist enterprises facing challenges regarding tax declaration periods, calculation, and payment of taxes Furthermore, the Ministry of Finance needs to enhance its role in the market economy to implement timely intervention measures, creating a high level of stability for business operations
The content in Chapter 3 of this thesis has presented the following points:
Providing the development orientation of An Phu Linh Limited Company in the period of 2023-2026, along with requirements for improving accounting work in general and the production cost aggregation and product costing in particular
Consequently, proposing solutions to improve various aspects:
- Enhancing the human resources capacity of the accounting department
- Calculating direct labor costs for production
- General production costs: depreciation method of fixed assets, electricity costs, workshop costs
- Unused raw materials, defective products
Furthermore, the thesis also offers recommendations for the State and the Company to enhance management and business production activities I hope that the solutions and recommendations above will help the company improve accounting work in aggregating production costs and product costing, achieve long- term and short-term goals, and affirm the company's position in the textile material market
Accounting for production costs and calculating product prices is an important field in business management, especially in the manufacturing and business industry Effectively managing production costs helps businesses achieve high profits and compete in the market Production cost accounting helps businesses know fixed costs, variable costs, direct and intermittent costs to make reasonable management decisions
Product cost calculation is an important process that helps businesses determine product costs accurately and transparently By calculating costs, businesses can make decisions about prices, profits, competitive strategies and improve production efficiency At the same time, by comparing product prices with selling prices, businesses can evaluate the level of competition in the market and flexibly adjust business strategies
Applying the correct product cost calculation method also helps businesses evaluate production and business efficiency, thereby offering measures to improve efficiency, optimize costs and enhance competition At the same time, applying production cost accounting and calculating product prices properly also helps businesses grasp the business situation, make strategic management decisions and develop sustainably in the market
In summary, production cost accounting and product costing play an important role in business management and achieving high business efficiency
Accurate and effective application of cost accounting and product pricing methods will help businesses develop sustainably and compete in the market
1 Anh, V T N (2018) Improving the accounting of production costs and calculating product costs at Thuong Phu Coffee Joint Stock Company Banking Academy, Hanoi
2 Ha, T P (2022) Improving the aggregation of production cost accounting and product costing at Van Loc Vina Industrial Company Limited Banking Academy, Hanoi
3 Hien, N T T (2022) Solutions to improve the management of production costs and reduce product costs at Viet Phap Paper joint Stock Company Banking Academy, Hanoi
4 Luyen, L V (2017) Financial accounting textbook - Banking Academy
5 Phuong, N T (2022) Research on the aggregation of production cost accounting and product costing at CKT Group Vietnam Company Limited, Hoa Binh Forestry University, Hanoi
6 Van, L T A (2023) Improving the aggregation of production costs accounting and product costing at Northern construction and Mechanical investment Joint Stock Company Thang Long University, Hanoi
APPENDIX APPENDIX 01: MONTHLY INVENTORY MOVEMENT SUMMARY FOR DECEMBER 2022
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KẾ TOÁN TRƯỞNG (Ký, họ tên)
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