Hoàn thiện kế toán quản trị chi phí và giá thành tại các công ty xây dựng công trình thủy lợi ở việt nam tt tiếng anh

MINISTRY OF EDUCATION MINISTRY OF FINANCE AND TRAINING ACADEMY OF FINANCE **************** DAO THUY HANG " COMPLETING ACCOUNTING OF COST AND PRICE MANAGEMENT AT IRRIGATION CONSTRUCTION COMPANIES IN VIETNAM " Major: Accountant Code: 9.34.03.01 ABSTRACT SUMMARY THESIS Hanoi – 2020 THE PUBLICATION COMPLETED AT ACADEMY OF FINANCE Science instructor: Assoc Prof Pham Thi Kim Van Assoc Prof Pham Tien Hung Reviewer 1:………………………………… Reviewer 2: ………………………………… Reviewer 3: ………………………………… " COMPLETING ACCOUNTING OF COST AND PRICE MANAGEMENT AT IRRIGATION CONSTRUCTION COMPANIES IN VIETNAM " At: …… time …… date …… month …… year ……………… Found in: National or AOF Libraries INTRODUCTION Thesis necessities For irrigation construction companies to get a completed project, they had to undergo many stages, each stage incurred many expenses to vary, making it difficult to control costs Their accounting of cost and cost management have not met the requirements set for the domestic enterprises in the new situation Stemming from the above situation, the author conducts research on the topic: "Completing accounting of cost and price management at irrigation construction companies in Vietnam" as a thesis topic Accounting of cost and price management is not a new topic and many authors have conducted research However, no other author has conducted any similar research in relation to the management function of managers at irrigation construction companies in Vietnam Thesis research purposes 2.1 Theoretically Based on researching specific business production activities of irrigation construction enterprises, the author systematized the theory of cost and price management accounting in construction enterprises in the direction of focusing on studying the contents of the cost and price management accounting in term of relationship with the management function of the administrator, studying the cost and price management accounting to offer the most appropriate solutions to the irrigation construction enterprises 2.2 Practically Describing, analyzing and assessing the current situation of economic cost and price management accounting applied at the construction companies of irrigation works to point out what has been done, what has not in the production cost and price management accounting at these companies Thesis object and scope 3.1 objecti The object of study is defined as: Production cost and price management accounting of irrigation construction works at irrigation construction companies in Vietnam As a contractor for irrigation works for the investor ( excluding the investor who has established the PMU) 3.2 Scope 2.1 Content In order not to be distracted, the author focused on researching production cost and price management accounting of work and work categories in irrigation construction activities, as the contractor 3.2.2 Location Because irrigation construction companies operate in different geographical areas (Vietnam has regions: North, Central and South) but they have similar operating characteristics of the ones operating in the construction irrigation sector And there is no big difference production cost and price management accounting Thus, our thesis should only survey irrigation construction companies in the North as samples 3.2.3 Time The data collected by the author is accounting data from 20142018 Methodology 4.1 Information collection : primary and secondary level Survey by investigation method, interview method 4.2 Data processing For secondary data , after collecting the classification, sort the data in order of priority of importance For primary data , research process is a combination of interpretation and inductive, using a number of specific techniques, such as: integration, statistics, analysis, comparison, interview, etc is flexibly used in the thesis The thesis contributions Theoretically: The thesis focuses on research to clarify theoretical matters of cost and price management accounting in construction enterprises Based on the the findings of international cost and price management accounting in some typical countries, the thesis helps to draw experiences in cost and price management accounting of Vietnamese construction enterprises Practically: The thesis has evaluated the advantages, disadvantages and causes of production cost and price management accounting problems and offered suitable feasible solutions, to complete the cost and price management accounting in irrigation construction companies The thesis structure In addition to the introduction, conclusion, references and appendices, the thesis is divided into chapters: Chapter 1: General theoretical bases of production cost and price management accounting in construction enterprises Chapter 2: Current situation of production cost and price management accounting in irrigation construction companies in Vietnam Chapter 3: Completing the production cost and price management accounting at irrigation construction companies in Vietnam CHAPTER GENERAL THEORETICAL BASES OF PRODUCTION COST AND PRICE MANAGEMENT ACCOUNTING IN CONSTRUCTION ENTERPRISES 1.1 General overview of production cost and price management accounting 1.1.1 Concept, nature and role of production cost and price management accounting in construction companies Management accounting is a science that acquires, processes and provides quantitative, non-quantitative information (financial information and financial charges) on the activities of the unit in detail, helping managers in the process of making decisions related to the planning, implementation organization, inspection, control and evaluation of the performance of units' activities " In the author’s opinion, the nature of production cost and price management accounting is: Production Cost and Price Management accounting is a part of Management Accounting to provide information on costs and price to serve the administrator’s functions such as planning, testing, decision making The role of production cost and price management accounting in construction enterprises can be generalized in the following points: Recording selectively, providing information on the construction work/work category activities, inspection and explaining the plan implementation, cost estimating, and decision making 1.1.2 Goals, tasks and affecting factors of production cost and price management accounting in construction enterprises a) The objective of construction cost and price management accounting: cost controlling and evaluating the responsibility of centers in the organization, making decicions of administrator b) The task of production cost and price management accounting in construction enterprises: Measuring, calculating the cost of a work /work category or a specific constructive activity, investigating the implementation of cost norms c) Factors affecting production cost and price management accounting in construction enterprises: Objective and subjective factors 1.2 Irrigational characteristics affecting production cost and price management accounting: Constructive products are individual, valueable Construction time is relatively long To get the construction contract , the companies often have to experience bidding stages 1.3 Determining cost methods 1.3.1 Target costing method (TC) : TC is a cost management methods used to achieve planned profit 1.3.2 Kaizen costing method (KC ) : In Japanese, the term Kaizen means "improve" or "change for the better" this is the philosophy focusing on continuous improvement of the manufacturing process, engineering, business process support, and management 1.3.3 Standard costing method Standard costing method is a traditional cost accounting method introduced in the 1920s, replacing the traditional cost accounting method based on historical costs [78] [36] 1.3.4 Construction activity characteristic affecting the choice of using the production cost and price management accounting method In the construction industry, apart from the factors that encourage technological development, capital investment, they also involve management activities One of the management methods used in highly competitive manufacturing is the determination of target costs 1.4 Basic content of production cost and price management accounting Considering the management accounting process in relation with management functions, mangement accounting includes: Formalizing their unit objectives into their economic aims, making general and detailed estimation, collection and providing information on the results of implementing the objectives Therefore, to meet the needs of information serving enterprise management functions, the basic content of cost and price management accounting includes: - Identifying and classifying expenses - Setting norms and making cost estimation - Gathering and calculating the cost allocation for the price calculation objects - Controling costs and accounting responsibility - Cost analyzing to provide information for decision making - Making economic reports of production costs and costs 1.5 Cost and price management accounting in some countries in the world and experience for Vietnamese businesses In different countries, there is different application of cost and price management accounting However, the cost and price management accounting in Vietnam is still quite new It takes time, specific plans and roadmaps to apply flexibly, in accordance with current conditions and future development directions SUMMARY OF CHAPTER In Chapter of the thesis, the author in depth analyze general situation of cost and price management accounting Its common basic theories of cost and price management accounting in the construction enterprises which are presented and analyzed in chapter are the bases for the author to study, investigate the application state of cost and price management accounting in the irrigation construction companies in Vietnam CHAPTER CURRENT SITUATION OF PRODUCTION COST AND PRICE MANAGEMENT ACCOUNTING IN IRRIGATION CONSTRUCTION COMPANIES IN VIETNAM 2.1 Overview of irrigation construction industry in Vietnam 2.1.1 The formation and development process of irrigation construction industry in Vietnam : Irrigation is taken priority to be invested to promote its efficiency Irrigation is always a special priority of the Government and Party Irrigation development has stemmed from the agricultural and rural development basis in the renovation process which makes an important contribution to the food security warrant, production restructures, natural disaster prevention, ecurity protection and safe production for all the citizens 2.1.2 Overview of characteristics of production and business activities at irrigation construction companies as contractors : Due to the single, individual and various characteristics of construction works performed by the company, the accountant must take into account the cost accounting and price calculation for each separate project After conducting a full acceptance of construction building , general cost and price accounting for all the work is performed 2.1.3 Irrigation State Management System The organization of state management on irrigation works is described in the following chart : 2.2.3.3 Methods of determining the costs at irrigation construction companies : Currently, irrigation construction companies using the method of determining the cost of production by the method of transmission system Those company has not applied the target cost management accounting method 2.2.3.4 Actual situation of defining the cost production allocation model The irrigation construction companies distribute production costs related to subjects Specifically: There are 22/52 companies accounting for 42.76% The irrigation construction companies allocated production costs with direct expense of raw materials, 15/52 companies accounting for 29.66% of the enterprises allocated according to output value, 9/52 companies accounting for 16.55% of the enterprises allocated according to real volume, and 11.03% of enterprises allocate according to the estimated value ( sentence 26 - Appendix 1D ) 2.2.3.5 Current status of unfinished product reviews Characteristics of irrigation construction is: Production according to the State orders, the cost of the works / work category is determined in advance Therefore, there will be no uncompleted products at the end of the period 2.2.3.6 Actual situation of cost estimation: Irrigation construction companies apply simple costing method to calculate each work /work category 2.2 Organizing cost control at irrigation construction companies 2.2.4.1 Actual cost control situation :According the survey, there are 2/52 (3.8 % ) companies have made the assessment on a regular basis cost evaluation to provide administrators with information 11 2.2.4.2 Assigning responsibility in the irrigation construction companies In the actual survey, 100% of the companies have conducted decentralized management, clearly assigned and defined responsibilities of each management level in the company 2.2.5 Actual situation of cost analysis to provide information for decision making The survey results show that only 15.4% of the enterprises know about the cost and price accounting at an early stage, but the irrigation construction companies in the North have had cost analysis served business decisions 2.2.6 Actual situation of cost and price accounting report According to the survey at the irrigation construction companies, only (6/52) equivalent to 11.5% of enterprises reported periodically or at the request of the managers (sentence 13-Appendix 1D2) 2.3 Assessing the current situation of production cost and price management accounting at irrigation construction companies in Vietnam 2.3.1 The advantages of cost and price management accounting at irrigation construction companies in Vietnam - Regarding the identification and classification of production costs: Irrigation construction companies have basically determined the content of production costs and classified their production costs strictly according to the enterprise accounting policies - Regarding the building of norms, cost and price estimation: Estimation work in irrigation construction companies has generally 12 applied regulations, norms and methods cost estimates of the Ministry of Construction - Regarding the economic efficiency of production value and cost: Companies apply the method of calculating prices by the direct method, this method will help managers to control costs closely, simply and quickly - Regarding the preparation and presentation of accounting reports, in general, they are ensured according to regulations and in accordance with the requirements of providing information for users -About accounting responsibilities: At the Company has a clear management hierarchy 100% of companies have conducted cost estimation analysis with planned costs to enable administrators to control costs incurred, thereby taking cost savings 2.3.2 The limitations and their causes First, the identification and classification of costs : is not valuable for management unit Second, the setting cost norms and making cost estimation: Enterprises have set cost norms but not yet completed Third, the composing and calculating cost allocation for the priced objects : The determination and calculation of arising costs for objects is not reasonable, not accurate to actual costs, unsuitable for the requirements of enterprise management and the evaluation of each department efficiency - About applying the target cost and price management accounting: in the survey at the irrigation construction companis, it has not been applied Fourth, cost control : illogical 13 - Responsibility accounting: in the companies, responsibility centers such as cost center, revenue center, profit center and investment center have not yet been identified Fifth, cost analysis providing information for decision making : the companies have not applied appropriate information technology for decision making Sixth, the report of cost and price management accounting: the preparation of management reports: little and sketchy *Reasons - Objective cause : There has been no guidance from the State on the content, methods and organization of types, forms of ownership, scale, of Irrigation Construction Companies - Subjective reasons : Because of the administrator’s awareness the accountant’s abilities , the contact between departments in the company , the staff building norms and estimation , the information and technology application SUMMARY OF CHAPTER Chapter clarifies the characteristics of the organization of production activities of the irrigation construction company in Vietnam and the impact on the accounting work in general and the production cost and price management accounting in irrigation construction companies in Vietnam in particular On that basis, the author has analyzed and assessed the actual situation of cost and price management accounting in irrigation construction companies, pointing out the advantages, disadvantages and their causes, which are the bases to offer solutions to improve the production cost and price management accounting in irrigation construction works in Vietnam 14 CHAPTER COMPLETING THE PRODUCTION COST AND PRICE MANAGEMENT ACCOUNTING AT IRRIGATION CONSTRUCTION COMPANIES IN VIETNAM 3.1 Development strategies of irrigation construction industry and the completion requirements of the production cost and price management accounting in irrigation construction companies in in Vietnam 3.1.1 Development strategy of irrigation construction industry to 20 30 and the vision to 20 45 : Ensuring that people in the Mekong Delta, Central and mountainous areas live stably and safely when the sea level risea, guaranteeing that 3.8 million hectares of rice grown well seasons per year, implementing effectively the measures to prevent and mitigate natural disasters in the climate change situation 3.1.2 Business environment and information needs serving the decision-making process The survey results showed that in the majority of companies the production cost and price management accounting has been used only to provide information to meet the regulations of the State for financial information, not enough for the managers to make decisions 3.1.3 Completed requirements of the production cost and price management accounting of construction companies in the irrigation works in Vietnam First, Completing the production cost and price management accounting must follow the issued legal system Irrigation construction companies that operate must comply with the laws and regulations on financial management of ministries and branches related to their operations Therefore, completing the 15 production cost and price management accounting must also be in accordance with the law, the guiding circulars related to the price management accounting issued by the authorized agencies of the State Second: Completing the production cost and price management accounting must be suitable with the operating characteristics, the scale, the characteristics of management organization and the scope of activities of the unit Researching and completing the production cost and price management accounting of each unit must be based on the operational characteristics, scale, management organization and capacity of such unit to bring high efficiency in application of each unit Third: Completing the production cost and price management accounting must ensure providing sufficient and timely accounting information for the unit administrator In order to avoid distracting information affecting the business decision of the company, the company should use the information selectively the information must be processed Therefore, information providing should emphasize on the uniformity of requirements in a timely, complete and accurate manner Fourth: Completing the production cost and price management accounting must ensure the requirements suitable with globalization trends The completion of the production cost and price management accounting of irrigation construction companies must be in line with international practices 3.2 Solutions for completing the production cost and price management accounting at irrigation construction companies in Vietnam 16 3.2.1 Completing cost identification and cost classification at irrigation construction companies in Vietnam For management accounting, costs need to be identified according to the behavior of costs Such cost classification is important in cost analysis, planning, control and regulation of enterprise management costs 3.2.2 Completing the norm building and cost estimation at the irrigation construction companies in Vietnam Irrigation works depends greatly on natural conditions, topography, and the status of the construction system, so it is impossible to set a common norm for the whole industry but the norm must be built individually 3.2.2.1 Establish a system of cost norms First: Establish internal cost norms Second, cost norm builders must have highly professional qualifications and practical knowledge 3.2.2.2 Build cost estimation according to administration costs: The companies are required to make: internal estimation for management demand at the unit, construction work/ word category estimation up on the operations , annual cost estimation 3.2.3 Complete the collection and calculation of cost allocations for the priced objects at irrigation construction companies 3.2.3.1 Completing the organization of cost information collection : The collection of accounting information needs the participation of all relevant departments in the enterprise 3.2.3.2 Completing the application of the target cost method at irrigation construction companies in Vietnam : For irrigation construction companies, the application of the target cost method at the 17 bid stage estimation and contracting one to ensure the bid victory and guarantee that the construction production achieves the target profit level is very necessary 3.2.4 Completing control of the production cost and price management accounting at irrigation construction companies in Vietnam : Enhancing strictly inspection, control of production cost, construction supervision ❖ Supply stage: Periodically, the Material Department reviews the supplier, and reports back to the Company Director on whether to continue or remove the supplier ❖ Delivery, receipt and warehousing : In order to avoid cheating on the number of supplies when the storekeeper goes through the procedures of receiving and warehousing, there must be an employee independent from the storekeeper ❖ Use of materials: Increasing inspection, construction supervision (responsibility of technical staff), requiring the inspection to be focused but not to be taken lightly of any job; b Inspection procedures checking in workmanship of before direct signing labor the costs: Need contract, intensify checking, regular monitoring of labor productivity of workers c Procedures for controlling the cost of using constructional machines - For the cost of outsourced construction machines: Need to find out the prices in many units for renting the machine, choose the unit that offers the lowest price - For construction machines under the management company: strengthen irregular inspection of construction sites d General production cost control procedures 18 of the - Control costs of materials share a similar procedure cost control of direct materials * Responsibility accounting is only done in enterprises with organizational structure of the management system clearly assigned Depending on the characteristics of the organizational structure, the level of management decentralization and the goals of the enterprise administrator, it is divided into the respective responsibility centers 3.2.5 Complete cost analysis to provide information for decision making at irrigation construction companies in Vietnam In order to assess the use of costs and performance, companies need to develop cost expenditures to analyze cost fluctuations through cost reporting and cost information for the business management decisions 3.2.6 Completing the reporting system for managing production costs and price : The product cost management report provides information about the total cost and unit price of each product manufactured by the enterprise On that basis, it helps administrators analyze and assess the situation of saving production costs, reducing product costs to increase profits The basis for making this report is based on a detailed book of production costs, product costs and cost production estimation of the work/ work category 3.3 Conditions for the solution to be taken 3.3.1 For the State and the authorities The State, particularly the Ministry of Finance, should soon issue clearer and more specific regulations and documents on the management accounting system for all types of enterprises 19 Besides, similar to financial accounting, the Ministry of Finance should also organize training courses, widely disseminating management accounting knowledge to businesses -For the Ministry of Construction + The construction standards, construction norms, used to calculate the construction cost of the Ministry of Construction should be assigned to professional construction consulting companies + In bidding, it is necessary to study and set out specific regulations on bases and methods of bidding price creation, helping bidders to develop their own strengths in the process of determining bid prices - For Training organizations: Training types of engineers, construction price specialists, practicing certificates in the field of construction 3.3.2 For companies constructing irrigation works in Vietnam * Awareness of administrators: need to raise awareness and management skills of managers, to help administrators see the importance of management accounting in the accounting system * Qualifications of management accounting staff: The information provided to the administrator is very important in the current dynamic and competitive economic economy It requires management accounting to have professional skills as well as professional ethics to make sure to provide accurate information, not to leak the information and to have a sense of responsibility to work to avoid prejudice to the decision of the administrator thereby affecting business benefits Therefore, it is essential to improve the professional competence of accountants and the division of accountant labor 20 * Application of science and technology: The requirements of financial accounting in general as well as management accounting in particular need to be provided with information in a complete, fast, accurate and timely manner Therefore, the management accounting system needs to meet this requirement Especially in the era of economic competition today, when information is considered the key to the success or failure of a business * Proposals and solutions for applying target costs to manage costs in the irrigation construction industry in Vietnam -Solutions for Contractors + The contractor must have a manager who is responsible for the entire project from identification to operation and completion, and can manage costs throughout the project + The contractor should consider and identify all project costs right from the beginning + The contractor should apply value analysis tools to improve project costs, to ensure that profit targets are achieved + The contractor should set up a multi-tasking team (cross-linked) and have close coordination with external suppliers to achieve cost goals + Each part and work item must have a detailed cost plan The contractor relies on this to check the compliance of construction costs from the parts -Resolution for Investors : Hire a professional consultant to help the investor in the planning and preparation stage, and the work of designers and builders, suppliers makes them early collaborate with each other to bring convenience to the project Assign both design and construction to one contractor 21 SUMMARY OF CHAPTER In order to improve the competitiveness of irrigation construction companies in Vietnam in the current period, the organization of production cost and price management accounting is compulsory task Based on study characteristics of production and business of the irrigation construction companies in Vietnam, chapter has shows a general principles as well as compleing content of production cost and price management accounting on the following aspects: - Complete cost identification and cost classification and costing at irrigation construction companies in Vietnam - Completing the norm building and cost estimation at the irrigation construction companies in Vietnam - Completing the application of target cost method at irrigation construction companies - Completing the responsibility and cost accounting organization - Completing analysis and report of cost information to serve administration requirements - Completing the reporting system for managing production costs and price In order for the production cost and price management accounting to be organized effectively so that it can meet the requirements, it is required to perform in certain conditions, the above main solutions to complete the production cost and price management accounting in irrigation construction companies in Vietnam 22 GENERAL CONCLUSION In the study "Completing the production cost and price management accounting in irrigation construction companies in Vietnam" The thesis has mentioned the basic issues of cost and price management accounting according to the following fields: Theoretically: The thesis has generalized the content of accounting of cost management, cost price in construction enterprises Factually: The thesis researches and analyzes the real situation of the production cost and price management accounting in the construction companies of irrigation works in Vietnam Regarding the solution: Based on the theory and current situation of production cost and price management accounting of irrigation construction companies in Vietnam combined with the development strategy of the irrigation construction industry to 2030 and vision to 2045 The thesis proposes to complete the production cost and price management accounting in irrigation construction companies in Vietnam Since then, the thesis has proposed solutions to improve it to meet the requirements of business management through the identification and classification of costs, formulating norms and cost estimation, the target cost and price management accounting application, the cost information analysis for the decision of the business In addition, the thesis also provides conditions for implementing the solutions Particularly, it is necessary to have the coordination of the State and authorities to improve the production cost and price management accounting of irrigation construction companies in Vietnam 23 With the content presented above, the thesis meets the basic planned researching objectives The author hopes that the research results of the thesis will contribute to the theoretical and practical development for irrigation industry in Vietnam in general and for irrigation construction companies in particular The production cost and price management accounting in the irrigation company in particular is still a new issue and the fact shows that these companies not have this tool Therefore, in the research process, there are many theoretical and practical difficulties As a result, the thesis cannot avoid shortcomings, the author wishes to receive the comments of lectures, teachers, scientists … to make the thesis improved Development trend of the thesis : It may study "the global management accounting principles" in the irrigation construction companies in Vietnam It includes: components of an effective management accounting, three factors enhance the effective application of management accounting principles (such as CIMA strategy scoreboard, balance scoreboard, budgeting and cost accounting according to activities, value chain analysis and enterprise risk management), guiding principles of management accounting in the management accounting functions according to 14 main activities of enterprises Since then, it can be used to evaluate the effectiveness of the current management accounting functions of irrigation construction companies in Vietnam Thank you very much! 24 LIST OF RESEARCH WORKS BY AUTHOR Dao Thuy Hang (2019), Applying accountant accountability at irrigation construction companies in Vietnam , Financial Magazine , August 1, 2019 (710), pages 85-87 Dao Thuy Hang (2019), Impact of irrigation construction activities on cost management accounting , Financial Magazine , June 2, 2019 (707), pages 56-58 Dao Thuy Hang (2019), KTQTCP price at irrigation construction companies in Vietnam , Financial Magazine , + February 2019 (698 + 699), pages 90-92 ... construction industry in Vietnam : Irrigation is taken priority to be invested to promote its efficiency Irrigation is always a special priority of the Government and Party Irrigation development... Vietnam CHAPTER CURRENT SITUATION OF PRODUCTION COST AND PRICE MANAGEMENT ACCOUNTING IN IRRIGATION CONSTRUCTION COMPANIES IN VIETNAM 2.1 Overview of irrigation construction industry in Vietnam... regular monitoring of labor productivity of workers c Procedures for controlling the cost of using constructional machines - For the cost of outsourced construction machines: Need to find out the prices