PROBLEMATIC ASPECTS RELATING TO THE RECOGNITION OF INDIRECT PRODUCTION COSTS

Abstract

This article examines some problematic issues regarding the recognition of and the accounting for the indirect production costs related to the service of the entity’s production subdivisions if the actual consumption costs are incurred during a reporting period, but the respective primary documents are received and/or accepted by the beneficiary in another reporting period. By using the research methods, such as document analysis and deduction, the authors have investigated the local researchers’ opinions, which resulted in formulating stronger conclusions and recommendations regarding the recognition and reflection of indirect production costs in the month of the effective consumption of their resources, as well as the way of declaring the respective value added tax.

Keywords

• cost recognition
• cost accounting
• current costs
• indirect production costs