Calculation of the actual cost in the chemical fertilizer industry

Abstract

The main goal of the research is to present a way of organising the managerial accounting of totally and semi finished product obtained in chemical fertilizer industry entities. For this study, we analyzed the current principle of managerial accounting to an entity in the studied area, in order to emphasize the need of organizing and implementing a modern accounting management to control the cost and increase the performance of the entities in this area, starting from the premise that there are sufficient similarities between entities in the field. The research has highlighted the fact that, nowadays, the cost calculation is organized using traditional methods, which focus on the monthly determination of the actual unit cost per product (semi-fabric) and that it is necessary to organize and implement a managerial accounting, based on the use of a modern method, namely the standard cost method combined with cost centre method. The major implications of the proposed system for the researched field are the monthly calculation of actual costs per cost centres, the calculation of the actual cost per product, as the final cost carrier, to be performed over longer periods of time, usually, quarterly.

Keywords

• actual cost
• cost centre calculation
• product calculation
• cost centres productive
• cost related centres