Topical aspects of accounting of overhead expenses

Abstract

Under current conditions an enterprise activity is aimed at earning maximum profit. One of the factors ensuring successful performance of an enterprise in the competitive environment is the correctness of costs determining and accounting because it affects the accuracy of production cost calculation that influences an enterprise's price and profit. Currently the most disputable question related to costs accounting that is not given enough consideration in scientific studies is overhead costs.

Methodical bases of overhead costs structure, classification and sharing in Ukrainian accounting are regulated by Ukrainian Accounting Standard 16 "Costs". However, its practical use presents a great number of issues to be addressed in accounting by accountants themselves.

Thus, overhead costs accounting calls for special attention to the sharing base that directly affects re-sharing of these costs between activity segments. Also, in practice, disputable questions arise that are connected with classifying these costs as fixed and variable ones since the classification is decided upon by an enterprise itself. It is these problems that determine the choice of research issue and make it topical.

The article presents topical issues of overhead costs accounting that affect the correctness of cost production of the finished products and considers the procedure of their distribution. Also, it suggests the sequence of overhead costs sharing and advises on the choice of the optimum sharing base depending on the production type.