Production accounting at food factories with the purpose of cost minimization

Presently the importance of fulfilling such elements of cost management as accounting, analyzing and planning grows increasingly. More and more frequently the cost management functions are integrated into the single informational system of an enterprise which represents a foundation for taking tactical and strategic managerial decisions. Production accounting is of prime importance for any enterprise. At that the system of production accounting of costs should be integrated with the system of current norms and standards in accordance with the modern economic conditions of economy management of enterprises. It should represent a complex of regulatory quantitative and cost indicators of rational using of economic resources ensuring managerial objectives. Thus, the paper is devoted to cost management on one of the types of food productions - baking industry enterprises of different production capacities (from 1.5 to 90 tons per day). In the course of the research it was revealed that over the recent years the range of output losses upon production of bakery products has expanded depending on flour moisture content, dough moisture content, mass of bakery items, baking loss value, and drying loss value; whereas the norms of flour consumption and coefficients of converting bakery products to raw materials considerably increased. Application of scientifically grounded coefficients of converting bakery products in accordance with the codes of the Russian Classification of Products by Economic Activities 2 and commodity nomenclature of the foreign economic activity of Eurasian Economic Union (CN FEA EEU) into raw materials allows food industry enterprises to decrease the tax basis by 3.4 - 4.2% and ensure production profitability at the level from 27.8% to 34.6%. Experimental studies conducted at enterprises of various capacities using domestic and foreign equipment confirmed the effectiveness of the proposed approach. The development and implementation of progressive standards and conversion factors contribute to a more accurate determination of cost price, control over resources, and ensure transparency and controllability of all stages of the production process. The results can be integrated into accounting and production accounting software, which is especially important with a wide range of manufactured products. Thus, the formation of a comprehensive cost management system that takes into account real production conditions and the quality characteristics of raw materials is a key area for increasing the profitability and sustainability of bakeries in a market economy.