Management accounting of actual cost of materials and deviations from target prices

Abstract

Prime cost of material stocks in management amounting besides the impressive cost of acquisition accumulates expenses of all participants in the ProCess of logistiCs at the enterPrise: Purchasing Department, Planning Department, Customs Department, Transportation department, warehouse.Efficiency of activity and material stimulation of each division during the planning period can be determined by a difference between Planned and actual cost of the material stocks which have been released in production. This article presents the decomposition of the elements of the planned and the actual cost of materials in management accounting functions for participants in the process of logistics, proposed a method of distribution of relevant overhead costs to inventory types, depending on exponent of stock turnover rate.