STUDY ON THE COMPLETE ACCOUNTING FLOW WITHIN A PRODUCTION ACTIVITY

Abstract

The production activity involves the longest exploitation cycle, taking into consideration the steps needed to be followed, namely the supply with materials and raw materials, their consumption, the obtaining of finished products, semi-finished products and residual products and, finally, their sale. Many productive companies have their own purchasing cost standards for materials and raw materials and their own obtaining cost standards for finished products, semi-finished products and residual products. It is obvious the fact that, during the daily activity, the effective costs could be sometimes superior, sometimes inferior comparative to this standards. Thus, cost differences appear and they can be either favorable or unfavorable for the company, affecting the financial accounting registration. In the same time, different types of production involve different methods of cost calculation within the managerial accounting. This study aims to emphasize less theoretically and more practically a complete accounting flow within a bakery, that uses cost standards and sells both as a producer and a trader. In order to put this paper into practice, there are used various research methods such as the brainstorming, the case study, the analysis, the synthesis, the induction or the deduction.