Determination of the planned and actual cost price of material inventories in the management accounting

The cost price of inventories in the management accounting, besides the invoiced value of the procurement, accumulates all expenses of the participants of the process of logistics at the company: Procurement Department, Planning Department, Customs Department, Transportation Department, and warehouse. The efficiency and financial incentives of each unit within the planned period can be measured by the difference between the planned and the actual cost price of inventories, which have been released for production. This article presents the decomposition of the elements of the planned and the actual cost price of materials in the management accounting by functions of the participants of the process of logistics; the method of distribution of the relevant overhead costs for the inventory types depending on the materials turnover indicator has been proposed.

inventories, logistics, management accounting, planned and actual cost price of materials, product cost price