Information About Cost of Goods Produced and its Usefulness for Production Engineers – A Case of SME

Abstract

Abstract:The article stresses the consequences of simplifications implemented in the measurement process of goods produced that are of crucial importance to production engineers in SME. The authors show the variety of possibilities that might be used by financial employees together with probable outputs in terms of valuation distortions. Using the case study the authors emphasis the importance of close cooperation of production engineers with finance professionals as outputs of finance departments consist an important input for decision-making process of production managers. Furthermore, demonstrated deficiencies in terms of methods applicable in financial reporting for measurement of the value of goods produced indicate the need for incorporation more financial and non-financial data in the process of judgments about the final cost of goods produced as simplifications applied in SME distort financial information provided to production engineers.

Cost of Mining Coal as an Element of Multi-Criteria Assessment Using the Development Measure – A Case Study

“…In the situation of equal treatment of the production sphere with the issues of quality management, health and safety management or environmental management, there is a growing lack of approval for work in conditions that endanger the health and life of the employee, and the financial result, though very important, can only be one of criteria taken into account in the broadly understood decision-making process. According to the above-mentioned approach of other authors [1,9,11,12], the decision-making processes concerning the possibility of coal mining should take into account various other factors besides financial ones, including also qualitative parameters. In these processes, classical decision theory instruments can be used, in which the decision-making process means a group of logically related steps of thinking (computational operations) leading to the solution of a decision problem by selecting one of the possible (according to a decision maker -the best one) options of action.…”

“…For production engineering cost calculations are one of the elements of planning, direction and coordination of all manufacturing processes. The remaining elements in the decision-making processes are the issue of cost drivers, time involved, existing production resources, quality, and human resources [9].…”

Areas of Cost Grouping in the Accounting of Coal Mining Enterprises

“…Згідно НП(С)БО 1 «Загальні вимоги до фінансової звітності» [4] Наведене нами групування витрат за місцями їх виникнення підтверджує те, що «для виробництва інженерні розрахунки собівартості є одним з елементів планування, управління та координації усіх виробничих процесів. Іншими елементами для прийняття рішень є питання факторів витрат, часу, наявних виробничих ресурсів, якості та людських ресурсів» [6].…”

Assesment of the Quality of Reporting Information on CO2 Emission Rights on the Example of Energy Sector Groups Listed on the Warsaw Stock Exchange

“…The effects of operations related to CO2 emission allowances may be an important criterion for assessing management effectiveness, both in terms of the cost of manufacturing a product, and also asset value and the financial result disclosed in a financial statement [15]. The applicable regulatory sphere, in particular the International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) [16], allows for diverse approaches to the presentation of rights as an asset, the principles of creating and valuing provisions, and reporting costs, which offers managers a choice within the adopted accounting policy.…”