Education at Lviv Polytechnic

Accounting, analysis and control of operating expenses at LLC “Yodanka”

Students Name: Oliichuk Mariia Oleksandrivna

Qualification Level: magister

Speciality: Accounting and Taxation

Institute: Institute of Economics and Management

Mode of Study: full

Academic Year: 2020-2021 н.р.

Language of Defence: ukrainian

Abstract: Oliichuk M. O., Tyvonchuk O. I. (supervisor). Accounting, analysis and control of operating expenses at LLC "Yodanka". Master’s qualification work. - Lviv Polytechnic National University, Lviv, 2020. Extended abstract. The master’s qualification work covers national standards, legislation, regulations, special economic literature and other sources of information, reveals the economic essence of operating costs, methods of their analysis and areas of control, as well as reflection in accounting and reporting. The paper presents the results of financial and economic activities of LLC "Yodanka", its accounting policy and a retrospective analysis and analysis of trends in operating costs. Describes the general organization of the accounting process, documentation, analytical and synthetic accounting, internal control and reflection of results in accounting and reporting; the state of computerization of accounting of operating expenses at the basic enterprise is characterized. The object of the master’s qualification work is the process of organization of accounting and control of operating costs at the Limited Liability Company (LLC) "Yodanka", and analysis of their use. The subject of the study is a set of theoretical, methodological and organizational components in the process of accounting, analysis and control of LLC "Yodanka" and enterprises of Ukraine in general. The purpose of writing a master’s thesis is to generalize, systematize and compare methodological provisions for accounting for operating costs, conceptual principles of information disclosure in enterprise reporting, analysis and evaluation of effective and efficient use of operating costs, confirmation of reliability and relevance of accounting data. Qualification work is performed on the basis of the master’s practice at LLC "Yodanka". The main purpose of the Company, according to the charter of this company, is to make a profit through the production and sale of mineral water in Ukraine. The range of products of LLC "Yodanka" consists of «Yodanka Pavlivska» mineral water, which is bottled in glass and plastic bottles of different volumes (from 0.5 l to 5 l). This mineral water contains iodine of natural origin in the form of iodides, which are well absorbed by the body, and 19 other trace elements useful for humans: magnesium, calcium, sodium, potassium, iron, zinc, selenium and more. Production volumes in 2020 at the enterprise are 20 tons of water per day. Based on the data from the financial statements of the company performed a retrospective analysis of operating costs of LLC "Yodanka", for this assessment of the total amount and individual components of such costs, identifying deviations from previous periods, assessing their dynamics, identifying trends. In order to ensure the development of the business entity in the future, track changes in the economic environment and provide social guarantees to employees of the Company, an analysis of trends and developments. The need for this type of analysis is due to the actions of many factors, which include: increased market competition, the desire to maximize revenues, the need for effective cost formation. To perform it, the calculation of the probability of bankruptcy by V. Beaver and E. Altman was used, and a SWOT-analysis was implemented. As a result of the research, it was found out that LLC "Yodanka" does not have a system of internal control of operating expenses. To reduce the risk of failures in the comparison of actual and planned indicators, as well as timely detection of errors and their resolution, we consider it appropriate to create such a control system. Then the employees of the accounting department, who will carry out the organization and conduct of internal control, will be able to make the necessary changes in the implementation of new business transactions, correct errors, if any, and improve performance if the procedures do not work. Also, to improve the accounting for operating costs for LLC "Yodanka" we recommend: to detail 91, 92, 93, 94 accounts; make new costing items in the cost structure of mineral water; variable and fixed allocated overhead costs to account for account 23 "Production", and fixed unallocated overhead costs - on account 90 "Cost of sales"; use the "Vchasno" service for internal and external document management. In addition, we consider it appropriate to amend the Statement of Financial Performance of Small Business Entities, namely to include such items as: "Administrative expenses", "Sales expenses" and "Single tax expenses". 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