Expenses are all payments that the company makes in the process of financial and economic activities. Moreover, in accordance with the current tax legislation, only economically justified and documented costs are recognized as expenses. In order to save costs, they are analyzed on the basis of planned estimates and accounting data.
It is necessary
- - the planned cost estimate of the enterprise for the analyzed period;
- - actual accounting data on expenses for the same period.
Instructions
Step 1
Compare the budget and accounting data for the corresponding expense items. If necessary, pre-distribute and combine the actual expenses by groups, if their names in accounting do not correspond to the items indicated in the estimate.
Step 2
Assess the execution of the cost estimate as a whole and for individual items. Reveal for which items there are deviations of actual costs from those provided for in the estimate. Check compliance with the established norms of costs and determine the reasons for deviations from the estimated data.
Step 3
See which item has the largest share in the cost estimate. If there are significant deviations from the planned data for it, conduct a sample of primary documents confirming the costs. Be sure to compare the actual data with the developed cost rates.
Step 4
If cost overruns are caused by changes in the production process, consider reapproving the norms in order to change the calculations for this expense item when making estimates for the next period.
Step 5
Analyze each cost item that has variances. Identify the factors that led to the cost overruns or savings and indicate which of them had the greatest impact on the deviation of the amount of expenses from the planned data.
Step 6
Write an explanatory note on the analysis. Explain each expense item variance. Determine the feasibility of making changes to the planned cost estimate for the next period.
