The current global crisis the world is going through has resulted in greater resource savings and an adequate use of them during the development of any production process. Linked to these, it is necessary to carry out an increasingly exact cost determination process, in order to guide decision-making and business management more accurately.
For management to be successful, it must be provided with information related to production and costs, on a timely and accurate basis. Knowing precisely the costs that are incurred during a productive period, will lead to the management of the company directing its efforts to obtain the maximum of profits with the minimization of costs, thus achieving greater efficiency in the fiscal year.
With a correct determination of costs, the management of the company will have in its hands an elementary source of information for adequate planning, control and decision-making and a concrete basis for setting its sales prices.
The specialists affirm that many entrepreneurs usually establish their sales prices based on the prices of their competitors, without first determining whether they are able to cover their own costs. For this reason, a large number of businesses do not prosper because they do not obtain the necessary profitability for their operation. This reflects that the calculation of costs is essential for proper business management.
There is a direct relationship between the cost and the sale price, to set the sale price of a product is taken as a basis, mainly, the costs involved in the production of the product.
The cost of producing a product (known as unit cost) is determined or calculated through the use of the Cost Sheet, in which the elements that intervene in the manufacturing process are collected, as well as their costs, giving as a result the total unit cost of each product, to establish the sale prices on this basis.
Our country is not alien to this process of saving and efficiency, the correct determination, planning and control of costs have become essential aspects within our economic reality.
In these times when companies seek an improvement in their economic efficiency without affecting effectiveness, it is vitally important that the cost sheet is prepared taking into account the characteristics of each company and each production. It is also necessary that said file accurately and truly reflects the elements that participate in the manufacturing process, as well as the costs associated with it.
Correctly preparing the cost sheet is of great help for management, since it must provide reliable, timely and accurate information on the degree of productivity and efficiency in the use of resources in a certain production process.
In Cuba, the use and application of the cost sheet has a particularity that makes a fundamental difference, it is the fact that it is used only as a tool that provides the basic information for the estimation and formation of prices.
Recently, the concept of the Price Sheet has been incorporated into the Cuban business language. From a technical point of view there is a difference between the cost sheet and the price sheet. The unit cost sheet reflects the direct and indirect costs for a given production unit, if distribution and sales, general and administrative expenses are added to this element, the price sheet is formed, because not only there are costs, but also expenses that have been added. The price card also contains the profits established in this regard.
The fishing industry as part of this improvement in economic efficiency must work on the basis of offering the Ministry reliable and real information on the status of its costs, because on that basis it has to work to more correctly channel economic management.
If the price card is calculated correctly, the management has in its hands an effective tool for decision-making, since it has a higher level of detail than the cost card, providing the company management with the information it needs to to know the state of its economic efficiency in a certain productive period, in addition to showing how the administration and sale expenses are behaving, to which full attention must be paid so that it does not affect the sale price unduly and brings unexpected consequences both for the company and society.
However, the use of the price sheet has not been as effective as it should be as a management tool if it is taken into account that it has a higher level of detail not only in terms of production costs, but also on the Expenses associated with the sale of the same, as there are still factors that lead to the incorrect determination of costs without really affecting their reduction. The inaccuracy of figures and mismatches in the preparation of this file has limited its use as a management tool.
The Base Business Unit (UEB) Comertun de Las Tunas, dedicated to the commercialization and industrialization of fishery products in the fish market, uses the price sheet established and approved by the Ministry of Finance and Prices and by the Ministry of Economy and Planning, in this the unit cost of the product, the administration expenses associated with the product and the price under which it has to be sold is determined.
At this time, the unit cost of the fish kibble (determined in the price sheet) is predetermined, based on previous periods. With the current economic crisis, prices fluctuate in the market with great rapidity, causing variability in the acquisition prices of raw materials and inputs, not being, therefore, the same for each production period, on the other hand the force of Work was not estimated correctly, indirect administrative expenses (salaries) were in the same payment system of the productive departments, regardless of the activity they carried out. At the moment the estimated cost for the fish kibble is below the real thing,since, as mentioned above, the price token is established by the central level and the actual token is not made in the UEB. This results in the fact that the price sheet of this product does not show the reality of the costs, limiting the necessary information to the company's directive on production efficiency and cannot be used as a management instrument for a successful decision-making. decisions and a correct analysis of it.
The foregoing has allowed the definition of the following scientific problem: Insufficiencies in the determination of the cost that limits the management in the company Pescatun de Las Tunas.
The object of study of this work is the cost determination process, the field of action being the elaboration of the price sheet in the UEB Comertun.
The purpose or objective is to prepare the price sheet for the fish croquette in the Comertun UEB under the rules established by the Ministry of Finance and Prices that allows improving the management of the company Pescatun de Las Tunas.
The defined hypothesis is if the price sheet for the fish croquette is prepared, it will help to improve the management of the company Pescatun de Las Tunas.
For the successful completion of this research, the following specific objectives will be developed:
- Establish the theoretical conceptual framework Characterize the entity under study and the cost determination process Prepare the price sheet in compliance with current regulations.
EPIGRAPH I. THEORETICAL FRAMEWORK
1.1 Historical cost background
In 1776 the rise of the industrial revolution brought the great factories. It went from artisanal production to industrial production, creating the need to exercise greater control over materials and labor and over the new cost element that machines and equipment originated.
The "machinism" of the industrial revolution led to the displacement of labor and the disappearance of small artisans. All of the previous growth created an environment conducive to new cost development.
In 1777 a first description of production costs by processes was made based on a company that manufactured linen yarn stockings. It showed how the cost of the finished product can be calculated through a series of double-entry accounts that were kept in quantities and values for each stage of the production process.
In 1778, auxiliary books began to be used in all the elements that had an impact on the cost of the products, such as salaries, work materials and delivery dates. Little by little cost became a fundamental tool in the life of industries.
The greatest development of costs took place between 1890 and 1915, in this period of time the basic structure of cost accounting was designed and cost records were integrated into the general accounts in countries such as England and the United States, and They contributed concepts such as: establishment of procedures for the distribution of indirect manufacturing costs, adaptation of reports and records for internal and external users, valuation of inventories and estimation of costs of materials and labor.
1.2 Definition and importance of cost
According to Polimeni:
“It is the value sacrificed to obtain goods or services. The sacrifice made is measured in money by reducing assets or increasing liabilities at the time the benefits are obtained. At the time of acquisition, the cost is incurred to obtain present or future benefits. Once the benefit is obtained, the costs become expenses. ”(1)
According to Oriol Amat and Pilar Soldevila:
"It is the value of consumption of inputs that is required to be able to produce outputs." (two)
According to Horngren:
“As resources sacrificed or given in exchange to achieve a specific objective. They are measurable in conventional accounting form; that is, in monetary units (dollars) that must be paid to acquire goods and services. " (3)
According to Carlos Mayo Rodríguez:
“The cost is constituted by the partial or total consumption of the inputs that in any production process contribute to obtaining the outputs. The cost represents the valuation, in monetary terms, of this contribution with the inputs to obtaining the outputs. ”(4)
1) Polimeni, Ralph S., Frank J. Fabozzi, and Arthur H. Adelberg. Cost accounting. Concepts and applications for managerial decision making. Volume I. Page 10
2) Amat, Oriol and Soldevila, Pilar. Accounting and Cost Management. 2,000
3) Horngren, Charles. Cost accounting. P. 20
4) Mallo Rodríguez, Carlos. Analytical accounting. Fourth edition. Page 387
The concept of cost has been highly treated by economists, it can be summarized in a general way, that cost is the value that is willing to change to obtain a good that must produce a benefit, Carlos Mayo said in his book Analytical Accounting: “All sacrifice, to be cost, must increase the value of the good to which it is applied; Any sacrifice that does not meet this condition should be considered wasteful. " (5), this is why a proper determination of it is of vital importance as this is an effective instrument in the management process and an economic indicator that allows the company to measure its economic efficiency.
The cost, in general, is applied in the activities of the productive spheres, however, this indicator is also calculable in the other economic spheres.
The vital importance of the cost is given fundamentally in that through its analysis the behavior of the expenses of a production or the performance of a specific service can be measured, which allows making comparisons with previously obtained results and projecting future plans. In this way, a rational use of all the resources of society can be given in a planned way and aimed at guaranteeing expanded socialist reproduction, by virtue of responding to the interests of our society, conditioned by the need to fully comply with the Fundamental Economic law, which states: the assurance of the complete well-being and universal free development of all members of society by way of growth and the constant improvement of social production.
The cost constitutes an instrument of use of the available resources in any economic process and knowing it facilitates the effect of the decisions that are presented in relation to our programs, the assurance of proper planning, use and control of the material and human resources that are possess.
5) Mallo Rodríguez, Carlos. Analytical accounting. Fourth edition.
It is necessary to take into account that for there to be good control, work must be done daily, so that when a problem occurs it is eliminated immediately. This is possible through calculation and a good unit cost analysis.
1.3 Cost planning
It should be borne in mind that the cost of production is one of the most important indicators to consider in institutions, therefore, the more efficient their work, the better the use of resources and, consequently, the lower it will be. the amount of expenses.
The cost of production must become a faithful measure of the use of material, labor and financial resources in the production process, because, in addition, together with the indicators of the volume of realization, it determines the level of profit obtained by the organization.
The cost constitutes, in addition, the base for the formation of the prices of the manufactured products. For this reason, it is so important to obtain the maximum production, with the minimum necessary expenses, in order to guarantee the gradual increase in profits or profits.
By planning the cost of production, it is possible to trace the optimal magnitudes of expenses to undertake production, through the operating results of the company, the technical-economic factors and the established indicators.
Cost planning serves as a control instrument for the management of the institutions, because it allows them to know, systematically and in an agile way, any deviation that occurs in the real execution of production with respect to the plan drawn up, in each one of the areas and the entity as a whole.
All of the above explains the vital importance of the correct planning of the cost of production for the performance of the economic work of the organizations, since this is how the expenses in which the institution must incur to develop its production and achieve better control of what is really happening and thus be able to define who is responsible for the deviations detected.
It is in this framework that the organization of work related to cost by areas or levels of responsibility constitutes a source of great interest, insofar as it makes it possible to confer an eminently active character to this category, as a tool of singular utility in management of economic phenomena.
Purpose of the cost calculation
Through the cost calculation you can:
Guarantee the analysis of the production efficiency, to correct the deviations of the planned cost and increase the efficiency of the company.
Contribute to the correct foundation of the plan indicators.
Facilitate the analysis in the formation of prices.
Costs can be classified into different categories:
Due to its economic nature:
Direct Material - All materials used in the manufacture of a finished product, which can be easily identified with the product and represents the main raw material.
Direct Labor - All labor related to the production of a finished item that can be easily identified with the product.
Indirect manufacturing costs: these are costs not directly associated with a specific item or area and are used to accumulate indirect materials, indirect labor and all other indirect manufacturing costs.
Relationship with production:
Prime costs: are those costs directly related to the manufacture of a product (direct materials and direct labor).
Conversion costs: are those costs incurred in the transformation of direct material into finished articles (direct labor and indirect manufacturing costs).
Relationship to volume:
Variable costs: those costs that vary in total, in direct proportion to changes in volume and whose unit cost remains constant within the relevant range.
Fixed costs: are those in which the total fixed cost remains constant for a relevant range of production, while the fixed cost per unit varies with production.
Mixed Costs - Contains both fixed cost and variable cost features. It can be called semi-variable cost and tiered cost.
Semi-variable costs: it varies with the activity but not in direct proportion to the volume.
Staggered costs: costs that change abruptly at different levels of activity because they are acquired in an indivisible process.
Ability to associate costs:
Direct costs: the costs that management is able to associate with a specific item or area (direct materials, direct labor).
Indirect costs: they are common to many articles and, therefore, they are not directly associated with a specific article or area (indirect manufacturing costs).
Department where they were incurred:
Production department: contribute directly to the manufacture of an item.
Service department: not directly related to the manufacture of an item.
Functional areas:
Manufacturing costs: relate to the manufacture of an item.
Market costs: the sale of a product or service is incurred.
Administration costs: those incurred in the direction, control and operation of a company.
Financial costs: they are related to obtaining funds for the operation of the company (interest payable on loans and cost of granting loans to clients).
Period in which they will be charged to income:
Product Cost - Product costs incurred in making an item.
Cost of the period: costs not related to the manufacture of a product, they are expenses that affect the operation of the period.
Related to planning, control and decision making:
Standard costs: This is a certain type of default cost and its analyzes are based on unit cost.
Budgeted Costs - This is a default cost type and its analyzes are based on total costs.
Controllable costs: are those on which managers can exert direct influence during a certain period of time.
Uncontrollable costs: these are those that are not directly managed by a certain level of management authority. Authorized fixed costs and discretionary fixed costs:
Authorized fixed costs: relate to property, plant, equipment, long-term indispensable salaried personnel.
Discretionary Fixed Costs - Related to repairs, maintenance, advertising cost, short-term executive training.
Relevant costs: these are expected future costs, which can be eliminated if any economic activity is changed or suspended.
Irrelevant costs: are those costs that are not affected by the actions of management.
Differential costs: is the difference between the costs of alternate courses of action on an article by article basis.
Opportunity costs: are the benefits of an action that was exchanged for another alternative.
Plant closure costs: those fixed costs that would be incurred even if there was no production.
1.4 Importance of the cost of production.
The cost of production is an important indicator to measure economic efficiency, it shows us how much it costs us to produce and sell our productions. It reflects the level of labor productivity, the degree of efficiency with which resources are used, as well as the results in saving material, labor and financial resources.
The cost of production constitutes an economic category that expresses the sum of all the expenses that are incurred in the production of an article or in the provision of a given service in monetary form.
In addition, the cost of production allows us to compare the results of work between different companies, brigades, unions, provinces and areas and in this way find ways to optimally use productive resources.
1.5 Cost Token
The cost sheet or record is the document associated with the manufacture of a good or the provision of a service, which records the production cost. The cost of production must be reflected in this document broken down by each of the elements of the cost per unit of product to differentiate the magnitudes of the direct and indirect items.
The cost sheet is one of the main documents in the process of planning, recording and controlling the cost of production. For its preparation, a prior technical-economic argumentation is essential, intervening the use of technically grounded consumer standards and working time standards to determine the cost of materials and labor, respectively. The preparation of the cost sheet must be carried out on the basis of the predetermined costs to enable its comparison with the actual expenses and thus determine the level of efficiency experienced in a given period and the degree of competitiveness of the product or service in question.
The use and update of the cost sheet allows a comparative analysis of the cost over several years, by facilitating the comparison of the costs of a product or service unit of a period with previous periods. This file can be used as a tool to guarantee an adequate control of the costs incurred in the production activities or the provision of services due to the fact that it reflects the input of raw materials and materials, labor costs and other direct expenses and indirect.
The document in question serves as a basis for correctly evaluating the products in process, semi-finished, finished and delivered, as well as for the formation of the prices of the product or service in question. In addition, it enables the analysis of the effectiveness in the use of installed capacities, allowing to measure the economic efficiency of the production process. It is an effective tool for the preparation of the cost budget.
There are different types of cost token, among which are:
Detailed cost sheet: they reflect the norms of consumption of material and labor resources, as well as the norms of costs of technical services, organization and management of production. This file must contain the rules in physical units, the unit of measure, the price or rate of each calculation adapted with a structure by cost item.
Synthetic cost card: they are documents much more summarized than those of a detailed cost card. It only reflects the amounts of the unit costs of a finished product, structured by items. This cost sheet can be called a “Cost Sheet”.
It is necessary to classify the cost sheets according to the time of their preparation, this classification is not unique, since it responds to the criteria of the specialists and the purposes they pursue with the classification. Therefore, according to the objectives pursued in the calculation of the cost of production, the cost sheets can be:
- Planned Normative Projected Budgeted Actual
Internal economic calculation
Planned cost card: represents the magnitude of the expected costs in the production of a unit of product. These sheets are made using production standards and regulations. It differs from the budgeted one in that it is much more dynamic, that is, it changes to the same extent that the rules change.
Budgeted cost sheet: it is one of the cost sheets planned and made for those types of products whose production is not representative, and generally, it is coordinated with the consumer for the substantiation of cost calculations, since this sheet is necessary for set prices for these products.
Actual cost sheet: reflects the actual cost of production produced in the reporting period. When this cost sheet is made, it is necessary to take into account the calculation objectives and that the classification of costs will be the same as those that served as the basis for the planned cost sheet, this makes it possible to control the progress of compliance with the plan with respect to to cost reduction. The real cost file is an important source for economic analysis and contains the indicators that should be used to prepare the cost plan.
Obviously, the items in this cost card are not exactly the same as those contained in the planned cost card, therefore, the actual cost card includes losses and costs not anticipated in the planned one.
Internal economic calculation cost card: It is also known as a partial cost card. It is made for the productions of the basic, auxiliary and service workshops for the production of other types of structural subdivision of the company that is defined as an organizational unit of economic calculation in each work area and thus enables the formation of internal prices.
Preparation of the cost sheet.
In the preparation of the cost sheets, previous cost sheets and the elements that served as the basis for their calculation, the invoices or price lists of the suppliers of the raw materials or materials involved in the process, as well as the determination of the hourly rates, in case they have not been previously calculated, and the time fund established for the payment of labor. If there is any established form or coefficient for production expenses, it must also be taken into consideration.
Additionally, it is necessary to take into account the adequate and specialized workforce to carry out the work, raw materials and materials to be used, the operating capacity installed in optimal conditions, the utensils, tools and the like depending on the activity to be carried out and by Finally, the essential minimum conditions of the premises to be exploited.
In the preparation of the cost sheet, the factors that make possible the correct planning of the production cost should intervene so that said cost represents the degree of socially necessary costs to obtain said production. These cost sheets remain unchanged for a specified period of time and are goals while maintaining the bases on which they were prepared.
The cost sheet is the basis that must be used to prepare the cost plan and as a general rule it must meet the following requirements:
- Quantity and price of each material Working time and salary rate by type of operation Indirect costs Total costs Unit costs
When making the cost sheet, they are classified into direct and indirect, the former comprise all those that in one way or another become part of the cost of the product to be produced, the function they exercise is decisive for obtaining the product or work performed such as: raw materials, or direct labor force. Indirect expenses are represented by those that, although they concern production in general, are not directly identified with the product or service, such as indirect materials, indirect labor force and other necessary costs.
For productions that have technology charts or technical cost sheets, the following procedure is followed:
When setting direct expenses in the cost sheet, the consumption indices and the official price list in relation to the raw materials and direct materials that make up each unit of product to be produced, as well as the standards and principles, must be taken into account. in salary for the same purposes.
The raw materials and direct materials spent per unit of product are determined by assessing the consumption standard established by the official price in force, including the commercial surcharge when applicable.
The direct labor force expenditure is obtained by applying the current wage rates to the hours or standards applied to each work performed.
Indirect costs per unit of production are determined from the level of preset or budgeted expenses, as these cover all production, it is necessary to apply them to all products by means of a calculation coefficient.
Particularities of assigning indirect manufacturing costs to the cost sheet.
The information associated with the cost of direct materials and direct labor can be located at real cost due to its possible association with specific work orders, however, the indirect manufacturing costs that will be charged to the cost sheet, as a consequence Due to their peculiarity of not being able to be directly associated with the order, they must be estimated or predetermined and generate a rate to apply the indirect manufacturing costs to the orders or departments, as appropriate.
The application rate is a quantitative measure of a part relative to a whole used to allocate indirect manufacturing costs (hereinafter CIF). For its determination, two key factors coexist: the estimated level of production and the estimated indirect manufacturing costs.
Estimating the production level is an important factor, since the total CIF results from a combination of variable, fixed and mixed costs. In the predetermination of the CIF, a budget is prepared for them, estimated for the subsequent period, where each concept must be classified in the modalities of fixed and variable, in the case of mixed costs they must be separated into their fixed and variable components.
With the determination of the two key factors, the predetermined application rate will be estimated, once the base has been chosen. The rate is the quotient resulting from the division of the estimated CIF by the estimated base in the activity of the denominator.
Theoretically, there are no restrictions or absolute rules when selecting the base to be used as the denominator activity, there should only be a direct relationship between it and the CIF. The following bases are those that are usually used in the calculation of the application rate:
Production Units.
Apply the CIF uniformly to each unit, it is recommended when an entity or department produces a single product.
Cost of direct materials.
It is suitable when it is found that there is a direct relationship between the CIF and the cost of direct materials, this fact can generally be assumed when direct materials constitute a considerable part of the total cost.
This method presents a limitation, from the point of view of its ease of application, in the case that more than one product is manufactured, since the different products obviously require variable quantities and types of materials with different acquisition prices, therefore An application rate per product should be estimated.
Cost of Direct Labor.
It is the base usually used because of the close relationship between direct labor and CIFs and because of the easy availability of payroll data. Therefore, it meets the two desirable conditions for these cases: direct relationship with CIF and ease of calculation and application.
Direct Labor Hours
It is the appropriate method when salary rates vary considerably within the same department. This method, like the previous one, would not be appropriate if the CIFs consisted of costs not related to the labor activity.
Machine Hours
The method uses the time required by machines when performing similar operations. It is appropriate if there is a direct relationship between machine hours and CIF. It usually happens in highly automated departments, such that most of the CIF is due to depreciation of equipment and other related costs. The main limitation of the method is given by the time necessary to calculate the total machine hours per unit.
The literature recommends using multiple departmental CIF application rates when more than one product is manufactured, since it may happen that they do not pass through the same series of production departments, or that, if the previous approach is met, the level of The attention given to each product in the same department is different.
1.6 The cost sheet in the Cuban business environment.
In Cuba, the use and application of the cost sheet has a particularity that makes a fundamental difference, it is the fact of using it as a tool that provides basic information for the estimation and formation of prices. The only entity authorized in Cuba to approve prices is the Ministry of Finance and Prices, as the Governing Body of this policy at the national level.
The indirect cost coefficient is one of the most important instruments in Cuba to regulate production costs, because they are centrally set in order to propose a maximum figure for a significant part of production costs or services. In this way, an attempt is made to avoid the application of different indirect costs in similar activities carried out by various entities without distinction. The coefficients are made up by company, group of these, productive establishments or by unit of production or service, as deemed most convenient in each case. The base that is stipulated in a general way is that of the basic salary of workers directly linked to production.
Recently, the concept of the Price Sheet has been incorporated into the Cuban business language. From a technical point of view there is a difference between the cost sheet and the price sheet. The unit cost sheet reflects the direct and indirect costs for a given production unit, if distribution and sales expenses, general and administrative expenses are added to these elements, the price sheet is formed, because not only there are costs, but also expenses that have been added. The price card also contains the profits established in this regard.
The term price sheet does not appear in the bibliography that addresses cost accounting, this is a concept that has emerged in the Cuban business context. Internationally, prices are formed by the method of correlation with markets, which starts from the recognition that economies are immersed in the globalization process and therefore their productions require comparison as a first condition in order to determine prices. The success of the method is that it is applied to economic activity, in which competition between producers favors the reduction of expenses and prices.
To prepare the price sheets there is a general methodology issued by the Ministry of Finance and Prices, endorsed by the regulations and legal provisions through the following instructions and resolutions:
- Resolution No. 21/1999 Instruction No. 16/2000 Joint Resolution No. 1/2005.
This research will be developed based on the regulations established by Joint Resolution No. 1/2005. This resolution establishes that the monetary-mercantile relations in convertible pesos between the state entities that are empowered to do so, will be carried out, only, to compensate their costs in convertible pesos and, as the case may be, a profit percentage with an established limit will be applied additionally. depending on the related activity. For the services authorized in the corporate objects of the entities to charge a component in convertible pesos, it is established that they will be billed at cost plus up to 10% in said currency, the rest of the rate will be charged in national currency. The main objective of this resolution is to restrict as much as possible transactions in freely convertible currency.
In the first Annex of the resolution appear the indications for the elaboration of the unit cost sheets that will be used to calculate the component in convertible pesos and the prices, when these are determined from the costs. On the other hand, the second Annex lists the products and services whose prices and components in convertible pesos between state entities are approved by the Ministry of Finance and Prices. The third annex contains the elements or items to be calculated in the price sheet.
Base Cost Sheet to form prices
For the correct formation of prices, it is necessary to prepare the Base Cost Sheet, being an essential condition its periodic updating, each time the conditions that gave rise to it change. This card is made up of the sum of direct and indirect production costs.
In general, to define the Base Cost Sheet to be used, the following aspects should be considered:
- Its calculation and disaggregation will be carried out on the basis of the General Guidelines for Planning and Determination of the Production Cost in force. For its elaboration it will be based on economically based consumption and work standards. In cases where this is impossible, the real ones will be provisionally used until these standards are drawn up.Consider the actual costs adjusted by deducting excessive expenses in the use of material, human and financial resources, as well as any expenses that are not really linked to the production in question. It is necessary to differentiate the expenses that must be recognized when the production process includes several products. The assumed percentage of capacity utilization must correspond to adequate exploitation. This is,The so-called “subactivity costs” must be identified and deducted from the Base Costs Sheet to form prices, which means that a reduction of other direct expenses and indirect expenses is necessary (depreciation in both cases, mainly) Consumption items material of the product or service in question, must be broken down in an annex at least up to eighty percent (80%). The Base Cost Sheet for price formation must be compared with those of other similar products from the constructive point of view, as an element of reference and evaluation of the correct determination of the same.Mainly) The items of material consumption of the product or service in question must be broken down in an annex at least up to eighty percent (80%). The Base Cost Sheet must be compared for price formation with those of other similar products from the constructive point of view, as an element of reference and evaluation of the correct determination of the same.Mainly) The items of material consumption of the product or service in question must be broken down in an annex at least up to eighty percent (80%). The Base Cost Sheet must be compared for price formation with those of other similar products from the constructive point of view, as an element of reference and evaluation of the correct determination of the same.
The base cost sheet to form prices is made by taking a certain period and the ones before this to see the behavior of the elements and indicators that intervene in it. To form the actual cost card to form prices, the actual data that has been incurred in the period to be calculated must be taken.
The following chapter deals with the preparation and calculation of the price sheet for the fish croquette after the situation in the Comertun UEB of the company Pescatun de Las Tunas is diagnosed.
HEADING 2. PREPARATION OF THE PRICE SHEET
2.1 Brief overview of fishing in Cuba
The Cuban Fishing Industry is based on a development strategy carried out by the Revolutionary Government and that takes into account the rational use of natural resources and the protection of the environment.
The importance of fishing is given by its contribution to the supply of food to the population and by its exports and is based on a management program for the exploitation of natural resources and promoting the expansion of the production of aquatic crops.
The Cuban Fishing Industry is made up of 21 Associations distributed throughout the archipelago
CATCHES
- The main sources for capture are: Insular Platform Freshwater Fish Aquaculture Shrimp farming
International fishing grounds
The catches of the Insular Platform are of great commercial value, highlighting lobster with annual catches of the order of 9 thousand tons, shrimp with 2 thousand and tuna with 1.6 thousand tons.
Freshwater fish aquaculture has grown strongly in recent years. Tench and tilapia are the main species produced.
Shrimp farming is one of the main lines of development, there are 4 shrimp farms and 4 spawning centers in the country, obtaining productions of around 1.6 thousand tons per year.
EXPORTS
They constitute an appreciable source of foreign currency for the country, showing a growing trend in recent years, being their main items lobster, sea shrimp and farmed products.
Caribex SA is in charge of commercializing our products abroad and in the interior of the country it is carried out by PescaCaribe
Fishing activity plays a strong role in the country's economy, not only because it is a considerable contribution of animal protein in satisfying the population's food needs, and because it encourages employment in remote areas from places of urban development, but also by obtaining foreign exchange that is used in part for the acquisition of other food products.
2.2 Characterization of the Company
The Las Tunas Fishing Company in abbreviated form PESCATUN is located in the main municipality of the province at Calle 65 No. 2 Circunvalación Sur este, Rpto. La Loma. It belongs to the INDIPES Business Group (Food Industrialization and Distribution). It is currently subordinated to the Ministry of Food Industry by decree of the Council of State in March 2009.
Structure.
The Pescatun de Las Tunas company is made up of 8 basic business units without their own legal personality, where the Headquarters centralizes all the control and economic activity of the UEB and they tax the primary information, they have an impact on the final results of the company, and they are in charge of transferring all the catch to the industry for its subsequent processing and marketing. (Look at annex 1)
- Base Business Unit Servitun, whose functions are to ensure supplies, transportation, repairs and the provision of services to workers Base Business Unit Comertun, based in the main municipality, whose mission is to process everything that the UEB and commercialize the figures of fishery products that are assigned by the country to the population to satisfy the basic food basket. In other words, it performs the function of a Provincial Wholesale Company, food distribution Base Business Unit UBEMAJ, based in Majibacoa Base Business Unit ACUIMEN, based in the Municipality of Menéndez Base Business Unit ACUIJO, based in Jobabo Base Business Unit ACUAMAN, based in the Cerro Municipality of Manatí, Alevitun Base Business Unit,based in the Municipality of Manatí Business Unit of Base Acuicol located in the Municipality of Colombia
The mission of this company is to guarantee the distribution of fishery products and the growth of sales in the market in MN and foreign currency by promoting aquaculture and marine catches and their subsequent industrialization, as well as intensive fingerling crops, with continuous growth. of the productivity of the work based on the technical-professional development, the motivation of the workers and their identification with the objectives of the organization.
Its vision is to be leaders in aquaculture production, marketing of food products and services, based on the satisfaction of the ever-growing needs of customers and a culture of quality.
In PESCATUN's accounting system, 302 cost centers are enabled, which identify productive and unproductive areas. They make up the Headquarters and the UEB of the company as follows:
Base Business Units (UEB) Cost Centers
Headquarters 10
UEB Servitun 11
UEB Comertun 48
UEB Alevitun 54
UEB Acuimen 11
UEB Acuicol 32
UEB Acuijo 40
UEB Acuaman 36
UEB Ubemaj 32
Total 302
Main Productions
- Whole gutted fishTroncho de TenchFish filletFish minceCroquettes and their shaped items
Main customers
- Education health
Wholesale trade
Main suppliers
Wholesale trade
- PescasanAlisurProlesEpitun
Characterization of the UEB Comertun
The UEB Comertun is located in the Tunas municipality in the provincial fishing headquarters, at calle 65 2 Rpto. La Loma.
Its main unit is the processing industry, whose corporate purpose is to process all the catch of the province, the collection and distribution of all the products of the basic basket that are distributed to the population.
The UEB Comertun's objective is to collect, industrialize and commercialize all the raw materials (fish from aquaculture and the platform) that are taxed by the different UEB, as well as to guarantee the commercialization of fresh and shaped products in the fishmongers network. and specialized centers to ensure control of both the activities and the production processes in question. It has 48 cost centers to which the items of expenses are taxed by items. (See annex 3)
This UEB has a total of 94 workers, of which 59 are male, 35 female, distributed as follows:
Main catches:
Cyprinidae Family: Includes Tench species
Tilapia Family: Includes species of Golden Tilapia and Red Tilapia
Clarias family: Includes species of Clarias.
Productions carried out by UEB Comertun:
Gutted head tench
Tench log
Tench bands / Tench fillet
Tench mince
Gutted headless tilapia
Whole gutted tilapia
Minutes of tilapia
Tilapia fillet
Tilapia mince
Gutted Headless Claria
Claria fillet
Picadillo de claria
Fish mince dough or MDM
Creole fish mince croquette or MDM
Spiced fish mince
2.3 Diagnosis of the process of determining the price card
The Pescatun company uses the Process Costs System in its cost centers, under which production is paid for through the valuation of inventories. For this purpose, it is necessary to prepare the price sheet in which the unit cost of each product is determined.
The preparation of the price sheets is based on the use of the rules of direct items, which are reflected in the expense budgets of the main activities and the use of expense quotas for indirect items, determined from the budgets of expenses of the activities of services, direction, etc.
The planned price sheet shows in a synthetic way, the unit cost by items of the period that is planned and its dynamics with respect to unit costs of previous periods.
The price sheets are prepared by items and reflect the unit cost of each product or group of them and can be prepared for both final products, as well as for intermediate or semi-finished products.
In the preparation of the price sheet, the conditions under which the production is being developed must be taken into account in terms of prices and quality of the required raw materials, correct exploitation of the workforce, and an adequate apportionment of indirect costs., both for production, sales and administration, so that this file is really useful in planning, control and decision-making.
Even when the established rules and procedures are followed to prepare the form to form the price, in the UEB Comertun, this process is not carried out efficiently and has some deficiencies.
The price sheet of the fish kibble for which this Base Unit is worked is established by the Ministry of Fisheries, for 5 years now, it contains the consumption standards by elements. However, it is of great importance not to ignore the current conditions of the country due to the global economic crisis and the impact this has had on the Cuban business environment, the environment in which production takes place in this unit and the variations that the elements of production can suffer over time.
In recent periods the cost of acquiring the raw material used in the production of fish kibble has become more expensive, this directly affects the unit cost of the product, making it more expensive, labor costs have varied from a period to another, due to increases in production planning and the acquisition of new technologies that have required new workers in the production process. On the other hand, the cost of elements such as fuel and energy have risen to a great extent due to greater distributions made in the period, thus affecting distribution and selling expenses. The depreciation has been affected by the greater use of the transport carts that the UEB has and the new equipment acquired for production.All these factors influence the determination of the cost of the croquette, as it changes depending on the conditions in which production takes place.
Due to the above, it is necessary that the price card of the product in question must be analyzed from time to time to know the behavior of the production elements, this can be achieved with the preparation of a real price card that achieves show the variations that have occurred by items in a certain process under specific conditions. In the UEB Comertun this real price sheet, useful to reflect the degree of efficiency with which it is being worked during the productive period, is not produced, meaning that the company does not know how the elements of the product have behaved and therefore, the necessary measures for proper economic management are not taken.
With the elaboration of the real price card, the truthfulness of the costs of the analyzed product is guaranteed, that an analysis of the results is made, that the card is actually used to guide decisions and provides the necessary information to use on that basis. the most appropriate available resources.
2.4 Preparation of the price sheet.
This research was carried out in the Comertun UEB, in which fish products are processed for commercialization.
For the elaboration of the price card, the fish croquette product from the Conformed cost center was chosen, it has 21 workers, of them 19 operators, 1 technician and 1 service worker who work directly in production.
The following is the flow diagram of the fish kibble production process:
The production of the fish kibble is carried out by tons, so that the price card shows the cost of 1 ton, to produce a ton it is necessary to process 4 batches, 27,000 units per ton are obtained. The croquettes obtained must have a grammage of 0.037 gr. and they are packed in lithographed bags of 13 x 25 cm with 10 units, one next to the other. They are closed using the sealing machine. Subsequently, the bags are packed depending on their destination: special fishmongers or agencies.
We proceed to calculate each item of the real price card per row, taking as a base the 21 workers of the Formed cost center who work directly to production. Indirect production costs are applied to production cost centers, using direct labor costs as an indicator or calculation basis.
With the calculation of the real price token, the variations of the items that make up it can be obtained.
The price card, taking into account current legislation, must have the following structure:
- Header Body of State Signature Footer
Each part is explained below.
- Header
In this, the data corresponding to the description of the product object of the price proposal, the production company, the body or body to which it belongs and the unit of measurement of the product must be listed. (See annex 4)
- Company Name: Pescatun Data sheet to determine the price and its component in convertible pesos Product description: Fish Croquette Production Level: 1 tons% of capacity utilization: 98% Period covered: September 2009 State body
This identifies the groupings of current costs and expenses, identifies the profit, the price of the company and the profit margin, as well as the amount of each of the expenses concepts that intervene in the price of the product, whether in national currency or in foreign currency. (See annex 4)
Row 01: Raw Material and Materials (Item 11000)
It includes the fundamental raw materials, basic and auxiliary materials, completion items and semi-finished productions that constitute direct inputs of the product in question. It also includes energy and water when these can be measurable. The total of this row is represented by the sum of rows 1.1, 1.3 and 1.4.
Row 1.1: Raw Material and Fundamental Materials
This item of expenditure is broken down into the sub-generic items listed in Annex # 5 where all the materials necessary to achieve 1 ton of production are listed with all the desired quality parameters, taking into account the Operational Work Procedure (POT), as well as its components in CUC and its total cost.
To obtain 1 ton of croquette dough, this process needs to be executed 4 times, so it can be shown that in each process 250 kg are obtained in a time of 4 hours. with 20 Min.
The standard of each raw material involved in the production of this product is multiplied by 4 (4 represents the times or batches necessary for the production of 1 ton), thus obtaining the standard per ton, because the standards are established for a batch of croquette dough. In annex # 5, the standard per ton is multiplied by its price, the total of the raw material used being calculated. It is necessary to highlight that the water element is not counted within this row, but in 1.4.
Row 1.3: Electric Power. (Item 40000)
The amount for the concept of electrical energy used in the croquette dough service is included, which is determined by the analysis of the electrical consumption of the technological equipment that participates in this process, where the consumption is quantified in Kw / h by the price rate paid by the entity (Price of 1 Kw / H = 0.1769781). The amount of time required to make 1 ton of croquette is 4 hours and 20 minutes.
Formula: Equipment consumption x 4.2 Hrs x Price Kw / H
Row 1.4: Water. (Item 11033)
The water used, according to the current rate for production, according to the established technical standards is $ 0.30 per m³. The standard for this element is reflected in Annex # 5: disaggregation of fundamental inputs.
Row 03: Other Direct Expenses.
Row 3.1: Depreciation. (Item 70000)
This indicator includes all the equipment that is directly in the production process and the depreciation calculated in the time of making the fish kibble. The depreciation defined according to the Accounting Standards will be included.
Formula (asset value x established rate / 24 days / 8 hrs. X 4.2 hrs.)
Row 04: Labor Force Expenses. (Item 50000)
This indicator is calculated based on the Model FPM-3 Breakdown of Salary Expenditures of workers in Production and services. (See annex # 6). In this model, the salary is calculated taking into account the hours according to occupational category and the norm of time in hours. Enter the sum of rows 4.1, 4.2, 4.3 and 4.4
The structure of this model is made up of:
- Description of operations Number of workers operations / activity Occupational Category Group Scale Salary Hour according to category and group Standard time (hours) Salary expenses, including abnormal conditions of occupational categories according to the description of the operation.
Indirect production costs
They are those that cannot be identified with the product or service and that are indirectly related to it calculated using a previously approved coefficient, which is applied to the basic salary of workers directly linked to production (or on the basis that is authorized).
According to the Accounting Standards, the indirect production expenses for the Business activity include the following:
Salary of technicians and production managers not linked to the product.
Contribution to workers' short-term social security.
Payments assumed by Social Security in the short term from direct and indirect workers to production.
Maintenance, current repairs and amortization of equipment and production facilities.
Expenses for labor protection in productive areas.
Expenses of preparation and assimilation of production.
Expenses for auxiliary production services.
These expenses are applied to the productive cost centers. The characteristics of these are given by the impossibility of associating them directly to an article produced or service provided, since they are expenses that are related to the total production of the workshop, factory or entity, so they are applied to the productive cost centers to through a rate on certain bases, being able to be mentioned among the most used:
Hours Men
Machine Hours
Direct Material Consumption
Basic salary
Total direct expenses
Depreciation of equipment
Equipment value
Surface of a Facility
Indirect cost ratios
Indirect, general and administrative, and distribution and sales expenses that may be included at most in the price sheets are calculated from the maximum coefficients of indirect expenses for the formation of prices.
The maximum coefficient of indirect expenses is the percentage expression by which the indirect expenses of the activity are recovered by incorporating a proportional part of them to each service or product.
The calculation of these coefficients will be made from the level of planned or budgeted expenses such as: indirect production expenses, general and administrative expenses and distribution and sales expenses, debugging the expenses for inefficiencies, excess installed capacity and insufficient use of resources.
These coefficients are made up by company, group of these, productive establishments or by unit of production or service, as deemed most convenient in each case, with the aim of avoiding the application of different indirect expenses in similar activities, when they are exercised indistinctly by various entities.
In Resolution No. 21 of August 11, 1999 of the MFP, it is defined that the basis to determine to express the coefficient, the total value of these expenses will be divided by the amount of the basic salary of workers directly linked to production. In specific cases, another basis may be used to express these coefficients or other methods to consider these expenses in the formation of prices.
In the case of the company Pescatun, the basic salary plus paid rest (vacations) of workers directly linked to production are taken as a basis, based on guidelines given to this sector by the Ministry of Finance and Prices through the document: "Foundation Report general proposal for the approval of maximum coefficients of indirect expenses ”.
Indirect costs application rate = Indirect costs
Salary
Salary = Basic salary + Paid rest (vacation)
The calculation of this rate is made with estimated data and it shows the percentage to be applied to the real base used (salary) to know the amount of indirect manufacturing expenses that corresponds to each product, in this case 1 ton of fish croquette.
Row 05: Indirect production costs
These expenses include those that are not directly linked to production but are necessary for the development of the production process.
Row 5.2: Maintenance and repairs.
These are expenses that are generated in the maintenance and repair corresponding to the production process, means of loading, unloading, internal transport, current repairs and the amortization associated with these basic means (amortization for replacement and capital repair). The aforementioned rate is used for its calculation.
Indirect Expense Application Rate = Maintenance Expenses / Salary
Application fee = $ 688.75 / $ 2,375.00
= 0.29
Application to the base
29% x $ 142.54 = $ 41.34
Row 06: General and Administrative Expenses.
It includes the amount of expenses incurred in the entity's administration activities.
It includes the following expenses:
Salary, contribution to social security and short-term social security payments of the company's management staff.
Office expenses (telephone, mail, electricity, consumption of materials etc.)
Amortization of fixed assets of general management activities, cafeterias and premises for socio-cultural activities.
Maintenance and routine repairs of facilities and equipment for general use.
General labor protection expenses and preparation of Tables.
In this item, only row 6.6 Others related to the aforementioned administrative expenses is calculated. (See table of indirect expenses)
General and administrative expenses application rate = General and administrative expenses / Salary
Application fee = $ 5,272.50 / $ 2,375.00
= 2.22
Application to the base
222% x $ 142.54 = $ 316.44
Row 07: Distribution and Sales Expenses.
This indicator covers the fuel consumption of the cars used to distribute the products, the energy used to freeze them and the lights in the freezing tunnel, as well as the depreciation of the cars started up and others (the handling of boxes that are lost or deteriorated in this distribution process).
This item takes into account the fuel consumption by roadmap, the consumption of electrical energy by the analysis of the energy carriers that participate directly in this activity and the depreciation of the accumulated by the technical teams that participate in this process. Once the coefficient for this item has been calculated, a proration is made using expert criteria for each of the indicators that make it up.
The total of this row is the sum of rows 7.1, 7.2, 7.3 and 7.5
Rate of application of distribution and sales expenses = Indirect distribution and sales expenses / Salary
Application fee = $ 1,828.75 / $ 2,375.00 = 0.77
Application to the base
77% x $ 142.54 = $ 109.76
Distribution to the indicators using expert criteria:
Row 7.1: Fuels and lubricants: 60% ($ 65.86)
Row 7.2: Electric power: 3% ($ 3.29)
Row 7.3: Depreciation: 6% ($ 6.59)
Row 7.5: Others: 31% ($ 34.02)
Row 09: Total Expenses or Production Costs
It is the result of the sum of the rows:
01: Raw Materials and Materials
02: Processing costs
03: Signature footer
The name and surname, signature of the specialist who intervened in the preparation of the cost sheet, as well as the position and the date on which it was prepared must be reflected.
In this case: Humberto Salgado Salgado
Position: Economic Deputy Director
2.5 Analysis of expenses by elements
Although the Company does not have an automated cost system that allows it to carry out an analysis of this type to the last consequences, it is possible, at least, with the preparation of the real price file, to make a study of the behavior of the expenses per each of the elements that compose it.
Using this tab allows determining the variations that occurred from one period to another, or with respect to the plan, as well as knowing the percentage that this variation represents with respect to the base and, on the other hand, you can see which elements are increasing in importance and which are less significant. The comparison parameters for this analysis should be the base period and the reporting period.
Once the cost analysis has been carried out, it is essential to look for the causes of the most significant variations, so that the analysis allows measures to be taken to correct the deviation.
This item had a deviation of $ 474.57 from the plan. This deviation was caused by the acquisition prices of raw materials: Oil, Flour, Condiments, Ribbons. These raw materials are imported and as a consequence of the economic crisis, their prices have increased considerably, causing price variability.
Another of the elements that participate in this item: electrical energy suffered a variation of $ 9.00 representing 1%, caused largely by the acquisition of new technologies (stuffing machine), which consumes electrical energy.
For its part, it should be noted that this item represents 77% of the total expenses that support the total cost, so any deviation in its results is significant.
This item varies in correspondence with the elements that intervene in it and make it up, in the period analyzed it increased by $ 173.13 so that excluding raw materials and materials (which do not intervene in this item), the rest of the elements affected directly this indicator.
Other Direct Expenses
The deviation of this item was $ 26.10 with respect to the plan. This variation was caused by the depreciation of the new machinery (hydraulic stuffer) that was acquired for production, which, according to the Accounting Standards, depreciates by 6%.
The labor force expense increases by $ 43.74 due to an increase in the workforce. In the analyzed period, the planned production figures increased, this increase was caused by the productive needs of the territory in order to increase assortments in the commercial network. Together with this, new equipment (date stamping, filler, sealer) was acquired to achieve a higher quality production. These factors meant that the workers who worked in the process of shaping the fish kibble were insufficient to meet the new planned figures and handle the new technology, so it was necessary to hire 8 more workers: 6 fish processors, 1 tacho cook and 1 production assistant.
The rest of the indicators vary in correspondence with the basic salary, as they are determined from the percentages established and applied to it.
Indirect production costs
This indicator grows in the period analyzed by $ 8.48, impacting 1% with respect to the plan. This is designed for the repairs of the equipment that intervenes directly in the production process.
General and administrative expenses
General and administrative expenses increased by $ 316.44. These are expenses that are absorbed and transferred from the company's management (telephone expenses, office supplies, lodging allowances, transportation and other monetary expenses) that are charged proportionally to this cost center for its participation in the total of the production. Telephone and transportation expenses increased considerably in the period analyzed.
This item varied by $ 24.38 from what was planned. In the analyzed period there was an increase in the planned production figures, this means that the output of products for sale in fishmongers is greater. A greater distribution of these products has an impact on the increase in fuel and electrical energy in the cars used for this destination.
This item also includes the depreciation of the cars used in the distribution, which increased due to the fact that they were in a higher state of use due to the large distributions made in the period above what was planned.
Damage caused by handling the boxes is included in this heading, since each box damaged or deteriorated in the distribution process is immediately replaced in order to keep the product in good condition and have a greater degree of durability. These are included in the Other element, together with the salary of the personnel involved in the handling and distribution of this production.
This item is made up of Raw Material and Materials and Production Expenses and reflects the total cost of production. Depending on how these elements behave, it will vary. In the analyzed period, the total cost increased by $ 647.7 due to the increase in the elements that intervene in this indicator.
Even when Pescatun is not authorized to form and establish prices, the real price token can be a good measure of the company's efficiency, even more so when it constitutes a thermometer of the use of available resources.
The information that this file provides can be used by managers to achieve better management in the entity, since it is possible to observe how the elements that make up the cost of production behave, how the variation that these suffer influences the profit obtained the company for the sale of this product. To obtain this information, it is possible (in a very synthetic way) to prepare an Income Statement for 1 ton of fish kibble, where it is possible to compare the profits obtained by taking the planned and the actual data calculated in the actual price sheet. Each unit of croquette is sold for $ 0.50 (price established by the MFP). From a ton of kibble dough you get 27,000 units.
* Cost of merchandise sold = Raw material + other direct expenses + labor force expenses + indirect production expenses
For the calculation of the cost of the merchandise sold, inventories are not taken into account since the productions once they leave the cost center are immediately distributed to the fishmongers.
The deviation of each item directly influences the profits of the company since they participate in the results of the entity. As can be seen in the real price sheet and in the Income Statement, all items of expenses increased in the period analyzed, bringing with it the company's profit by $ 647.7 per ton of croquette. If this value is taken into account with respect to the entire production of the analyzed product, the figure is significant even when the company continues to make a profit.
The calculation of the real price tab can be useful to show where measures should be taken so that the deviations occurred in a period are the least significant possible. In the analyzed period, the greatest variation was given in the Raw Materials and Materials, if one takes into account that in recent times the country is doing everything possible to substitute imports, the directors of the company can draw up actions aimed at acquiring the materials necessary premiums within the country with national productions.
Special attention should be paid to the expenses that the administration is incurring, the telephone expense should not be overdrawn from what was planned, in the analysis the execution of the budget the board of directors can take measures to control it, in addition to the other elements that participate in this item such as transport costs and office supplies.
In the same way, the merchandise distribution process underwent very significant variations, mainly due to fuel costs, and although the distribution due to the increase in the production plan was greater, it should not be used irrationally.
The preparation of the real price card has a considerable influence on the company being able to improve its management, as it shows the reality of its costs and contributes to the management having the necessary information for a correct future performance. Planning for the next economic periods should be carried out as accurately as possible, taking into account past costs to project future ones. If these first ones are true, the futures will also show the reality of them.
CONCLUSIONS
The preparation of the real price sheet and the results obtained derived from it, have made it possible to obtain the following conclusions:
1.Not to prepare the real price sheet, it entails that the directive does not know the variations that the elements calculated in it have suffered over time.
2. The use of the real price sheet, allows to know the cost of production of the product, as well as it serves as a basis for better economic management.
3. The calculation of the price card is flexible to the specific conditions of each product.
4. This work contributes to a greater knowledge and dissemination of the possibilities offered by the correct determination of said file as an effective instrument for adequate decision-making.
RECOMMENDATIONS
Taking into account the results of the research, the following recommendations are proposed:
1. Prepare the planned price sheet in such a way that it takes into account the changes that occur in its indicators in the dynamics of changes in prices that originate current market conditions.
2. Update the price changes of raw materials and materials with the established periodicity, to proceed with the recalculation of the planned cost sheet.
3. Suggest to the Economic Directorate of the company Pescatun to extend the calculation of the planned price sheet to all the productions carried out in the UEB of the same with the aim of making the analysis of deviations more efficient.
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