Overhead costs as a part of operating costs, essence and peculiarities of their distribution

In modern terms the calculation of production costs and their distribution is controversial in nature, this is confirmed by such problems as: the definition and composition of total production costs, and it is not justified by determining the distribution of overhead cost base between objects accounting. Consequently, there is a need to research methodological and organizational principles of accounting and distribution overhead cost, while focusing attention primarily on addressing specific issues of distribution overhead cost, improving their accounting methodology. The purpose of the research is to study the theoretical and scientific and methodological provisions for calculation of production costs, development on this basis, ways of improving methods of distribution overhead cost in industrial enterprises according to specific production, the definition of positive and negative aspects of their use, display operations for accounting and distribution overhead cost. We can conclude that the choice of the base distribution is important because it affects the amount of variable overhead cost, which are debited on the account number 23 "Production", the formation of the production cost of a specific product. The choice of the base distribution depends on the characteristics of production and building costs. The company, according to its own specific production, must correctly choose the base of distribution overhead cost that it directly affects the cost of manufactured products.