Seminar 7 - Management Accounting Theoretical Aspects and Accounts

Vocabulary flashcards covering account groups, specific account functions (901-933), and the business application case for SC MobilArt Cluj SRL.

Class $9$ Management Accounts

Accounts used to record production expenses and cost calculations by redistributing expenses from financial accounting according to their destination.

Account $901$ - Internal settlements regarding expenses

A bifunctional account that functions as a passive account, used to transfer expenses from financial accounting to calculation accounts like $921$, $922$, and others.

Account $902$ - Internal settlements regarding production obtained

A bifunctional account used to highlight differences between the registration price (standard/selling price) and the actual cost of production obtained during the month.

Favorable Price Differences

Represented by a credit balance in account $902$, indicating savings or positive deviations from standard costs.

Unfavorable Price Differences

Represented by a debit balance in account $902$, indicating overruns or negative deviations from standard costs.

Account $903$ - Internal settlements regarding price differences

An asset account used to record the price differences calculated at month-end between the actual cost and the registration price; it has a zero balance once closed.

Account $921$ - Main activity expenses

An asset account that tracks direct expenses of the core activity and, at month-end, the rational allocation of indirect production expenses.

Account $922$ - Auxiliary activity expenses

An asset account recording costs for support activities, which are later allocated to the main activity, administrative, or selling sectors.

Account $923$ - Indirect production expenses

An asset account used for maintenance and operation costs of machinery and general expenses for each primary production section.

Account $924$ - General administrative expenses

An asset account documenting the costs associated with the management and administration of the unit.

Account $925$ - Selling expenses

An asset account for costs related to the distribution of products, such as packaging, transport, handling, storage, and insurance.

Account $931$ - Cost of production obtained

An asset account highlighting finished products, semi-finished products for sale, and services rendered for third parties.

Account $933$ - Cost of production in progress

An asset account used to represent the actual cost of unfinished production from both main and auxiliary activities.

Product A (Scaune ergonomice de birou)

The ergonomic office chairs produced by SC MobilArt Cluj SRL with a monthly production volume of $500$ units.

Product B (Birouri executive din lemn masiv)

The executive solid wood desks produced by SC MobilArt Cluj SRL with a monthly production volume of $300$ units.

Section I (Secția de tâmplărie și prelucrare)

The carpentry and processing section at SC MobilArt Cluj SRL responsible for cutting, planing, and milling wood.

Section II (Secția de tapițerie și finisare)

The upholstery and finishing section at SC MobilArt Cluj SRL responsible for assembly, upholstery, painting, and lacquering.

Simple Division Method (Procedeul diviziunii simple)

The cost calculation procedure applied when products are obtained at the end of the process without leaving unfinished production.

TVA deductibil for suppliers

Value Added Tax applicable at a rate of $21\%$ for expenses recorded in financial accounting for SC MobilArt Cluj SRL.