ACCOUNTING OF INCOMES RELATED TO COST OF PRODUCTION IN PROGRESS
ACCOUNTING OF INCOMES RELATED TO COST OF PRODUCTION IN PROGRESS

Summary/Abstract: Incomes related to production in progress are not incomesgenerating revenue money in a near-future period; as a source of virtualenrichment for the enterprise, they are measured, for reasons of prudence, tothe level of costs of production. At the level of principle, we can discuss themeans to separate costs related to the finished production from those related tothe production in progress, a particularly thorny issue encountered in practiceand which, in most cases, determines the productive entities either to drop theactual determining of production costs or to make an improvised calculation. Inour opinion, the problem is not the method of accounting the incomesassociated with the cost of production in progress, but the way of evaluating theproduction obtained and stored, especially when both finished goods and goodsin process are obtained.

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