With Regard to the Price Differences Registrated in Finite Products and Agricultural Products

Abstract

According to the predetermined or standard price/cost method, stocks of finished products or agricultural products are recorded in the accounts at the predetermined (standard) price, also called the registration price, highlighting separately (distinctly) the price differences (plus or minus) from the actual cost of production of these goods. The standard price used for their accounting should be reviewed regularly and adjusted in the light of price developments. The distribution of price differences on finished products or agricultural products out of management shall be carried out with the support of a coefficient (k). This indicator (k) is multiplied by the price of these goods coming out of the company's management at the predetermined price (usually by sale), and the resulting value is shown in the corresponding accounts where such stocks that have come out of the patrimony have been shown.