Cost accounting and product’s price calculation for Ba Dinh Printing Company – Ministry of Public Security By TRAN TRIEU LONG E0500067 BARCHELOR OF BUSINESS (ACCOUNTING) HONS HELP UNIVERITY COLLEGE OCTOBER, 2011 DECLARATION OF THE PROJECT’S ORGINAL I declare that this graduation project is based on my original work except for quotations and citations, which has been referred and duly acknowledged This project is also declared that it has not been previously or concurrently submitted by any student at Help University or other institutions The word count is 9015 words TRAN TRIEU LONG OCTOBER, 2011 i ACKNOWLEDGEMENT First of all, I would like to express my sincere appreciation to my supervisor, Ms Nguyen Van Anh, who guided me throughout this thesis Her constant guidance, insightful suggestions, and constructive ideas are the essential inputs and encouragement for me in order to complete this thesis Secondly, I would like to acknowledge to manager and all of employees in Ba Dinh Printing Company, and Worker Magazine who allowed and assisted me to collect all of necessary information for me to get this thesis done I could not be able to gather much information for my research without their support Lastly, I would also like to extend my heartfelt gratitude to my family and friends for their continuous support, encouragement and contribution Without your supports, my thesis cannot be finished ii TABLE OF CONTENT DECLARATION OF ORGINALITY AND WORD COUNT Er ror! Bookmark not defined ACKNOWLEDGEMENT Er ror! Bookmark not defined TABLE OF CONTENT Er ror! Bookmark not defined LIST OF FIGURES v LIST OF TABLES v ABSTRACT vi CHAPTER 1: INTRODUCTION Er ror! Bookmark not defined 1.1 Topic Introduction Er ror! Bookmark not defined 1.2 Problem statement 1.3 Research structure Er ror! Bookmark not defined CHAPTER 2: LITERATURE REVIEW Er ror! Bookmark not defined 2.1 Objectives of cost accounting in a company 2.1.1product costing 2.1.2 Planning and control 2.1.3 Information for decision 2.1.4 The role of cost accountant 2.2 Relationship between manufacturing overhead and product cost 2.3 Price calculation methods 10 2.3.1 Absorption costing method 10 iii 2.3.2 Activity based costing method (ABC) 11 Figure 1: Activity based costing 12 2.3.3 Variable costing method 13 2.4 Cost accounting in decision making process 15 CHAPTER 3: RESEARCH AND METHODLOGY 18 3.1 Objective of the project 18 3.2 Method of the research 19 3.3 Data sources 19 3.4 Research scope 20 CHAPTER 4: COMPANY ANALYSIS 21 4.1 Company background 21 Table 1: Profit from 2008 to 2010 23 4.2 Characteristic of Company business activity 24 Figure 2: Printing processes in Ba Dinh Printing Company 25 4.3 Types of cost appear in product price calculation 26  Direct and Indirect Product Costs 27  Direct Materials 27  Direct Labor 28  Manufacturing overhead 29 4.4 Cost accounting and product price calculation in Ba Dinh Printing Company 30 4.4.1 Cost accounting for direct materials 30 4.4.2 Cost accounting for direct labor 31 Table 2: No.1 Printing Firm Pay-sheet 32 4.4.3 Cost accounting for manufacturing overhead 32 Table 3: Manufacturing overhead account 34 4.4.4 Product price calculation in the company 35 Table 4: Product's price bill 36 CHAPTER 5: CONCLUSION AND RECOMMENDATION 37 iv 5.1 Conclusion Er ror! Bookmark not defined 5.2 Recommendation 38 REFERENCE 39 v List of Table Table 1: Profit from 2008 to 2010 Table 2: No.1 Printing Firm Pay-sheet Table 3: Manufacturing overhead account Table 4: Product's price bill List of Figure: Figure 1: Activity based costing Figure 2: Printing processes in Ba Dinh Printing Company vi ABSTRACT This paper is covered with the analysis of cost accounting methods and the impact of the selected costing methods to the company business reality activities The purpose of this thesis is to analyze the use of cost accounting methods to the company as well as the effectiveness of cost accounting system that the selected company adopted The three costing methods are mentioned in this thesis namely Absorption costing method, Activity-Based costing method, and Variable costing method Each method will leads to different financial statement to company managers, and hence affect to the manager‟s decision making The research focuses to analyze the company‟s selected costing method by providing the relevant costing statements, and from that I will provide self opinions and also recommendations to hopefully enhance the effectiveness of the company‟s cost accounting performance vii CHAPTER INTRODUCTION This chapter provides an over view of cost accounting Throughout this chapter is the most basic knowledge of cost accounting and its role in the corporation control The link between cost accounting and manager‟s decision making as well as the product‟s cost and price definition will be considered in order to help users to have an over view of company‟s costing system and the importance of cost accounting which directly affect to the company‟s financial 1.1 TOPIC INTRODUCTION The Institute of Cost and Management Accounting, London defines “Cost accounting is the process of accounting from the point at which expenditure is incurred or committed to the establishment of its ultimate relationship with cost centers and cost units In the widest usage, it embraces the preparation of statistical data, application of cost control methods and the ascertainment of profitability of activities carried out or planned” Costing includes the techniques and processes of ascertaining costs The word technique refers to principles which are applied for ascertaining costs of products, jobs, processes and services The `process‟ refers to day-to-day routine of determining costs within the method of costing adopted by a business enterprise Costing involves “the classifying, recording and appropriate allocation of expenditure for the determination of costs of products or services; the relation of these costs to sales value, and the ascertainment of profitability” (1) Step s into details for the printing processes: - Analyse document segment: from the original document received, this staff will design the printing pages following the content divided in the document, selection of the font styles and sizes - Color separation: all pictures from the document are recaptured into four main colors (green, red, yellow, and black) This is because the picture will be print in the different type of pager compare to the paper in original document The color separation technique will help to keep the picture‟s quality after print or copy - Segment divide for print: document will be separated into many parts due to different font styles and sizes as well as color, and those parts will be delivered to different types of print machine - Print, checking product are the last steps that the document have to go through before the finished copies are delivered to customer 4.3 - Types of cost appear in product price calculation: In manufacturing, raw material is transformed with the help of labor and machinery In a merchandising firm, only one type of inventory is maintained, and only few costs are added to the purchase price of goods to arrive at cost of goods sold In a manufacturing firm, many and different types of costs are incurred, and three product costs go into manufacturing inventories: direct materials, direct labor, and manufacturing overhead: 26 - Direct material: the cost of the raw materials and components used to create a product - Direct labor: that portion of labor which is assignable to a specific product - Factory or manufacturing overhead: all costs other than direct materials and direct labor; this includes fixed costs such as rent and depreciation, but also indirect materials and indirect labor Direct and Indirect Product Costs Only product costs are categorized as direct or indirect The labels of direct and indirect pertain to the relationship a product cost has with a product If a cost is easily identified as belonging to a particular product, we can consider it to be easily traceable A product cost that is easily traceable is a direct cost Direct materials and direct labor are considered direct product costs They can be easily and directly traced to products Manufacturing overhead consists of only indirect product costs Indirect costs cannot be easily traced to specific products; however, they are part of the cost of getting a product ready to sell Since period costs have no relationship with products, they are never labeled as direct or indirect.(13) Direct Materials Direct materials include materials that become part of, and can be easily traced to a finished product Direct materials are considered to be variable costs because the total cost of direct materials increases as more units are produced Materials are referred to as direct materials once they are put into production, i.e., transferred into the factory for use in producing products Materials that have been acquired remain in the Raw Materials Inventory account and as such, as designated as Raw Materials In determining the acquisition cost of materials that will be used in production, we must include all costs necessary to get the materials ready to use in production The 27 following costs are included invoice cost to buy materials less purchase (cash) discounts taken, Plus sales taxes if assessed, and Plus freight-in (delivery costs to acquire materials)(14) A couple of items should be noted Cash discounts are allowed on the cost of the materials purchased only No cash discounts are allowed on sales taxes or freight-in Sales taxes are never assessed on freight-in Shipping costs are added to materials costs only for materials acquired, not for the costs of shipping to customers Recalls that both transportation-in and freight-in are common names of shipping costs related to acquiring materials Because companies typically keep materials on hand so they are available for production, beginning and ending inventories must be considered in tracking materials costs The cost of acquiring materials (purchase cost) will likely differ from the cost of materials used in manufacturing Direct Labor Direct labor consists of labor costs that can be easily traced to a finished product This course assumes direct labor to be hourly wages Most companies include the gross hourly wages as part of their labor cost and the related fringe benefits Gross hourly wages represent the cost per hour that employees earn before payroll taxes are subtracted Fringe benefits, such as employer payroll taxes and health benefits for manufacturing employees are usually considered part of direct labor(15) For example, assumer employees are paid $12 per hour and the employer‟s payroll taxes cost is 15 percent of wages The employer provides fringe benefits costing $3 per hour Total direct labor per hour would be $12 plus 15% times $12 plus $3, for a total of $16.80 per hour Direct labor is considered to be a variable cost because the total cost of direct labor (hourly wages) increases as more units are produced 28 Manufacturing Overhead Manufacturing overhead, sometimes referred to as factory overhead, includes all indirect manufacturing costs The same concept applies to manufacturing overhead as for direct labor and direct materials; that is, if the cost is indirect and is part of the cost of getting the products ready to sell, the cost is included Manufacturing overhead consists of three primary costs: indirect materials, indirect labor, and factory-related costs Indirect Labor: Indirect labor includes factory supervisor salaries, factory janitors‟ salaries or wages, factory maintenance workers salaries or wages, and other costs for factoryrelated workers who not directly contribute to producing a particular product Indirect labor costs differ from direct labor in that indirect costs are not traceable to a particular product Indirect Materials: Indirect materials include factory supplies such as sandpaper to smooth rough edges, blades to cut materials, oil for the production machines, paper towels for the factory workers‟ restrooms, and other factory-related materials and supplies that not directly become part of a product Indirect material costs differ from direct materials in that indirect costs are not traceable to a particular product Factory-related Costs: Costs associated with occupancy of the factory are considered manufacturing overhead costs Like indirect materials and indirect labor, factory-related costs are not easily traced or identified with particular products Some examples are factory rent, factory insurance, factory building and equipment depreciation, factory utilities, and factory and equipment maintenance These costs would not be incurred if the company decided to buy the products instead of manufacturing them All manufacturing overhead costs are indirect costs.(16) 29 4.4 – Cost accounting and product price calculation in Ba Dinh Printing Company: 4.4.1 – Cost accounting for direct materials: The company defined two types of direct material costs, which are cost of main materials, and other material‟s cost In Ba Dinh printing company, materials are often estimated for each contract or order from the customer At the end of each month, material accountant will gather all of the material Issue Documents, and calculation of material‟s cost is based on each type of materials After the job is done, accountant will compare his/her record with the material‟s record of the storekeeper to correct any error appear in order to get the final result to enter into ledger The main direct material: Most of the direct material costs are counted for this type of material This is the material required in manufacture for the product to be done or this is what makes up the product For more details, the main materials for printing processes are all types of paper used, inks, and zinc About 70 percent of total direct material costs are main material Base on the cost of inventory and the cost of new material imported in the month, the average cost of material will be calculated as follow: Cav = (I + Mi) / (Q1 + Q2) Where: - Cav: Average material cost - I: Inventory cost - Mi: Cost of new material imported - Q1: Quantity of material in inventory - Q2: Quantity of new material imported 30 Other cost of direct materials (sub-material): These types of direct materials (such as glue, pin, film…) are also being calculated under average cost, however because this type of material will be taken place into many cycles of product manufacture, therefore its cost will be assigned for each specific product contract The formula applied is as follow: CsA = (ERA / TR) x Cs Where: - CsA: Cost of sub-material for contract A - ERA: Estimation revenue from the contract A - TR: Total revenue for the month - Cs: Cost of sub-material occurred in the month For example: In October 2010, the total revenue of the company is VND3,260,213,860 Revenue from printing the “New world magazine” is VND60,550,500 The cost of sub-material signed out from the inventory within the month is VND104.089.670 Therefore, the cost of sub-material used to print “New world magazine” would be: C = (60,550,500 / 3,260,123,860) x 104,089,670 = VND1,933,211 4.4.2 – Cost accounting for direct labor: Direct labor costs in the company included the employee‟s salary, allowances, and insurance At the end of each month, accounting department will considered the payroll of all company‟s departments as well as the statement of bonus payment due to the extra time working of employees, and/or effectiveness in working and providing services And from those data, accounting department will determine the salary for each direct labor for the month The company currently 31 paying salary for direct labor mainly base on the revenue collected from monthly contract and the number of finished printing pages if the contract has not been finished at the end of the month The example of pay-sheet is given bellow: Table 2: No.1 Printing Firm Pay-sheet October 2010 Product „s name No Quantity Pages VND per Total price page Sport magazine 20,000 65 3.2 4,160,000 Worker magazine 9,235 36 3.5 1,163,610 Elder whisper magazine 25,000 75 3.5 6,562,500 English Magazine 20,000 84 3.1 5,208,00 Total 105,706,400 (Source: information provided by Ms.Nguyen Bich Lien, accountant of Ba Dinh Company) 4.4.3 – Cost accounting for manufacturing overhead The manufacturing overhead costs are the expenses on factory activities The manufacturing overhead (or factory cost) in the company includes: depreciation of building and machineries, the factory quality control department expenses, expenses for tools of production, maintenance expenses, and other expenses (electricity and gas for the factory) For the calculation of the factory cost or the money spent on running the factory, the accountant has to calculate all the factory overheads and the prime cost The prime cost is the sum of the materials consumed by the factory, direct wages and the direct expenses made by the factory owner The formula for 32 prime cost has been given below: Prime Cost = Materials consumed + direct wages + direct expenses The factory cost, therefore, will be determined by using the formula bellow: Factory Cost = Prime cost + sum of all factory overheads The factory overhead are basically of two types - fixed overheads and variable overheads The fixed manufacturing overhead costs would be the rent payments or the salaries of the workers The fixed overhead costs not change with an increase or decrease in the levels of production The production output or levels of a company strictly depend on the demand for its products on the market When the demand is more, the factory would be utilizing its full capacity and produce maximum goods When the demand is less in the market, full capacity would not be used to control costs In this case, product quantity of Ba Dinh printing company is strongly depend on the contracts signed with customer, no more no less product quantity would be produced once contract is signed Fixed costs are the expenses the factory owner has to bear, irrespective of the profits and production made by the factory On the other hand, variable costs would be those which rise with the rise in production levels For example, raw materials costs will rise when the number of goods being produced increase The manufacturing overhead costs or factory costs can further be used to calculate the cost of production, total cost and total sales generated by the company The cost of production is determined by adding add the office and administration 33 expenses (such as manager's salary, salary of the director, stationery expenses for office, and lighting expenses for office) to the factory cost Further, by adding the selling and distribution overheads to the cost of production, which mainly consist of the marketing expenses, accountant will get the total cost for the enterprise(17) The example to illustrate the manufacturing overhead account record in Ba Dinh printing company: Table 3: Manufacturing overhead account From 01/10/2010 to 31/10/2010 Currency: VND Debit Salary expenses 40,970,208 Insurance expenses 12,495,913 Depreciation 179.050.680 Cost of indirect material 42.373.651 Other cost 16.111.194 Manufacturing overhead Total Credit 291.001.646 291.001.646 291.001.646 (Source: information provided by Ms Tran Thi Tuyet, chieff accountant of Ba Dinh printing company) With direct labor cost and direct material cost, manufacturing overhead plays a key role in the company as an importance tool for manager to make business 34 decision, as well as for accounting department to determine the total of production cost And only from that, the product‟s price would be defined in order to achieve the company‟s revenue and profit requirements 4.4.4 – Product price calculation in the company: In Ba Dinh printing company, the manufacturing processes are running continuously following the contract signed to customer, and the products are normally not be store in the inventory but directly delivered to customer Therefore, due to the nature of business, the company defined the period of product price calculation is month In addition, because of the production cycle is small and in short period, so the product price would be calculated separately for each customer‟s order For the finished orders, the total price of the products is equal to the total cost that be used to complete the order Hence, the product‟s price is calculated following the formula: Price per unit = total price / number of unit finished For example, price of the product for “Tribunal Magazine” on October 2010, the company provided the bill as follow: Product’s price bill Name of product: Tribunal Magazine Customer‟s name: Nguyen Viet Tuan Volume: 20,000 copies Total pages printed: 3,960,000 35 Table 4: Product’s price bill Direct material Direct labor cost cost Unfinished product Manufacturing Total overhead - - - - 16,968,640 6,522,000 7,417,471 30,908,111 - - - - 16,968,640 6,522,000 7,417,471 30,908,111 4,29 1,65 1,87 7,81 cost b/f Production cost Unfinished product cost c/f Total price Price per product unit (page) (Source: data provided by Mr Nguyen Viet Tuan, accountant of “Worker Magazine”) In Ba Dinh printing company, product price calculation is based on the cost to produce a unit of product The word “unit” in the calculation formula represents for a standard complete printed page in a copy from original document of the customer For simple orders, which are required a short period to finish (for example within a month) product price is directly full charge to the customer, sometime the bill deliver to customer before the product finished For the orders that required a long period to be finished (more than a month), at the end of each month, company will charge the customer base on the contract percentage finished or the finish printed pages 36 Chapter CONCLUSION 5.1 – Conclusion In fact Cost accounting system is designed to provide information for managers and the information must be relevant for managers, in a particular environment, to make decisions for their own company business, include strategic decision making Through all the information and research provided in this thesis, we can understand the nature of cost accounting system applied in the selected company As I mentioned in chapter 2, there are cost accounting methods I selected, which are activity base costing method, variable costing and absorption costing method, to analyze the use of each method for business cost accounting processes Each method will provide different statement of financial to managers, and hence leading to different decisions For Ba Dinh printing company, cost accounting system designed is actually for production cost calculation under absorption costing method For the organizations that have simple business activities like Ba Dinh printing company, absorption costing method can display its effectiveness in processes of cost and product price calculations because costs and revenues are better match with absorption costing method Especially with a kind of business like Ba Dinh printing company is doing, the quantity of the product produced and the quantity of product consumed are most likely the same and fixed with contract signed, therefore, costs occur in manufacturing process are fixed rather than variable With absorption cost, all fixed cost and variable cost are considered and it recognized the importance of the fixed cost Due to that, product price charged to customer will be based on overall costs used to produce the product, 37 and hence increase revenue as well as company profit In addition, even though absorption cost is not suitable for company decision as costs are not differentiated into fixed and variable cost, this method still work well for the company since there is not much decision required for the printing activities (such as there is no make or buy decision when only “make” choice is available) 5.2 – Recommendation After all, the company accounting system basically satisfies the requirement of financial management as well as following the political standard, and the current accounting standard of the country However, the accounting department of the company is running with only accountant, with firms are operating at the same time, the volume of data flows every month is huge, so the question set for managers is “Is the volume of current work too much for accountant to handle? And should the company form an accounting department with more accountants for more working effective?” In addition, even though Ba Dinh Company is only serve in printing industry, however because this is a company under government control (Public company), the contracts signed to customer are almost fixed every year and unlikely to be changed The volume of job, therefore, is huge and in fact the unfinished products at the deadline of the contract date cannot evade when a new contract appear Company managers must consider this event and enhance the working effective to cut time in manufacturing process The company would buy the material from outside supplier instead of rely on the supply from its own firm which is far away from the main factory The cost of purchasing supply could be charge to the customer, the product price increase but the time is saved In publishing a magazine or newspaper, time is always being preferred and put on the first place 38 REFERENCE - Cost Accounting: An Introduction, MODULE - 6B, Elementary Cost Accounting, available at www.nos.org/srsec320newE/320EL27a.pdf) - Article wirtten by Alice Rovney, September 13, 2010 available at: http://www.brighthub.com/office/finance/articles/86831.aspx - Jawahar Lal and Seema Srivastava, Cost accounting 4th Edition, page 7,8) - Emerson O Henke and Chalene W Spoede, Cost accounting: Managerial use of accounting data, Boston 1991, Page 5) - Written By: Cassie L Damewood edited By: Jenn Walker, 14 July 2011 available at: http://www.wisegeek.com/what-does-a-cost-accountant-do.htm) - Robert Rachlin and Allen Sweeny, Accounting and Financial Fundamentals for Non-financial Executives, page 94 - Gary L Sundem, William O Stratton Charles T Horngren, 2003, Introduction to Management Accounting ,13th edition - Written by Swathen on 2011/06/07 available at: http://www.wikicfo.com/wiki/Variable%20Cost.ashx http://www.accountingformanagement.com/advantages_of_variable_costing.htm accessed at Oct 20, 2010) 10 - Colin Durry, Management and costing account, 7th Edition, page 62 11 - M Y Khan and P K Jain, Management Accounting – Text, problems and cases, 4th edition 39 12 - from: Public police‟s article on November 2010, available at: http://www.baomoi.com/Cong-ty-In-Ba-Dinh-Vung-buoc-trong-co-che-thitruong/47/5275003.epi 13 - V Rajasekaran, R Lalitha, Cost Accounting 14 - Kenneth H York, John A Bauman, Cases and materials on remedies 15 - Jackson, Sawyers, Jenkins, Managerial Accounting – A focus on ethical decision making 16 - Belverd E Needles, Susan V Crosson, Managerial Accounting, 2002 17 - Article written By Charlie S on 9/28/2011, available at: http://www.buzzle.com/articles/manufacturing-overhead-costs.html 40 [...]... and interpretation of cost In other words, it is a system of accounting, which provides the information about the ascertainment, and control of costs of products, or services It measures the operating efficiency of the enterprise It is an internal aspect of the organization Cost Accounting is accounting for cost aimed at providing cost data, statement and reports for the purpose of managerial decision... 4 COMPANY ANALYSIS 4.1 - Company background: Ba Dinh printing company was established due to the merger of the two enterprises which are also belong to Ministry of Public Security In 1999, the resolution number 819/1999/QĐ – BCA (X13) was announced, which allowed the merger of two companies: XZ72 printing company and Ministry of Public Security printing firm The event was marked the creation of Ba. .. of the idea I provided in each chapter will be linked to the others in order to create the effective way for reading and understanding for users about my working 4 CHAPTER 2 LITERATURE REVIEW 2.1 - Objectives of cost accounting in a company There is a direct relationship among information need of management, cost accounting objectives, and techniques and tools used for analyses in cost accounting Cost. .. inventory valuation, deciding price of the product, and managerial decisionmaking Product costing covers the entire cycle of accumulating manufacturing and other costs and subsequently assigning them to work in progress and finished goods 2.1.2 Planning and Control Another important objective of cost accounting is the creation of useful cost data and information for the purposes of planning and control by management... focuses on the cost accounting system of one of the biggest company in Vietnam, Ba Dinh Printing Company, which is under the control of Ministry of Public Security As its name, the company activities are all related to the printing industry Company s products are normally the special documents or reports for the government and also magazines or journals from the outside orders of newspaper offices The... stage of the accounting process To make clear about the important role of cost accounting, base on the knowledge I have learnt and the advices from lecturers, I plan to do a deep research about cost accounting for a selected company In this thesis, I discuss about: - Relationship between cost and price - Objectives and method of cost accounting in generally - The company method to determine production cost. .. profit margin Cost, in this context, usually means full cost Similarly, in deciding what price to charge for its goods or /and services, a company often uses estimates of full costs plus a profit margin as a guide.(11) 17 Chapter 3 RESEARCH AND METHODOLOGY 3.1 - Objective of the project The purpose of literature study is to understand past performance and data of the company From the information collected,... this company is to: 2 - Analyze the realistic performance of the company s cost accounting and the accounting department, how they define the cost of production processes as well as product‟s price - Base on the analyzing of collected data; propose some ideas to upgrade the process of cost accounting system in the company 1.2 PROBLEM STATEMENT: Through all of the objectives mentioned above, cost accounting. .. (called indirect costs) Full cost accounting measures not only the direct and indirect costs of producing goods or providing services, but also the direct and indirect costs of any other activity of interest to management, such as costs of performing a research project or cost to operating an employee‟s cafeteria Thus full cost accounting is not restricted solely to measuring the costs of manufactured... cost accounting Cost accounting has three main important objectives: 1 To determine product costs 2 To facilitate planning and control of regular business activities 3 To supply information for short-term and long-term decisions 2.1.1 Product costing The objective of determining the cost of products is of prime importance in cost accounting The total product cost and cost per unit of product are important ... at: http://www.baomoi.com/Cong-ty-In -Ba- Dinh-Vung-buoc-trong-co-che-thitruong/47/5275003.epi 13 - V Rajasekaran, R Lalitha, Cost Accounting 14 - Kenneth H York, John A Bauman, Cases and materials... merger of two companies: XZ72 printing company and Ministry of Public Security printing firm The event was marked the creation of Ba Dinh Printing Company English Name: Ba Dinh Printing Company. .. costs are indirect costs.(16) 29 4.4 – Cost accounting and product price calculation in Ba Dinh Printing Company: 4.4.1 – Cost accounting for direct materials: The company defined two types of