The method of keeping records of production costs and settling them depends on the size of a production company. The accounting act requires that solutions related to record-keeping and cost accounting are adjusted to the needs of an entity. That is why costs and expenses are settled only in accounts under group 4, or also in accounts under group 5.
In small production companies the production process is usually not very complicated. In such places, it is enough to keep records of costs and expenses by type only, in accounts under group 4. In large and medium-sized production companies a complex record-keeping system is recommended, due to production complexity and size. This means that both accounts under group 4 and 5 are used.
In our accounting practice, we have had an opportunity to cooperate with large production entities from various lines of business. These were entities included in international corporations, as well as smaller production companies with Polish capital.