Procedures and Technique for Accounting of Costs Associated with Oil Refining

Abstract

The aim of any operating enterprise is to make a profit in the long run. On the other hand, profit can only be made when hard work, constant research, and the use of available resources are optimally organized. Therefore, the prime-cost of the product and the profit obtained from its sales are crucially important for the manufacturing enterprise. The equipment and technologies used in production, the level of employees and workers, the chemical composition and physical properties of extracted oil condensate, production technology, as well as the climate and land composition of the area play a decisive role in determining the composition of costs associated with oil refining. These peculiarities cause the problem for industry-based enterprises as formation of accounting policies in this industry differs from accounting policies applied in other industries.