M.Tech. (Department of Cost and Management Accountancy, Faculty of Management Sciences), Vaal University of Technology. / General engineering is characterised by its ability to manufacture and service a number of diverse products. Companies that manufacture various products can only measure costs accurately by using a job-order costing system whereby costs such as material, labour and overheads can be recorded. General engineering companies in Southern Gauteng supply precision manufactured components and services to the petrochemical, mining and steel manufacturing industries. When submitting a tender to a prospective client, companies often rely on informal methods such as “hearsay benchmarking”. Traditional costing methods are often ignored. Due to the competitive environment as well as to ensure sustainability, companies have to ensure that their pricing structures are efficient. The review of literature and research seem to indicate that companies often neglect cost accounting and often use methods that are obsolete and no longer relevant to the changing manufacturing environment. The main objective of this study was to explore the extent to which general engineering companies in Southern Gauteng are employing cost accounting methods. The study focused on the current methods and their relevance and effectiveness in providing the information required by the users to maintain a competitive edge in the market and still conduct a sustainable business. The research was conducted on the general engineering companies within Gauteng South. A literature study on cost accounting methods was undertaken, focusing primarily on cost accounting methods used by engineering companies involved in the manufacturing and servicing of diverse products. The empirical study was carried out in two phases: • A case study on a reputable general engineering company. • A survey was done on the cost accounting methods used by other general engineering companies. The study adopted a quantitative approach. The case study was used as a benchmark to draw up the structured questionnaire that was used to survey 91 general engineering companies that were selected using purposive sampling. The questionnaire embodied four sections; A, B, C and D. Section A requested general information and the demographic profile of the respondents. Section B invited views on cost accounting methods applicable to the general engineering environment. Section C gathered information regarding cost accounting methods currently used in the company. Section D examined the relevance and effectiveness of costing methods in decision making. Questionnaires were delivered by hand to owners and managers who are responsible for the costing methods at the designated general engineering companies. The study found that the respondents had a good understanding of the costing methods applicable to the general engineering environment. Although respondents had a good understanding of costing methods, the implementation thereof at their organisations was still wanting in some areas. Significant differences between companies’ views on costing methods their relevance and effectiveness and the methods they currently use were found. When companies were categorised according to their turnover it was evident that turnover did play role in the companies’ views on costing methods and their relevance and effectiveness in decision making. Those with a higher turnover had relatively more costing methods and systems in place.

Выполнение строительно-монтажных работ связано со сложной системой нормативного регулирования затрат по сметной стоимости, служащих базовым показателем ценообразования и договорной политики подрядных организаций. Разработка методов, позволяющих применить единый подход к учету разнообразия условий выполнения работ по видам договоров, а также средств контроля за исполнением договорных обязательств, служит существенным фактором совершенствования финансового и налогового учета. Результаты проведенного исследования: предложена система субсчетов в составе действующих синтетических счетов по учету затрат на строительно-монтажные работы, а также по учету реализации отдельных этапов работ; обоснована целесообразность расширения функциональных обязанностей работников, осуществляющих внутренний аудит, от обычного финансового контроля до комплексного анализа учетных операций в сочетании с договорной политикой строительной организации; адаптировано использование нормативного метода для учета затрат подрядных организаций с целью повышения эффективности мониторинга отклонений от сметы при формировании финансового результата отчетного периода. / Execution of construction and installation works is associated with a complex system of regulatory regulation of costs according to the estimated cost, which serves as a basic indicator of pricing and contractual policy of contractors. Development of methods to apply a unified approach to the diversity of conditions of work in contracts, as well as means of control over execution of contractual obligations is a significant factor in the improvement of financial and tax accounting. Results of the study: - a system of sub-accounts is proposed as part of existing synthetic accounts for accounting for construction and installation costs, as well as for accounting for the implementation of individual stages of work; - the expediency of expanding the functional responsibilities of employees engaged in internal audit from ordinary financial control to a comprehensive analysis of accounting operations in combination with the contractual policy of the construction organization is justified; - adapted the use of the standard method for accounting for the costs of contractors in order to improve the effectiveness of monitoring deviations from the estimate when forming the financial result of the reporting period.