Accounting for consumption and evaluation of business results at dai duong xanh limited company

MINISTRY OF EDUCATION AND TRAINING
HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION
FACULTY HIGH QUALITY

GRADUATION THESIS
MAJOR ACCOUNTING

ACCOUNTING FOR CONSUMPTION AND
EVALUATION OF BUSINESS RESULTS AT DAI
DUONG XANH LIMITED COMPANY

Student’s name : TRẦN LÂM MINH
ANHStudent’s ID : 17125008
Instructor: NGUYỄN THỊ LAN ANH

SKL 0 0 7 8 1 9

Ho Chi Minh City, February 2021


HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND
EDUCATION
FACULTY HIGH QUALITY

GRADUATION THESIS

ACCOUNTING FOR CONSUMPTION AND
EVALUATION OF BUSINESS RESULTS AT DAI
DUONG XANH LIMITED COMPANY
Student’s name :
Student’s ID :

School year :
Major :
Instructor:

TRẦN LÂM MINH ANH
17125008
2017
ACCOUNTING
NGUYỄN THỊ LAN ANH

Ho Chi Minh City, February 2021

I


GRADUATION THESIS TASK
CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc lâp – Tư do – Hạnh phúc
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Tp. Hồ Chí Minh, ngày--- tháng--- năm 2014

NHIỆM VỤ KHÓA LUẬN TỐT NGHIỆP
Họ và tên sinh viên:

MSSV:

Ngành:

Lớp:

Giảng viên hướng dẫn:

ĐT:

Ngày nhân đề tài:

Ngày nộp đề tài:

1. Tên đề tài:

2. Các số liệu, tài liệu ban đầu:

3. Nội dung thưc hiện đề tài:

4. Sản phẩm:

TRƯỞNG NGÀNH

GIẢNG VIÊN HƯỚNG DẪN

I


INSTRUCTOR’S COMMENT NOTE
CỘNG HOÀ XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc lập – Tự do – Hạnh Phúc

*******
PHIÊU NHẬN XÉT CỦA GIÁO VIÊN HƯỚNG DẪN

Họ và tên Sinh viên: ................................................................MSSV: ...................................
Ngành:......................................................................................................................................
Tên đề tài:.................................................................................................................................
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Họ và tên Giáo viên hướng dẫn:...............................................................................................
NHẬN XÉT
1. Về nội dung đề tài & khối lượng thưc hiện:
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2. Ưu điểm:
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3. Khuyết điểm:
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4. Đề nghị cho bảo vệ hay không?
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5. Đánh giá loại:
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6. Điểm:……………….(Bằng chữ:....................................................................................... )
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Tp. Hồ Chí Minh, ngày
tháng
năm 20…
Giáo viên hướng dẫn

(Ký & ghi rõ họ tên)

II


REVIEWER’S COMMENT NOTE
CỘNG HOÀ XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc lập – Tự do – Hạnh Phúc

*******
PHIÊU NHẬN XÉT CỦA GIÁO VIÊN PHẢN BIỆN
Họ và tên Sinh viên: ................................................................MSSV: ...................................
MSSV: ......................................................................................................................................
MSSV: ......................................................................................................................................
Ngành:......................................................................................................................................
Tên đề tài:.................................................................................................................................
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Họ và tên Giáo viên phản biện:................................................................................................
NHẬN XÉT
1. Về nội dung đề tài & khối lượng thưc hiện:
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2. Ưu điểm:
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3. Khuyết điểm:
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4. Đề nghị cho bảo vệ hay khơng?

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5. Đánh giá loại:
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6. Điểm:……………….(Bằng chữ:...................................................................................)
..................................................................................................................................................
Tp. Hồ Chí Minh, ngày
tháng
năm 20…
Giáo viên phản biện
(Ký & ghi rõ họ tên)

III


APPRECIATION
To complete this graduation thesis, I would like to send my sincere thanks to all the
teachers at the Ho Chi Minh City University of Technology and Education, especially all
teachers working in Faculty of High Quality Training for teaching and imparting valuable
knowledge and experiences to me during the 4 years of studying at school.
I truly appreciate Ms. Nguyen Thi Lan Anh for her wholehearted guidance and
assistance so that I can complete this thesis well. I would also like to thank the board of
directors and all the staffs in the accounting department of Dai Duong Xanh Limited
Company for helping me and providing necessary data for me to write this thesis.
Due to limited knowledge and limited practice time, I cannot avoid my shortcomings
and limitations. So I look forward to receiving contributions and reviews from the
teachers and brothers and sisters in the company, helping me to improve my knowledge
in the future. I wish all the teachers in the school and staffs in the company have great
health for good work.
Thank you sincerely.

IV


SUMMARY
In economic activities, the field of trading and consuming goods and services is of
particular importance in the economy. The consumption of finished goods is the deciding
factor in the success or failure of the business. Consumption represents the
competitiveness and prestige of the enterprise in the market. In addition, the results of
consumption are an aggregate quality indicator that reflects the final financial results of
the business activity in the enterprise. If the financial situation is good, it will prove that
the business is doing well and will be able to improve the financial capacity of the
business. At the same time, excessive business results help the firm grasp all of its
activities through expenditures that reflect its performance. This makes it possible for
enterprises to grow and do business too effectively.
Recognizing the importance of this issue, I chose to study the topic: “Completing
consumption accounting and determining business results at Dai Duong Xanh
Limited Company”
In this thesis, I started from chapter I to introduce about Dai Duong Xanh Limited
Company. The content of chapter II includes theoretical basis for accounting of
consumption and business result determination in enterprises. Then in chapter III, I
mentioned the current situation of accounting of consumption and business result
determination at the company. In the last chapter, I would like to give some
recommendations to improve accounting of consumption and business result
determination at the Company.

V


TABLE OF CONTENTS
GRADUATION THESIS TASK......................................................................................................I

INSTRUCTOR’S COMMENT NOTE........................................................................................... II
REVIEWER’S COMMENT NOTE.............................................................................................. III
APPRECIATION.......................................................................................................................... IV
SUMMARY.................................................................................................................................... V
TABLE OF CONTENTS.............................................................................................................. VI
LIST OF ACRONYMS................................................................................................................. IX
LIST OF CHARTS......................................................................................................................... X
LIST OF REFERENCES...............................................................................................................XI
INTRODUCTION........................................................................................................................... 1
CHAPTER I: INTRODUCTION OF DAI DUONG XANH LIMITED COMPANY.................... 3
1.1 Overview of the Company..................................................................................................... 3
1.1.1 Establishment and development......................................................................................3
1.1.2 Fields of business............................................................................................................4
1.1.3 Management organizational characteristics.................................................................. 5
1.1.4 Accounting organization.................................................................................................7
1.1.5 Accounting method of the Company............................................................................... 8
CHAPTER II: THEORETICAL BASIS FOR ACCOUNTING FOR CONSUMPTION AND
EVALUATION OF BUSINESS RESULTS IN ENTERPRISES................................................. 11
2.1. Overview of accounting for consumption and evaluation of business results....................11
2.1.1. Concept of consumption...............................................................................................11
2.1.2. Concept of Evaluation of business results................................................................... 12
2.1.3. Tasks of Accounting for consumption and Evaluation of business results.................. 12
2.1.4. Roles of Accounting for consumption and Evaluation of business results.................. 13
2.2. Methods of consumption and payment............................................................................... 13
2.2.1. Consumption methods..................................................................................................13
2.2.2. Payment methods......................................................................................................... 14
2.3. Accounting for consumption...............................................................................................14
2.3.1. Accounting for sales.....................................................................................................14
2.3.2. Accounting for revenue deductions..............................................................................18
2.3.3. Accounting for cost of goods sold................................................................................19

2.4. Accounting for general & administration expenses............................................................23
2.4.1. Accounting for general & administration expenses.....................................................23
2.4.2. Accounting for financial activities income.................................................................. 23
VI


2.4.3 Accounting for expenses of financial activities.............................................................26
2.4.4 Accounting for other income.........................................................................................27
2.4.5 Accounting for other expenses...................................................................................... 30
2.4.6 Accounting for corporate Income tax charge............................................................... 32
2.4.7 Accounting for evaluation of business results.............................................................. 34
CHAPTER 3: ACTUAL SITUATION OF ACCOUNTING FOR CONSUMPTION AND
EVALUATION OF BUSINESS RESULTS IN THE COMPANY.............................................. 38
3.1 Actual situation of accounting for consumption and evaluation of business results in the
company.....................................................................................................................................38
3.1.1 Consumption characteristics in Dai Duong Xanh Limited Company.......................... 38
3.1.2 Accounting for revenues of sales and service provision...............................................38
3.1.3 Accounting for sales deductions................................................................................... 44
3.1.5 Accounting for Business management cost...................................................................49
3.1.6 Accounting for financial income...................................................................................53
3.1.7 Accounting for financial expenses................................................................................ 54
3.1.8 Accounting for other income.........................................................................................54
3.1.9 Accounting for other expenses...................................................................................... 54
3.1.10 Corporate income tax expense accounting................................................................. 54
CHAPTER 4: SOME RECOMMENDATIONS TO COMPLETE THE ACCOUNTING FOR
CONSUMPTION AND EVALUATION OF BUSINESS RESULTS IN THE COMPANY.......63
4.1. The need and the principle of perfecting consumption accounting, determining business
results at Dai Duong Xanh Limited Company...........................................................................63
4.2. General assessment of current situation of accounting for consumption and Evaluation of
business results in the company.................................................................................................65

4.2.1. Advantages...................................................................................................................65
4.2.2. Limitations................................................................................................................... 66
.4.3. Some recommendations to complete and perfect the accounting for consumption and
Evaluation of business results in the Company......................................................................... 67
4.3.1. About account 521...................................................................................................... 68
4.3.2. About accounting software.......................................................................................... 67
4.3.3 About mode of consumption..........................................................................................67
4.3.4. Regarding tracking short-term receivables................................................................. 68
4.3.5. Regarding the opening of Subsidiary ledger of ACC 64221 and ACC 64217.............68
4.3.6. Regarding accounting books and vouchers................................................................. 68
4.3.7. Regarding the remuneration........................................................................................ 68
4.3.8. Regarding language skills.............................................................................................74
VII


CONCLUSION..............................................................................................................................72
APPENDIX....................................................................................................................................73

VIII


LIST OF ACRONYMS
NO

ACRONYM

MEANING

1

ACC

Account

2

CIT

Corporate Incomes Tax

3

CO

Company

4

COGS

Cost Of Goods Sold

5

CR

Credit

6

DR

Debit

7

FIFO

First-in, First-out

8

IC

Individual Customer

9

JSC

Joint Stock Company

10

NO

Number

11

VAT

Value-Added Tax

12

VND

Việt Nam Đồng

IX


LIST OF CHARTS
No.

CONTENT

PAGE

Chart 1.1

Organizational Chart of the management apparatus

5

Chart 1.2

Accounting organizational chart

7

Chart 1.3

General journal chart

8

Chart 1.4

Book keeping procedures

9

Chart 2.1

Accounting for direct consumption sales

16

Chart 2.2

Accounting for agent-based consumption sales

16

Chart 2.3

Accounting for sales with installment/ deferred payment

17

Chart 2.4

Accounting for sales by goods exchange

17

Chart 2.5

Accounting for product and goods returns

18

Chart 2.6

Accounting for expenses incurred related to sales returns

18

Chart 2.7

Cost accounting according to periodic inventory method

21

Chart 2.8

Cost accounting under perpetual inventory count method

22

Chart 2.9

Accounting for general & administration expenses

25

Chart 2.10

Accounting for financial activities income

27

Chart 2.11

Accounting for expenses of financial activities

29

Chart 2.12

Accounting for other income

31

Chart 2.13

Accounting for other expenses

33

Chart 2.14

Accounting for CIT expenses

35

Chart 2.15

Accounting for evaluation of business results

37

X


LIST OF REFERENCES
[1] Huỳnh Lợi (2010), “Giáo trình Kế tốn chi phí”, Trường đại học Giao Thơng Vân
Tải
[2] Thơng tin, số liệu nội bộ Công ty TNHH MTV Đại Dương Xanh
[3] Bộ Tài chính 2016, Thơng tư 133/2016/TT-BTC ngày 26/08/2016 của Bộ Tài chính Chế độ kế tốn doanh nghiệp vừa và nhỏ
[4] Trần Minh Đạo (2019), “Giáo trình Marketing căn bản”, trang 85-86

XI


INTRODUCTION
1. The reason for choosing this topic
In the new mechanism, with the operation of many economic fields, the

independence and autonomy in enterprises are getting higher and higher, each
enterprise must be creative in business, must be responsible for its business results,
preserving capital and profitable business.
To do so, businesses must be aware of the position of the product
consumption stage, which determines the business performance of the business and
is the basis for the business to have income to offset the costs spent. Besides, the
purpose of businesses is to make profits, so it is also important to determine
correctly and accurately the business results in general and sales in particular.
Therefore, beside general management measures, the rational organization of
accounting for consumption and determination of sales results is essential to help
businesses have timely and accurate information to make business plan.
Dai Duong Xanh Limited Company has many business opportunities, but at
the same time facing many competition of alternative products in the market that
requires the company to have an agile and ingenious combination to keep firmly
position itself in the market economy.
As a student at HCMC University of Technology and Education, after an
internship, being deeply into the accounting apparatus and accounting work of Dai
Duong Xanh Limited Company, I awared the necessity, role and importance of
consumption so I chose the topic: “Accounting for consumption and evaluation
of business results at Dai Duong Xanh Limited Company”.
2. Research objectives
- Synthesizing, systematizing general theoretical issues related to consumption
accounting and determine business result.
- Researching the current status of consumption accounting and determining
business results at Dai Duong Xanh Limited Company.
- Evaluating advantages and disadvantages of consumption accounting and
determine the company's business result.
- Proposing solutions to perfect the accounting in general and consumption,
determine the business result in particular at the company.
3. Research methods

- Interviewing and consulting staffs directly at accounting department.
- Referring to the necessary data and documents related to the thesis topic
- Collecting company’s data and documents to bring into the thesis

1


- Learning, referring and collecting documents, receipt, records of the company
related to topics such as: subsidiary ledger, general journal…
Interview questionnaire (Appendix No.1)
4. Research subjects
Subject: Accounting of consumption and business results determination at Dai
Duong Xanh Limited Company
Scope of study:
- Space: Dai Duong Xanh Limited Company
- Time: 30/01/2019 - 29/03/2020
- Data for research: Data that company obtained from 01/2019 to 12/2019
- Results achieved: During my internship at the company, I was enthusiastically
helped by the staff working in accounting department to learn about the accounting
apparatus and business situation of the company. Thereby, I can clearly grasp the
business situation of the company and gave some recommendations to the company.
5. Thesis structure
This thesis consists of 4 main parts:
- Part I: Introduction of Dai Duong Xanh Limited Company
- Part II: Theoretical basis for accounting of consumption and evaluation of
business result in enterprises.
- Part III: Current situation of accounting of consumption and evaluation of business
result at Dai Duong Xanh Limited Company.
- Part IV: Some recommendations to improve accounting of consumption and
evaluation of business result at Dai Duong Xanh Limited Company

2


CHAPTER I:
INTRODUCTION OF DAI DUONG XANH LIMITED COMPANY
1.1 Overview of the Company
1.1.1 Establishment and development
The Company fully satisfies the conditions for business registration in
accordance with the current laws and has been granted a business registration
license by the Department of Planning and Investment since May 16, 2013 and
started its operations on May 22, 2013, to date the Company has been operating for
more than 7 years under the tax management of: Tax Department of Hoi An City.
Type of company: Dai Duong Xanh Limited Company
Address: 29 Huynh Ngoc Hue, Block 4, Tan An Ward, Hoi An City, Quang
Nam Province
Director: Nguyen Anh
Email:
Tel: 0984072659
Tax code: 4000929832
Established in 2013, 7 years is not enough time for an enterprise to assert its
existence and develop stably, with the operating principle: Quality, trust and its
brand in the market in the process of integration with the regional and international
economy. With the aim towards the satisfaction and benefits of customers, the
appearance of Dai Duong Xanh Limited Company has significantly contributed to
the transportation of passengers and goods.
Mission: We are committed to providing the highest quality, reliability and
flexibility of service; Safety for people and the environment is always a top priority.
Dai Duong Xanh strives to be the first choice of customers in the field of passenger
transportation and related services through continuous improvement that is due to

its superior integrity, the spirit of team work as well as exploitation and operation.
Vision: Dai Duong Xanh can become a leading brand in Vietnam in providing
customers with the best inland waterway passenger transportation service at the
most competitive price.
Core values:
- Professionalism: The company always maintains professionalism in all jobs. The
company has the ability, expertise and good cooperation in providing services that
meet the requirements of customers.
- Credibility: Working on the principle of mutual respect associated with each
individual's responsibility.

3


- Responsibility: Staff work dedicated and responsible for what they have
committed to customers.
- Assertiveness and creativity: We always believe and be creative in the
performance of our tasks and duties.
- Loyalty: Honest employees, always try their best to maintain integrity and fully
respect the ethical rules of the Company. We are always proud to work for Dai
Duong Xanh Limited Company.
- Transparency and ethical standards: Transparent financial policy, solid resource
foundation, and fairness and consistency in the application of policies and prices.
1.1.2 Fields of business
- Passenger transportation by inland waterways
- Restaurants and mobile catering services
- Supportive services related to tourism promotion and organization
- Other types of inland passenger transportation
- Leasing machinery, equipment and other tangible assets
Due to the characteristics of the service industry in general and the

transportation service industry in particular, Dai Duong Xanh company's business
activities are diversified, including many activities in which the main activities are
transporting passengers and goods.
The company also cooperates with units operating in public services,
tourism...This helps the Company to have a regular and stable source of customers
and contributes to the rapid increase in service revenue of the company. Dai Duong
Xanh has really met the essential needs of customers and built its position in the
market.

4


1.1.3 Management organizational characteristics
1.1.3.1 Organizational Chart of the management apparatus
DIRECTOR

ACCOUNTANT

TICKET
INSPECTOR

STAFF

GUIDE

DRIVERS

: Line relationship
: Functional relationship
Chart 1.1. Organizational Chart of the management apparatus

(Source: Dai Duong Xanh Limited Company)
1.1.3.2 Functions and duties of departments
- Director: Director is the highest authority, responsible for directing and
managing the entire company’s activities directly or indirectly through departments.
The director will adopt the company's money development guidelines to decide on
amending and supplementing charter while reviewing and dealing with breaches.
Director has the right to arrange the organizational structure and internal
management regulations within the company. Director decides all issues related to
daily activities at the company, organizes the implementation of the company's
plans. He is also the person who makes the final decisions and is generally
responsible for all business activities of the company.
- Accounting Department:
The accounting apparatus at Dai Duong Xanh Limited Company is organized
in a centralized form. All accounting work is done in the accounting department
(under the control of the chief accountant). Do not organize a separate accounting in
departments but only assign work to accountants.

5


Structure of accounting apparatus of Dai Duong Xanh Limited Company: The
chief accountant is headed. Accountants are under the direct leadership of the chief
accountant. In order to match the scale of production and business activities,
contributing to saving and reducing indirect labor, the accounting apparatus of
company has the following tasks:
+ Organization and management of all accounting and financial activities of
the company, accounting of accounting transactions arising from the company.
+ Manage all types of company funds in accordance with company regulations
and state regulations.
+ Develop the company's annual financial plan.

+ Performing accounting activities at the company: recording and following
arising operations, revenue, expenses, etc.
- Staff:
+ Ticket inspector: Checking travel tickets of passengers.
+ Guide: Business representatives who guide passengers on the tour and have
a good language background to meet the needs of passengers.
+ Drivers: Captains and drivers who are responsible for transporting
passengers safely to their destination.

6


1.1.4 Accounting organization
1.1.4.1 Accounting organizational chart
Chief Accountant

General
Accountant

Debt
accountant

Cash
accountant

: Commanding relationship
: Profession relationship
Chart 1.2. Accounting organizational chart
(Source: Dai Duong Xanh Limited Company)
1.1.4.2 Functions and tasks

- Chief Accountant:
+ Check and supervise the financial revenues and expenditures of the company
in accordance with the financial regime of the state and the regulations of the
company.
+ Organize the accounting and finance apparatus of the whole company,
decentralize and direct the work in the department to ensure strict implementation
of the regulations of the state and the company.
+ Proposal financial planning and timely adjustment to suit the actual situation
of the company and the market.
+ Guide the accountants to perform their accounting skills in accordance with
state regulations.
+ Guide the accounting staff to perform for the staff in the department. Check
the completion of assigned work, take responsibility to the director for the
truthfulness of reported data.
+ Coordinate with technical departments, sales and other functional
departments in the plan of distributing wages, bonuses, and distributing profits
according to the company's regulations.

7


- General accountant: is responsible for synthesizing recorded documents of
the accounting department into the ledger, preparing accounting reports and at the
same time collecting production costs from different teams to calculate product
costs and evaluate business results.
- Debt accountant: monitors daily revenues and expenditures, checking the
reasonableness and validity of receipts and payments, following debts of customers
and member units, loans and deposits for debt comparison.
- Cash accountant: is in charge of the company’s cash management based on
eligible receipts and payment slips for cash payment or receipt.

1.1.5 Accounting method of the Company
The company applies the form of “General Journal” with the support of SIVIP
accounting software.
Bookkeeping procedures under general journal method:

Chart 1.3. General journal chart
(Source: Dai Duong Xanh Limited Company)
Organizing
accounting
vourchers

Inputting date, processing,
and storing date in the
computers

Saving and storing
accounting
document

8


Original
document

Accounting vouchers:
- General journal
- Detailed ledger
- General ledger
SIVIP

accounting
software

Financial statement

Chart 1.4. Book keeping procedures
(Source: Dai Duong Xanh Limited Company)
The accounting method applied at the company is machine accounting. The
types of accounting books used in the company can be named as: numbers,
subsidiary ledger, detailed summary tables, general journal, general ledger and other
necessary types of books.

(Source: svip.vn)

9


Accounting procedures following the Charts:
On daily basis, the checked accounting vouchers are used as the basis for book
keeping, firstly the arising operations are recorded in the general journal, then these
data recorded on the general journal will be recorded in the General ledger
according to the appropriate accounts. If there are detailed accounting books and
cards, at the same time as recording in the general journal, the arising transactions
are recorded in the related detailed accounting books and cards.
At the end of the month, recorded figures on the general ledger are calculated
to make a balance sheet. Upon careful checking for correctness, figures recorded on
the general ledger and detailed summary sheet are used to prepare financial
statements.
Currently the company applies a unified account system according to the
circular No. 133/2016/TT-BTC dated August 26, 2016 of the Ministry of Finance.

- Fixed asset depreciation method: applied by the Company is the straight-line
depreciation method.
- Inventory accounting method: applicable to the Company is the regular
declaration method.
- Inventory evaluation method applied by the Company is Specific
Identification Method.
- Accounting reports are prepared quarterly and annually.
- The form of accounting books and vouchers used is “General Journal”
CONCLUSION OF CHAPTER I
In chapter 1, I introduced about Dai Duong Xanh Limited Company. Company
information includes the official date of operation, organizational structure of the
company, organizational structure of the accounting department and duties of each
position. Since then, readers better understand Dai Duong Xanh Limited Company
as well as know its accounting method. From there as a premise to follow the topic
of the thesis.

10


CHAPTER II:
THEORETICAL BASIS FOR ACCOUNTING FOR CONSUMPTION AND
EVALUATION OF BUSINESS RESULTS IN ENTERPRISES
2.1. Overview of accounting for consumption and evaluation of business results
2.1.1. Concept of consumption
 Concept of consumption
In a broad meaning: Product consumption is the circulation of goods, an
intermediate bridge between the manufactured products and the distribution and the
consumption on the other. In the material cycle, buying and selling is carried out
between production and consumption, which determines the nature of the business
outbound trade.

Consumption is an economic process consisting of many stages starting from
market research, determining the needs that the business needs to satisfy,
identifying the business goods and manufacturing organization or organization.
supply of goods and finally the implementation of sales operations to achieve the
highest purpose.
In a literal meaning: Consumption of goods is a selling activity, which is the
Posting of enterprise's goods to a customer and collect money.
So goods consumption is done through sales activities of the business, so that
goods are converted into money to carry out the circular flow of economy and the
cash flow in the society, ensuring to meet the needs of society.
Consumption of goods is the last stage of the production and business cycle, it’s
the decisive factor for the existence and development of an enterprise.
 The role of product consumption for businesses:
For businesses, consumption of goods plays an important role in determining
the existence and development of enterprises. Because thanks to consuming goods,
business can operate continuously, product consumption helps businesses offset
costs and gain profits.

11


2.1.2. Concept of Evaluation of business results
According to Article 68 Circular 133/2016/TT-BTC, evaluation of business
results is the last stage of the production and business process. Production and
business results are expressed through profit targets and are calculated based on the
value of sales results, profits from financial activities, profits from other activities
and after deduction of corporate income tax expenses.
Evaluation of business results following every production process helps
enterprises evaluate their business efficiency and performance, from which,
reasonable business solutions can be appropriately defined.

2.1.3. Tasks of Accounting for consumption and Evaluation of business results
The consumption of goods plays an important role in the business, which is
related to the existence and development of the enterprises. Therefore, the tasks of
Accounting for consumption and Evaluation of business results are:
- Recording and reporting promptly, fully and accurately the enterprise’s
consumption of goods in the whole period in terms of the quantity and value of
goods sold based on the total volume, different items, sale locations, and sales
methods.
- Calculating and reporting accurately the actual purchase cost of the
consumed products and goods and allocating the purchase cost to the consumed
goods in order to determine the sales result.
- Checking and urging the collection and management of goods sales, debt,
due date and actual situation of debt repayment.
- Collecting fully, accurately and promptly all arising selling costs and
expenses and Posting these selling expenses to consumer goods as a basis to
determine consumption results.
- Providing necessary information about the actual sales situation, serving the
managing direction of business operations.
- Determining the results of consumption of goods and finished products

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