12 Mar.
What are the key accounting considerations for a dental laboratory?
In the modern business landscape, accurate financial management is crucial for the success of any enterprise, irrespective of its industry. A sector demanding particular attention in this regard is dental laboratories, where the accounting monograph serves as an essential tool for efficient and transparent business administration.
LLC
company type
1-10
avg. employees
VAT
VAT-registered
3250
NACE Code
Direct costs, such as the acquisition cost of raw materials and direct consumables, energy used for technological purposes, and salaries, are directly included in product costs. On the other hand, indirect costs, such as fixed and variable production overheads, are allocated indirectly based on specific procedures.
Direct Costs
Direct costs are expenses directly associated with a specific cost object from the moment they are incurred and are included without intermediaries in the cost of these objects. These expenses include the acquisition of raw materials and direct materials, energy consumption for technological purposes, direct labor costs (salaries, social security, social protection, etc.), and other direct expenses.
Indirect Costs
Indirect costs refer to expenses associated with the production of multiple products or the execution of various tasks and services within the dental laboratory. These also encompass costs linked to different stages of the production process or the overall laboratory operations.
To accurately calculate costs, these indirect expenses are included in the total costs, but in an indirect manner. This is achieved by proportionally allocating them based on logical and consistently applied methods, depending on the type of expense and the object or process that benefits from these costs.
This expense category includes indirect raw materials and supplies, indirect labor costs, and other expenses attributable to the production process or the dental laboratory's operations.
For example, fixed production overhead consists of indirect costs that do not vary significantly with production volume. These may include the depreciation of equipment and machinery, the maintenance and handling of raw materials and consumables, as well as other laboratory management and administrative expenses.
Operating expenses for fixed asset depreciation
The Formulary
The bill of materials (BOM) is an essential document used to calculate the required quantity of each type of raw material for producing a specific finished product in the dental laboratory.
It is important to note that this document is not subject to the regulations stipulated by OMFP 2634/2015, and its use is not mandatory. Nevertheless, in current industry practice, the formulary is predominantly utilized within the food sector.
If the required quantity of raw materials can be determined based on other documents, then the use of a bill of materials may not be necessary.
