In the present time of great technological advancement, increasing globalization and socially aware people, complexity of situations and jobs, in order to be successful in the market, the company must ensure quality management of business processes. There is accounting information all around us that is important to the structural work of a business. It is necessary to provide theoretical and practical resources in all areas of the economy, especially in the field of accounting, because the quality of the company is reflected in accounting that does not dwell on the past and present, but looks ahead what and how to do to improve the business or repair the current poor condition companies.In this thesis I will attempt to show and confirm that accounting is a major branch of many industries, not just economics, and thus plays a very important role in the production process. The production process is the basis of any industrial production, therefore the basic research problem is focused on accounting coverage of production costs and methods of cost calculation in production. The accounting part of production includes a series of recording investments from inventories of materials to finished products. The task of production accounting is to monitor, calculate and allocate the cost elements involved in the production process. It can be safely said that production accounting has one of the most complex cost classifications, and is therefore referred to in other words as cost accounting. The most common problem for companies is how to successfully manage costs and thus affect the competitive advantage and profitability of the company, the most important thing is to find out where the costs were incurred, why they were incurred and how to try to reduce them. The aim of this thesis is to show on the example of the company „Lampion d.o.o.“ how is the process of production, from the very planning of production, procurement of raw materials and materials to the sale of the finished product, is accompanied by accounting records and documents. Due to the turbulent market price volatility occurs, therefore, special attention will be given in this thesis to the choice between different accounting methods of production cost calculation, which may differently affect the financial result of the company at the end of the business year. In accounting, it is important to know how to utilize and recognize the information that is available to us that is emerging from the business. The financial statement appears as the final accounting product at the end of the year. Therefore, the necessity of using information must be created, because for the company the financial report is a mirror of all business.