Annotation: The methodological base of the accounting of production costs of domestic enterprises have been investigated; the content of production costs and the conditions for their determination in the accounting system have been indicated; the structure and characteristics of production costs have been presented; representation of total production costs in the accounting system; outlined methods of cost accounting and calculation of cost of production, their advantages and disadvantages, in particular their formation in accordance with the Tax Code; the models of accounting of production costs that correspond to modern conditions of management accounting have been given.