After the production of the product, every manager of the manufacturing company must correctly determine how much of the incurred costs is recorded in the value of production stocks and finished products, and how much of the incurred costs is recorded as an expense of the period at the time of occurrence. To properly allocate costs and determine as accurately as possible the impact of product production on the success of the manufacturing company, the manager prepares income statements according to methods of valuation of production stocks and finished products. There are two methods of valuing production stocks and finished products, and these are the total cost method (absorption method, full cost method) and the variable cost method (variable method, direct cost method). The main difference between the total cost method and the variable cost method is how fixed manufacturing overhead costs are treated. With the total cost method, fixed manufacturing overhead costs are capitalized in the value of production stocks and finished products in the amount of capacity utilization, and with the variable cost method, fixed manufacturing overhead costs become an expense of the period at the time of occurrence. Also, different relationships between the production volume and sales volume are possible. Namely, the amount of production can be equal to the amount of sales, it can be greater than the amount of sales, and it can be less than the amount of sales. Thus, by compiling income statements according to methods of valuation of productions stocks and finished products for the product in question, depending on the relationship between the production volume and the sales volume, different amounts of profits before taxation can be realized. The analysis of the cost structure is presented in the thesis with the help of three manufacturing orders from the production company BerlinerLuft. Tehnika d.o.o.. With the help of the analysis of the cost structure, the thesis explains the importance of drawing up income statements according to the total cost method and the variable cost method for each manufactured product.