Production is the process of combining inputs to produce products or outputs designed to meet human needs. Production management refers to tracking costs from the first phase of the production cycle to the sale of the product itself, including costs. „Cost is the monetary expression of the consumption of the elements of a work process. Costs are the expressed consumptions of elements of the production or service process that are incurred or caused by the business activity of an enterprise.“ The production process is followed by production accounting. It monitors investments in all forms of tangible and intangible fixed assets, inputs, through the production process to the finished product itself, output. There are traditional and modern production cost accounting systems. The traditional cost accounting system is divided into a work order billing system and a process billing system. In the example of building a gajeta, „Brodogradilište i marina d.o.o.“ Betina uses the traditional system of calculating costs by work orders. The company belongs to a medium-sized enterprise and prepares its financial statements in accordance with the HSFI, and prepares a balance sheet, profit and loss account, statement of cash flows, statement of changes in equity and notes to the financial statements. In the process of building a gajeta, we encountered the cost of design documentation, procurement and storage of materials, and work orders related to the consumption of materials and labor of workers. In the total posting order no. 439/2016 shows a total construction cost of HRK 410,721.89, which was higher than expected, and the conclusion is that batch production of gajetas using new technologies is not profitable. Due to the application of new technology, the cost of building the gajeta is much higher, so the gajeta is not used for sale but serves the purpose of advertising.