The total cost of production is determined by... Analysis of the cost of products (works, services)

Cost, cost, price. The essence of concepts

Cost of production of the enterprise. Composition and cost structure

Analysis of the dynamics and structure of general cost indicators and factors of its change

Analysis of costs per ruble of commercial products (cost level)

Analysis of direct material and labor costs

Indirect Cost Analysis

Basic methodological techniques for analyzing and diagnosing the cost of individual products

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11.2. Product cost analysis

11.3. Analysis of the cost of individual types of products

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Introduction

1. The meaning and concept of cost

1.1. The concept of product cost

1.2. Types of production costs

1.3. Classification of costs according to various criteria

1.4. General principles of the provision on the composition of costs

2. Calculation of product costs using the example of the enterprise ZAO Elektromash

2.1. Technical and economic characteristics of the enterprise ZAO Elektromash

2.2. Calculation of cost estimates at the enterprise ZAO Elektromash

2.3. Ways to reduce the cost of the enterprise ZAO Elektromash

Conclusion

Bibliography

Introduction

Formation of production and circulation costs, their accounting are important for entrepreneurial activity organizations. This is important not only in connection with the current tax legislation, but also in accordance with the place of accounting in the organization’s management system.

The basis for the development and implementation of management decisions is the relevant information about the state of affairs in a particular area of the organization’s activities at a specific point in time. Thus, data on accounting for production (circulation) costs and calculating the cost of products (works, services) are important means identifying production reserves, constant monitoring of the use of material, labor and financial resources in order to increase production profitability. This determines that the area of production (circulation) costs and calculating the cost of products (works, services) occupies the most important place in the organization’s system.

Construction of accounting production costs and the choice of methods for calculating the cost of products (works, services) largely depend on the characteristics of the industry, the type and type of production, the nature of its organization and technological process, the variety of products produced, the work performed and services provided, the mass production, objects of calculation, the structure of the organization and other conditions. The foregoing determines the procedure for documenting costs, grouping and systematizing data from primary documents, constructing analytical accounting, and methods for calculating the cost of specific types of products (works, services). The construction of cost accounting also depends on what information is necessary for making management decisions.

Purpose course work is to identify and measure the influence of factors affecting the cost level, ways to reduce costs.

The main objectives are:

1. Reveal the meaning and concept of cost

4. Identify ways to reduce the cost of the enterprise ZAO Elektromash.

1. The meaning and concept of cost

1.1.The concept of product cost.

Cost (expenses) - is the monetary expression of the costs of production factors necessary for the enterprise to carry out production and commercial activities related to the production and sale of products and the provision of services, that is everything that costs an enterprise to produce and sell a product. In accordance with the definition of costs (prime cost) of production, it is necessary to distinguish between the cost of production and sales, production and sales. Cost of production (production) of products characterizes in monetary terms all material costs and labor costs that in a particular production fall per unit and for the entire volume of output.

When starting to consider complex issues of cost formation for the production and sale of products (works, services), it is necessary to consider the basic provisions of cost as an economic and legal category. Economic and production activities at any enterprise are associated with the consumption of raw materials, supplies, fuel, energy, the payment of wages, the deduction of payments for social and pension insurance of employees, the calculation of depreciation, as well as a number of other necessary costs. Through the circulation process, these costs are constantly reimbursed from the enterprise’s revenue from the sale of products (works, services), which ensures the continuity of the production process. To calculate the amount of all expenses of an enterprise, they are brought to a single indicator, presented in monetary terms. This indicator is the cost.

The cost of products (works, services) is one of the important general indicators of the activity of a company (enterprise), reflecting the efficiency of resource use; results of the introduction of new equipment and progressive technology; improving the organization of labor, production and management. If the cost of the same or similar product from competitors is lower, this means that production and sales at our enterprise were organized irrationally. Therefore, changes need to be made. Cost, again, will help you decide what changes are needed, since it is one of the factors in forming the assortment. In addition, the cost is part of the cost of the product and shows how much it costs to produce a product for an enterprise (firm), so the cost is the main pricing factor. The higher the cost, the higher the price will be, other equal conditions. The difference between price and cost is profit. Therefore, to increase profits it is necessary to either increase the price or reduce the cost. It can be reduced by reducing the costs included in it.

In accordance with clause 1 of the Regulations on the composition of costs for the production and sale of products (works, services) included in the cost price, and on the procedure for the formation of financial results taken into account when taxing profits, approved by Decree of the Government of the Russian Federation dated 01.07.95 No. 661 (Regulation on composition of costs), production cost (works, services) is a valuation of the natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources used in the production process of products (works, services), as well as other costs for its production and sale.

Accounting and control of all costs for production and sales of products;

The basis for forming the wholesale price for the enterprise’s products and determining profit and profitability;

Economic justification for the feasibility of making real investments in the reconstruction, technical re-equipment and expansion of an existing enterprise;

Definition optimal sizes enterprises;

Economic justification and adoption of any management decisions, etc.

1.2.Types of production costs.

Explicit costs - This opportunity cost, taking the form of direct (cash) payments to suppliers of factors of production and intermediate goods. Explicit costs include wages paid to workers, management salaries, commissions paid to trading firms, payments to banks and other financial service providers, legal fees, travel expenses, etc.

There are also implicit costs. These include the opportunity costs of using resources owned by the owners of the firm (or owned by the firm as a legal entity). These costs are not provided for in contracts that require explicit payments, and therefore remain uncollected (in monetary form).

Distinguish external And internal costs production.

External costs is called payment for resources to suppliers who do not belong to the owners of the company.

Internal costs - these are the costs of your own, unpaid resources.

These include: depreciation for the restoration of fixed assets, remuneration of company owners, etc.

« General costs production is the sum of all external and internal costs necessary to attract and retain resources within the limits that ensure the economically sound functioning of the company.”

Production costs have a complex structure, which determines the nature and conditions of use in the production process.

Another important method for classifying costs is based on taking into account the time horizons over which certain production decisions are made.

Distinguish fixed and variable costs production.

They are called constants costs, the value of which does not change depending on the volume of production, the adjustment and regulation of which requires a lot of time; they also determine the size of the company and the parameters of its production capacity. These include the costs of acquiring, maintaining and maintaining land, buildings and structures, and equipment. Variables - these are costs, the value of which depends on production volumes. The value of variable costs varies with the volume of production, increasing or decreasing with this volume.

Variable costs include the costs of purchasing raw materials, labor, transport, heat and energy resources etc.

Total costs is called the sum of fixed and variable costs.

For the analysis and management of the state of the company, average and unit costs, as well as marginal production costs, are also of great importance.

Average and unit costs are called the costs of producing a unit of finished product. There are average total, average fixed and average variable costs.

Marginal cost are the additional costs associated with producing one more (additional) unit of output.

“The sum of fixed and variable costs, as well as the value of unit and marginal costs, constitute a technological set of production costs, determined by the level of technology and organization of production and the equation of market prices for resources or factors of production.”). That's why according to the method of attribution to the cost of production distinguish between direct and indirect costs, which can be distinguished by grouping costs by costing items.

Direct costs are directly dependent on the volume of production or on the time spent on its production and can be directly and directly attributed to its cost: raw materials and basic materials, losses from defects and some others. This type of cost is directly related to the manufacture of products and is accounted for directly by its individual types. There are three groups of direct costs:

Direct materials costs are the costs of those materials that actually form part of the manufactured product (raw materials, fuel for technological purposes);

Direct labor costs are the wages paid to a worker for the actual work performed on processing some product;

Direct overhead costs are those costs whose value is directly dependent on the number of products produced or on the time spent on their production (these include the cost of electricity required to operate the machines).

Indirect costs cannot be attributed directly to the cost of individual types of products and are distributed indirectly, using conditional calculations, for example, in proportion to the wages of production workers: general production, general, non-production expenses, etc. They are necessary for the overall implementation of the production process of a given type of product at the enterprise. They are also divided into three groups:

Indirect costs of materials are the costs of various incidental but necessary materials used in the production process (lubricating oils, stationery, spare parts, etc.);

Indirect labor costs are wages paid to auxiliary workers, equipment maintenance workers, storekeepers, clerical workers, etc. They also include downtime for key production workers and the cost of overtime;

Indirect overhead costs are the salaries of management, commercial, administrative workers, rental costs, transportation costs, and the costs of developing new products.

Items that combine indirect costs are called complex. The sum of all direct costs is the production cost of the product. The sum of all direct and indirect costs gives the cost of goods sold. The division of costs into direct and indirect depends on industry characteristics, the organization of production, and the adopted method for calculating product costs, for example, in the coal industry, where only one type of product is produced, all costs are direct.

By frequency of occurrence expenses are divided into current and one-time. Current expenses have frequent frequency (consumption of raw materials and materials). One-time (one-time) - expenses for the preparation and development of the production of new types of products

There are also proportional costs, the value of which does not change due to changes in production volumes, and disproportionate costs, i.e. those that change in a progressive or depressive manner when production volumes change.

2.1. Classification of costs according to various criteria(Fig2.1.)

For planning, accounting and analysis, the production costs of an enterprise are combined into homogeneous groups according to many characteristics.

1. By type of expense. Grouping by types of expenses is generally accepted in economics and includes two classifications: by economic elements of costs and by costing items of expenses.

First of these (according to economic elements) is used in the formation of cost for the enterprise as a whole and includes five main groups of expenses: - material costs; - labor costs; - contributions for social needs; - depreciation of fixed assets; - other costs.

Second a group of costs (according to costing items) is used in the preparation of calculations (calculation of the cost per unit of production), which makes it possible to determine how much a unit of each type of product costs the enterprise, the cost of certain types of work and services. The need for this classification is due to the fact that calculating the cost of the above cost elements does not allow us to take into account where and in connection with what the costs were incurred, as well as their nature. At the same time, determining costs by calculation as a way of grouping them relative to a specific unit of production allows you to track each component of the cost of products (works, services) at any level.

By expense items, costs are grouped depending on the place and purpose (purpose) of their occurrence and are attributed to each type of product directly or indirectly. This classification is specific to each industry, so the composition of expenses in each industry is different. As a rule, the following items of expenditure are distinguished:

a) raw materials and materials;

b) fuel and energy; c) basic and additional wages of production workers;

d) social insurance contributions;

e) expenses for preparation and development of production;

f) costs of maintaining and operating equipment;

g) shop expenses; h) general plant expenses; i) other production costs; j) non-production (commercial) expenses, etc.

2. By the nature of participation in the creation of products (works, services) The main costs directly related to the process of manufacturing products are identified, in particular, the costs of raw materials, basic materials and components, fuel and energy, wages of production workers, etc., as well as overhead costs, i.e. costs of production management and maintenance - workshop, general plant, non-production (commercial), losses from defects.

3. By variability depending on production volumes. Costs that change (increase or decrease) in proportion to changes in production volume are called conditionally variable. Costs that remain unchanged and their value is not associated with an increase in production reduction are called conditionally constant. This classification of costs is necessary when planning production, as well as when analyzing financial economic activity enterprises.

4. By the method of assignment to production. Very often, when calculating the cost of products, it is impossible to accurately determine to what extent certain costs can be attributed to one or another type of product. In this regard, all costs of the enterprise are divided into direct, which can be directly attributed to a given type of product (work, service), and indirect, which are associated with the production of many products, as a rule, these are all other costs of the enterprise.

Figure 2.1. Classification of production costs

1.4.General principles of the provision on the composition of costs

The regulation on the composition of costs contains a number of general principles, the application of which allows one to correctly formulate both the cost of products (works, services) and determine profit for tax purposes.

1. The priority nature of the provisions of the Regulations.

The regulation on the composition of costs is a general methodological and intersectoral regulatory document that regulates the procedure and conditions for the formation of costs at enterprises in all sectors of the economy. However, the legislation also provides that the relevant ministries and departments, in agreement with the Ministry of Economy and the Ministry of Finance of the PMR, in addition to the general Regulations on the composition of costs, can determine the sectoral features of the composition of costs of the enterprises under their jurisdiction.

2. Production orientation of costs.

The production focus of costs is emphasized in clause 1 of the Regulation on the composition of costs: "cost of products (works, services)represents a cost estimate of those used in the processproduction of products (works, services)... "

Production focus is an evaluative category, but nevertheless, when assigning certain costs to cost, it is necessary, if possible, for them to be directly determined by the production activities of the enterprise, as well as determined by the technology and organization of production.

This principle applies in a special manner to non-profit organizations; non-profit organizations pay taxes to the budget on amounts of increased income over expenses received from business activities.

3. The attribution of costs to the activities of the enterprise itself.

This principle is contained in clause 4 of the Regulation on the composition of costs, according to which the cost does not include the costs of work performed in order to provide assistance and participate in the activities of other enterprises and organizations. From this principle it follows that all expenses of an enterprise must be made in its interests and relate to the activities of this particular enterprise. If an enterprise incurs expenses that are of a production nature, but they relate to other enterprises and organizations, then attributing these expenses to the cost of its products is regarded as an understatement of taxable profit.

This application also applies to the relationship between parent and subsidiary enterprises, since their relationship and interdependence are not reflected in tax legislation. In this regard, these structures are considered as independent economic entities and the inclusion by the parent enterprise of production costs associated, for example, with the repayment of debts of a subsidiary, into the cost of its own products or attributing them to a decrease in the financial result of its economic

no activities are provided. Therefore, such expenses can only be incurred at the expense of net profit.

All costs must be clearly linked to the contractual documents of the organization that forms its tax cost.

4. Adjustment of costs for tax purposes.

The main tax provision, which requires its unconditional implementation, is also contained in clause 1 of the Regulation on the composition of costs: "For tax purposes, expenses incurred by the organization are adjusted fromtaking into account the limits, norms andstandards."

When considering this principle, special attention should be paid to the provision according to which limits and standards are subject to application only when they are approved in the prescribed manner. Underestimation of this requirement by enterprises may lead to their violation of tax laws.

5. Dividing costs into current and long-term

An important condition for the correct formation of cost is the correct determination of the nature of costs and their differentiation into current and those of a capital (investment) nature. This principle is most clearly formulated in subparagraph. "g", "e", "i" clause 2 of the Regulations:

"...d) non-capital costs associated withimproving technology and production organization, as well asimproving product quality, increasing its reliability and durabilityand other operational properties carried out duringproduction process;

...e) Costs for modernization of equipment, as well as reconstruction of fixed assets in the cost of production(works, services) are not included;

... i) ... Costs of creating and improving systems and toolsmanagement of capital (investment) nature into costproducts (works, services) are not included..."

When applying this principle, it should be taken into account that the procedure for including current production costs in the cost price has its own characteristics associated with the order of their attribution to the cost price. Current costs can be included in the cost as follows:

a) directly upon payment or accrual;

b) “Deferred expenses” for the purpose of uniform distribution of costs;

c) by creating funds and reserves provided for in the Regulations on the composition of costs.

This principle is very often violated, which leads to an underestimation of the tax base. For example, an employee's travel expenses for the purchase of equipment are in no way related to current production costs, and therefore they should be attributed to the increase in the cost of fixed assets.

6. Independence of the attribution of costs to production costs from the fact of payment.

This principle is established by clause 12 of the Regulation on the composition of costs: "The costs of producing products (works, services) are included incost of products (works, services) of that reporting period, toto which they belong, regardless of the time of payment - preliminaryor the next one..."

In other words, for the correct formation of the cost of production, what matters is the fact of consumption of inventory items (industrial works, services) in the production process of these products (the fact of release into production), and not the payment of these goods and materials, etc.

When attributing to the cost of industrial services provided from outside, it is necessary to take into account that these costs are written off at the time of signing the acceptance certificate for services (performance of work) in the prescribed manner. In this case, the moment of payment is not a prerequisite when deciding on the attribution of this type of cost to the cost of production

7. The principle of documenting costs.

Expenses that are not documented are not included in the cost of products (works, services).

In this regard, it must be remembered that in accordance with Art. 9 of the PMR Law “On Accounting”, all business transactions carried out by the organization must be documented with supporting documents.

The fact of the existence of costs and their content can be confirmed by contractual and payment documents, acts, as well as internal documents of the enterprise: waybills, invoices, certificates, invoices, receipts, etc.

In addition, when purchasing inventory items in retail trade It is necessary to take into account that monetary settlements with the population when carrying out trade operations or providing services are carried out by all organizations with the mandatory use of cash registers or strict reporting documents. In this regard, write-off of such costs is carried out with the obligatory attachment of cash receipts

2. Calculation of product costs using the example of a closed joint stock company

"Elektromash"

2.1 Technical and economic characteristics of the JSC enterprise

"Elektromash".

Founded in 1959 as an enterprise for the production of low-power electric motors, NP ZAO Elektromash is currently one of the largest manufacturers of various electrical equipment in the CIS countries with a capacity of up to 2000 kW for enterprises of the fuel and energy complex, mining, processing industries and energy.

The products manufactured by NP ZAO Elektromash are used in coal mines, transcontinental oil and gas pipelines, thermal and nuclear power plants, small hydroelectric power plants, wind power plants, powerful television and radio complexes in large CIS cities, as well as a number of industrial facilities in foreign countries.

Over half a century of its activity, the company has more than 600 types and modifications of explosion-proof and general industrial asynchronous electric motors, synchronous electric motors and generators, electric drives with adjustable parameters, voltage stabilizers and transformers developed and put into production. Work on developing new types of main products is ongoing.

The 21st century was the beginning of the enterprise mastering the production of products in a new progressive direction - inductor machines. This is a technique that today is commonly called a high-tech product.

NP ZAO Elektromash, together with the Moscow Power Engineering Institute and the Industrial Union Energy, has mastered the production of inductor-type synchronous machines.

As part of the program for developing a network of hydroelectric power stations for small rivers, they are participating in the creation and reconstruction of hydro generators with a capacity of up to 1000 kW. Over the last decade, complete hydroelectric generators with excitation and control systems have been manufactured for the Gordashevskaya HPP in the Cherkassy region, the Khrennikovskaya HPP in the Rivne region, the Snyatynskaya HPP in the Ivano-Frankivsk region, for the Dargomsky cascade HPP, Armenia and other facilities.

Manufactured products are provided with certificates of conformity of the Russian Federation, the Republic of Ukraine and Moldova.

The enterprise's quality management system is certified in the GOST R ISO-9001-2001 certification system.

NP ZAO Elektromash carries out major repairs of large explosion-proof and general industrial electrical machines and transformers, and also carries out orders for the manufacture of complex technological equipment and non-standard equipment.

Uniqueness, modern technical level and high quality are the main advantages of the products of NP ZAO Elektromash, which are in increasing demand among consumers near and far abroad.

In developing an enterprise development strategy, an effective scientific technique well known in world practice was used, which consists of constructing a “tree of goals” and a “tree of resources.” This technique was adapted to the conditions of the enterprise through the functional principle, which allowed:

Ensure clear coordination of the efforts of all structural divisions of the enterprise;

To bind the responsibilities of all officials to a single goal and place them in conditions of mutual responsibility;

Determine specific tasks, performers, deadlines for implementation;

Establish clear control over performance discipline;

Ensure a high degree of controllability of all processes;

Make the enterprise more prepared for sudden changes.

The success of an enterprise on the path of market transformations is largely determined by the effectiveness of its marketing policy, which is adapted to new market conditions. The main components of the marketing mix, such as supply, sales and pricing policies, are the most important objects in reforming the activities of the enterprise.

Management structure of NP ZAO Elektromash:

Head of PDO

Head of OR

Art. specialist

Implementation Specialists

Sales economist

Clerk

Table 1.1.Main technical and economic indicators of the enterprise ZAO Elektromash

	Index

	Revenues from sales
	Commercial products

	Cost of commercial products
	Costs per ruble of commercial products
	Profitability of commercial products
	Accounts receivable at the end of the year
	Accounts payable at the end of the year
	Balances in warehouses at the end of the year
	Average number of employees, total
	incl. PPP

	employees
	Payroll without FMP

	Average salary without FMP

	Output
	per worker

	per worker

	per 1 sq. m. production area (17,204.5)

	Profit Loss)

2.2. Calculation of cost estimates at the enterprise ZAO Elektromash

Table 2.1. Annual cost estimate for production and sales of products (works, services), thousand rubles.

	Name of economic element of costs
	Material costs
	Labor costs	0,835 * 300 * 12 = 3006
	Contributions for social needs	3006 * 35,6% = 1070,136
	Depreciation deductions
	Other costs	1063,8 + 192,25 = 1256,05
	Total costs:	6574,486 + 192,25 = 6766,736
	Including:
	Variable costs	2885,518 + 192,25 = 3077,768
	Fixed costs

v item 1 = 40 + 9228 * 35 / 1000 * 2.5 = 40 + 807.45 = 847.45 thousand rubles.

Table2.2.Calculation of revenue from the sale of communication services, thousand rubles.

	The name of indicators
	Income from the sale of communication services:
	To the population
	Organizations
	Income from installing telephone sets:
	To the population
	Organizations
	Income from payments for public calls from payphones
	Additional income received through mutual settlements from other communications enterprises
	Other income amounts
	Revenue from the sale of communication services, including VAT	7690 1,2 = 9228*

v p.4 = average annual cost of fixed production assets + average annual costs for expansion, technical re-equipment and reconstruction, total) * 5.7% = (10000 + (600 / 2)) * 5.7% = 587.1 thousand rubles .

v p.5 = contributions to the repair fund + transportation costs + residential rental + land tax + other expenses + tax on road users = 70 + 65 + 15 + 12 + 3006 * 0.30 + 7690 / 100 * 2.5 = 1256.05 + thousand rubles.

v clause 6.1. = material costs + 50% salary + 50% deductions for social needs = 847.45 + 3006 / 2 + 1070.136 / 2 + 192.25 = 3077.768 thousand rubles.

v clause 6.2. = depreciation + other costs + 50% salary + 50% contributions for social needs = 587.1 + 1063.8 + 1503 + 535.068 = 3688.968 thousand rubles.

Table2.3.Calculation of capital cost estimates

Initial data for preparing estimates, thousand rubles.


	Capital expenditures
	Costs for expansion, technical re-equipment and reconstruction, total,
	including:
	Purchasing new equipment
	Construction of new facilities (workshops)
	Reconstruction of existing fixed assets
	Costs for the development of the social sphere, total,
	including:
	Construction of a new residential building
	Construction of a kindergarten
	Other social facilities
	Total capital expenditure
	Sources of financing capital expenditures
	Budget allocations
	Depreciation deductions
	Net profit
	Long-term loan
	Total sources

Table 2.4.Calculation of profit and loss estimates.

(based on basic indicators)

Profit and loss estimate for the year, thousand rubles.

	The name of indicators
	Sales revenue, excluding VAT, thousand rubles.
	Cost of products sold (goods, services), thousand rubles.
	Profit from sales (item 1 - item 2), thousand rubles.
	Interest receivable
	Percentage to be paid (dividends)
	Other operating income
	Other operating expenses
	Other non-operating income
	Other non-operating expenses
	Balance sheet profit (loss)
	Profit remaining at the disposal of the enterprise (net profit)

v item 1 = 2500 + 3450 + 390 + 450 + 350 + 300 + 250 = 7690 thousand roubles.

v p.2 = = 6766,736 thousand roubles.

v p.4 = (income from valuable papers) = 85 thousand roubles.

v p.5 = (payment of dividends on securities)= 12 thousand roubles.

v p.6 = (Income from equity participation in the activities of other organizations) +(Income from rental of premises) + (Income from rental of equipment) + (Income from sale of property) = 68 + 127 + 20 + 55 = 270 thousand roubles.

v p.7 = property tax = 213,029 thousand roubles.

v p.9 = (P () + (Losses from natural disasters) + Losses from theft) = 18 + 95 + 87 + 32 = 232 thousand roubles.

v p.10 = 932.264 + 85 - 12 + 270 - 213.029 - 232 = 821,235 thousand roubles.

to calculate Pclean (item 11) let's calculate:

property tax (attributed to profits (losses)) = value of taxable property / 100 * 2 = average annual value of fixed assets + average annual value of intangible assets + WITH average annual cost of working capital - depreciation = (10600 + 4 + ((36 + 58.85)/2) - 587.10) / 100 * 2 = 10651.425 / 100 * 2 = 213,029 thousand roubles.

tax base for tax Income from securities = 12 thousand roubles.

INCOME TAX: Taxable profit = P ball - income on securities - benefits (capital costs (Appendix 12) - appropriations and depreciation) = 821.235 - 85 - (870 - 200 - 587.1) = 653,335 thousand roubles.

NnP = 653,335 * 29% = 189,467 thousand roubles.

v p.11 = clause 10 - tax on income from securities (payment of dividends) - income tax = 821,235 - (12 / 100 * 15) - 189,467 = 821,235 - 1,8 - 189,467 = 629,968 thousand roubles.

2.3.Ways to reduce the cost of a closed joint stock company

"Elektromash"

The decisive condition for reducing costs is continuous technical progress. The introduction of new technology, comprehensive mechanization and automation of production processes, improvement of technology, and the introduction of advanced types of materials can significantly reduce the cost of production.

The success of the struggle to reduce costs is determined, first of all, by the increase in labor productivity of workers, which, under certain conditions, ensures savings on wages. Let us consider under what conditions, with an increase in labor productivity at enterprises, the cost of workers' wages decreases. An increase in output per worker can be achieved through the implementation of organizational and technical measures, due to which, as a rule, production standards and, accordingly, prices for work performed change. An increase in output can also occur due to exceeding established production standards without carrying out organizational and technical measures. Production standards and prices in these conditions, as a rule, do not change.

In the first case, when production standards and prices change, the enterprise receives savings on workers' wages. This is explained by the fact that due to a decrease in prices, the share of wages in the cost of a unit of production decreases. However, this does not lead to a decrease in the average wages of workers, since the given organizational and technical measures enable workers to produce more products with the same labor costs. Thus, carrying out organizational and technical measures with a corresponding revision of production standards makes it possible to reduce production costs by reducing the share of wages in a unit of production simultaneously with an increase in the average wage of workers.

In the second case, when the established production standards and prices do not change, the cost of workers' wages in the cost of a unit of production does not decrease. But with an increase in labor productivity, the volume of production increases, which leads to savings on other expense items, in particular, production maintenance and management costs are reduced. This happens because in shop costs a significant part of the costs (and in general plant costs almost entirely) are semi-fixed costs (depreciation of equipment, maintenance of buildings, maintenance of shop and general plant equipment and other expenses) that do not depend on the degree of implementation of the production plan. This means that their total amount does not change or almost does not change depending on the implementation of the production plan. It follows that the greater the output, the smaller the share of workshop and general plant expenses in its cost.

Essential In the fight to reduce production costs, it is necessary to adhere to the strictest savings regime in all areas of the production and economic activities of the enterprise. The consistent implementation of the economy regime at enterprises is manifested primarily in reducing the cost of material resources per unit of production, reducing production maintenance and management costs, and eliminating losses from defects and other unproductive expenses.

Material costs, as is known, in most industries occupy a large share in the structure of product costs, so even a slight saving of raw materials, materials, fuel and energy in the production of each unit of production for the entire enterprise has a major effect.

The enterprise has the opportunity to influence the amount of material resource costs, starting with their procurement. Raw materials and materials are included in the cost price at their purchase price, taking into account transportation costs, so the correct choice of material suppliers affects the cost of production. It is important to ensure the supply of materials from suppliers who are located a short distance from the enterprise, as well as to transport goods using the cheapest mode of transport. When concluding contracts for the supply of material resources, it is necessary to order materials that, in size and quality, exactly correspond to the planned specification for materials, strive to use cheaper materials, without at the same time reducing the quality of the product.

The main condition for reducing the cost of raw materials and materials per unit of production is improving product designs and improving production technology, the use of advanced types of materials, and the introduction of technically sound standards for the consumption of material assets.

Reducing production maintenance and management costs also reduces production costs. The size of these costs per unit of production depends not only on the volume of output, but also on their absolute amount. The lower the amount of workshop and general plant expenses for the enterprise as a whole, the lower, other things being equal, the lower the cost of each product.

The reserves for reducing shop and general plant costs lie primarily in simplifying and reducing the cost of the management apparatus and saving on management costs. The composition of shop and general plant expenses also largely includes the wages of auxiliary and auxiliary workers. Carrying out measures to mechanize auxiliary and auxiliary work leads to a reduction in the number of workers employed in these works, and, consequently, to savings in workshop and general plant expenses. Automation and mechanization of production processes, reduction specific gravity manual labor costs in production. Automation and mechanization of production processes make it possible to reduce the number of auxiliary and auxiliary workers in industrial production.

The reduction of workshop and general plant costs is also facilitated by the economical use of auxiliary materials used in the operation of equipment and for other economic needs.

Significant reserves for reducing costs are contained in reducing losses from defects and other unproductive expenses. Studying the causes of marriage, identifying its culprit makes it possible to implement measures to eliminate losses from marriage, reduce and most rational use production waste.

The scale of identifying and using reserves for reducing product costs largely depends on how the work is carried out to study and implement the experience available at other enterprises.

Conclusion

Based on the research carried out, we can say that all the assigned tasks have been completed.

In the first part of the course work, the meaning and concept of cost, types of costs for production, classification of costs, general principles provisions on the composition of costs.

The second part of the course work is separated to calculate the cost of production using the example of the enterprise ZAO Elektromash. The technical and economic characteristics are given, as well as the main technical and economic indicators of the activity of the enterprise ZAO Elektromash. The annual cost estimate for production and sales of products was calculated; they amounted to 6766.736 thousand. rub., material costs = 40 + 9228 * 35 / 1000 * 2.5 = 40 + 807.45 = 847.45 thousand rubles. The capital cost estimate and profit and loss estimate were calculated, from where it became known that sales revenue, excluding VAT, thousand rubles = 2500 + 3450 + 390 + 450 + 350 + 300 + 250 = 7690 thousand roubles.; Cost of products sold (goods, services), thousand rubles.

= 6766,736 thousand roubles.; Interest receivable (income from securities)= 85 thousand roubles.; Percentage to be paid (dividends)=12 thousand roubles.;

Other operating income=68 + 127 + 20 + 55 = 270 thousand roubles.; Other operating expenses property tax = 213,029 thousand roubles.;

Other non-operating expenses = 932,264 + 85 - 12 + 270 - 213,029 - 232 = 821,235 thousand rubles; Balance sheet profit (loss) (Penalties, fines, penalties for violation of household rules. contracts.) +P (Legal costs and arbitration costs) + (Losses from natural disasters) + Losses from theft) = 18 + 95 + 87 + 32 = 232 thousand roubles.

Unfortunately, until now practical work There are often cases when the organization of accounting, including production accounting, is focused mainly on the need to submit financial statements to the tax authorities and comply with the requirements of tax legislation regarding the recognition of certain expenses for calculating taxable profit. However, the formation of complete and reliable information necessary for the use of tax authorities is not a priority task of accounting (and preparation of financial statements). This indicates a lack of interest of the organizations themselves in using accounting information for the purposes of operational management and management, and in addition, often such an occasion leads to a violation of the rules and requirements for accounting and reporting.

A serious reserve for reducing production costs is the expansion of specialization and cooperation. In specialized enterprises with mass production, the cost of production is significantly lower than in enterprises producing the same products in small quantities. The development of specialization requires the establishment of the most rational cooperative ties between enterprises.

Reducing production costs is achieved, first of all, by increasing labor productivity. With an increase in labor productivity, labor costs per unit of production are reduced, and consequently, the share of wages in the cost structure decreases.

The success of the struggle to reduce costs is determined, first of all, by the increase in labor productivity of workers, which, under certain conditions, ensures savings on wages.

With an increase in the volume of production, the profit of the enterprise increases not only due to lower costs, but also due to an increase in the number of products produced. Thus, the greater the production volume, the greater, other things being equal, the amount of profit received by the enterprise.

Reducing production maintenance and management costs also reduces production costs.

The cost of products (works, services) is a valuation of the natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources used in the production process of products (works, services), as well as other costs for its production and sale. Cost reflects the amount of current costs that are of a production, non-capital nature, ensuring the process of simple reproduction in the enterprise. Cost is an economic form of compensation for consumed factors of production. The costs that form the cost are grouped by economic content according to the following elements: material costs, labor costs, social contributions, depreciation of fixed assets, other costs. Their structure is formed under the influence of various factors: the nature of the products produced and the raw material resources consumed, the technical level of production, forms of its organization and placement, conditions of supply and sales of products, etc.

Price is the ability of a product expressed in monetary units. Price is the ability to determine the competitiveness of a product, taking into account the amount of costs required for its acquisition and operation. Determining the price.

Establishment on the market right price for a product - this is a very complex procedure, since the price level is influenced by many factors, such as: production costs, prices of competitors, prices of imported analogues, level of demand, transport costs, various duties and fees, advertising and various elements of sales promotion, etc. .

Cost is the monetary expression of the costs of resources necessary for an enterprise to carry out production and commercial activities related to the production and sale of products and the provision of services, that is, everything that it costs the enterprise to produce and sell a product (products). Cost is a valuation of the natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources used in the production process of products (works, services), as well as other costs of production and sales. The cost of products (works, services) is considered as part of the cost of these products. S/ST functions: 1. accounting and control of all costs for production and sales of products; 2. the basis for forming the wholesale price for the enterprise’s products and determining profit and profitability; 3. economic justification for the feasibility of making real investments in the reconstruction, technical re-equipment and expansion of an existing enterprise; 4. determination of the optimal size of the enterprise; 5. economic justification and adoption of any management decisions, etc. In industrial practice, depending on the conditions, purpose and specific object of calculation, the following main types of cost are distinguished.

1. Individual and industry cost. Each enterprise determines the cost of all manufactured products, taking into account its technical and organizational features, which are reflected in the level and structure of individual production costs. The cost price for the enterprise as a whole is determined on the basis of the annual production cost estimate. For pricing purposes, it is necessary to know the cost per unit of production, which is determined independently at each enterprise. If the enterprise is part of an industry that produces homogeneous products, then the industry (industry average) cost can be determined for these products. Industry cost is calculated using the weighted arithmetic average formula:

where C is the industry cost per unit of production; C1 - individual cost per unit of production; Q - quantity of products produced; n is the number of enterprises in the industry.

2. Shop, production and full (commercial) cost. The workshop cost of production is determined by the sum of the costs of all workshops of the enterprise under the workshop management system of the enterprise. It includes the costs of production associated with its manufacture with the addition of the costs of managing and maintaining workshop overhead. Production cost contains all the costs of the enterprise associated exclusively with the manufacture of products. It is determined by adding general business expenses to the workshop cost, i.e., the costs of managing and maintaining the enterprise as a whole. The full (commercial) cost of production is determined by adding commercial (formerly non-production) expenses, i.e., expenses associated with the sale of products, to the production cost. Abroad, commercial cost is sometimes called warehouse cost.

3. Cost of the cost center. This cost is added up for individual structural divisions of the enterprise (shops, sections, teams, installations), the functioning of which is associated with any completed technological cycle of product manufacturing and is headed by a manager who is responsible only for spending the funds of the division - the cost center. The specified cost includes expenses related to the activities of this cost center and is a necessary prerequisite for carrying out intra-company calculations. 4. The basic cost is used to determine the offer price of the manufacturer of the product. It can be calculated either on the basis of full costs or on the basis of direct variable costs, depending on what pricing strategy the company chooses at a given time.

First of all, let’s define the concepts that are repeatedly found in the economic literature: “costs”, “expenses” and “expenses”, and in practice no distinction is made between these concepts.

Cost is a term most often found in economic theory. According to the classical view, the study of costs is based on the fact that resources are rare and that there are a large number of alternative uses for them, i.e. on the principle of “limited resources - unlimited needs”. Hence, economic costs are all payments of an enterprise necessary to attract and retain resources within a given area of activity, which include labor, land, capital, and entrepreneurial abilities.

Product cost analysis carried out in the following main areas:

Let us note that there are no significant differences between the concepts of costs and expenses, and often one of these concepts is defined through the other. However, for accounting purposes in Russian legislation a definition of enterprise expenses is given.

The list of cost items included in the cost of products (works, services) is determined by Art. 253 ch. 25 of the Tax Code of the Russian Federation and the Accounting Regulations “Expenses of the Organization” PBU 10/99, approved by Order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 33n. These regulations, together with industry methodological recommendations for planning and cost accounting, are general methodological regulations that regulate the procedure and conditions for the formation of costs at enterprises in all sectors of the economy.

The regulation on the composition of costs (PBU 10/99) determines that the cost is a valuation of the natural resources used in the production process, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production and sale.

Thus, cost is the cost of its production and sale expressed in monetary terms. The cost of production as a synthetic indicator reflects all aspects of the production and financial and economic activities of the enterprise: the degree of use of material, labor and financial resources, the quality of work of individual employees and management as a whole.

The organization's costs are grouped according to their place of origin, cost carriers and types of expenses:

According to the place of origin, costs are grouped by production, workshop, site and other structural divisions of the organization.

Cost carriers are the types of products (works, services) of an enterprise intended for sale.

By type, costs are grouped by economically homogeneous elements and by costing items.

In the practice of planning, accounting, calculation and cost analysis, a distinction is also made between shop, production and full costs. The workshop cost of a product consists of the costs (direct and indirect) of all workshops not producing it. Production cost is formed from all enterprise costs associated with the production and management process. The total cost consists of production costs and non-production costs (i.e. costs associated with selling products to customers).

Objects of cost analysis are the following indicators:

full cost of production as a whole and by cost elements;
level of costs per ruble of manufactured products;
cost of individual products;
individual cost items;
costs by responsibility centers.

The cost includes all the enterprise's costs for the production and sale of products in the context of costing items.

Indicators characterizing the cost are:

the amount of production costs by type; based on this indicator, it is possible to determine the volume of costs incurred, their dynamics over a number of years and quantify their changes;

cost structure. When studying changes in the cost structure, one can assume management decisions to further improve the structure of costs incurred and increase their efficiency;

cost dynamics, it shows the change in the amount and level of cost items compared to the previous or base period. Cost dynamics are determined by such indicators as absolute and relative deviation, growth and increment rates;

absolute and relative deviations of costs compared to the data of the business plan and base period, i.e. compare actual costs with planned or base period costs.

In the process of analyzing the dynamics and structure of product costs, it is revealed which cost items had the greatest overruns (savings) and how this change affected the change in the total amount of variable and fixed costs.

By comparing the specific weights of individual elements with the plan and in dynamics.

Costs per ruble of commercial (sold) products are the most well-known generalizing indicator in practice, which impersonally reflects the cost of a unit of production in monetary terms, without distinguishing it by specific types. The indicator is widely used in the analysis of cost reduction and allows, in particular, to characterize the level and dynamics of production costs in the industry as a whole.

The indicator is calculated to determine the effectiveness of costs, their dynamics and to calculate the relative deviation (savings or overruns) of costs. The cost level is determined as the ratio of costs from core activities to revenue using the following formula:

Cost level = Core activity costs / Revenue

The amount of material costs and its changes in the process of production and sales of products depends on many external and internal factors, including factors related to the characteristics of the technology and organization of production of specific types of products.

When analyzing the provision of an enterprise with material resources, it is necessary to take into account the influence of factors that can have a strong impact on the types, quantity and quality of resources. These include:

technical factors: technology and production process, type of machinery and equipment, production capacity, production volume, etc.;

financial and economic: volume of production, release and sales of products, labor productivity, level of qualifications, level of product quality, competition for materials, goods, services;

socio-economic: social and cultural environment, socio-economic infrastructure.

The analysis of labor costs must begin with a comparison of the actual value with the planned data. Next, you should break down the final indicators into their component elements, i.e. perform an analysis of the types and forms of remuneration, identify the degree of application of the most progressive and effective types of remuneration for the analyzed period. Then find the factors that influenced the change in the basic wage of production workers, i.e. conduct factor analysis.

Indirect costs are costs the occurrence of which has no direct connection with the object. Such costs include, for example: costs of maintaining an administrative building, maintenance, wages of administrative, managerial and business staff.

Analysis of indirect costs is carried out by comparing their actual value over several years, as well as with the planned level of the reporting period. Such a comparison shows how their share in the cost of production has changed over time and compared to the plan, and what trend is observed - growth or decline. In the process of subsequent analysis, the reasons that caused absolute and relative changes in costs are clarified.

Analysis and diagnostics of the unit cost of production must be performed:

to analyze indicators in order to determine the optimal option for the production of individual products from the standpoint of market needs and enterprise capabilities using the “direct costing” system, where the basis is a separate cost accounting method;

to diagnose the cost efficiency of production, to determine the dynamics of the cost of products, to calculate its rational price from the perspective of the market and production, to find opportunities to reduce costs as the main factor in increasing profits and increasing profitability, where the basis for analytical calculations should be cost accounting at full cost.

At unit cost analysis First, an assessment is made of the cost of individual products in comparison with the previous period and with planned costs. An indicator of the level of profitability of products is used. Then a thorough analysis of individual products is carried out according to costing items as a whole and taking into account the disclosure of individual costs in direct cost items. Such a complete, detailed analysis will allow us to determine the competitiveness of the product on the market and the ways of its optimal sale.

The basis for the analysis of the cost per unit of production is the reporting costing, which reflects the planned reporting data for the product as a whole and its individual parts: parts, assemblies and kits.

The reporting calculation must correspond to the planned one in terms of forms and items in force in the organization.

The main objectives of the analysis and evaluation of reporting calculations are:

determination of deviations from the plan for each cost item;
identification and study of factors of resulting deviations;
finding reserves and identifying measures to reduce the cost of individual products.

When analyzing the costings of individual products, it is important to use data from the analysis of production costs and the cost of all manufactured products. This will reduce the analytical work and enrich its results.

After a general assessment, it is necessary to determine the impact on the cost of the product of deviations in prices for raw materials and materials, changes in the production volume of individual products, their design, etc., and only after this can we begin an item-by-item analysis of the calculations. Comparison is made with the plan and the previous period, usually several years.

Note that it is recommended to analyze cost indicators monthly (quarterly) on an accrual basis from the beginning of the year, as well as for the year as a whole.

IN general view The approximate structure of a cost analysis and diagnostic report is as follows:

1. Summary.

2. Analysis of the existing cost structure.

3. Analysis of plan-actual deviations.

4. Description of the existing procedure for calculating the planned cost.

5. Description of the existing procedure for calculating actual costs.

6. Description of errors: division into variables and constants, plan-fact.

8. Applications:
8.1. The existing cost structure of the company by divisions and cost items.
8.2. An example of the existing costing procedure.
8.3. Calculation of error using an example.
8.4. Calculation of errors in pricing and cost planning.

When analyzing the cost, it is possible to provide for the use of the forms specified in the Guidelines for planning, accounting and calculating the cost of products at ferrous metallurgy enterprises (approved by Roskommetallurgy on December 7, 1993).

Bibliography:

Savitskaya G.V. Analysis of the economic activities of an enterprise, 5th ed., revised. and additional - M.: Infra-M, 2009.
Abryutina M.S. Grachev A.V. Analysis of the financial and economic activities of the enterprise. Educational and practical manual. - M.: “Business and Service”, 2008.

§ 1. The essence of cost as an object of analysis.

§ 2. Problems of cost analysis and sources of information.

Chapter 2. Product cost analysis.

§ 1. Analysis of product costs by cost elements and costing items.

§ 2. Analysis of costs per ruble of marketable products.

§ 4. Analysis of the impact of labor costs on the cost price.

§ 5. Analysis of complex cost items.

5.1. Analysis of production maintenance and management costs.

5.2. Analysis of other complex cost items.

§ 1. The essence of cost as an object of analysis.

In the system of indicators characterizing the efficiency of production and sales, one of the leading places belongs to the cost of production.

The cost of production is the costs expressed in monetary terms for its production and sale. The cost of production as a synthetic indicator reflects all aspects of the production and financial and economic activities of the enterprise: the degree of use of material, labor and financial resources, the quality of work of individual employees and management as a whole.

The calculation of this indicator is necessary for many reasons, including to determine the profitability of individual types of products and production as a whole, determine wholesale prices for products, carry out intra-production cost accounting, and calculate national income across the country. Product cost is one of the main factors in generating profit. If it has increased, then, other things being equal, the amount of profit for this period will necessarily decrease due to this factor by the same amount. There is an inverse functional relationship between the size of profit and cost. The lower the cost, the greater the profit, and vice versa. Cost is one of the main parts of economic activity and, accordingly, one of essential elements this control object.

One of the main conditions for obtaining reliable information about the cost of production is a clear definition of the composition of production costs. In our country, the composition of production costs is regulated by the state. The basic principles for the formation of this composition are defined in the Law of the Russian Federation “On the income tax of enterprises and organizations” and are specified in the Regulations on the composition of costs. In addition, on the basis of this Regulation, ministries, departments, intersectoral government associations, and concerns are developing industry regulations on the composition of costs and methodological recommendations on planning, accounting and calculating the cost of products (works, services) for subordinate enterprises. The regulatory role of the state in relation to the cost of production is also manifested in the establishment of depreciation standards for fixed assets, tariffs for contributions to social needs, etc.

The regulation on the composition of costs determines that the cost of products (works, services) is a valuation of the natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources used in the production process, as well as other costs for its production and sale.

In addition, in the practice of planning, accounting, calculation and analysis, a distinction is made between shop, production and full cost. The workshop cost of a product consists of the costs (direct and indirect) of all workshops not producing it. Production cost is formed from all enterprise costs associated with the production and management process. The total cost consists of production costs and non-production costs (i.e. costs associated with selling products to customers).

§ 2. Problems of cost analysis and sources of information.

The main objectives of analyzing the cost of products (works, services) are:

an objective assessment of the implementation of the plan at cost and its changes relative to previous reporting periods, as well as compliance with current legislation, contractual and financial discipline;
investigation of the reasons that caused the deviation of indicators from their planned values;
providing cost responsibility centers with the necessary information to operational management formation of product costs;
assistance in developing the optimal amount of planned costs, planned and standard calculations for individual products and types of products;
identification and summary calculation of reserves for reducing costs of production and sales of products;

The nature of these tasks indicates the great practical significance of the analysis of product costs in the economic activities of an enterprise.

Analysis of economic activity is based on a system of indicators and involves the use of data from a number of sources of economic information.

The main sources of information necessary for cost analysis are reporting data; accounting data (synthetic and analytical accounts reflecting the costs of material, labor and Money, relevant statements, order journals and, if necessary, primary documents); planned (estimated, regulatory) data on the costs of production and sales of products and individual products (works, services).

§ 1. Analysis of product costs by cost elements and costing items.

Production costs of enterprises and associations in planning, accounting, reporting and analysis are grouped in 2 directions: by economic elements and costing items.

Cost analysis by element. The grouping of costs by elements is uniform and mandatory and is determined by the Regulations on the composition of costs. Grouping by economic elements shows What exactly spent on the production of products, what is the ratio of individual elements in the total amount of expenses. In this case, only purchased materials, products, fuel and energy are reflected in the elements of material costs. Remuneration and contributions for social needs are reflected only in relation to personnel of the main activity.

Grouping costs by elements allows you to control the formation, structure and dynamics of costs by type that characterize their economic content. This is necessary for studying the relationship between living and past (materialized) labor, rationing and analysis of production inventories, calculating particular indicators of turnover of certain types of regulated working capital, as well as for other calculations at the sectoral, national and national economic levels (in particular, for calculating the amount of production created in industry national income).

The element-by-element costs of all material and fuel and energy resources are used to determine the planned level of material costs and assess its compliance. Analysis of the element-by-element composition and structure of production costs makes it possible to outline the main directions for searching for reserves depending on the level of material intensity, labor intensity and capital intensity of production.

From Table 1.1 (see next page) it is clear that the main share of expenses falls on material costs and labor costs, therefore these elements need to be given special attention when identifying reserves for cost reduction.

In the reporting period, the shares of material costs and labor costs increased compared to the previous year, but were lower than planned by 0.9% and 0.4%, respectively. The share of the “Other costs” element increased by 1.8% compared to the plan, mainly due to a decrease in expenses for other elements.

Table 1.1. Cost analysis by element.

Cost elements	For the last year		According to the plan for the reporting year		Actually for the reporting year		Change in actual allocation. weights compared
Cost elements	amount, thousand rubles	allotment weight, %	amount, thousand rubles	allotment weight, %	amount, thousand rubles	allotment weight, %	compared to last year, % (group 6-group 2)	with plan, % (group 6-group 4)
	1	2	3	4	5	6	7	8

Material costs	57527	29,6%	66258	31,3%	60753	30,4%	+0,8%	-0,9%
Labor costs	49484	25,5%	59627	28,2%	55457	27,8%	+2,3%	-0,4%
Contributions for social needs	22602	11,6%	22599	10,7%	20335	10,2%	-1,5%	-0,5%
Depreciation of fixed assets	19741	10,2%	18252	8,6%	17175	8,6%	-1,6%	-0,0%
Other costs	44957	23,1%	44949	21,2%	46096	23,1%	-0,1%	+1,8%
Total:	194311	100%	211685	100%	199816	100%

Analysis of product costs based on costing items. The standard grouping of costs by costing items is established by the Basic Provisions for Planning, Accounting and Calculation of Product Costs for industrial enterprises. The itemized reflection of costs in planning, accounting, reporting and analysis reveals their intended purpose and connection with the technological process. This grouping is used to determine costs by individual types of products produced and the location of costs (workshops, sections, teams).

Some of the costing items are mainly single-element, i.e., expenses that are homogeneous in their economic content. These include raw materials and materials, purchased components and semi-finished products, fuel and energy for technological purposes, basic and additional wages of production workers, and social insurance contributions. When analyzing them, one cannot limit oneself only to indicators for the enterprise as a whole, since this neutralizes the results achieved in the production of individual products. Therefore, calculations of the influence of individual factors on the total cost of these items are subsequently detailed by individual products, types of consumable materials, systems and forms of remuneration of production workers based on reporting calculation data.

The remaining cost items are complex and combine several economic elements. Thus, the article “Costs for the maintenance and operation of equipment” includes the costs of materials, energy, fuel, labor costs, and depreciation of fixed assets. Such cost items as expenses for preparation and development of production, workshop, general plant (general economic) and other production expenses are also complex in nature. These costs are determined primarily by the total volume and organizational and technical level of production and are analyzed, as a rule, for the enterprise (association) as a whole or its individual divisions.

Analysis of plan implementation on an item-by-item basis begins with a comparison of actual costs with planned costs, recalculated to actual output and assortment. Thus, the identified deviations reveal changes in costs regardless of structural and assortment shifts in product output (Table 1.2).

Table 1.2. Cost analysis based on costing items

No.	Expenditures	Actual products released, thousand rubles.		Deviations from the plan (+,-)
		according to planned cost	according to actual cost	thousand roubles.	in percentages
		according to planned cost	according to actual cost	thousand roubles.	to the planning item	to the whole plan. yourself
A	B	1	2	3	4	5
1	Raw materials	43456	37865	-5591	-12,9%	-2,75%
2	Returnable waste (subtracted)	-96	-107	-11	+11,5%	-0,01%
3	Raw materials minus waste	43360	37758	-5602	-12,9%	-2,75%
4	Purchased products, semi-finished products and production services of third-party enterprises and organizations	19344	17134	-2210	-11,4%	-1,09%
5	Fuel and energy for technological purposes	1006	1024	+18	+1,8%	+0,01%
6	TOTAL direct material costs	63710	55916	-7794	-12,2%	-3,83%
7	Basic wages for production workers	46783	42424	-4359	-9,3%	-2,14%
8	Additional wages for production workers	8561	8545	-16	-0,2%	-0,01%
9	Social insurance contributions	23730	21353	-2377	-10,0%	-1,17%
10	TOTAL direct salary with deductions	79074	72322	-6752	-8,5%	-3,32%
11	Expenses for preparation and development of production	2561	2549	-12	-0,5%	-0,01%
12		10716	10329	-387	-3,6%	-0,19%
13	Shop expenses	13170	12873	-297	-2,3%	-0,15%
14	Factory overhead	18420	18515	+95	+0,5%	+0,05%
15	TOTAL production maintenance and management costs	44867	44266	-601	-1,3%	-0,30%
16	Losses from marriage	X	72	+72	X	+0,04%
17	Other production costs	-	-	-	-	-
18	Production cost of commercial products	187651	172576	-15075	-8,0%	-7,41%
19	Non-production (commercial) expenses	15903	19554	+3651	+23,0%	+1,79%
20	Full cost of commercial products	203554	192130	-11424	-5,6%

In gr. 4 tables 1.2 shows the percentage ratio of deviations from the plan to planned costs for each costing item; in gr. 5 – share of changes in costs for relevant items in the total percentage reduction in the total cost of marketable products. In this way, the degree of influence of deviations in individual items on the overall result is established.

In accordance with the table data, the total cost of manufactured products decreased in the reporting period by 11,424 thousand rubles, or 5.6%, compared to the plan. The most significant reduction in expenses was under the item "Raw materials" (-12.9%), which allowed saving 2.75% of the total planned cost of marketable products. The most significant excess of the plan (by 23%) is observed in non-production (commercial) expenses. This excess caused an increase in cost by 1.79% due to an increase in this item.

When analyzing, the main attention should be paid to those items for which unplanned losses and overruns occurred. However, cost analysis should not be limited only to these items. Significant reserves for reducing the cost of production can be revealed for other items with a more detailed analysis of the costs of materials, fuel, energy, wage costs and complex cost items.

§ 2. Analysis of costs per ruble of marketable products.

In most industries, the cost target is approved by the enterprise in the form of a maximum cost level per ruble of marketable products.

The cost indicator per ruble of commercial products characterizes the level of cost of one ruble of impersonal products. It is calculated as the quotient of dividing the total cost of all marketable products by its cost in wholesale prices of the enterprise. This is the most general indicator of product cost, expressing its direct connection with profit. The advantages of this indicator also include its dynamism and wide comparability.

A direct influence on the change in the level of costs per ruble of commercial products is exerted by 4 factors that are in direct functional connection with it:

change in the structure of manufactured products;
changes in the level of costs for the production of individual products;
changes in prices and tariffs for consumed material resources;
changes in wholesale prices for products.

Let's consider the influence of these factors based on the data in Table 2.1.

Table 2.1. Costs per ruble of commercial products.
(calculation of indicators for periods 1-6 is given in.)

Indicator name	Line no.	Calculation formula	Sum

Planned cost of the entire technological process, thousand rubles.	1	e qпSп	203554
Cost of all manufactured products:
b) at actual cost, thousand rubles.	2	e qfSp	194321
a) at planned cost, thousand rubles.	3	e qфSф	192130
TP in wholesale prices of enterprises:
a) according to plan, thousand rubles.	4	e qpSp	250066
b) actually in the prices adopted in the plan, i.e.	5	e qfSp	235883
c) actually in prices in force in the reporting year, thousand rubles.	6	e qfSf	237199
Costs per ruble of TP according to plan (page 1:page 4), kopecks.	7	e qпSп e qпСп	81,40
Costs per ruble of actually issued TP:
a) according to the plan, recalculated for actual production and assortment (page 2: page 5), cop.	8	e qfSp e qfSp	82,38
b) actually in prices in force in the reporting year (page 3:page 6), kopecks.	9	e qfSf e qfSf	81,00
c) actually in the prices adopted in the plan ((p. 3 - price change): p. 5), kopecks.	10	e qfS"f e qfSp	79,46
d) actually in wholesale prices for finished products adopted in the plan (page 3: page 5), kopecks.	11	e qfSf e qfSp	81,45
Costs per ruble of TP according to the report for last year, kopecks.	12		81,90

Legend:
q -- number of products;
S -- cost per unit of product;
C -- wholesale price per unit of product;
S"f is the actual cost per unit of product, adjusted for changes in prices and tariffs for consumed material resources.

The total deviation of costs per ruble of marketable products from the plan is determined by comparing lines 9 and 7: 81.00 – 81.40 = –0.4 kopecks, i.e. actual costs turned out to be lower than those approved by the plan. Let us analyze the influence of each of the 4 factors listed above on this deviation.

Influence structural changes as part of the product determined by the following formula (compare lines 8 and 7 of Table 2.1):

Thus, changes in the range of manufactured products led to increase costs per ruble of marketable products by 0.98 kopecks. (82.38 – 81.40).

Influence changes in the level of costs for the production of individual products in the product composition is determined by the formula (difference between lines 10 and 8 of Table 2.1):

that is, 79.46 – 82.38 = –2.92 kopecks. The resulting change in cost due to this factor is net savings achieved as a result of reducing the cost of material resources, using more advanced equipment and technology, and increasing labor productivity.

Highlight Impact changes in prices and tariffs for consumed material resources you can use the formula

or by comparing terms 11 and 10 of the table: 81.45 – 79.46 = 1.99 kopecks. An increase in average prices and tariffs for resources led to increase cost indicator per ruble of marketable products by 1.99 kopecks.

The influence of the last factor - changes in wholesale prices for products is determined by comparing lines 9 and 11, i.e. according to the formula

The resulting deviation indicates decrease costs 0.45 kopecks. (81.00 – 81.45) due to an increase in the average selling prices set by the enterprise in the reporting period for its products.

At the end of the reporting period, the plan to reduce costs per ruble of marketable products was significantly exceeded (instead of reducing costs according to the plan by 0.5 kopecks, they were actually reduced by 0.9 kopecks). Having analyzed the influence of all 4 factors on this change, it turned out that the reduction in costs mainly accounts for pure savings, i.e., savings in the level of costs for the production of individual products. This is a positive thing. However, the total savings could have been significantly greater if not for the negative impact of 2 other factors. The company needs to pay special attention to the range of products, and also, if possible, take a more responsible approach to the selection of suppliers of material resources, since these factors (structural shift in products and increase in prices for consumed resources) influenced the increase in costs.

§ 3. Analysis of the impact on the cost of direct materials
costs.

The main objectives of the analysis of material costs as the most important component of product costs are:

identification and measurement of the influence of individual groups of factors on the deviation of costs from the plan and their change compared to previous periods;
identifying reserves for saving material costs and ways to mobilize them.

When studying the reasons for deviations in the level of material costs from the planned, previous period and other comparison bases, these reasons are conventionally called factors prices, norms and replacements. Price factors mean not only changes in the price of raw materials and supplies, but also changes in transportation and procurement costs. The norm factor reflects not only the change in the consumption norms themselves, but also the deviation of the actual consumption per unit of production ( specific consumption) from the norm. The replacement factor is understood, in addition to the impact of complete replacement of some types of material assets by others, a change in their content in mixtures (formulations) and the content of useful substances in them (especially common in the food industry).

The methods of analysis highlighting these groups of factors are the same for all items of material costs, i.e., raw materials and basic materials, fuel, purchased semi-finished products and components. (Below these techniques will be discussed using basic materials as an example.)

Price factor, i.e. a group of factors that determine procurement cost of materials consists of the cost of the materials themselves at supplier prices And transportation and procurement costs(TZR).

To determine the impact of changes in the level of fuel and equipment (after adjusting them for changes in tariffs) on the procurement cost of materials, it is necessary to have data on their percentage to the cost of procured materials and fuel. The data necessary for this can be obtained from analytical accounting to the “Materials” account.

At the analyzed enterprise, labor and production costs were planned in the amount of 4% of the cost of materials at supplier prices. Thus, the procurement cost of materials was 104% of the cost of materials at supplier prices. The actual average level of TZR reached 5%. The overrun was 1% (105% – 104%). Having the actual procurement cost of materials consumed is 39,365 thousand rubles. (see Table 1.2), overexpenditure on TZR is determined as follows:

i.e., the cost of the materials used turned out to be 375 thousand rubles. more due to the excess of the actual percentage of TWP exceeding the planned value.

Of decisive importance for reducing costs is saving materials in kind - the norm factor and rational replacement of materials - the replacement factor. The leading role of these factors is explained by the fact that saving material costs under the influence of the price factor has a direct impact on reducing costs through a reduction amounts by items of material costs. Savings under the influence of factors of standards and replacement not only have a direct impact on these items, but create the opportunity to increase the volume of output and thereby indirectly affect the reduction in the level of fixed costs per unit of production, i.e. entails a relative reduction in general plant and shop expenses. Thus, the range of influence of saving material costs due to norms and replacement factors on reducing production costs is wider than due to the price factor.

Below is an analysis of the deviation of material consumption from the planned one in terms of the influence of norms, prices and replacement factors.

Table 3.1 (see next page) provides a breakdown of the costs of materials for calculating the cost of a refrigerator. To facilitate calculations, a recalculated planned indicator (column 7) is entered into the table, representing the product of the actual amount of material consumed by its planned procurement cost (conventionally called the price).

First of all, find the general deviation, i.e. the difference between the cost amounts according to the report and according to the plan (see Table 3.1, group 6–group 5).

To measure the impact of changes in specific consumption of materials on the amount of material costs, compare the value of the recalculated indicator with the planned amount of costs for each line. The difference shows the deviation due to the norms (gr. 7–gr. 5).

The impact of the price factor is measured by comparing the same actual quantity of materials consumed in two estimates - actual and planned prices, i.e., by subtracting the recalculated indicator from the actual amount of costs (column 6–column 7).

It remains to determine the impact of the replacement. The result of the replacement is determined by comparing the planned cost of the actually used set of materials with the planned one.

IN in this example the actual set of materials consists of 2 components instead of 3 according to plan. The changes were caused by the failure to meet the supply plan for brass, which was partially replaced by aluminum and synthetic materials.

Table 3.1. Material cost analysis.

Name of calculation groups of materials, purchased semi-finished products and components	Consumption, kg		Price per kg, thousand rubles.		Amount thousand rubles			Deviation from plan (+,-), thousand rubles.
	plan	report	plan	report	plan (column 1x gr.3)	report (gr.2 x gr.4)	recalculated target indicator (column 2 x group 3)	total (gr.6-gr.5)	including at the expense
	plan	report	plan	report	plan (column 1x gr.3)	report (gr.2 x gr.4)	recalculated target indicator (column 2 x group 3)	total (gr.6-gr.5)	norms (gr.7-gr.5)	prices (group 6-group 7)	replacements
A	1	2	3	4	5	6	7	8	9	10	11
Raw materials and main materials:
Sheet steel	32,0	35,0	3,0	3,2	96,0	112,0	105,0	+16,0	+9,0	+7,0	---
Tin	1,2	1,1	18,0	18,4	21,6	20,2	19,8	-1,4	-1,8	+0,4	---
Synthetic materials	X	X	X	X	124,0	131,0	131,0
Aluminum	3,0	8,0	5,1	5,9	15,3	47,2	40,8	-10,0	---	+6,4	-16,4
Brass	5,0	2,0	16,3	16,3	81,5	32,6	32,6
Other basic materials	X	X	X	X	150,0	152,0	152,0	+2,0	+2,0	---	---
TOTAL basic materials					488,4	495,0	481,2	+6,6	+9,2	+13,8	-16,4

In the columns of the table reserved for the recalculated indicator, the actually used set of materials is recorded, but at the planned procurement cost, only 204.4 thousand rubles. (131.0+40.8+32.6) instead of 220.8 thousand rubles. (124+15.3+81.5) according to plan. Consequently, the reduction in costs due to replacement amounted to 16.4 thousand rubles. with a simultaneous increase in the procurement cost of consumed aluminum by 6.4 thousand rubles. (price factor). The total savings on replaced materials amounted to 10 thousand rubles.

Based on the results of the deviations obtained in Table 3.1, it can be seen that the total cost of basic materials for the production of one refrigerator increased by 6.6 thousand rubles. This was a consequence of an increase in prices for materials (+13.8 thousand rubles) and an increase in their consumption rates (+9.2 thousand rubles), and only the replacement made led to savings in material costs (-16.4 thousand rubles). However, the replacement was made due to a supply failure, that is, it was not planned in advance, which indicates either the enterprise’s omissions in planning the consumption of certain materials for individual components of the refrigerator, or a decrease in the quality of the product as a result of a forced replacement.

In terms of actual production of refrigerators reserve for cost reduction by saving costs on materials is (thousand rubles):

due to the norms of 11.0 tr. * 61 pcs. = 671.0 t.r.

due to prices of 13.8 tr. * 61 pcs. = 841.8 t.r.

due to the replacement of 0.0 tr.(since there was no overspending)

Total 1512.8 t.r.

§ 4. Analysis of the impact of labor costs on the cost price.

Wages constitute one of the most important elements of production costs; its share is especially large in most branches of the mining industry, as well as in mechanical engineering. In the cost of production, only the wages of production workers are allocated as an independent item. Salaries of other categories of industrial production personnel are included in complex cost items, as well as transportation and procurement costs. The wages of workers employed in auxiliary production are included in the cost of steam, water, electricity and affect the cost of marketable products through those complex items that include the consumption of steam, water and energy.

The wages of piece workers and bonuses paid from the wage fund directly or indirectly depend on the fulfillment of the production plan (bonuses paid from the consumption fund do not affect the wage fund). Other components of the salary fund depend on number of employees, tariff rates and official salaries, i.e. they are influenced by many common factors. Therefore, wage analysis is carried out in 2 directions: 1) analysis of the wage fund as an element of production costs; 2) analysis of wages in the context of individual calculation items, primarily an independent item - the wages of production workers.

Only after the general factors that caused deviations in the wage fund of certain categories of workers have been identified, is it determined to what extent they influenced different items of production costs.

Before starting to analyze the use of the wage fund, it is important to analyze the validity of its planned value. The specific methodology for such analysis will depend on the method of payroll planning adopted at the enterprise. In addition, when planning the wage fund and monitoring its expenditure, compliance with the planned ratio between the growth rate of average earnings (including payments from the consumption fund) and labor productivity must be checked.

The influence of the use of the wage fund of industrial production personnel on the cost of production. The cost of production includes all payments to industrial and production personnel. The salary fund of non-industrial personnel (canteens, clubs, pioneer camps, etc.) is not included in the cost of industrial products.

Absolute overexpenditure of the wage fund of industrial production personnel does not entail an increase in costs if the percentage of above-plan growth in production volume is higher than the wage fund, since in this case the costs per ruble of production are reduced compared to the planned level.

Exceeding the production volume plan must necessarily be accompanied by relative savings in the wage fund and an above-plan reduction in costs because in this case only payments to piece workers and bonuses increase, and the time wage does not change. The greater the share of time-based wages in the general wage fund, the greater (other things being equal) the savings achieved.

To determine the full amount of relative savings or overexpenditure of the wage fund and their impact on costs, it is necessary to proceed from the ratio of the growth rates of the wage fund and production. This ratio is equal to the ratio of the growth rate of labor productivity and average wages.

The fact is that labor productivity, measured by average output per worker, is the quotient of dividing production (Q) by the average number of workers (R), while average wages is the quotient of dividing the wage fund (F z) by the same average number of employees. The ratio of the growth rates of these fractions is equal to the ratio of the rate of change of the numerators of the fractions - the volume of production and the wage fund:

Determination of the influence of the actual ratio of growth rates of labor productivity and wages on the cost of manufactured products. One of the most important factors cost reduction is the outpacing of the growth rate of labor productivity over the growth rate of average wages.

Calculation of changes in the wage fund (D F z) under the influence of an increase in average annual output and the average annual salary of one employee or worker is carried out according to the formula

, Where

F salary - planned salary fund, thousand rubles.

3% and W% - growth rate, respectively, of the average annual salary of 1 worker and average annual labor productivity compared to the plan, %

Let's substitute the data from Table 4.1 into the formula.

Now it is necessary to determine how much of the savings is reflected in the cost of production. To do this, the amount of savings is multiplied by the ratio production cost of actual output to the amount production costs:

Thus, due to the rapid above-plan growth of labor productivity, wage costs included in the cost of production decreased by 313.1 thousand rubles.

The above calculation is approximate, since it does not take into account differences in the share of wages in production costs and production costs. These differences are inevitable because the cost of products produced in the reporting year includes the costs of parts and semi-finished products that were in work in progress at the beginning of the year, and part of the production costs of the reporting year relates to work in progress at the end of the year.

Analysis of the composition of the wage fund. Relative savings (or overspending) characterizes the use of the wage fund as a whole. In order to identify reserves for an additional reduction in wages per ruble of marketable products, it is necessary to first identify reserves for further growth in labor productivity and savings in average wages, primarily through the elimination of unproductive payments and unjustified increases in wages for certain categories of industrial production personnel.

For this purpose, the composition of the workers' wage fund is analyzed and unproductive payments, grouped according to the following 3 points:

Additional payment to piece workers due to changes in working conditions;
Additional pay for working overtime;
Payment for forced downtime.

There is no need to separately calculate non-productive payments for defects, since the amount under the item “Losses from defects” is fully taken into account in the consolidated calculation of cost reduction reserves.

Reserves for reducing payments for service personnel salary fund are identified by analyzing deviations from the headcount plan and the average salary per employee of each category of personnel and determining the impact of these deviations on salary expenditure.

Overexpenditure of the wage fund due to the maintenance of an excess number of all categories of service personnel should be classified as non-production expenses, and its liquidation should be considered a reserve for reducing costs.

Deviations from the average salary plan may be caused by:

an increase or decrease in the share of higher-paid employees in the total number of the corresponding category. (If there is an understaffing of employees, such a deviation is inevitable and is not considered an overrun);
violation of established salaries (the resulting overexpenditure of the fund is an unacceptable non-production expense);
above-plan overfulfillment of production standards and above-plan payment of bonuses included in the salary fund ( good reasons), incorrect pricing of work, unproductive payments and other shortcomings that affect the average salary (unexcused reasons).

The impact of a change in the number of employees on the wage fund is determined by multiplying the deviation from the plan for the number of employees (D N) by the planned average salary (Z p), and the impact of the deviation from the plan of the average annual salary (D Z) - by multiplying this deviation by the actual number of employees (N f) for certain categories of personnel (absolute difference method):

Analysis of wages of production workers. The wages of production workers are highlighted as a separate item in the calculation. A detailed analysis of this part of the fund is carried out for the most important products in those industries where the wages of production workers play a significant role in determining the cost of production and where, therefore, a special section of the calculation provides for a breakdown of the article “Basic and additional wages.”

Data on wage fund expenditures for production workers are shown in Table 4.2.

Table 4.2. Analysis of salaries of production workers.

Products	Unit of measurement	Issue for	Wages in commercial products, thousand rubles.			Wages in the cost of a unit of production, thousand rubles.
Products	Unit of measurement	March	according to plan	actually	deviations (+,-) (gr.5-gr.4)	according to plan (gr.4:gr.3)	actually (gr.5:gr.3)	deviations (gr.8-gr.7)
1	2	3	4	5	6	7	8	9

A	PC.	730	9839,7	9783,1	-56,6	13,48	13,40	-0,08
B	PC.	643	5412,0	5314,0	-98,0	8,42	8,26	-0,15
IN	PC.	40	661,2	674,9	+13,7	16,53	16,87	+0,34
Other products	thousand rubles		44,5	57,0	+12,5
Total			15957,4	15829,0	-128,4

The table shows that in fact the costs of workers' wages turned out to be lower than the planned value by 128.4 thousand rubles. Savings were achieved by reducing wages for products A and B. At the same time, for product B and other products, the wages of production workers exceeded the plan (by 0.34 thousand rubles per unit of product B and by 12.5 thousand rubles for all other products).

Next, it is necessary to analyze the deviation of workers' wage fund expenses as a result of changes labor intensity products. Reducing labor intensity ensures wage savings and increased labor productivity.

Table 4.3 presents the necessary data to determine the influence of labor intensity and hourly rate on wages for product B.

Table 4.3. Analysis of the impact of labor intensity.

Indicators	Designations	Plan	Fact	Deviations from the plan (+,-)

Number of units of product B, pcs.	q	643	643	--
Labor intensity of product unit B, standard hours	Q	1,20	1,18	-0,02
Hourly rate, rub.	L	7014	7004	-10
Amount of wages, thousand rubles.	U	5412,0	5314,0	-98,0

The influence of each factor was:

a) the influence of labor intensity

b) the impact of a change in hourly rate

Thus, wage costs for product B decreased by 98.0 thousand rubles. At the same time, by reducing the labor intensity of product production by 0.02 standard hours, wage costs decreased by 90.2 thousand rubles, and by changing the hourly rate by 10 rubles. expenses decreased by 7.8 thousand rubles.

It is advisable to carry out similar calculations for all manufactured products.

One more important reason deviations of the actual wages of production workers from the planned ones are deviations from the established technology, recorded by special accounting documents - additional payment slips, which are grouped by places of detection, reasons and culprits.

§ 5. Analysis of complex cost items.

Complex costs are those that consist of several elements. The following groups of complex expenses are distinguished as part of the cost price: expenses for preparation and development of production of new types of products; expenses for maintenance of production and its management (they include three items - expenses for the maintenance and operation of equipment, shop expenses, general plant (general) expenses); losses from marriage; other production costs; non-production (commercial) expenses.

Each item of comprehensive expenses includes costs of various economic natures and purposes. In accounting, they are detailed into more fractional items that combine expenses of the same purpose. Therefore, deviations from the cost estimate are determined not by the item as a whole, but by the individual items included in it. Then the amounts exceeding the plan for some items and savings for others are calculated separately. When assessing the changes obtained, it is necessary to take into account the dependence of individual expenses on the plan for production volume and the number of employees, as well as on other production conditions.

Based on their dependence on production volume, expenses are divided into those that do not depend on the degree of implementation of the plan - conditionally permanent and dependent - variables. Variable costs can also be divided into conditionally proportional, which, when the plan for production volume is exceeded, increases almost in full accordance with the percentage of fulfillment of this plan, and digressive, the growth of which to one degree or another lags behind the above-plan growth in production volume.

According to research, with minor deviations of production volume from the plan (within ±5%), workshop and general plant costs remain unchanged.

Expenses for the maintenance and operation of equipment increase when the plan for production volume is exceeded, but not proportionally, but digressively, and the rate of their growth depends on the factors that determined the above-plan growth of production. Of the individual components of these expenses, almost in proportion to the fulfillment of the plan for production volume, the item “Wear of low-value and wear-out tools and devices” increases or decreases. At the same time, expenses under the item “Depreciation of equipment and Vehicle” remain unchanged.

The items “Other production expenses” and “Non-production (commercial) expenses” are also variables.

Due to the absence of certain coefficients that determine the permissible increase in the variable part of complex costs with above-plan growth in production volume, in practice, when analyzing complex cost items, variable costs are recalculated to the percentage of fulfillment of the production plan, and conditionally fixed costs are limited to the budget. However, for no item of complex expenses should deviations increase in proportion to changes in production volume: in all cases relative savings should be achieved.

According to the possibilities of influence of the enterprise itself, deviations - both overruns and savings - are divided into dependent And independent From him.

According to the nature of the reasons that caused the deviations, they differ: savings, which are and are not the merit of the enterprise; overexpenditure, unjustified and justified, which is not considered the fault of the enterprise.

5.1. Analysis of production maintenance and management costs.

The analysis of costs for production maintenance and management begins with studying the dynamics of their absolute amounts and share in the standard net production.

The study of the dynamics of absolute amounts of expenses is carried out from the point of view of determining the impact on their change of measures to strengthen the economy regime, improve production maintenance and management. Studying the dynamics of expenses is also important for checking the validity of the planned growth or reduction of individual items and expenses. The planned change in their amounts should follow from the planned change in the number of service and management personnel, the growth of the organizational and technical level of the enterprise and other business conditions affecting the size of the relevant expense items.

Table 5.1. Analysis of the dynamics of costs for production maintenance and management.

Indicators	Last year		Reporting year
	thousand roubles.	to net production, %	plan		actually
	thousand roubles.	to net production, %	thousand roubles.	to net production, %	thousand roubles.	to net production, %

Regulatory clean products	64764	100,0%	70800	100,0%	69844	100,0%
Expenses for maintenance and operation of equipment	11001	17,0%	10716	15,1%	10329	14,8%
Shop expenses	12125	18,7%	13170	18,6%	12873	18,4%
General plant expenses	17000	26,2%	18420	26,0%	18515	26,5%
TOTAL production and management costs	40126	62,0%	42306	59,8%	41717	59,7%

Analyzing the data in Table 5.1, we can say that a decrease in the level of expenses with an increase in their absolute amount indicates that the growth of expenses lags behind the growth rate of production volumes, which leads to a decrease in costs. The growth in production volume over the two years being compared led to a relative reduction in the level of costs for production maintenance and management, despite a slight increase in the absolute amount of shop floor and especially general plant expenses. However, it is necessary to find out the reasons for the underfulfillment of the plan for shop expenses, since savings could have been achieved through failure to implement labor protection measures, experiments and research, reducing the current repair of buildings and structures, etc.

The comparison allows us to establish only the general trend of changes in expenses. The individual cost items included in them depend on many factors. It is possible to identify reserves for their savings only on the basis of a detailed study of the dynamics and deviations from the plan for each article separately. It should be borne in mind that, by their nature, the costs of maintaining and operating equipment, in contrast to shop and general plant expenses, are variable. Therefore, when analyzing them, it is necessary to take into account that these costs change approximately in proportion to changes in production volume. Consequently, actual costs in this case must be compared not only with the plan for the approved production volume, but also with the recalculated estimate (Table 5.2).

Table 5.2. Item-by-item analysis of the costs of maintaining and operating equipment.

Title of articles	According to plan, thousand rubles.	Plan in terms of actual output, thousand rubles.	In fact, thousand rubles.	Deviations (+,-) (group 3-group 2), thousand rubles.
A	1	2	3	4

Depreciation of equipment and vehicles*	2270	2270	2278	+8
Equipment operation	1810	1786	1663	-123
Current repairs of equipment and vehicles	1971	1944	1938	-6
In-plant movement of goods	755	745	867	+122
Inspection of low-value and wear-out tools and devices	1693	1670	1357	-313
other expenses	2217	2187	2226	+39
Total expenses for the maintenance and operation of machinery and equipment for the reporting period	10716	10602	10329	-273

* Depreciation charges are not recalculated, since they do not depend on production volume.

The table data shows that the actual costs of maintaining and operating the equipment turned out to be 273 thousand rubles, or 2.6%, compared to the plan, adjusted for changes in product output (in this case, there was a decrease in output volumes against the planned one by 1.4%). At the same time, significant deviations from the plan are observed for individual items, so it is necessary to establish specific reasons for savings or overspending on these items. (Large deviations are likely the result of unreasonable planning of these expense items.)

Analysis of costs for preparation and development of production. The main part of this expense item is associated with the development of new types of products and new technological processes and the preparation of industrial production of these products. In addition, this item in the mining industry reflects the costs of mining preparation work. All actual costs for these purposes are taken into account from the beginning as part of deferred expenses, and then are written off gradually to the cost of production based on the planned period for their full reimbursement and the planned volume of production during this period.

Expenses for preparation and development of production are divided into items related to individual production stages. In the process of analysis, it is necessary to establish for which items of the estimate there were overruns and their reasons, whether additional savings were obtained as a result of non-fulfillment of the production preparation plan or less thorough implementation, which may subsequently lead to a decrease in the efficiency of the introduction of new equipment and technology. Overexpenditures can be justified if they are compensated by an increase in the economic effect from the long-term implementation of the production and operation of a new facility.

Analysis of losses from defects. This expense item is planned as an exception only in production facilities where it is impossible to completely prevent such losses due to hidden defects in raw materials and materials that cause defects during their processing, and for other unavoidable reasons. However, in practice, most enterprises experience losses from defects, and their elimination or at least reduction is a significant reserve for reducing production costs.

Analysis of losses from defects usually begins with a comparison of general data on the level of defects for the corresponding data for the previous period, and in enterprises where defects are planned, with the planned level.

Then the analysis is detailed by the place where the defect occurred (in which production units of the association and in which workshops), by the reasons (factors) for its occurrence, and by the culprits. The degree of compensation for losses from marriage by the perpetrators is considered.

The dynamics of the relationship between the costs of final defects and correction of defects should be studied. The higher the proportion of final defects, the worse the inter-operational and inter-shop quality control of parts and semi-finished products is at the enterprise.

Non-production expenses. These include all costs for packaging, its delivery to the destination station, loading, as well as other sales costs. These costs depend on the volume of products shipped, i.e. they are variable. Adjustment of estimates for them should be carried out based on changes natural shipment volume, since packaging and shipping costs are proportional to the weight and dimensions of the product, and not their cost.

When calculating reserves for reducing non-production expenses, one must strive to identify as fully as possible the overexpenditures for individual types of these expenses, avoiding their balancing with cost savings for other purposes.

Annex 1. Estimated data for table 2.1 "Costs per ruble of marketable products."

product name	Number of products (items), pcs.		Cost per unit of product, thousand rubles.		Wholesale price per unit of product, thousand rubles.		Change prices and tariffs for materials.	Estimated indicators for table 2.1. "Costs per ruble of commercial products", thousand rubles.
product name	according to plan qp	actual qf	according to plan SP	actual Sф	according to plan SP	actual Cf	resources, thousand rubles	S qпSп	S qфSp	S qфSф	S qfS"f*	S qпСп	S qfSp	S qфСф

Vacuum cleaner	63	60	1013	999	1267	1313	+34	63819	60780	59940	57900	79821	76020	78780
Fridge	61	61	1903	1911	2199	2199	+41	116083	116083	116571	114070	134139	134139	134139
Coffee maker	95	35	113	108	177	180	-2	10735	3955	3780	3850	16815	6195	6300
Iron	114	128	78	65	94	107	+3	8892	9984	8320	7936	10716	12032	13696
Telephone	175	153	23	23	49	28	-1	4025	3519	3519	3672	8575	7497	4284
Total:	508	437						203554	194321	192130	187428	250066	235883	237199

* S"f - actual cost per unit of product, adjusted for changes in prices and tariffs for material resources compared to their planned value (S"f = Sf - changes in prices and tariffs).

Basic provisions for planning, accounting and calculating the cost of production at industrial enterprises (approved by the State Planning Committee of the USSR, the Ministry of Finance of the USSR, the State Committee for Prices of the USSR, the Central Statistical Office of the USSR on July 20, 1970).
Regulations on the composition of costs for the production and sale of products (works, services), included in the cost of products (works, services), and on the procedure for generating financial results taken into account when taxing profits (approved by Decree of the Government of the Russian Federation of August 5, 1992 No. 552 ; with amendments and additions approved by the Government of the Russian Federation dated July 1, 1995 No. 661 and November 20, 1995 No. 1133).
Analysis of financial and economic activities of enterprises. Ed. L. Korotkova and R. Medvedev. - M.: Gosfinizdat, 1963 - 357 p.
Analysis of economic activity in industry: Textbook / L.A. Bogdanovskaya, G.G. Vinogorov, O.F. Migun et al.: Under general. ed. IN AND. Strazheva. - Minsk: Vys. school, 1995. - 363 p.
Business analysis course. Ed. prof. S.K. Tatura and prof. A. D. Sheremeta. - M.: “Economics”, 1974 - 399 p.
Course of economic analysis: Proc. for economical specialist. universities Ed. M. I. Bakanova, A. D. Sheremeta. - M.: Finance and Statistics, 1984 - 412 p.
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Economic analysis of economic activities of enterprises and associations: Textbook / Ed. S. B. Barngolts and G. M. Tatsia. - 3rd ed. reworked and additional - M.: Finance and Statistics, 1986 - 407 p.

The cost of production is the most important indicator of the economic efficiency of its production. It reflects all aspects of economic activity and accumulates the results of using all production resources. The financial performance of enterprises, the pace of expanded reproduction, and the financial condition of business entities depend on its level.

Analysis of the cost of products, works and services is of great importance in the cost management system. It allows you to study trends in changes in its level, establish the deviation of actual costs from normative (standard) ones and their reasons, identify reserves for reducing product costs and assess the enterprise’s work in using opportunities to reduce product costs.

The effectiveness of a cost management system largely depends on the organization of their analysis, which, in turn, is determined by the following factors:

form and methods of cost accounting used at the enterprise;
the degree of automation of the accounting and analytical process at the enterprise;
the state of planning and regulation of the level of operating costs;
the presence of appropriate types of daily, weekly and monthly internal reporting on operating costs, allowing to quickly identify deviations, their causes and timely take corrective measures to eliminate them;
the presence of specialists who can competently analyze and manage the cost formation process.

To analyze the cost of products, statistical reporting data “Report on the costs of production and sales of products (works, services) of an enterprise (organization)”, planned and reported calculations of product costs, data from synthetic and analytical cost accounting for main and auxiliary production, etc. are used. .

The objects of product cost analysis are the following indicators:

full cost of production as a whole and by cost elements;
level of costs per ruble of manufactured products;
cost of individual products;
individual cost items;
costs by responsibility centers.

Product cost analysis usually begins with studying the total cost as a whole and by main elements(Table 11.1).

Table 11.1. Production costs

Cost elements	Amount, thousand rubles			Cost structure, %
Cost elements	t 0	t 1	+, -	t 0	t 1	+, -	t 0	t 1
Salary	13 500	15 800	+2 300	20,4	19,4	-1,0	16,88	15,75
Contributions for social needs	4 725	5 530	+805	7,2	6,8	-0,4	5,90	5,51
Material costs	35 000	45 600	+10 600	53,0	55,9	+2,9	43,75	45,45
Including: raw materials and materials fuel electricity, etc.	25 200 5 600 4 200	31 500 7 524 6 576	6300 +1924 +2376	38,2 8,5 6,3	38,6 9,2 8,1	0,4 +0,7 +1,8	31,50 7,00 5,25	31,40 7,50 6,55
Depreciation	5 600	7 000	+1 400	8,5	8,6	+0,1	7,00	6,98
Other costs	7175	7 580	+405	10,9	9,3	-1,6	8,97	7,56
Full cost	66 000	81 510	+15 510	100	100	-	82,50	81,25
Including: variable expenses fixed costs	46 500 19 500	55 328 26 182	9 828 +6 682	70,5 29,5		1,5 +1,5	58,12 24,38	55,15 26,10

The total cost of production may change:

due to the volume of production;
product structure;
level of variable costs per unit of production;
amounts of fixed expenses.

When the volume of production changes, products increase only variable expenses(piece-rate wages of production workers, direct material costs, services); fixed costs(depreciation, rent, time wages of workers and administrative and managerial personnel, general business expenses) remain unchanged in the short term, provided that the previous production capacity of the enterprise is maintained (Fig. 11.1).

Cost line in the presence of constant and variable expenses is an equation of first degree

where Ztot is the total cost of production;

VBP - volume of production of products (services);

b is the level of variable costs per unit of product (service);

A is the absolute amount of fixed costs for the entire output.

Data for factor analysis of the total amount of costs dividing costs into constant and variable are given in table. 11.2 and 11.3.

Table 11.2. Costs per unit of production, rub.

	Cost level, rub.						Volume
View	base			current			production, pcs.
products	Total	Including		Total	Including		base	current
		change- new	constant new		change- new	constant new
A	4 000	2 800	1 200	4 800	3 260	1 540	10 000	13 300
B	2 600	1 850	750	3 100	2 100	1 000	10 000	5 700
Etc.

Table 11.3. Data for factor analysis of the total cost of production

Expenses	Amount, thousand rubles	Cost drivers
Expenses	Amount, thousand rubles	Product output volume	Product structure	Variable costs	Fixed costs
base period: ∑(VBP i0 ·b i0)+A 0
base period, recalculated to the actual volume of production of the reporting period while maintaining the basic structure: ∑(VBP i1 ·b i0) ·I VBP +A 0
at the base level for the actual output of the reporting period: ∑(VBP i1 ·b i0)+A 0
reporting period at the “base value of fixed costs: ∑(VBP i1 ·b i1)+A 0
reporting period: ∑(VBP i1 ·b i1)+A 1
Change in costs

From the table 11.3 it is clear that due to reduction in production by 5% (I VBP = 0.95) the amount of costs decreased by 2,325 thousand rubles. (63,675 - 66,000).

By changing the product structure the amount of costs increased by 3,610 thousand rubles. (67,285 - 63,675). This indicates that the share of cost-intensive products in the total production volume has increased.

Due to an increase in the level of unit variable costs the total amount of costs increased by 7,543 thousand rubles. (74,828 - 67,285).

Fixed expenses increased by 6,682 thousand rubles. (81,510 - 74,828), which was also one of the reasons for the increase in total costs.

Thus, the total amount of costs is higher than the base by 15,510 thousand rubles. (81,510 - 66,000), or by 23.5%, including due to changes in the volume of production and its structure - by 1,285 thousand rubles. (67,285 - 66,000), and due to the increase in production costs - by 14,225 thousand rubles. (81,510 - 67,285), or by 21.5%.

It is possible to deepen the analysis of the total cost of producing products (services) through the factor decomposition of specific variable costs and the sum of fixed costs (Fig. 11.2).

Mathematically, this relationship can be represented as follows:

Any type of cost can be represented as a product of two factors:

the amount of resources or services consumed (raw materials, supplies, fuel, energy, man-hours, machine-hours, credits, rented space, etc.);
prices for resources or services.

In order to establish how much the amount of costs has changed due to these factors, it is necessary to have the following data on the costs of actual production:

according to planned consumption rates and planned prices for resources

based on actual consumption and planned prices for resources

based on actual consumption and actual prices for resources

In general, the amount of variable costs for actual production and the amount of fixed costs in the reporting period are higher than planned by 14,225 thousand rubles. (81,510 - 67,285), including due to:

a) the amount of resources consumed

64,700 - 67,285 = -2,585 thousand rubles;

b) prices for consumed resources and services

81,510 - 64,700 = +16,810 thousand rubles.

Consequently, the increase in production costs by this enterprise caused mainly by an increase in prices for consumed resources. At the same time, one should positively evaluate the enterprise’s efforts aimed at the economical use of resources, which is why the cost of actual production decreased by 3.84% (2585: 67,285).

During the analysis process, it is also necessary to evaluate changes in the structure of cost elements. If the share of wages decreases and the share of depreciation increases, then this indicates an increase in the technical level of the enterprise and an increase in labor productivity. The share of wages also decreases if the share of components increases, which indicates an increase in the level of cooperation and specialization of the enterprise.

As can be seen from table. 11.1 and fig. 11.3, growth occurred in all elements and especially in material costs. The amount of both variable and fixed expenses has increased. The cost structure has also changed somewhat: the share of material costs and depreciation of fixed assets due to inflation has increased, and the share of wages has decreased slightly.

Cost intensity (costs per ruble of products produced) a very important general indicator characterizing the level of production costs for the enterprise as a whole. Firstly, it is universal: it can be calculated in any industry and, secondly, it clearly shows the direct connection between cost and profit. This indicator is calculated by the ratio of the total cost of production and sales of products (3 total) to the cost of manufactured products in current prices. At a level below one, production is profitable, at a level above one it is unprofitable.

Table 11.4. Dynamics of cost intensity of manufactured products

Year	Analyzed enterprise		Competitor enterprise		Industry average
Year	Indicator level, kopecks	Growth rate, %	Indicator level, kopecks	Growth rate, %	Indicator level, kopecks	Growth rate, %
xxx1	84,2	100	85,2	100	90,4	100
xxx2	83,6	99,3	85,0	99,7	88,2	97,6
xxx3	82,9	98,5	84,0	98,6	86,5	95,7
xxx4	82,5	98,0	83,8	98,4	85,7	94,8
xxx5	81,25	96,5	82,0	96,2	84,5	93,5

During the analysis, you should study implementation of the plan and dynamics of product cost intensity, as well as conduct inter-farm comparisons for this indicator (Table 11.4).

Based on the data presented, we can conclude that the cost intensity of products at the analyzed enterprise is decreasing at a less rapid rate than that of a competing enterprise and the industry average, but the level of this indicator still remains lower.

It is also necessary to study changes in the level of product cost intensity for individual cost elements (Table 11.5).

After this, you need to establish the factors for changing the total cost intensity, shown in Fig. 11.4.

Table 11.5. Changes in product cost intensity by cost elements

Cost elements	Costs per ruble of products, kopecks.
Cost elements	t 0	t i	+, -
Salary with deductions	22,78	21,26	-1,52
Material costs	43,75	45,45	+1,70
Depreciation	7,00	6,98	-0,02
Others	8,97	7,56	-1,41
Total	82,5	81,25	-1,25

To calculate their influence, you can use the following factor model:

The calculation is made using the chain substitution method given in Table. 11.3 and the data below on the cost of manufactured products.

Calculation of the influence of factors on changes in the cost intensity of products is given in Table. 11.6. Table 11.6. Calculation of the influence of factors on changes in product cost intensity

Costs per ruble of products	Calculation	Factors
Costs per ruble of products	Calculation	Volume of production	Production structure	Amount of resources consumed	Prices for resources (services)	Selling prices for products
IE 0	66 000: 80 000 = 82,50	t 0	t 0	t 0	t 0	t 0
IE USL1	63 675: 76 000 = 83,78	t 1	t 0	t 0	t 0	t 0
IE USL2	67 285: 83 600 = 80,48	t 1	t 1	t 0	t 0	t 0
IE USL3	64 700: 83 600 = 77,39	t 1	t 1	t 1	t 0	t 0
IE USL4	81 510: 83 600 = 97,50	t 1	t 1	t 1	t,	t 0
IE 1	81 510: 100 320 = 81,25	t 1	t 1	t 1	t 1	t 1
ΔIE total = 81.25-82.50 = -1.25; V including due to:

Analytical calculations given in table. 11.6 show that the amount of costs per ruble of products has changed due to the following factors:

decrease in production volume: 83.78 - 82.50 = +1.28 kopecks;

changes in the structure of production: 80.48 - 83.78 = -3.30 kopecks;
amount of resources consumed 77.39 - 80.48 = -3.09 kopecks;
increase in prices for resources: 97.50 - 77.39 = +20.11 kopecks;
increase in product prices: 81.25 - 97.50 = -16.25 kopecks.

Total: -1.25 kopecks.

After this, you can establish the influence of the factors under study on the change in the amount of profit. To do this, absolute increases in product cost intensity due to each factor must be multiplied by the actual sales volume of products in the reporting period, expressed in prices of the base period (Table 11.7):

ΔП Xi =ΔИ Xi ·∑(VPП i1 ·Ц i0)

Based on the data presented, we can conclude that the amount of profit has increased mainly due to rising prices for the company’s products, an increase in the share of more profitable products and a more economical use of resources.

Table 11.7. Calculation of the influence of factors on change
profit amounts

Factor	Impact calculation	Change in profit amount, thousand rubles.
Product output volume	1,28-80 442/100
Product structure	3,30-80 442/100
Product resource intensity	3,09-80 442/100
Prices for consumed resources	20,11-80 442/100
Changes in the average level of selling prices for products	16,25-80 442/100
Total

It should also be noted that the rate of growth in prices for resources outstrips the rate of growth in prices for the company's products, which indicates the negative effect of inflation.

Product type

Volume of production, pcs.

Fixed costs for the entire output, rub.

Variable costs per unit of production, rub.

Product type

For a more in-depth study of the reasons for changes in cost, they analyze the reporting calculations for individual products, compare the actual level of costs per unit of production with the planned level and data from previous periods, other enterprises as a whole and by cost item.

The influence of first-order factors on changes in the level of cost per unit of production is studied using a factor model

where C i is the cost per unit of the i-th type of product;
A i - fixed costs attributed to the i-th type of product;
b i - variable costs per unit of the i-th type of product;
The dependence of the cost per unit of production on these factors is shown in Fig. 11.5.

Using this model and the data in Table. 11.8, we will calculate the influence of factors on the change in the cost of product A using the chain substitution method.

Table 11.8. Initial data for factor analysis of the cost of product A

Index	According to plan	Actually	Deviation from plan
Volume of production (VBP), pcs.
Amount of fixed costs (A), thousand rubles.
Amount of variable costs per product (b), rub.
Cost of one product (C), rub.

The total change in unit cost is

ΔС total = С 1 – С 0 = 4,800 - 4,000 = +800 rub.,

including due to changes:

a) volume of production

ΔС VBP = С conv1 –С 0 = 3,700 - 4,000 = -300 rub.;

b) the amount of fixed costs

ΔCa= With condition2 - With condition1 = 4,340 - 3,700 = +640 rub.;

c) the amount of unit variable costs

ΔС b = С 1 - С conv2 = 4,800 - 4,340 = +460 rub.

Similar calculations are made for each type of product (Table 11.9).

Table 11.9. Calculation of the influence of first-order factors on changes in the cost of certain types of products

End of table. 11.9

Product type	Product cost, rub.	Change in cost, rub.
		general	Including due to
			output volume	fixed costs	variable costs

B
Etc.

After this, the cost of production for each cost item is studied in more detail, for which the actual data is compared with the data of the plan, past periods, and other enterprises (Table 11.10).

The data presented show an increase in all cost items and especially in material costs and wages of production personnel.

Similar calculations are made for each type of product. Established deviations for cost items are the object of factor analysis. As a result of an item-by-item analysis of product costs, internal and external, objective and subjective factors of changes in its level should be identified. This is necessary for qualified management of the cost formation process and the search for reserves for reducing them.

Table 11.10. Analysis of the cost of product A by cost item

Cost item	Product costs, rub.			Cost structure, %
Cost item
Raw materials and basic materials	1700	2115	+415	42,5	44,06	+1,56
Fuel and energy	300	380	+80	7,5	7,92	+0,42
Wages of production workers	560	675	+115	14,0	14,06	+0,06
Contributions for social needs	200	240	+40	5,0	5,0	-
Expenses for maintenance and operation of equipment	420	450	+30	10,5	9,38	-1,12
General production expenses	300	345	+45	7,5	7,19	-0,31
General running costs	240	250	+10	6,0	5,21	-0,79
Losses from marriage	-	25	+25	-	0,52	+0,52
Other production costs	160	176	+16	4,0	3,66	-0,34
Business expenses