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What cost items include the cost of the project. Product costing: what is it, calculation formula

Cost is the sum of all expenses of an organization that arise during the production of products or the performance of work, as well as the provision of services. Any company should know and control this indicator. Read how the cost of a product is determined, what it includes, how to calculate and reduce it. And also download the calculation method.

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How it will help: The document will help the financial director assess the procedure for forming costs and consolidate the rules for distributing costs.

How it will help: the report will help the financial director compare variable and fixed expenses, assess their share in general structure costs.

Determination of cost

How it will help: determine the real “fair” cost of heterogeneous products manufactured according to related species activities.

How it will help: Correctly estimate the cost of a specific order.

Types of cost

Economists usually distinguish two types:

Full (sometimes called medium). This indicator is formed on the basis of all company expenses: expenses for the purchase of equipment, raw materials, delivery costs, employee salaries, etc. Takes into account all the company’s expenses for the production and sale of products.
The marginal cost is the cost of each subsequent unit of production (good or service). The indicator depends on the number of products produced. This value shows the effectiveness of further expansion of production.

Other types are also distinguished: by types of costs, costing items, etc. All of them help to make a more detailed accounting of all expenses.

Shop– these are the expenses of a separate division of the enterprise (structure).

Production– this is the sum of the workshop cost, as well as general and target expenses.

General economic- These are management expenses. That is, expenses that cannot be attributed to a specific type of product. It is also called indirect.

Enterprises also consider two more types of cost: planned and actual. Planned - before the start of production, based on an analysis of costs of previous years, predicted prices, etc. Material consumption is determined based on standards. Therefore, this cost is also called standard cost. Thanks to this, it is possible to strictly control the consumption of materials, which minimizes the occurrence of unjustified costs.

Afterwards, the actual costs must be calculated. They already take into account here real prices, consumption, etc. Then these two indicators are compared. If they differ too much from each other (both more and less), the enterprise finds out the reasons for this.

How it will help: evaluate the cost calculation methodology, in particular how correctly it is formed.

Cost structure

Each type of cost consists of different components. But in any case, this indicator is made up of costs. What is included in the cost of production:

rental costs
taxes: transport, etc.
employee salaries
insurance premiums from wages (note that personal income tax does not need to be included in the cost - include accrued wages, not the amount payable)
expenses for equipment, tools, etc.
depreciation of fixed assets, etc.

How production costs are formed

When an organization determines production costs, it adds up the costs only for production, management and maintenance of production. It does not need to include the costs of delivering the finished product to the buyer. This indicator is calculated before the product is sold. It is needed to form the price.

How to reduce costs

Every enterprise is interested in reducing costs. After all, at the same prices, the lower the cost, the greater the profit. On the other hand, by reducing overall costs, the company will be able to reduce the price. This way she can get more customers. Which means total revenue(and as a result, profit) will be greater.

You can reduce costs in several ways:

attract qualified personnel. Competent and experienced workers reduce the number of defective products, they work faster and with better quality. But in this case, the company’s labor costs increase. Usually such expenses are justified;
use modern equipment. Such equipment works faster, produces higher quality products, usually consumes less electricity, etc. True, if an organization decides to retire fixed assets, then its depreciation charges will increase.
automate jobs. A machine can perform some functions better than people: it does it faster, makes fewer defects, etc. Thus, the organization will reduce labor costs, but depreciation charges will increase.
expand sales. The cost of each unit of goods will decrease, as fixed costs per unit of goods will decrease.
optimize management personnel. Worth analyzing. Are there any “extra” employees in the organization? Perhaps the functions of some managers can be divided among other employees. This way the company will reduce labor costs.

Also in effective ways cost reduction is the use of energy-saving equipment, reduction of defects, constant search for suppliers with more low prices, improvement of production technology, etc.

It is quite difficult to give an unambiguous definition of cost, since this indicator has several types. In general, the cost shows the cost of a company to perform a particular action or maintain a condition. Cost indicators directly affect the final cost of products, and are also necessary when calculating the profitability of an enterprise. Another use for cost estimates can be when filing a customs declaration; if customs officers suspect that the value of the cargo is undervalued, then providing a detailed cost estimate will help avoid delays. Typically, product costing is the responsibility of the accountant.

Types of cost

There is the following classification of cost:

The workshop includes all the costs that are necessary for the production of products, including raw materials, personnel wages, and energy costs.
Production takes into account workshop costs, costs of auxiliary production and enterprise management.
The full one consists of production, to which are added the costs of selling and promoting the product. Most often, it is precisely this that is understood under the concept of the cost of goods.
Indirect (general business) consists exclusively of the costs of managing the company, and does not take into account production costs.

Note: the choice of the required type of cost is solely within the competence of the company’s management. Typically, if production or workshop costs are used, then the costs of managing and selling the goods are also indicated in separate columns of the documentation.

Classification of expenses

This division is quite arbitrary; it is necessary to improve the analysis of the enterprise’s activities and may differ depending on internal rules. Typically, direct costs include materials, worker salaries, and equipment maintenance. Reducing them is quite difficult; as a rule, such a step involves a transition to a new technological process, and therefore requires large capital investments. Indirect costs are necessary, rather, to increase product sales and effective management production process, they may change significantly over time, for example due to increased supply and expansion of production.

Another type of classification is the division of expenses into relevant and irrelevant. The first category depends on decision making, while the second is impossible to manage; it is usually classified as natural disasters, accidents. However, the relevance of costs is determined only for a specific situation, for example, a fire can be a consequence of both a violation of safety regulations and technical defects of equipment.

Depending on the volume of production, costs can be fixed or variable. An example of the second type is the purchase of energy resources and Supplies. The remuneration of workers most likely belongs to the first type, since it does not always depend on production volumes. It is most difficult to classify commercial expenses, since with a fall in production the size of the advertising budget usually increases, but at the same time the income of managers decreases due to the deprivation of their bonuses. The company should try to minimize fixed costs to reduce the final cost of the product.

1.The essence of the concept of initial cost

Product cost

Cost of individual trade items (types of products)

2. Original cost industrial products and their structures

3. Technical and economic factors and reduction reserves initial cost

Cprime cost- these are all costs ( costs), incurred by the enterprise for the production and sale (sale) of products or services

Original cost- this is the valuation of products (works, services) used in the production process natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources and others costs for its production and sale

Cprime cost- this is the expense enterprises directly related to the production, purchase and sale of products, implementation works and provision of services

Original cost of production- is the monetary expression of direct expenses enterprises for the production and sale of products.

The essence of the concept of initial cost: Obtaining the greatest effect at the lowest cost, saving labor, material and financial resources depend on how it solves the issues of reducing prices without marking up products. The immediate objectives of the analysis are: checking the validity of the plan at the initial cost, the progressiveness of cost standards; assessing the implementation of the plan and studying the reasons for deviations from it and dynamic changes; identifying reserves for reducing the initial cost; finding ways to mobilize them. Identification of reserves for reducing the initial cost should be based on a comprehensive technical and economic analysis work enterprises: study of the technical and organizational level of production, use production capacity and fixed assets, raw materials and materials, work force, economic relations.

Costs of living and materialized labor in process production are production costs. In the conditions of commodity-money relations and the economic isolation of the enterprise, differences inevitably remain between the social costs of production and the expenses of the enterprise. Social production costs are the totality of living and embodied labor, which is expressed in the cost of production. An enterprise's costs consist of the entire amount of the enterprise's costs for the production of products and their sale. These costs, expressed in monetary terms, are called costing and are part of cost product. It includes price raw materials, materials, fuel, electricity and other items of labor, depreciation, production personnel and other cash expenses. Reducing prices without marking up products means saving embodied and living labor and is the most important factor in increasing production efficiency and increasing savings. The largest share in the costs of industrial production falls on basic materials, and then on wages and depreciation charges. The initial cost of production is interconnected with production efficiency indicators. It reflects most of the cost of products and depends on changes in the conditions of production and sale of products. Technical and economic factors of production have a significant impact on the level of costs. This influence manifests itself depending on changes in technology, technology, production company, in the structure and quality of products and on the cost of its production. Cost analysis, as a rule, is carried out systematically throughout the year in order to identify internal production reserves for reducing them.

In economics and for applied problems, several types of initial cost are distinguished:

Full initial cost (average) - the ratio of total costs to production volume;

Marginal initial cost is the initial cost of each subsequent unit produced;

Types of initial cost:

Price without markup for costing items (distribution of costs for compiling the initial cost according to accounting items);

Price without extra charge for cost elements.

A modern way to fairly determine the full price without a markup product- accounting of costs by type of activity (Activity-based costing)

The price without markup changes with each unit produced or purchased product or services. Here's a simple example:

You drove your car to the store to buy a pack of butter, costing 30 rubles. We will calculate this pack for you without any extra charge. You have spent one hour of time. Let's say an hour of your time is valued at 100 rubles. You have used up fuel in your car. Let's say fuel was spent in the amount of 50 rubles. Also yours is worn out (). Let's say depreciation 10 rubles were written off. Thus, the initial cost of your pack of butter will be 190 rubles. (price*quantity+costs)/quantity. But if you purchased 2 packs of oil, the initial cost will change. (price*2+costs)/2 = 110 rubles per pack.

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

Initial cost of production

The initial cost of production is a synthetic, general indicator that characterizes all aspects of the enterprise’s activities, as well as reflecting the efficiency of its work.

The initial cost of production includes the following costs:

for preparation of production and development of money issue of new types of products, start-up work;

market research;

directly related to the production of products, due to technology and company production, including management costs;

to improve technology and companies production process, as well as improving the quality of manufactured products;

for sales of products (packaging, transportation, advertising, storage, etc.);

recruitment and training;

other cash expenses of the enterprise related to money issue and sales of products.

There is the following classification of costs:

by degree of homogeneity - elemental(homogeneous in composition and economic content - material costs, wages, deductions from it, depreciation charges, etc.) and complex(different in composition, covering several elements of costs - for example, for the maintenance and operation of equipment);

in connection with production volume - permanent(their total value does not depend on the quantity of manufactured products, for example, the cost of maintaining and operating buildings and structures) and variables(their total amount depends on the volume of manufactured products, for example, the costs of raw materials, basic materials, components). Flow Variables can in turn be divided into proportional(change in direct proportion to the volume of production) and disproportionate;

according to the method of attributing costs to the price without markup of individual trade items - straight(directly related to the manufacture of certain trade items and are charged directly to the cost of each of them) and indirect(related to the production of several types of trade items, they are distributed among them according to some criterion).

One should also distinguish total costs(for the entire volume of production for a certain period) and consumption per unit of production.

Initial cost of individual trade items (types of products)

When determining the initial cost of individual types of products (works, services), a grouping of costs per unit of product according to costing items is used, which is necessary in the process of pricing for different types of trade items (products), calculating their profitability, analyzing the costs of producing identical trade items with competitors, etc. .d.

There are planned and actual calculations.

The main object of calculation is finished trade items (products) intended for release outside the enterprise.

The list of costing items, their composition and methods of distributing costs by type of product (work, service) are determined by industry regulations methodological recommendations on issues of planning, accounting and calculating the initial cost of products (works, services), taking into account the nature and structure of production.

Most industrial enterprises have adopted the following standard (approximate) nomenclature of costing items:

Raw materials and materials;

technological energy;

main wage production workers;

additional production workers;

deductions for social needs from the basic and additional wages of production workers;

shop (general production) expenses;

general running costs;

preparation and development of production;

non-production expenses (for analysis of market conditions and sales).

The sum of the first seven items forms the workshop initial cost, nine - the production cost, and all items - the full initial cost of production.

In the context of the transition, many small and medium-sized enterprises use a reduced range of costing items.

The structure of the initial cost for costing items shows: the ratio of expenses to the full price without markup of products, what was spent, where it was spent, for what purposes the funds were directed. It allows you to highlight the costs of each workshop or division of the enterprise.

If in the production cost estimate only economically homogeneous elements of costs are combined, then in the calculation items only some are homogeneous, and the rest include different kinds costs, i.e. are complexes.

Factors that ensure a reduction in the initial cost include: saving all types of resources consumed in production - labor and material; increasing labor efficiency, reducing losses from defects and downtime; improving the use of basic production assets; application latest technology; cost reduction for sales products; changes in the structure of the production program as a result of assortment shifts; reduction of management costs and other factors.

Price without extra charge for industrial products and their structures

Product cost is one of the most important economic indicators of the activities of industrial enterprises and associations, expressing in monetary form all the costs of the enterprise associated with the production and sale of products. The price without markup shows how much the products it produces cost the company. The price without markup includes the costs of past labor transferred to the product ( depreciation fixed assets, the cost of raw materials, materials, fuel and other material resources) and expenses for payment labor of enterprise employees (wages).

There are four types of initial cost of industrial products. The workshop initial cost includes the costs of a given workshop for the production of products. The general factory (general factory) initial cost shows all the costs of the enterprise for the production of products. The full initial cost characterizes the enterprise’s costs not only for production, but also for the sale of products. The industry price without markup depends both on the performance of individual enterprises and on the production company in the industry as a whole.

A systematic reduction in the initial cost of production provides the state with additional funds both for the further development of social production and for improving the material well-being of workers. Reducing prices without marking up products is the most important source of profit growth for enterprises.

Expenses for the production of industrial products are planned and accounted for by primary economic elements and cost items.

Grouping by primary economic elements allows you to develop an estimate of production costs, which determines the total need of the enterprise for material resources, the amount of depreciation of fixed assets, expenses for payment labor and other cash expenses of the enterprise. IN industry The following grouping of expenses according to their economic elements has been adopted:

Raw materials and basic materials,

auxiliary materials,

fuel (from the side),

energy (from the side),

Depreciation of fixed assets,

Wage,

deductions for social insurance,

other costs not distributed among elements

The ratio of individual economic elements in total costs determines the structure of production costs. In different industries industry the structure of production costs is not the same; it depends on the specific conditions of each industry.

Grouping costs by economic elements shows the material and monetary expenses of an enterprise without distributing them to individual types of products and other economic needs. Based on economic elements, as a rule, it is impossible to determine the initial cost of a unit of production. Therefore, along with grouping expenses by economic elements, production costs are planned and taken into account according to cost items (costing items).

Grouping costs by cost items makes it possible to see expenses by their place and purpose, to know how much it costs the company to produce and sell certain types of products. Planning and accounting of the initial cost by cost items are necessary in order to determine under the influence of what factors a given level of initial cost was formed and in what directions the struggle should be waged to reduce it.

In industry, the following nomenclature of basic costing items is used:

Raw materials

fuel and energy for technological needs

basic salary for production workers

Expenses for maintenance and operation of equipment

shop expenses

general factory expenses

losses from defects, non-production costs. The first seven cost items form the factory initial cost. The total initial cost consists of the factory initial cost and outside production costs. Enterprise costs included in the price without markup of products are divided into direct and indirect. Direct costs include costs directly associated with the manufacture of products and taken into account directly by their individual types: the cost of basic materials, fuel and energy for technological needs, wages of basic production costs, etc. Indirect costs include expenses that are impossible or impractical directly attributed to the initial cost of specific types of products: shop costs, general plant (general factory) costs, for the maintenance and operation of equipment.

Shop and general plant expenses in most industries are included in the initial cost of individual types of products by distributing them in proportion to the amount of wages, production costs (without additional payments according to the progressive bonus system) and the costs of maintaining and operating equipment. For example, the amount of workshop costs for the month amounted to 75 million rubles, and the basic salary of production workers was 100 million rubles. This means that in the initial cost of certain types of products, shop expenses will be included in the amount of 75% of the amount of the basic wages of production workers accrued for certain types of products. The item “Non-production expenses” takes into account mainly the costs of selling finished products (costs of containers, product packaging, etc.) and expenses for research work, personnel training costs, costs for delivering products to the departure station, etc. .P. As a rule, non-production costs are included in the price without markup for certain types of products in proportion to their factory price without markup. The initial cost of individual types of products is determined by drawing up calculations that show the cost of production and sales of a unit of product. Calculations are compiled according to cost items accepted in a given industry. There are three types of calculations: planned, normative and reporting. In planned costing, the initial cost is determined by calculating costs for individual items, and in standard costing - according to existing this enterprise standards, and therefore, unlike planned costing, due to a decrease in standards as a result of organizational and technical measures, it is reviewed, as a rule, monthly. The reporting calculation is compiled on the basis of accounting data and shows the actual initial cost of the trade item, making it possible to check the implementation of the plan at the initial cost of the trade item and identify deviations from the plan in individual production areas. The correct calculation of the initial cost of products has important: the better the accounting is organized, the more advanced the calculation methods, the easier it is to identify, through analysis, reserves for reducing the initial cost of products. On industrial enterprises Three main methods are used for calculating prices without markups and taking into account production costs: custom, distribution and standard. The custom method is used most often in individual and small-scale production, as well as for calculating the initial cost of repair and experimental work. This method consists in the fact that production costs are taken into account according to orders for a product or a group of trade items. The actual initial cost of an order is determined upon completion of the manufacture of trade items or work related to this order, by summing up all costs for this order. To calculate the initial cost per unit of production, the total cost of the order is divided by the number of trade items produced.

The incremental method of calculating the initial cost is used in mass production with a short but complete technological cycle, when the products produced by the enterprise are homogeneous in terms of the source material and the nature of processing. Cost accounting in this method is carried out by stages (phases) of the production process. The normative method of accounting and calculation is the most progressive, because it allows you to monitor the daily progress of the production process, to carry out tasks to reduce prices without marking up products. In this case, production costs are divided into two parts: expenses within the norms and deviations from the norms. All costs within the norms are taken into account without grouping, according to individual orders. Deviations from established standards are taken into account according to their causes and culprits, which makes it possible to quickly analyze the causes of deviations and prevent them in the process of work. In this case, the actual price without markup of trade items using the standard accounting method is determined by summing up expenses according to standards and costs as a result of deviations and changes in current standards.

Technical and economic factors and reserves for reducing the initial cost Currently, when analyzing the actual initial cost of manufactured products, identifying reserves and the economic effect of reducing it, calculations based on economic factors are used. Economic forces most fully cover all elements of the production process - means, objects of labor and labor itself. They reflect the main directions of work of enterprise teams to reduce the initial cost: increasing labor efficiency, introduction of advanced equipment and technology, best use equipment, cheaper procurement and better use of labor items, reduction of administrative, managerial and other overhead costs for goods, reduction of defects and elimination of unproductive costs and losses.

Savings that determine the actual price reduction without markup are calculated according to the following composition (standard list) of factors:

Increasing the technical level of production. This is the introduction of new, progressive technology and automation of production processes; improving the use and application of new types of raw materials and materials; design changes and technical characteristics trade items; other factors that increase the technical level of production.

For this group, the impact of scientific and technical achievements and best practices on the initial cost is analyzed. For each event, the economic effect is calculated, which is expressed in a reduction in production costs. Savings from the implementation of measures are determined by comparing the amount of costs per unit of production before and after the implementation of measures and multiplying the resulting difference by the volume of production in the planned year: E = (SS - CH) * AN, where E is the savings in direct current costs SS - direct current costs for unit of production before the implementation of the measure CH - direct current costs after the implementation of the measure AN - volume of production in natural units from the beginning of the implementation of the measure until the end of the planned year. At the same time, carryover savings from those activities carried out in the previous year should also be taken into account. It can be defined as the difference between the annual estimated savings and its part taken into account in the planned calculations of the previous year. For activities that are planned over a number of years, savings are calculated based on the amount of work performed using new technology, only in the reporting year, without taking into account the scale of implementation before the beginning of this year.

A reduction in the initial cost can occur when creating automated control systems, using computers, improving and modernizing existing equipment and technology. Costs are reduced and as a result integrated use raw materials, the use of economical substitutes, the full use of waste in production. A large reserve also conceals the improvement of products, a reduction in their material and labor intensity, a reduction in the weight of machinery and equipment, a reduction in overall dimensions, etc. Improving the company's production and labor. A decrease in initial cost may occur as a result of changes in the company's production, forms and methods of labor with the development of production specialization; improving production management and reducing production costs; improving the use of fixed assets; improvement of logistics; reduction of transport costs; other factors that increase the firm's level of production. With the simultaneous improvement of technology and the production company, it is necessary to establish savings for each factor separately and include them in the appropriate groups. If such a division is difficult to make, then savings can be calculated based on the targeted nature of the activities or by groups of factors. A reduction in current costs occurs as a result of improving the maintenance of the main production (for example, developing continuous production, increasing the shift ratio, streamlining auxiliary technological work, improving the tool economy, improving the company's control over the quality of work and products). A significant reduction in living labor costs can occur with an increase in standards and service areas, a reduction in lost working time, and a decrease in the number of workers who do not meet production standards. These savings can be calculated by multiplying the number of redundant workers by the average wage in the previous year (with social insurance charges and taking into account the costs of work clothes, food, etc.). Additional savings arise when improving the management structure of the enterprise as a whole. It is expressed in a reduction in management costs and in savings in wages and salaries due to the release of management personnel. With improved use of fixed assets, a decrease in the initial cost occurs as a result of increased reliability and durability of equipment; improving the preventive maintenance system; centralization and introduction of industrial methods of repair, maintenance and operation of fixed assets. Savings are calculated as the product of the absolute reduction in costs (except wear and tear) per unit of equipment (or other fixed assets) by the average amount of equipment (or other fixed assets). Improvement of logistics and use of material resources is reflected in a reduction in the cost of raw materials and materials, a reduction in their prices without markup due to a reduction in procurement and storage costs. Transport costs are reduced as a result of reduced costs for delivery raw materials and materials from supplier to enterprise warehouses, from factory warehouses to places of consumption; reducing the cost of transporting finished products. Certain reserves for reducing the initial cost are included in the elimination or reduction of costs that are not necessary in a normal production process (excessive consumption of raw materials, materials, fuel, energy, additional payments to workers for deviations from normal supplier conditions, overtime work, payments for regressive claims, etc. ). Identifying these unnecessary expenses requires special methods and attention of the enterprise team. They can be identified by conducting special surveys and one-time accounting, when analyzing data standard accounting of production costs, careful analysis of planned and actual production costs. Changes in the volume and structure of products, which can lead to a relative reduction in semi-fixed costs (except for depreciation), a relative reduction in depreciation charges, a change in the nomenclature and range of products, and an increase in their quality. Conditionally fixed costs do not depend directly on the quantity of products produced. With an increase in production volume, their number per unit of production decreases, which leads to a decrease in its initial cost. Relative savings on semi-fixed costs are determined by the formula EP = (T * PS) / 100, where EP - savings on semi-fixed costs PS - sum of semi-fixed costs in the base year T - growth rate commercial products compared to the base year. The relative change in depreciation charges is calculated separately. Part of the depreciation charges (as well as other production costs) is not included in the initial cost, but is reimbursed from other sources (special funds, payment for external services that are not included in commercial products, etc.), so the total amount of depreciation may decrease. The decrease is determined by the growth rate data for the reporting period period. The total savings on depreciation charges are calculated using the formula EA = (AOC / DO - A1K / D1) * D1, where EA is the savings due to the relative decrease in depreciation charges A0, A1 is the amount of depreciation charges in the base and reporting year K is a coefficient taking into account the amount of depreciation charges attributed to the initial cost of products in the base year D0, D1 - the volume of marketable products of the base and reporting year. To avoid double billing, the total amount of savings is reduced (increased) by the part that is taken into account by other factors. Changing the nomenclature and range of products produced is one of the important factors, affecting the level of production costs. With different profitability of individual trade items (relative to the original cost), shifts in the composition of products associated with improving its structure and increasing production efficiency can lead to both a decrease and an increase in production costs. The impact of changes in the product structure on the price without markup is analyzed based on variable costs for costing items of the standard nomenclature. Calculation of the influence of the structure of manufactured products on the initial cost must be linked to indicators of increase labor efficiency. Improved use natural resources. This takes into account: changes in the composition and quality of raw materials; changes in field productivity, volumes preparatory work in mining, methods of extracting natural raw materials; changes in other natural conditions. These factors reflect the influence of natural conditions on the value of variable costs. An analysis of their impact on price reduction without markup of products is carried out on the basis of industry methods in the extractive industries. Industry and other factors. These include: commissioning and development of new workshops, production units and production facilities, preparation and development of production in existing enterprise associations and enterprises; other factors. It is necessary to analyze the reserves for reducing the initial cost as a result of the liquidation of obsolete ones and the commissioning of new workshops and production facilities at a higher technical basis, with the best economic indicators. Significant reserves are included in reducing costs for the preparation and development of new types of products and new technological processes, in reducing start-up costs period for newly commissioned workshops and facilities. The calculation of the amount of change in costs is carried out using the formula EP = (C1 / D1 - C0 / D0) * D1, where EP is the change in costs for preparation and development of production C0, C1 - the amount of expenses of the base and reporting year D0, D1 - the volume of marketable products of the base and reporting year. The impact on the initial cost of marketable products of changes in the location of production is analyzed when the same type of product is produced at several enterprises that have unequal costs as a result of using different technological processes. In this case, it is advisable to calculate the optimal placement of certain types of products across enterprises mergers of enterprises taking into account the use of existing capacities, reducing production costs and, based on a comparison of the optimal option with the actual one, to identify reserves. If changes in the value of costs in the analyzed

The basis of any business is the process of control; you can talk a lot about desire, the ability to organize and the availability of start-up capital, but all of them become secondary without the ability to control. Why is this happening?

In fact, any models (mechanisms) built by humans require systematic “adjustment” because nothing is eternal on this planet, and when it comes to models built using people themselves, the problem is aggravated many times over. Alas, " human factor» no one has canceled it, any business is, first of all, a model of interaction between different people to achieve certain goals, most often making a profit. But the question arises of how you can monitor the functioning process itself and, of course, check how effective the work of the constructed model is. In fact, it was precisely for monitoring business processes, which is impossible without analysis, that such indicators as cost, . Moreover, with the development of economic relations, more “advanced” ones appeared in the form of capital productivity, capital intensity, and so on.

Today we will talk about cost as one of the most important (if not the most important) indicators of economic analysis of business performance. What is cost?

Types and types of cost

In fact, the cost price is the totality of all (I emphasize all) expenses in monetary terms from the beginning of the business process to its final completion.

Important - very often the cost price means exclusively the costs of producing one unit of product; at most, total costs are added to the total amount. Which is fundamentally wrong; in fact, this is only one part of the total cost and, ultimately, the total amount must also include costs associated with organizing the business process. That is why there are two main types of cost:

Full cost(average)- This full list expenses, including expenses associated with organizing the business itself and purchasing equipment. For convenience and receiving readable analysis, the total costs associated with creating the business itself, including the contribution of working capital, start-up capital, etc., are divided into the estimated payback period and added in equal parts to general production expenses, as well as depreciation of fixed assets. Thus, the average cost per unit of production is formed;

An example of calculating the total cost.

Start-up costs for starting a business are 1,000,000 rubles, including fixed assets and working capital (conditionally, the full payback period in the business plan is 60 months). Total 16,667 rubles per month.

General expenses (salaries of the director, cleaners, taxes, building rent, lawyer’s services, etc.) amount to 150,000 rubles per month.

1000 units of leather belts were produced in a month (). The total costs for production amounted to 500,000 rubles (cost of leather, electricity, wages for workers, paint, threads).

Total total cost will be - 16667+150000+500000 / 1000 (product units) = 667 rubles for one leather belt (calculations are conditional)

Marginal cost- such calculations are used to determine the break-even threshold for production, plus, of course, profit maximization. What does this mean? In fact, there are two main elements: total production costs, plus depreciation and start-up capital, and the second element is the cost of production itself (how much money we will spend if we produce a unit). So the first category is not directly related to production volumes (or rather, it is extremely elastic). By and large, a salesperson in a store can sell both (or) and 100.

Example of marginal cost calculation.

We take the numbers from the example above, but the calculation method changes:

1 month 1000 belts produced – 16667+150000+500000 / 1000 = 667 rubles

2 month 1500 belts produced - 666667+16667+150000+750000/2500 =633 rubles

3 month 1200 belts produced -1583334+16667+150000+600000/3700 = 635 rubles

As you can see, the marginal cost directly depends on the quantity of products produced and shows how effective it is to increase production in the future. Average reflects the current state of production, trade or provision of services.

There is a huge amount different types cost, in fact, its type depends on the owner’s desire to control this or that area of work, the main classification looks like this:

Shop price – it refers to the cost of individual sections production cycle. Transferring it to a small business, you can remember production roasted sunflower seeds, where you can keep separate records of the cost of the frying process and separately the process of packaging products;
General business cost (or indirect) - this includes all expenses associated with managing and maintaining the business as a whole, things that are not directly related to the production process (for example, a cleaner or lawyer’s services, etc.).
Production cost is the sum of workshop and general economic costs;
Full cost - it is calculated as the sum of production and plus expenses associated with the promotion of goods (advertising, delivery, promotions, presentations), depreciation and, of course, start-up capital (in a proportional breakdown.

Cost structure for business

Regarding the cost structure, two main points can be distinguished:

Firstly, there is the so-called net cost structure. This gradation is developed and maintained as a cumulative total of total expenses in individual areas (blocks or items). It can be noted that the gradation was developed for large businesses; for small individual entrepreneurs or LLCs such a complex system is not needed. True, for a full analysis and, especially, drawing up a business plan, it is worth using an expanded structure.

Raw materials involved in the main production (activity) include materials, components, semi-finished products, units, components
Energy costs - gasoline, diesel fuel, electricity, other types of fuel (in certain types production is one of the most significant expense items).
Depreciation of fixed assets - equipment, machines, appliances, display cases, refrigerators, shelving.
Salaries of key personnel, including mandatory payments and taxes
General production expenses - wages of service personnel, advertising costs, office maintenance, and so on.
Work of third-party organizations (contractors), outsourcing or simply contract agreements
Administrative expenses - expenses for maintaining the management apparatus, paying taxes.

In addition, the cost price is accepted classify by elements of production costs, while a separate article or block may contain several different elements.

Main elements of cost costs:

costs associated with preparing production facilities and launching;
costs reflecting investments in technology, production, management decisions;
investments in the development of the scientific and technical base, development projects, research;
costs reflecting the service component of the process of releasing goods;
investments in improving working conditions;
salary, vacation pay, social contributions;
mandatory (insurance) payments (contributions);
acquisition of fixed assets, depreciation;
purchase of raw materials;
other costs (including social costs, including “resolution of the issue”);

How to calculate your own cost

In fact, independently calculating the cost of a specific business is not difficult, but the trick, as always, is in the details:

First, it is necessary to keep full records of activities, and this means not accounting for taxation (this was discussed in the article and), namely economic activity. In Russia, accounting and, as a consequence, costing and tax accounting of costs are two different things.
Secondly, cost accounting should be carried out by blocks, that is, costs of core activities and management costs (general). By the way, this also applies to costing for stores.
Third, after summing up the overall results, that is, calculating how much was spent, it is imperative to transfer it in the context of sold or produced products. This will give you the opportunity to see the real profitability of the business. That is why when they say that the markup in trade is 100-150%, this absolutely does not mean that the profitability of the business is the same. If we remove from the markup the costs associated with selling products and defects (losses), the markup will decrease to 50-70%, alas, the costs in this business are high.

Ultimately, you will reach your real business profitability indicators, which is very important for any startup.

I often hear the question, how much is cost related to production volume?

There is no definite answer here, it all depends on how high specific gravity general business expenses, that is, costs not directly related to production.

For example, if you have built your own greenhouse and grow cucumbers in it (which gives you the right not to pay taxes), then the level of general business costs will be minimal, you can even order that there will be no such costs at all. Accordingly, volumes practically do not affect the cost, another thing is when there is a company with staff, paying taxes, then in this case such an influence will be traced and the larger the production, the more noticeable this process.

That's all, if you have any questions, ask

Interesting on this topic

Calculating the cost of production is a complex calculation procedure. In an enterprise, this is the responsibility of accountants, who must calculate expected income, taking into account all possible costs of the enterprise.

Product cost - main definitions

Cost is the current expenses of an enterprise, expressed in monetary form, aimed at the production and sale of goods.

Cost is an economic category that reflects the production and economic activities of a company and shows how much financial resources goes into the production and sale of products. The profit of the enterprise directly depends on the cost, and the lower it is, the higher the profitability.

Types and types of cost

The cost is:

Full (medium)– implies the totality of all expenses; commercial costs for the manufacture of products and the purchase of equipment are also taken into account.
The costs of creating a business are usually divided into periods during which they must be repaid. Gradually, in equal shares, they are added to general production costs. In this way, the average cost per unit of production is formed.
Limit– is directly dependent on the quantity of goods produced and reflects the cost of each additional unit of production. Shows how effective further expansion of production will be.

The type of cost depends on what area of the business the owner wants to control:

What is the cost structure

The cost consists of the following items:

Raw materials which is necessary for production.
Some businesses require calculation energy resources(various types of fuel).
Expenses for equipment and machinery necessary for the functioning of the enterprise.
Staff salaries, as well as payment of all payments and taxes.
General production expenses(office rent, advertising, etc.).
Expenses for social events.
Costs associated with depreciation fixed assets.
Administrative expenses.
Payment for the activities of third parties.

Also, when calculating the cost, it is customary to take into account production costs.

Production volume and cost: is there a connection?

The cost of production directly depends on the quantity of goods produced.

Let’s say you need to purchase a package of tea that costs 50 rubles.

The journey to the store takes half an hour.

Your expenses will be:

We’ll value an hour of your time at 60 rubles;
Your travel expenses will be 15 rubles.

The ownership formula is:

Cost = (price of goods + expenses) / (quantity of goods purchased) = (60 + 50 + 15) / 1 = 125 rubles

If you decide to purchase 4 packs of tea, then the cost of the product will be (4 * 50 + 60 + 15) / 4 = 68.75 rubles

The more products you purchase, the lower the cost, which, in turn, reduces the selling price of the product.

Thus, due to the large volume of products, larger firms may not be afraid of competition from such strong enterprises.

Methods for forming production costs

The most common way to determine cost is the calculation method, with which it is possible to calculate the cost of producing a unit of sold products.

It is best to calculate using the comparable controlled price method, which is set based on the cost of services provided by competing firms.

Classification of expenses

The classification of costs is based on the assigned task related to business management (calculate the cost and profit of products sold, and so on).

By adding the cost of the finished product to the cost, all expenses are usually divided into two types:

Direct- those that are added in an exact or single way to the cost of goods manufactured by the company. Often these are the costs of necessary raw materials and supplies, and workers' wages.
Indirect– represent overhead costs and relate to the costing object by the distribution method according to the methodology established at the enterprise.

These include the following costs:

Commercial;
General economic;
General production.

Depending on the volume of products produced, costs are:

Permanent- costs that do not depend on the volume of goods produced, but they are indicated per unit of production and change with the level of business activity.
Variables– costs that are influenced by production or sales volume. A unit of production does not change the amount of costs.

Depending on the significance for a particular case, the costs are:

Relevant– costs depending on the decisions made.
Irrelevant– costs that are not related to the decisions made.

Cost calculation methods

There are several different ways calculating the cost of goods. They are used depending on the nature of the work, services or products produced.

Completeness of adding expenses to the cost price.

There are two types of production costs:

Full– all expenses of the enterprise are taken into account.
Truncated- refers to the unit cost of variable costs.

The constant part of overhead costs and other expenses is written off to reduce profits at the end of the established period without distribution to the goods produced.

At this method calculation, cost is influenced by both variables and fixed costs. The price is calculated by adding the required profitability to the cost.

Actual and standard costs are calculated based on expenses incurred by the enterprise. Standard cost makes it possible to keep under control the costs of various resources and, in case of deviation from the norm, take all necessary actions in a timely manner.

The actual cost per unit of manufactured goods is determined after calculating all costs.

The method is characterized by its low efficiency.

Depending on the object of cost accounting, the following methods are distinguished:

Transverse– used by enterprises of serial and flow production, when during the manufacturing process the product goes through several stages of processing.
Process-by-process- is typical for the mining industry.

Formation of cost at the enterprise

Determining the cost of manufactured products is the task of an accountant. This process is very important and complex. In this case, it is customary to divide costs into direct and indirect.

There are expenses that are indicated as direct in accounting, but as indirect in tax accounting.

All expenses for the production of products and their sales are included in the cost price. Expenses related to taxation are usually rationed.

Cost grouping

To prepare an accounting report, it is necessary to group expenses by economic elements:

Material costs;
Payments of social needs;
Employees' salaries;
Other expenses (payments, contributions to insurance funds).

When calculating costing, they use grouping of costs by costing items, due to which the cost of a unit of output is calculated.

Expenses for production materials and services;
Employees' salaries;
Costs of preparing production for operation;
General production and general business expenses;
Production costs;
Other expenses.

Cost: formula for calculating total cost

Cost is the sum of all costs of production.

In order to get the full cost of a product or service, you need to add up all the costs associated with production and sales.

To do this, use the formula:

PS = PRS + RR

Production cost of the product PRS calculated based on production costs (depreciation, wages, material costs, social benefits).
Costs of selling goods RR(packaging, storage, transportation, advertising).

Unit cost of production calculation formula

Enterprises that produce only one type of product can calculate the cost per unit of manufactured goods using a simple calculation method.

The price per unit of manufactured goods is determined by dividing the sum of all expenses for a specified period by the number of products manufactured during this time.

Product cost calculation excel formulas

Exist special programs Excel, with the help of which it is possible to calculate the cost of production. You enter the required data and receive Excel formulas.

Your task is to enter all the numbers correctly; the program will carry out all the calculations automatically and according to all the rules. All indicators are calculated using formulas. Data processing does not take much time.

Positive aspects of the program: