Rules for calculating the cost of production in production. How is the calculation of the cost of production, analysis on specific examples

This indicator shows how efficient and cost-effective production is. Also, the cost directly affects pricing. Now we will tell in detail everything about this qualitative indicator and learn how to calculate it.

General concept of cost

In every textbook on economics, you can find a variety of interpretations of the term "cost". But no matter how the definition sounds, its essence does not change from this.

Production cost - this isthe sum of all costs incurred by the enterprise for the manufacture of goods and their subsequent sale.

Under the costs understand the costs associated with the purchase of raw materials and materials necessary for production, wages of workers, transportation, storage and sale of finished products.

At first glance, it may seem that calculating the cost of production is quite simple, but this is not entirely true. At each enterprise, such an important process is entrusted only to qualified accountants.

It is necessary to carry out the calculation of the cost of goods on a regular basis. Often this is done at regular intervals. Every quarter, 6 and 12 months.

Types and types of cost

Before undertaking the calculation of the cost of production, it is necessary to study into what types and types it is divided.

Cost can be of 2 types:

• Full or average- includes absolutely all expenses of the enterprise. All costs associated with the purchase of equipment, tools, materials, transportation of goods, etc. are taken into account. The indicator is averaged;
• Marginal - depends on the number of products produced and reflects the cost of all additional manufactured units of the goods. Thanks to the value obtained, it is possible to calculate the efficiency of further expansion of production.

The cost is also divided into several types:

• shop cost- consists of the costs of all structures of the enterprise, whose activities are aimed at the production of new products;
• Production cost- represents the sum of the shop cost, target and general expenses;
• Full cost- includes production cost and costs associated with the sale of finished products;
• Indirect or general business cost- consists of costs that are not directly related to the production process. These are management expenses.

The cost price can be actual and normative.

When calculating the actual cost, they take real data, i.e. Based on the actual costs, the price of the goods is formed. It is very inconvenient to make such a calculation, because often it is necessary to find out the cost of a product before it is sold. The profitability of the business depends on this.

When calculating the standard cost, the data is taken according to production standards. This allows you to tightly control the consumption of materials, which minimizes the occurrence of unnecessary costs.

Product cost structure

All enterprises that produce products or provide services are different from each other. For example , the technological processes of an ice cream factory and a soft toy factory are completely different.

Therefore, each production individually calculates the cost of finished products. This is made possible by a flexible cost structure.

The cost is the sum of the costs. They can be divided into the following categories:

1. Spending on raw materials and materials necessary for the production of products;
2. Energy costs. Some industries take into account the costs associated with the use of a particular type of fuel;
3. The cost of machinery and equipment, thanks to which production is carried out;
4. Payment of salaries to employees. This item also includes payments related to the payment of taxes and social services. payments;
5. Production expenses (rent of premises, advertising campaigns, etc.);
6. Expenses for holding social events;
7. Depreciation deductions;
8. administrative costs;
9. Payment for third party services.

All costs and expenses are percentages. Thanks to this, it is easier for the head of the enterprise to find the “weak” aspects of production.

The cost is not constant. It is influenced by factors such as:

• Inflation;
• Interest rates on loans (if the company has such);
• Geographical location of production;
• The number of competitors;
• Use of modern equipment, etc.

In order for the company not to go bankrupt, it is necessary to calculate the cost of the product in a timely manner.

Formation of production cost

Calculating the cost of production, summarize the costs necessary for the production of products. This indicator does not take into account the cost of selling products.

The formation of the cost at the enterprise occurs before the products are sold, because the price of the product depends on the value of this indicator.

There are several ways to calculate it, but the most common is costing. Thanks to him, you can calculate how much money is spent to produce 1 unit of output.

Classification of production costs

As we said earlier, production costs (cost of production) at each enterprise are different, but they are grouped according to separate characteristics, which makes it easier to make calculations.

Costs, depending on the method of their inclusion in the cost price, are:

• Direct - those that relate directly to the production of products. That is, the costs associated with the purchase of material or raw materials, the remuneration of workers who participate in the production process, etc.;
• Indirect costs are those costs that cannot be attributed directly to production. These include commercial, general business and general production costs. For example, the salaries of managers.

In relation to the total volume of production, the costs are:

• Constants are those that do not depend on the volume of production. These include the rent of premises, depreciation, etc.;
• Variables are costs that directly depend on the volume of products produced. For example, the costs associated with the purchase of raw materials and supplies.

According to the significance of a specific decision of the manager, the costs are:

• Irrelevant - costs that do not depend on the decision of the manager.
• Relevant - dependent on management decisions.

For a better understanding, consider the following example. The company has an empty space at its disposal. Certain funds are allocated for the maintenance of this facility. Their value does not depend on whether some process is being performed there. The manager plans to expand production and use this room. In this case, he will need to purchase new equipment and equip jobs.

There are two ways to calculate the cost of production in production. These are the costing method and the tiered allocation method. Most often, the first method is used, since it allows you to more accurately and quickly determine the cost of production. We will consider it in detail.

Costing - This is the calculation of the amount of costs and expenses that fall on a unit of production. In this case, the costs are grouped by items, due to which the calculations are carried out.

Depending on the activity of production and its costs, costing can be carried out in several ways:

• Direct costing. This is a production accounting system that arose and developed in a market economy. This is how limited cost is calculated. That is, only direct costs are used in the calculation. Indirect ones are written off to the sales account;
• Custom method. Used to calculate the cost of production for each unit of output. It is used in enterprises that produce unique equipment. For complex and time-consuming orders, it is rational to calculate the costs for each product. For example, at a shipyard, where several ships are produced per year, it is rational to calculate the cost of each separately;
• Transverse method. This method is used by enterprises that carry out mass production, and the manufacturing process consists of several stages. The cost price is calculated for each stage of production. For example, at a bakery, products are made in several stages. In one workshop, dough is kneaded, in another, bakery products are baked, in a third, they are packaged, and so on. In this case, calculate the cost of each process separately;
• Process method. It is used by extractive industry enterprises, or companies with a simple technological process (for example, in the production of asphalt).

How to calculate the cost

Depending on the type and type, there may be several variations of the formulas for calculating the cost. We will consider simplified and expanded. Thanks to the first, every person who does not have an economic education will understand how this indicator is calculated. With the help of the second, you can make a real calculation of the cost of production.

A simplified version of the formula for calculating the total cost of goods looks like this:

Full cost = Production cost of the product + Cost of implementation

You can calculate the cost of sales using the expanded formula:

PST \u003d PF + MO + MV + T + E + RS + A + ZO + NR + ZD + OSS + CR

• PF - expenses for the purchase of semi-finished products;
• MO - the costs associated with the purchase of basic materials;
• MW - related materials;
• TR - transportation costs;
• E - the cost of paying for energy resources;
• PC - the costs associated with the sale of finished products;
• A - depreciation expenses;
• ZO - wages of the main workers;
• HP - non-production costs;
• ZD - allowances for workers;
• ZR - factory costs;
• OSS - insurance deductions;
• CR - shop expenses.

To make it clear to everyone how to make calculations, we will give an example of cost calculation and step-by-step instructions

Before proceeding with the numbers, you need to do the following:

1. Sum up all the costs associated with the purchase of raw materials and supplies needed for production;
2. Calculate how much money was spent on energy resources;
3. Add up all the costs associated with paying salaries. Don't forget to add 12% for additional work and 38% for social. deductions and health insurance;
4. Add deductions for depreciation costs with other expenses that are associated with the maintenance of devices and equipment;
5. Calculate the costs associated with the sale of products;
6. Analyze and account for other production costs.

Based on the initial data and costing articles, we make calculations:

Cost components - what does this indicator depend on

As it has already become known, the cost price consists of the costs of the enterprise. It can be divided into different types and classes. This is the main factor to consider when calculating the cost of the enterprise.

Different cost implies the presence of completely different components. For example, when calculating the shop cost, we do not take into account the cost of selling products. Therefore, each accountant is faced with the task of calculating exactly the indicator that will most accurately show the effectiveness of this enterprise.

The cost of a unit of production depends on how much production is established. If each workshop of an enterprise “lives its own life”, employees are not interested in fast and high-quality performance of their duties, etc., then with great confidence, we can say that such an enterprise suffers losses and has no future.

By reducing the cost of production, the company receives more profit. That is why every leader is faced with the task of establishing a production process.

Cost reduction methods

Before you start reducing costs, you need to understand that product quality should not suffer from this in any way. Otherwise, the savings will be unjustified.

There are many ways to reduce costs. We have tried to collect some of the most popular and effective ways:

1. Raise labor productivity;
2. Automate workplaces, purchase and install new modern equipment;
3. Engage in the enlargement of the enterprise, think about cooperation;
4. Expand the range, specifics and volume of products;
5. Introduce economy mode throughout the enterprise;
6. Use energy resources wisely, use energy-saving equipment;
7. Make a careful selection of partners, suppliers, etc.;
8. Minimize the appearance of defective products;
9. Reduce the cost of maintaining the administrative apparatus;
10. Conduct market research regularly.

Conclusion

Cost is one of the most important quality indicators of any enterprise. It is not a constant value. The cost is subject to change. Therefore, it is very important to periodically calculate it. Thanks to this, it will be possible to adjust the market value of the goods, which will avoid unnecessary costs.

If the definition of cost itself seems intuitive, then the formulas for its calculation are already strict mathematical expressions. To understand them, it is necessary to study the analysis technique used in each specific case.

First step cost calculation always is the determination of the costs of producing a product or service. This process is denoted by the economic term: "calculation of the cost of production." Costing can be planned, normative or actual. The first and second expresses the idea of ​​how the economic process should be built. The actual calculation is based on real data.

Product costing in the Republic of Belarus is a process regulated by many legislative and industry standards. This is due to the practice of setting prices based on the value of the declared cost. In many cases, instead of market price changes, enterprises have to resort to regulation of the costing system through the redistribution of costs from one type of product to another in order to have a legal opportunity to raise / lower the price.

After finding out the amount of costs and their distribution by expenditure items, it is the turn to calculate their specific value. This is exactly what cost formulas are for.

Costing is a universal procedure for any economic process. Such calculations have the greatest complexity in the analysis of industrial production. It also uses the largest number of different types of formulas for calculating the cost. These formulas can be adapted for other economic processes as well.

Total cost formula

For a general assessment of the economic efficiency of an enterprise, the full cost formula is often used. In its simplest form, it looks like this:

Total cost = the sum of production costs + sales costs.

The full cost price shows the largest amount of planned or actual costs. The results of all other cost formulas are parts of this total.

For great importance is not just produced, but sold products. Therefore, the cost formula takes the following form:

Cost of goods sold = total cost - cost of unsold products.

An example of calculating the full cost in expanded form, i.e. with the selection of individual elements, it will look something like this:

Full cost = Raw material costs + Energy costs + Depreciation charges + Key personnel wages + Management and support staff wages + Deductions from wages + Sales and sales service costs + Transportation costs + Other costs.

Special costing formulas

Knowing the total amount of costs for the production and sale of a product or service does not provide sufficient information for understanding and evaluating the individual elements of this system. So from the total cost is not visible the amount of costs per unit of production. The costs of the individual process remain uncertain. For this, many specific cost formulas have been developed that calculate individual values.

Given the fact that some costs depend on the volume of production, and some do not, it is customary to distinguish between variable and fixed costs.

The amount of fixed costs is calculated by summing up the values ​​of some unavoidable costs of the enterprise. Calculation example:

Fixed costs \u003d Fixed part of the salary + Expenses for rent and maintenance of premises + Depreciation deductions + Property taxes + Advertising expenses.

The methodology for calculating variable costs in general can be represented by the following formula:

Variable costs \u003d Variable part of the salary + Cost of raw materials and materials + Cost of energy resources + Costs of transporting products + Variable part of commercial expenses.

The cost of a unit of production in general terms can be found by simply dividing the sum of costs by the volume of output in physical terms:

Unit cost = Total cost/Number of units.

For the realities of a commercial organization, a more complex version of the same formula is more suitable:

Unit Cost = Production Costs/Number of Units Produced + Sales Costs/Number of Units Sold.

There are many other formulas for calculating the cost. Their exact number is difficult to determine, because. each of them is formed according to the requirements of the accepted calculation methodology.

It's no secret that in order to start your own business, it is not enough to come up with an idea or choose a direction. It is more important to draw up a business plan in which to calculate the amount of necessary costs and predict the amount of income. Only by evaluating these two indicators, it is worth making a decision about starting a new activity.

In the composition of costs, the largest share, as a rule, is the cost of products (works, services). To calculate it, you need certain skills and knowledge.

However, the costing rules are no less relevant for an existing business, since in order to reduce costs, you need to clearly understand what they consist of and what quantities can be influenced and which cannot.

We hope that this article about the rules for costing will just help you understand these

The composition of the costs that will form the cost

At different enterprises, the composition and structure of costs are different and depend on many factors. However, there are types of expenses that are relevant for everyone. They can be grouped into several groups or articles (Table 1). At the same time, you have the right to decide which of these costs will form your cost price. Depending on the nomenclature of expenses that you take into account, there are three types of cost:

- total cost (or cost of goods sold);

- full production cost;

- incomplete production (shop) cost.

Table 1 Typical cost grouping for cost price

* The “+” sign denotes cost items that are taken into account when calculating the cost of a particular type; sign "-" - those cost items that are not taken into account.

Please note: the above cost types are not mandatory for calculation. You decide which costs you include in the calculation, which not. This is a matter of your internal management accounting. The method of cost calculation you choose does not affect the calculation of taxes. Because all taxes are considered according to the rules of tax accounting. And the calculation of the cost is an element of management accounting, since it takes place in the interests of owners and business. At the same time, the cost price is reflected in accounting, so indicate the list of costs that form it in the accounting for accounting purposes.

How to allocate indirect costs

The costs that may be included in the cost price are not the same in nature. There are those that can be directly attributed to the cost of a particular product. For example, you sew dresses and trousers. And buttons are used only in tailoring dresses, and buttons are used in tailoring trousers. That is, you know exactly how much of which material goes where. Accordingly, the cost of buttons will form the cost of dresses. And the cost of buttons is the cost of trousers.

Such costs are called direct costs. And these, as a rule, include three cost items:

- for raw materials and materials;

- semi-finished products, components;

- fuel and energy for production purposes.

Most costs, however, cannot be so easily attributed to a specific type of product, since they are associated with the production of all products or with the activities of the entire company as a whole. Therefore, such costs (they are called indirect) are distributed. The method of distribution is also indicated in the accounting policy of the organization. You can choose one of the following distribution bases:

- working hours of production workers;

- wages of production workers;

- direct costs;

- the cost of basic materials;

- the number of products produced.

Example 1 Distribution of indirect costs

LLC "Svet" produces three types of bakery products: French baguettes, rye flatbread and whole grain bread. The cost of each type of manufactured products includes general business expenses. Their amount for the month amounted to 12,500 rubles. The basis for the distribution of general business expenses is the sum of direct costs for the production of certain types of products (basic raw materials). These costs in the reporting month are 85,000, 64,500 and 120,000 rubles. respectively. Total costs for the purchase of basic raw materials - 269,500 rubles. (85,000 rubles + 64,500 rubles + + 120,000 rubles).

The accountant calculated the distribution ratios for indirect costs. They made up:

- for a French baguette - 0.32 (85,000 rubles:: 269,500 rubles);

- rye cakes - 0.24 (64,500 rubles: 269,500 rubles);

- whole grain bread - 0.44 (120,000 rubles: 269,500 rubles).

Taking into account the obtained coefficients, general business expenses were distributed by types of products. The total amounts were:

- for a French baguette - 4000 rubles. (12,500 rubles × 0.32);

- rye cakes - 3000 rubles. (12,500 rubles × 0.24);

- whole grain bread - 5500 rubles. (12,500 rubles × 0.44).

Cost calculation

The actual cost is calculated on the basis of specific costs. And for this they use accounting data. You will need to collect information on all cost items that form your cost.

If we are talking about materials, then their movement is reflected in the reports of material persons or material accounting cards. And directly the consumption of raw materials is drawn up with the help of requirements-waybills for the release of materials. Payroll is carried out in the payroll. All other expenses must also be supported by supporting documents. At least an accounting certificate, in which it is important not to forget to indicate all the required details of the "primary".

Complete information from the primary accounting documents of the company is also reflected in the accounts. Then the accountant writes off the corresponding amounts, forming the cost price. The rules by which this must be done are given in Table. 2.

If there is no actual data, and you want to predict the future cost, take the planned data. For material costs, proceed from the need for raw materials for the product. For wages, be guided by the official salaries of your workers. Plan other expenses based on your needs, focusing on the contracts you have concluded or average market prices. To do this, conduct your own market analysis.

Registration of cost calculation

You develop the form of the document in which the cost price will be calculated yourself and fix it in the accounting policy. In the same calculation or separately, if necessary, you can provide a breakdown of specific indicators.

Example 2. Calculation of the cost of production

LLC "Mir" produces stools and cabinets. In each case, according to the accounting policy of the enterprise, an incomplete production cost is considered.

At the beginning of January 2014, there was no balance of finished products in stock. Within a month, the production of 100 units of stools and cabinets was started and completed. At the same time, 50 stools and 45 pedestals were sold in January. The accountant cited cost items and their cost expression in the calculation (see sample below).

The total cost of one unit was:

- for stools - 1119.45 rubles. (111,945 rubles: 100);

- on pedestals - 2217 rubles. (221,700 rubles: 100).

The total cost of sales for January was:

- for stools - 55,972.5 rubles. (1119.45 rubles × 50);

- for pedestals - 99,765 rubles. (2217 rubles × 45).

Hello! Many people ask the question: what is the cost of goods or products? For the production of any goods, a number of various resources are spent: natural, energy, land, financial, labor, etc. The sum of all costs incurred will be the cost of production. We will consider this issue in more detail in this article!

What is the cost of goods

First, let's look at the definition of the cost of goods.

Product cost - this is a monetary assessment of the current costs of the enterprise for the manufacture and sale of goods, as well as the actual cost of labor and financial resources.

In fact, the cost price is an indicator of the production and economic activity of the company, reflecting the financial costs of the organization for the production of products. The price of the goods directly depends on the cost price. The lower the cost of finished products, the higher the profitability of the enterprise.

How to determine the cost of goods

Depending on the method of keeping records of expenses, several methods for calculating the cost of goods have been formed: normative, process-by-process, per-order, per-order. In turn, the cost is also divided into several types: gross, commodity and realized.

What is included in the cost of goods

Surely every novice entrepreneur at least once wondered: why do we need a cost price? And it is needed in order to objectively assess the profitability of the enterprise, determine the wholesale and retail price of the goods, and give an objective assessment of the efficiency of spending and using resources.

The cost of goods takes into account many indicators, depending on what exactly needs to be controlled.

The cost of a unit of goods directly depends on the quantity of goods produced or purchased. To understand this, it is enough to consider a simple example:

Let's say you went to the store to buy a pack of tea worth 100 rubles. Then the cost calculation will take the following form:

• Suppose you spent 1 hour on a trip (with an estimated cost of a working hour of 100 rubles);
• Estimated depreciation of the car was 15 rubles.

Therefore, the cost of goods includes: The cost of a consignment of goods (in this case, packs of tea) + Costs) / Quantity = 215 rubles.

The picture will change significantly if you purchase not one pack of tea, but, let's say, five:

Cost price \u003d ((5 * 100) + 100 + 15) / 5 \u003d 123 rubles.

The example clearly shows that it directly depends on the purchased quantity of products - the more you purchase (or produce), the cheaper each unit costs you. No company is interested in increasing the cost of goods.

Types of production costs

In fact, the cost price is the sum of all costs attributed to the production and release of goods. The cost price can be calculated both for the entire manufactured product, and for a separate commodity unit.

Strictly speaking, there are several types of cost, and, depending on which area of ​​activity the entrepreneur wants to control, the following indicators can be calculated:

• Workshop, containing the costs of all departments of the organization aimed at manufacturing products;
• Production, including the shop cost, as well as general and target costs;
• Full, consisting of production costs and expenses for the sale of products;
• General business, which includes expenses that are not directly related to the production process, but are aimed at doing business.

Production cost contains all the resources spent at the production stage, namely:

• The cost of purchasing raw materials and basic materials for the manufacture of products;
• Costs for fuel and energy supply of production;
• Remuneration of employees of the enterprise;
• Costs for internal movement of raw materials and supplies;
• Maintenance, current repair and maintenance of fixed assets of the enterprise;
• Depreciation of equipment and fixed assets.

Realized cost implies the costs of the enterprise at the stage of the sale of goods, namely:

• The cost of packing / packaging / preservation of products;
• The cost of transporting goods to the distributor's warehouse or to the direct buyer;
• Product advertising costs.

The total cost of a product is the sum of the cost of production and the cost of sales. Also, this indicator takes into account the cost of purchasing equipment.

It is customary to divide the costs of doing business into certain periods during which these costs should pay for themselves. Such costs are added in equal shares to the total costs of production and sales of products and are included in the concept of total cost.

There is also a planned cost, this is the average estimated cost of products manufactured in the planning period (for example, per year). Such prime cost is calculated in the presence of consumption rates for the use of materials, energy resources, equipment, etc.

To determine the cost of one unit of finished products, a concept such as marginal cost is used. This indicator directly depends on the amount of products produced and reflects the efficiency of further expansion of production.

In addition to the cost of production, there is also

The cost structure is classified by cost items and cost elements.

According to the calculation items:

• Raw materials, materials, components, semi-finished products, aggregates, etc., necessary for the production of goods;
• Fuel and energy resources spent on production;
• Depreciation of fixed assets of the enterprise or fixed assets (equipment, tooling, machinery, etc.), the cost of their maintenance and maintenance;
• Remuneration of labor to key personnel (salary or tariff);
• Additional remuneration to personnel (bonuses, additional payments, allowances paid in accordance with the law);
• Contributions to various non-budgetary funds (for example, a pension fund, a social insurance fund, etc.);
• Production costs in general (sales costs, transportation costs, payroll for employees of the enterprise, etc.);
• Travel expenses (tickets, hotel fees, daily allowances);
• Payment for the work of third parties;
• The cost of maintaining the administrative apparatus.

By cost elements:

• Costs for materials (raw materials, parts, components, fuel and energy resources, overhead costs, etc.);
• Employee wage costs (wages of workers, auxiliary workers, for example, servicing equipment, wages of engineers, employees, i.e. managers, managers, accountants, etc., junior service personnel);
• Contributions to social institutions;
• Depreciation of fixed assets of the enterprise;
• Other expenses related to advertising, sales, marketing, etc.).

Under general production costs, it is customary to understand the organization's expenses for paying salaries to management staff, payment for security, travel expenses, as well as remuneration for the management department. This item also includes depreciation and maintenance of buildings and structures, labor protection, training and education of specialists.

The figure shows the approximate expense items of the enterprise for the production of products.

Theory of Constraints

According to this theory, there are certain significant costs that do not depend on the quantity of output. Such costs include loan payments, rent payments and payroll for permanent employees. In the presence of such fixed costs, the use of production costs as an indicator becomes a constraint on the economic policy of the enterprise, which can lead to illogical decisions. For example, a product that sells below cost is withdrawn from production, which in turn raises the cost of other manufactured goods.

Methods for calculating the cost of goods

There is no single method for calculating the cost price as such. This indicator can be calculated in completely different ways, depending on the type of product, the method and technology of its production, and many other factors.

As a rule, in order to calculate the cost of production, you need to consider the following factors:

• The sum of all expenses for the production and sale of products;
• Producer costs to operate as an entrepreneur;
• Costs associated with the preparation of product documentation.

It is necessary to keep records of the cost of goods directly for a certain production cycle of products. In order to determine the price of the goods, you need to make a cost estimate. It is compiled based on the number of products produced (in pieces, meters, tons, etc.). The calculation should reflect absolutely all costs associated with production. (Which articles are included in the calculation is described in the paragraph “Cost structure”).

Method #1

Full addition of expenses to the cost price. The cost price is full and truncated. At full cost, all expenses of the enterprise are taken into account. When truncated - the cost of a unit of production at variable costs. A constant share of overhead costs is attributed to the reduction of profit at the end of the specified period and is not distributed to the goods produced.

With this method of determining the cost, this indicator is influenced by both variable and fixed costs. When adding the necessary profitability to the cost price, the price of the product is determined.

Method #2

In this method, actual and standard costs are calculated based on the costs incurred by the enterprise. The standard cost allows you to control the cost of raw materials and materials, and, in case of deviation from the norms, take appropriate measures. This method is very labor intensive.

Method #3

The forward method. It is convenient for use in enterprises with serial or mass production, while the products go through several stages of processing.

Method #4

The processor method is mainly used in mining enterprises.

So, to calculate the total cost of production, we use the following algorithm:

1. We calculate variable costs for the production of one unit of output, taking into account costs;
2. From general factory costs, we single out exactly those that relate to this type of product.
3. We summarize all costs that are not directly related to the production process.

The resulting value will be the cost of the finished product.

Since there are several types of cost, then one calculation formula is not enough here.

Production costs:

C \u003d MZ + A + Tr + other expenses

Where C is the cost of expenses;

MZ - material costs of the organization;

A - depreciation deductions;

Tr - waste on wages to employees of the company.

To get the total cost of the finished product, you need to add together all the costs of its production:

Where PS - full cost;

PRS - the production cost of the goods, which is calculated on the basis of production costs (costs for materials and raw materials, depreciation of production assets, social and other deductions);

PP - the cost of selling goods (packaging, storage, transportation, advertising).

The cost of goods sold is calculated by the formula:

Where PS is the total cost,

KR - costs associated with the commercial activities of the enterprise,

OP - the remains of unsold products.

Gross cost is defined as:

C \u003d Production costs - non-manufacturing costs - future costs

If an enterprise produces only one type of product, then its cost and price can be determined using the costing method. In this case, the price of a unit of goods is obtained by dividing the sum of all costs spent on production by the quantity of goods produced. It is worth remembering that all calculations are made for a certain set period.

Calculation and analysis of the cost of goods manufactured by a large enterprise is a very complex and time-consuming process that requires certain knowledge, so an accountant solves such problems. It is customary to divide costs into direct and indirect.

The most common way to determine the price of a product is to calculate the cost of production, since this method allows you to calculate the costs of producing a single unit of production.

Cost classification

Depending on what task you want to implement, the costs are classified as follows:

1. There are two types of costs that are usually added to the cost of the finished product. These are direct costs (these costs are added to the cost of finished products in an exact or single way) and indirect costs (costs added to the subject of calculation according to the methodology established by the enterprise). Indirect include general business, general production and commercial costs;
2. Depending on the quantity or volume of products produced, the costs are:

• Constant (not dependent on the volume of goods produced), indicated per unit of output;
• Variables (depending on the volume of production or sales);

1. There are also costs that are significant for a particular case. Such as relevant (depending on the decisions made) and irrelevant (not related to the decisions made).

All of the above indicators of costs and expenses to a large extent affect the formation of the price of goods. But there is another important indicator - tax deductions.

What is included in the cost of production, how to calculate it and what conclusions can be drawn based on the results obtained. Full and marginal cost. The classic formula for calculating the cost. Method of multi-step distribution of costs.

- the amount of costs for the production and sale of products. To manufacture products, an enterprise must purchase raw materials, materials, fuel, use tools and equipment, repair and replace equipment, and pay salaries to employees.

A certain part of the funds goes to the sale of finished products. The sum of all these costs is the cost of production. The calculation of the cost allows you to find out what it costs to release a product for the enterprise as a whole and separately for each site, to correlate the volume of costs directly in production and in management and maintenance, to compare the costs of production and sales, etc.

There are two concepts in economics:

• Full (average) cost. It is determined by the ratio of costs to the volume of production.
• Limit. unit cost of production.

You can calculate the cost price both by cost elements and by accounting items. For mass production, the first calculation method is more suitable.

Economic costs include:

• employees' wages;
• purchase of raw materials and materials without the cost of return costs, which will be used in subsequent production cycles;
• depreciation of funds and means of production;
• contributions to state funds;
• advertising, etc.

The cost is equal to the sum of the listed costs.
When you need to calculate the cost of each unit of production, use the second method. His articles:

• the cost of raw materials and materials for the manufacture of a unit of production;
• fuels and lubricants and energy;
• semi-finished products purchased at other industries;
• tool wear;
• depreciation;
• salary and social benefits;
• the cost of maintaining a production facility.

The sum of the listed costs will be the shop cost of each unit of production. To obtain the full cost, this indicator is supplemented with general costs and non-manufacturing costs, such as transportation, sales, etc.

So, the total cost consists of the cost of production and sales. It is important to know the cost of production in order to:

• Assess the profitability of manufacturing each type of product and production in general.
• Set up a wholesale price.
• Make economic calculations in production.

Taking into account the cost, profit is formed. If the cost rises, provided that other conditions remain the same, the profit decreases accordingly. That is, the lower the cost, the higher the profit. At any enterprise, it is necessary to take into account and analyze costs, therefore, cost calculation is an obligatory component of production management.

Classic costing

The most common way to calculate the cost of a unit of production: We calculate the costs that vary in proportion to the volume of products of each type. So determine the variable costs for each unit of production.

The calculation is made according to the formula:

• We multiply the consumption rate of each of the elements by the cost of their acquisition.

Materials, components, raw materials, technological energy, wages are variable costs. We divide overhead costs by types of products. Other expenses are wages, repair of premises and equipment, management expenses, depreciation. Other expenses are often reflected in general business estimates, overhead costs, etc.

The total costs can be divided by individual types of products, in proportion to the distribution base. The distribution base can be the salary of the main workers accrued in the manufacture of this product. We add up other expenses for a certain period, and divide the amount by the number of finished products.

Actual and standard cost

The cost price can be calculated according to the costs actually incurred in the manufacture of products, or according to the approved norms for the cost of raw materials and materials, or according to the standard costs for wages. A fixed cost will help you control cost effectiveness and respond to deviations in a timely manner.

The actual or total unit cost of a product is calculated using a formula. The disadvantage of such a calculation is inefficiency, since the information may come after the production of the product. When calculating the cost of a unit of production, it can be difficult to allocate indirect costs. The easiest way is to distribute them in a direct way: spreading the costs of servicing departments in proportion to a single base: employee salaries, man-hours, material costs.

Multi-Step Cost Distribution Method

This method is the most reliable when calculating the cost: We group the costs by departments. For example, if we are talking about the work of a canteen, we group the expenses for the purchase of products, the salary of employees and the cost of paying for electricity.

We redistribute the costs of auxiliary parts to workshops and divisions. In the case of the canteen, we choose a distribution proportional to the number of employees in each department. We allocate costs for production shops, for manufactured products. Having redistributed the costs of the kitchen to the production workshops, we transfer the costs of the workshops to the finished product.

The basis for redistribution will be the number of man-hours spent on the manufacture of each type of product, the price of raw materials and materials. The unit cost of production is calculated as the ratio of all costs to the volume of production.