The cost of production is one of the main qualitative indicators of the economic activity of an enterprise. The value of the cost directly depends on the volume and quality of products, as well as on the level of rational use of raw materials, equipment, supplies and employee working time. The cost indicator is the basis for determining the price of a manufactured product. In the article we will talk about the specifics of calculating the cost indicator, and also use examples to consider the methodology for determining the cost of production.

Cost refers to the current costs incurred by an organization for the production and sale of products. At enterprises, it is customary to calculate two cost indicators - planned and actual. The value of the planned cost is determined based on the estimated average cost of the manufactured goods (performed work, services) for a certain period of time. To calculate the planned cost, indicators of consumption rates for materials, raw materials, labor costs, and equipment used in the production process are used. The basis for calculating the actual cost is the actual production indicators that determine the cost of producing a unit of product (group of goods).

The monetary indicator of cost is determined by calculating costing - identifying the costs of producing a unit of production (a group of goods, a separate type of production). To calculate the cost, costing items are used, which determine the type of costs that affect the cost. The types of costing items depend on the characteristics of the type of goods produced, the specifics of the production process and the economic industry in which the enterprise operates.

Types of product costs

In production practice, the concepts of production and full cost are used. To determine production costs, such costing items as materials, raw materials, technological costs (fuel, energy, etc.), wages of production workers (including wage accruals), general production and general business expenses, as well as other production costs are used. To calculate the full cost of manufactured products, you should take into account not only production costs, but also commercial expenses. This type includes expenses for the sale of products, namely advertising, storage, packaging, remuneration of sellers, etc.

Expenses affecting the cost of production may vary depending on the volume of goods produced. Based on this criterion, a distinction is made between semi-fixed and semi-variable expenses. As a rule, semi-fixed expenses include general production and general business expenses, the level of which is not affected by the number of products produced. Labor costs, technological costs (fuel, energy) are considered conditionally variable, since the indicators of these types of costs can be increased (reduced) depending on the volume of production.

Calculation of product costs using examples

The cost of commercial products (services, works) in accounting can be determined from the information in reports and balance sheets. The cost indicator is determined by excluding from the amount of costs for production and sales of products expenses on non-production accounts, as well as the amount of balances, changes in balances and semi-finished products, which are not included in the cost of products.

Calculation of production costs

Let's say Teplostroy LLC is engaged in the production of electrical appliances. The reports of Teplostroy LLC for November 2015 reflected the following:

• production costs - 115 rubles;
• charged to the accounts of non-production expenses - 318 rubles;
• charged to deferred expenses (account 97) - 215 rubles;
• credited to reserves for future expenses and payments (account 96) - 320 rubles;
• balances on accounts of work in progress, semi-finished products - 815 rubles.

The production cost per unit of production will be:

Calculation of cost by allocating costs

Let's say Elektrobyt LLC is engaged in the production of electrical equipment.

Data for calculation:

• for the period January 2016, the workshop produced 815 units;
• expenses for materials, components, spare parts - RUB 1,018,000;
• The selling price for electrical equipment was RUB 3,938. (RUB 3,150 + 25%);
• wages of production workers (including contributions to social funds) - 215,000 rubles;
• general production expenses (electricity, depreciation of equipment, etc.) - 418,000 rubles;
• general business expenses (maintenance of management personnel) - 1800 rubles.

At Elektrobyt LLC, direct expenses include material expenses; spare parts and semi-finished products; wages of production workers (including insurance premiums). The remaining costs are indirect.

Calculation of direct production costs per unit of production:

(RUB 1,018,000 + RUB 215,000 + RUB 418,000) / 815 units = 2026 rub.

Calculation of indirect general business expenses per unit of production:

1800 rub. / 815 units = 2 rub.

We will present the calculation of the cost per unit of manufactured electrical equipment in the form of a statement.

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

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

Chapter 2. Product cost analysis.

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

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

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

§ 5. Analysis of complex cost items.

5.1. Analysis of production maintenance and management costs.

5.2. Analysis of other complex cost items.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Table 1.1. Cost analysis by element.

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

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

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

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

Table 1.2. Cost analysis based on costing items

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Table 3.1. Material cost analysis.

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

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

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

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

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

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

Total 1512.8 t.r.

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

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

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

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

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

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

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

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

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

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

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

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

, Where

F salary - planned salary fund, thousand rubles.

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

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

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

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

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

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

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

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

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

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

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

Deviations from the average salary plan may be caused by:

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

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

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

Data on wage fund expenditure for production workers is shown in Table 4.2.

Table 4.2. Analysis of salaries of production workers.

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

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

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

Table 4.3. Analysis of the impact of labor intensity.

The influence of each factor was:

a) the influence of labor intensity

b) the impact of a change in hourly rate

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

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

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

§ 5. Analysis of complex cost items.

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

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

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

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

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

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

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

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

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

5.1. Analysis of production maintenance and management costs.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Basic provisions for planning, accounting and calculating the cost of production at industrial enterprises (approved by the State Planning Committee of the USSR, the Ministry of Finance of the USSR, the State Committee for Prices of the USSR, the Central Statistical Office of the USSR on July 20, 1970).
2. Regulations on the composition of costs for the production and sale of products (works, services), included in the cost of products (works, services), and on the procedure for generating financial results taken into account when taxing profits (approved by Decree of the Government of the Russian Federation of August 5, 1992 No. 552 ; with amendments and additions approved by the Government of the Russian Federation on July 1, 1995 No. 661 and on November 20, 1995 No. 1133).
3. Analysis of financial and economic activities of enterprises. Ed. L. Korotkova and R. Medvedev. - M.: Gosfinizdat, 1963 - 357 p.
4. Analysis of economic activity in industry: Textbook / L.A. Bogdanovskaya, G.G. Vinogorov, O.F. Migun et al.: Under general. ed. IN AND. Strazheva. - Minsk: Vys. school, 1995. - 363 p.
5. Business analysis course. Ed. prof. S.K. Tatura and prof. A. D. Sheremeta. - M.: “Economics”, 1974 - 399 p.
6. Course of economic analysis: Proc. for economical specialist. universities Ed. M. I. Bakanova, A. D. Sheremeta. - M.: Finance and Statistics, 1984 - 412 p.
7. Methodology for economic analysis of the activities of a production association. Ed. A. I. Buzhinsky and A. D. Sheremet. - M.: Finance, 1978 - 224 p.
8. The theory of economic activity analysis: Textbook. - 2nd ed., revised. and additional - M.: Finance and Statistics, 1987. - 287 p.
9. Sheremet A.D., Saifulin R.S. Methodology for comprehensive analysis of economic activity. - M.: “Economy”, 1980 - 232 p.
10. Economic analysis of economic activity. Ed. A. D. Sheremeta - M.: “Economics”, 1979 - 373 p.
11. Economic analysis of economic activities of enterprises and associations: Textbook / Ed. S. B. Barngolts and G. M. Tatsia. - 3rd ed. reworked and additional - M.: Finance and Statistics, 1986 - 407 p.

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 are spent on the manufacture 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:

1. 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.
2. 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:

1. 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.
2. 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:

1. Commercial;
2. General economic;
3. General production.

• Depending on the volume of products produced, costs are:

1. 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.
2. Variables– costs that are influenced by production or sales volume. A unit of production does not change the amount of costs.

• According to significance for a particular case, costs are:

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

Cost calculation methods

There are several different ways to calculate the cost of a product. 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:

1. Full– all expenses of the enterprise are taken into account.
2. 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.

With this calculation method, the cost is influenced by both variable 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:

1. Transverse– used by enterprises of serial and flow production, when during the manufacturing process the product goes through several stages of processing.
2. 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

There are special Excel programs that can be used to calculate product costs. 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:

• The program works in different modes (automatic and manual);
• Correct work with “Returnable waste”;
• Suitable for medium and small businesses.
• Negative aspects of the program:
• Limited amount of information processed;
• Support for only one resource type specification is available.

Cost shows how much it cost the company to manufacture the product. It has a certain structure and is calculated using formulas.

In production, accountants are involved in calculating costs, selecting a suitable method for this.

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

General concept of cost

In every economics textbook you can find a varied interpretation of the term “cost”. But no matter how the definition sounds, its essence does not change.

Product cost - Thisthe sum of all costs incurred by the enterprise for the manufacture of goods and its subsequent sale.

Costs are understood as expenses associated with the purchase of raw materials and materials necessary for production, remuneration 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 every enterprise, such an important process is entrusted only to qualified accountants.

It is necessary to calculate the cost of goods regularly. This is often done at certain intervals. Every quarter, 6 and 12 months.

Types and types of cost

Before you start calculating production costs, you need to study what types and types it is divided into.

Cost can be of 2 types:

• Full or medium– 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;
• Limit – depends on the quantity of products produced and reflects the cost of all additional manufactured units of goods. Thanks to the obtained value, it is possible to calculate the efficiency of further expansion of production.

The cost is also divided into several types:

• Workshop cost– consists of the costs of all enterprise structures whose activities are aimed at producing new products;
• Production cost– represents the sum of shop costs, target and general expenses;
• Full cost– includes production costs 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.

Cost can be actual or standard.

When calculating the actual cost, real data is taken, i.e. Based on actual costs, the price of the product 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 standard cost, data is taken in accordance with production standards. Thanks to this, it is possible to strictly control the consumption of materials, which minimizes the occurrence of unjustified expenses.

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 manufacturing plant and a soft toy sewing factory are completely different.

Therefore, each production individually calculates the cost of finished products. This becomes possible thanks to a flexible cost structure.

Cost is the amount of expenses. They can be divided into the following categories:

1. Expenses on raw materials and materials necessary for production;
2. Energy costs. Some industries take into account the costs associated with using a certain type of fuel;
3. Costs of machinery and equipment through which production is carried out;
4. Payment of wages to employees. This item also includes payments related to taxes and social services. payments;
5. Production expenses (premises rental, advertising campaigns, etc.);
6. Expenses for social events;
7. Depreciation deductions;
8. Administrative costs;
9. Payment for services of third parties.

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 price is not constant. It is influenced by factors such as:

• Inflation;
• Loan rates (if the company has any);
• Geographical location of production;
• Number of competitors;
• Use of modern equipment, etc.

In order for the enterprise not to go bankrupt, it is necessary to timely calculate the cost of the product.

Formation of production costs

When calculating production costs, the costs required to produce products are summed up. This indicator does not take into account the costs of selling products.

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

It can be calculated in several ways, but the most common is cost calculation. Thanks to it, you can calculate how much money is spent to produce 1 unit of product.

Classification of production costs

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

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

• Direct - those that relate directly to the production of products. That is, costs associated with the purchase of material or raw materials, payment 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 and general production costs. For example, executive salaries.

In relation to the entire production volume, costs are:

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

Depending on the importance of a specific manager’s decision, costs are:

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

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

There are two ways to calculate the cost of production in production. These are the costing method and the tiering method. The first method is most often used, since it allows you to more accurately and quickly determine the cost of production. We will look at it in detail.

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

Depending on the production activity and its costs, calculation can be carried out using several methods:

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

How to calculate cost

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

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

Total cost = Production cost of the product + Selling costs

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

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

• PF – expenses for the purchase of semi-finished products;
• MO – costs associated with the purchase of basic materials;
• MV - related materials;
• TR – transport costs;
• E – costs of paying for energy resources;
• РС – expenses associated with the sale of finished products;
• A – depreciation expenses;
• ZO – remuneration of the main workers;
• HP – non-production costs;
• ZD – allowances for workers;
• ZR – factory expenses;
• OSS – insurance contributions;
• 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 you start with the numbers, you need to do the following:

1. Sum up all the costs associated with the purchase of raw materials and materials necessary for production;
2. Calculate how much money was spent on energy resources;
3. Add up all the expenses associated with paying salaries. Don't forget to add 12% for additional work and 38% for social services. deduction 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 selling products;
6. Analyze and take into account other production costs.

Based on the initial data and cost calculation items, we make calculations:

Components of cost - what does this indicator depend on?

As has already become known, the cost consists of the costs of the enterprise. It can be divided into different types and classes. This is the main factor that must be taken into account when calculating the cost of an enterprise.

Different costs imply the presence of completely different components. For example, when calculating workshop costs, we do not take into account the costs of selling products. Therefore, every accountant is faced with the task of calculating exactly the indicator that will most accurately show the efficiency of a given enterprise.

The cost per unit of production depends on how well the production is organized. If each department of the enterprise “lives its own life”, employees are not interested in quickly and efficiently performing their duties, etc., then with great confidence, we can say that such an enterprise is suffering losses and has no future.

By reducing the cost of production, the company receives greater profits. That is why every manager is faced with the task of establishing the production process.

Cost reduction methods

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

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

1. Increase labor productivity;
2. Automate workplaces, purchase and install new modern equipment;
3. Engage in consolidation of the enterprise, think about cooperation;
4. Expand the range, specificity and volume of products;
5. Introduce a savings regime throughout the enterprise;
6. Use energy resources wisely and use energy-saving equipment;
7. Carry out a careful selection of partners, suppliers, etc.;
8. Minimize the appearance of defective products;
9. Reduce the cost of maintaining the management 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 tends 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 unjustified expenses.

In management analysis, the full cost is calculated in order to determine all the costs of manufacturing products. This indicator allows you to understand how profitably the organization operates and how to price goods. Let's figure out exactly what costs for manufacturing products are included in the full cost price and in what order such calculations are carried out.

The total total cost of a GP shows the total volume of all resources spent on production and commercial, that is, associated with sales, expenses. Figuratively speaking, this is an assessment of all costs of manufacturing a product and its sale - from the initial production stage to final delivery to the consumer. The total cost usually includes the following types of costs:

• Production – consist of material, raw materials, fuel and energy, labor, depreciation, social and other costs directly spent in the production of the state product and its delivery to the organization’s warehouse. This group also includes amounts of taxes, credit interest, rent, consulting, advertising, legal, auditing and other services received from outside.
• Commercial - consist of costs associated with transportation, packaging, storage, advertising for the purpose of marketing the produced GP and bringing it to the end consumer market.
• General production – for the maintenance of main, auxiliary and service industries.
• General economic – to ensure the successful operation of the entire enterprise. They may not directly relate to production cycles, but without them, the successful functioning of a business is impossible.

Regardless of which classification group the costs belong to, calculating the full production cost of a product means taking into account all costs - be they fixed or variable, overhead or direct costs. For calculation purposes, indirect costs are distributed depending on the selected distribution base. The total cost of products sold is a gross indicator, characterizing the costs of the entire volume of manufactured products, or a unit indicator, showing how much expenses are spent on the production of one product.

Reduced cost is the calculation of products based only on direct, variable costs associated with the production of GP. With this accounting option, general business expenses, which are considered semi-fixed, like ordinary expenses, are directly included in the financial results, without using accounts 20, 29 or 23 (PBU 10/99). Such indirect costs are reflected in the account by the accountant. 44 or 26 depending on the type of activity of the organization. At the end of the period, the collected amounts are subject to complete debiting to the account. 90.

A shortened version of product costing greatly simplifies accounting and does not in any way affect the determination of the final result of business activities. But this method distorts the data and does not always allow one to accurately calculate how much money it cost the company to produce a product or provide a service. In addition, only the full cost of goods sold allows managers to perform long-term planning, analysis and production control to increase the profitability and profitability of the business. The method used should be fixed in the company's accounting policy.

How to find the total cost

The total cost of manufactured products of an enterprise is equal to the monetary expression of total costs. The calculations estimate the raw materials, financial, labor and other resources spent in the production process, as well as the costs of selling and storing goods. The obtained value helps to understand how expensive the production of the GP cost the enterprise. To know how to calculate the total cost of production, it is necessary to determine the financial indicator by summation.

Costing is performed by adding production and commercial costs, as well as general business costs (if any). After calculations, it becomes clear at what level to set prices for goods or services so that the enterprise can recoup production costs and start a new production cycle, that is, operate at break-even. Conducting an in-depth analysis of the cost structure allows you to identify reserves for saving resources and using them more efficiently. Next, let's look at examples and formulas to determine how the total cost of a GP is determined.

How to calculate the total cost of production - formula

We decided that the total cost of production is all the costs of the enterprise. Therefore, in order to make a correct calculation, it is necessary to sum up all costs. To do this, use the following general formula for calculating the total cost of production:

Total cost = PS + SR, where:

PS is the value of production costs, and SR is the volume of sales costs.

The given formula is generalized and understandable to those who have already encountered product calculation. If you don’t know what the terms are made of, check out the expanded formula, which looks like this:

Total cost = construction and installation work + PF + TER + ZOP + ZAP + A + SV + PPR + SR + TR + PSR, where:

Construction and installation work – material and raw material costs;

PF – semi-finished products spent in production;

FER – fuel and energy costs;

PDO – salaries of personnel of main and auxiliary production;

ZAUP – salary of the company’s administrative and management personnel;

A is the accrued amount of depreciation of the fixed assets used;

SV – the amount of accrued insurance premiums;

PPR – the value of all other production costs;

SR – the amount of sales expenses;

TR – transport costs;

RSP – the amount of other sales expenses.

An example of calculating the total cost of a GP

To make it clear what the total cost of an enterprise’s products is, let’s look at an example of a specific organization. Let's say a company manufactures electrical equipment. The expenses incurred during the period are shown in the table below. We will calculate products in two ways - at full cost and also at reduced cost. At the end, we will calculate financial indicators from activities.

Table of economic indicators for calculations

Cost calculation table - calculation done in two ways

Table for calculating profit for the production activities of an organization

Thus, from the example it is clear that the full cost of products sold allows us to take into account all the expenses incurred by the enterprise and more accurately set the price indicator in order to ultimately obtain greater profits.

Features of the full cost method

When estimating current costs, the full cost accounting method is developed in order to establish a fair price for manufactured products. If the enterprise produces various products (types of goods), the responsible employees first need to divide all costs according to the centers of responsibility, that is, the places of occurrence. Then the cost carriers for their distribution are established. And finally, for each specific product, costs are allocated depending on production needs.

The calculation process is quite complex and usually combines the work of several specialists. To ensure accurate calculations for products, estimates and cost write-off standards are developed, prices at which costs are written off are determined, and at the final stage, indicators are analyzed and monitored. Like other methods, the full cost method has its advantages and disadvantages. The advantages include the elimination of market monopolization, since with this option for calculating goods, the price for the consumer is set on average at the same level. At the same time, sellers have the opportunity to realistically assess their costs and calculate the optimal cost of products to make a profit.

Among the disadvantages, it should be noted that this methodology does not take into account the existing competition in the current market, therefore, the existing demand for products is not taken into account in the calculations. And changes in the level of costs when production volumes fluctuate cannot be planned. In addition, attributing the amount of fixed costs to the cost of products or services may somewhat distort the impact of a particular product on the financial result of the organization. Each organization decides independently which method of calculating manufactured products to choose.

It is possible that for some purposes (or external users) it will be necessary to calculate the cost using traditional full indicators, and for others - according to reduced or combined ones. When choosing, you should take into account the specifics of the activity, the nature of the products produced, seasonality, planning time and other factors. The method of full cost accounting is most widely used in small companies, as well as where a narrow range of products are produced. If the product range is significant and the business is large-scale, it is recommended to use aggregate methods and techniques for calculating the cost of the enterprise.

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