The concept of "enterprise costs" is closely related to the concept of "cost". Cost plays a leading role in common system performance indicators economic activity enterprise and its structural divisions.
The cost price is a general indicator of the use of all types of enterprise resources. The cost price also provides for the replacement of these resources, which is necessary to continue the production process. The level and dynamics of the cost allow assessing the feasibility and rationality of the use of resources that are at the disposal of the enterprise. The cost of production reflects the technical level and organization of production, economic efficiency as a whole. According to NP (C) BU No. 16, for goods and services involved in the economic turnover at the enterprise, three types of cost can be distinguished:
1. cost of goods;
2. cost products sold;
3. production cost.
The cost of goods is determined in accordance with NP(S)BU 9 "Stocks".
The production cost of products (works, services) sold during the reporting period includes only direct costs. Thus, the production cost of production includes only those overhead costs that can be distributed among all types of products (works, services).
The cost of goods sold includes:
production cost;
Excess costs;
unallocated overhead costs.
The cost of production is expressed in terms of monetary form current costs of enterprises for the production and sale of products (works, services).
The cost of production is a qualitative indicator, since it characterizes the level of use of all resources at the disposal of the enterprise.
The cost of production of a particular enterprise is determined by the conditions in which it operates. This cost is called individual.
If, on the basis of the individual cost of enterprises, we determine the weighted average of the costs for the industry, such a cost will be called the industry average. The average industry cost is closer to socially necessary labor costs.
The main document that guides the formation of the cost of production at the enterprise is the Regulation on the composition of costs for the production and sale of products (works, services) and on the procedure for forming financial results taken into account when taxing profits.
In order to analyze, record and plan the whole variety of costs included in the cost of production, two complementary classifications are used: element-by-element and costing.
When grouping costs by elements, the costs of the enterprise as a whole are determined, without taking into account its internal structure and without highlighting the types of products. The document, which presents the cost of the elements, is an estimate of the costs of production. The cost estimate is compiled to calculate the total need of the enterprise for material and monetary resources. The cost amount for each item is determined based on vendor invoices, payroll and depreciation records.
Cost elements are the costs of all services and workshops that are homogeneous in nature for production and economic needs.
The costs that form the cost of products (works, services) are grouped according to their economic content according to the following elements:
Material costs (minus the cost of returnable waste);
Labor costs;
Deductions for social needs;
Depreciation of fixed assets;
Other costs.
Material costs reflect the cost of raw materials and materials purchased from the outside; the cost of purchased materials; the cost of purchased components and semi-finished products; the cost of works and services of an industrial nature paid to third parties; the cost of natural raw materials; the cost of all types of fuel purchased from the outside, spent for technological purposes, production of all types of energy, heating of buildings, transport work; the cost of purchased energy of all types, spent on technological, energy, motor and other needs.
The cost of sold waste is excluded from the costs of material resources included in the cost of production.
Production waste refers to the remains of raw materials, materials, semi-finished products, heat carriers and other types of material resources formed during the production process that have completely or partially lost the consumer qualities of the original resource. They are sold at a reduced or full price of a material resource, depending on their use.
Labor costs reflect the costs of wages for the main production personnel of the enterprise, including bonuses to workers and employees for production results, incentive and compensatory payments.
Until recently, deductions for social needs reflected mandatory deductions from the cost of remuneration of employees included in the cost of products (works, services). These deductions were made in accordance with the norms established by law to state social insurance bodies, pension fund, the State Fund for Employment and Health Insurance.
From 1 Jan. 2001 all contributions to social non-budgetary funds were replaced by a single social tax.
Depreciation of fixed assets reflects the amount of depreciation deductions for full recovery fixed assets.
Other costs are taxes, fees, deductions to extra-budgetary funds, payments on loans within rates, travel expenses, training and retraining costs, rent, depreciation on intangible assets, a repair fund, payments for compulsory property insurance, etc. d.
Grouping costs by economic elements does not allow accounting for individual departments and types of products; this requires accounting for costing items.
Calculation is the calculation of the unit cost of a product or service by item of expenditure. Unlike the elements of the cost estimate, costing items combine costs, taking into account their specific purpose and place of formation.
There is a standard nomenclature of costs for costing items, but ministries and departments can make changes to it depending on industry specifics.
The typical nomenclature includes the following articles:
1. Raw materials and materials.
2. Returnable waste (deductible).
3. Purchased products, semi-finished products and production services of third-party enterprises and organizations.
4. Fuel and energy for technological purposes.
5. Wages of production workers.
6. Deductions for social needs.
7. Costs for the preparation and development of production.
8. General production costs
9. General business expenses.
10. Loss from marriage.
11. Other operating expenses.
12. Selling expenses.
The total of the first 9 articles forms the shop cost, the total of 11 articles - the production cost, the total of all 12 articles - the total cost.
Shop cost represents the costs of the production unit of the enterprise for the production of products.
The production cost, in addition to the costs of workshops, includes the general costs of the enterprise.
The total cost includes the costs of both production and sales of products.
General production costs are the costs of maintaining and managing production. They include the cost of maintenance and operation of equipment and workshop costs.
General business expenses are expenses associated with the management of the enterprise as a whole: administrative and managerial, general business, taxes, mandatory payments, etc.
Part business expenses include costs for tare and packaging, transportation costs, advertising costs, other distribution costs.
Cost items included in the calculation are divided into simple and complex. Simple ones consist of one economic element (wages). Complex items include several cost elements and can be decomposed into simple components (general production, general business expenses ...).
Cost accounting is necessary to determine the financial results of the enterprise.
In the process of doing accounting and analysis relevant structural units the economic entity calculate indicators that characterize the efficiency of the enterprise. The calculated indicators also characterize the level of efficiency of managing an economic entity, the ratio between the profit received and the costs incurred. One of these indicators is the cost of goods sold.
The concept of the cost of products that are sold
In a general sense, the cost of production is understood as the totality of all costs associated with the production and sale of products, and these costs are presented in monetary terms. In practice, there are cases when not all products that were produced during the reporting period were immediately sold in a given period of time. In this case, the cost of goods sold is calculated as a set of costs relative to the products that were sold in this reporting period.
The formula for calculating the cost of products that are sold
In order to determine the cost of products sold during the reporting period, it is necessary to calculate:
- the full cost of manufactured products for the reporting period;
- carry-overs of those products that have not yet been sold.
To determine the carry-over balances of products that have not yet been sold, they find the difference between the balances of finished products at the beginning and end of the reporting period.
Cost of goods sold - formula:
C/C real. prod. \u003d C \ C floor. prod. + Per. rest. GP,
where C \ C floor. prod. - indicator of the total cost of production, rub.;
Per. rest. GP - carry-over balances of finished products, rub.
What is included in the total cost of products sold
Business entities incur costs:
- on raw materials, materials necessary for the production of a particular type of product;
- to pay wages to those workers who are directly involved in the production of a certain type of product (with deductions for social needs);
- depreciation expenses;
- costs associated with the management and organization of both production units and the entire business entity;
- those costs associated with the preparation for the production of new types of products;
- costs associated with the sale of finished products;
- other expenses of an economic entity.
The total cost of goods sold is a set of all costs incurred by an economic entity for a specific period of time in the production of this product and its sale, excluding the balance of products that are not sold for a certain reporting period. The calculated indicator is qualitative, characterizing the level of use of the resources available to the economic entity in the production and sale of products.
Cost of sales: calculation example
Let us give an example of calculating the cost indicator, provided that the following initial data for the enterprise for the reporting period are given:
- the total cost of production is 678,589 thousand rubles;
- balances of finished products at the beginning of the reporting period - 56,435 thousand rubles, at the end of the period - 32,567 thousand rubles.
First of all, carry-over balances of finished products are calculated as the difference between the corresponding indicators at the beginning of the reporting period and at the end of the reporting period: 56,435 - 32,567 = 23,868 thousand rubles.
Then the cost of products sold during the reporting period is calculated according to the above formula: 678589 + 23,868 = 702,457 thousand rubles.
It can be concluded that economic entities are interested in exact definition the cost of their products, the calculation of which has its own characteristics.
The most important indicators expressing the cost of production are the cost of all commercial products, the cost of 1 ruble of commercial products, the cost of a unit of production.
The sources of information for the analysis of the cost of production are: form 2 "" and form 5 Appendix to the balance sheet of the enterprise's annual report, costing of marketable products and costing of certain types of products, consumption rates of material, labor and financial resources, cost estimates for the production of products and their actual implementation, as well as other accounting and reporting data.
As part of the cost of production, variable and conditionally fixed costs (costs) are distinguished. Value variable costs changes with a change in the volume of products (works, services). Variables include material costs for production, as well as piecework wages of workers. The amount of semi-fixed costs does not change with a change in the volume of production (works, services). Fixed costs include depreciation, rental of premises, time wages for administrative and management and maintenance personnel, and other costs.
So, the task of the business plan for the cost of all marketable products has not been completed. The above-plan increase in the cost of production amounted to 58 thousand rubles, or 0.29% of the plan. This happened due to comparable marketable products. (A comparable product is not a new product that was already produced in the previous period, and therefore its output in the reporting period can be compared with the previous period).
Then it is necessary to establish how the plan was fulfilled for the cost of all marketable products in the context of individual costing items and determine which items have savings, and which ones have overruns. Let's present the relevant data in Table 16.
Table No. 16 (thousand rubles)|
Indicators |
The total cost of actually manufactured products |
Deviation from the plan |
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|
at the planned cost of the reporting year |
at the actual cost of the reporting year |
in thousand rubles |
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|
to the plan for this article |
to the full planned cost |
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|
Raw materials |
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|
Returnable waste (deductible) |
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|
Purchased products, semi-finished products and services of cooperative enterprises |
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|
Fuel and energy for technological purposes |
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|
Basic wages of key production workers |
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|
Additional wages for key production workers |
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|
Deductions for insurance |
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|
Expenditures for the preparation and development of the production of new products |
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|
Costs for the maintenance and operation of equipment |
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|
General production (general shop) expenses |
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|
General business (general factory) expenses |
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|
Loss from marriage |
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|
Other operating expenses |
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|
Total production cost of marketable products |
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|
Selling expenses (sales expenses) |
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|
Total total cost of commercial products: (14+15) |
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As you can see, the increase in the actual cost of marketable products compared to the planned one is caused by overspending of raw materials and materials, additional wages of production workers, an increase against the plan of other production costs and the presence of losses from marriage. For the rest of the calculation items, savings take place.
We considered the grouping of the cost of production by costing items (cost items). This grouping characterizes the purpose of the costs and the place of their occurrence. Another grouping is also used - according to homogeneous economic elements. Here, the costs are grouped by economic content, i.e. regardless of their intended purpose and the place where they are spent. These elements are as follows:
- material costs;
- labor costs;
- deductions for insurance;
- depreciation of fixed assets (funds);
- other costs (depreciation of intangible assets, rent, mandatory insurance payments, interest on bank loans, taxes included in the cost of production, deductions to off-budget funds, travel expenses, etc.).
When analyzing, it is necessary to determine the deviations of the actual production costs by elements from the planned ones, which are contained in the estimate of production costs.
So, the analysis of the cost of production in the context of cost items and homogeneous economic elements allows you to determine the amount of savings and overspending for certain types of costs and contributes to the search for reserves to reduce the cost of production (works, services).
Cost analysis for 1 ruble of marketable products
- a relative indicator that characterizes the share of the cost in the wholesale price of products. It is calculated according to the following formula:
Costs per 1 ruble of marketable products is the total cost of a marketable product divided by the cost of a marketable product at wholesale prices (without value added tax).
This indicator is expressed in kopecks. It gives an idea of how many kopecks of costs, i.e. the cost price, falls on each ruble of the wholesale price of products.
Initial data for analysis.
Costs per 1 ruble of marketable products according to the plan: 85.92 kopecks.
Costs per 1 ruble of actually produced marketable products:
- a) according to the plan recalculated for the actual output and range of products: 85.23 kopecks.
- b) actually in prices in force in the reporting year: 85.53 kopecks.
- c) actually in the prices accepted in the plan: 85.14 kopecks.
On the basis of these data, we determine the deviation of the actual costs per 1 ruble of marketable output in prices in effect in the reporting year from the costs according to the plan. To do this, subtract line 1 from line 2b:
85,53 — 85,92 =— 0.39 kopecks.
So, the actual figure is less than planned by 0.39 kopecks. Let us find the influence of individual factors on this deviation.
To determine the impact of a change in the structure of output, we compare the costs according to the plan, recalculated for the actual output and range of products, and the costs according to the plan, i.e. lines 2a and 1:
85.23 - 85.92 \u003d - 0.69 kop.
It means that by changing the structure of products the analyzed indicator has decreased. This is the result of an increase in the proportion of more profitable types of products that have a relatively low level of costs per ruble of products.
We will determine the impact of changes in the cost of individual types of products by comparing the actual costs in prices accepted in the plan with the planned costs recalculated for the actual output and range of products, i.e. lines 2c and 2a:
85.14 - 85.23 \u003d -0.09 kop.
So, by reducing the cost of certain types of products the indicator of costs per 1 ruble of marketable products decreased by 0.09 kopecks.
To calculate the impact of changes in prices for materials and tariffs, we divide the amount of change in cost due to changes in these prices by actual marketable products at wholesale prices adopted in the plan. In the example under consideration, due to the increase in prices for materials and tariffs, the cost of commercial products increased by + 79 thousand rubles. Consequently, the cost of 1 ruble of marketable output due to this factor increased by:
(23,335 thousand rubles - actual marketable products in wholesale prices adopted in the plan).
Impact of changes in wholesale prices on products this enterprise on the indicator of costs per 1 ruble of marketable output, we define as follows. First, let's determine the overall influence of 3 and 4 factors. To do this, we compare the actual costs per 1 ruble of marketable output, respectively, in the prices in force in the reporting year and in the prices adopted in the plan, i.e. lines 2b and 2c, we determine the impact of price changes on both materials and products:
85.53 - 85.14 = + 0.39 kop.
Of this value, the impact of prices on materials is + 0.33 kopecks. Consequently, the impact of product prices accounts for + 0.39 - (+ 0.33) = + 0.06 kopecks. This means that the decrease in wholesale prices for the products of this enterprise increased the cost of 1 ruble of marketable products by + 0.06 kopecks. The total influence of all factors (balance of factors) is:
0.69 kop. - 0.09 kop. + 0.33 kop. + 0.06 kop. = - 0.39 kop.
Thus, the decrease in the indicator of costs per 1 ruble of marketable output took place mainly due to a change in the structure of output, as well as due to a decrease in the cost of certain types of products. At the same time, an increase in prices for materials and tariffs, as well as a decrease in wholesale prices for the products of this enterprise increased costs by 1 ruble of marketable products.
Material cost analysis
The main place in the cost of industrial products is occupied by material costs, i.e. costs for raw materials, materials, purchased semi-finished products, components, fuel and energy, equated to material costs.
The share of material costs is about three-quarters of the cost of production. It follows that the saving of material costs to a decisive extent ensures a reduction in the cost of production, which means an increase in profits and an increase in profitability.
The most important source of information for analysis is the calculation of the cost of production, as well as the calculation of individual products.
The analysis begins with a comparison of the actual material costs with the planned ones, adjusted for the actual volume of production.
Material costs at the enterprise increased in comparison with their envisaged value in the amount of 94 thousand rubles. This increased the cost of production by the same amount.
Three main factors influence the amount of material costs:
- change in the specific consumption of materials per unit of production;
- change in the procurement cost of a unit of material;
- replacing one material with another material.
1) The change (reduction) in the specific consumption of materials per unit of production is achieved by reducing the material consumption of products, as well as by reducing the waste of materials in the production process.
Material consumption of products, which is specific gravity material costs in the price of products, is determined at the stage of product design. Directly in the course of the current activity of the enterprise, the reduction in the specific consumption of materials depends on the reduction in the amount of waste in the production process.
There are two types of waste: returnable and non-returnable. Returnable waste materials are further used in production, or sold to the side. Irrevocable waste is not subject to further use. Returnable waste is excluded from production costs, since it is again added to the warehouse as materials, but waste is received not at the price of full value, i.e. source materials, but at the price of their possible use, which is much less.
Consequently, the violation of the specified specific consumption of materials, which caused the presence of excess waste, increased the cost of production by the amount:
57.4 thousand rubles - 7 thousand rubles. = 50.4 thousand rubles.
The main reasons for changing the specific consumption of materials are:
- a) change in material processing technology;
- b) change in the quality of materials;
- c) replacement of missing materials with other materials.
2. Change in the procurement cost of a unit of material. The procurement cost of materials includes the following main elements:
- a) the wholesale price of the supplier (purchase price);
- b) transportation and procurement costs. The value of the purchase prices for materials does not directly depend on the current activities of the enterprise, and the value of transportation and procurement costs depends, since these costs are usually borne by the buyer. They are influenced by the following factors: a) changes in the composition of suppliers located at different distances from the buyer; b) changes in the method of delivery of materials;
- c) changes in the degree of mechanization of loading and unloading operations.
The wholesale prices of suppliers for materials increased by 79 thousand rubles against those provided for by the plan. So, the total increase in the procurement cost of materials due to the growth of wholesale prices of suppliers for materials and the increase in transport and procurement costs is 79 + 19 = 98 thousand rubles.
3) the replacement of one material with another material also leads to a change in the cost of materials for production. This can be caused by both different specific consumption and different procurement costs of the replaced and replacing materials. The influence of the replacement factor will be determined by the balance method, as the difference between the total deviation of actual material costs from planned ones and the influence of already known factors, i.e. specific consumption and procurement cost:
94 - 50.4 - 98 \u003d - 54.4 thousand rubles.
So, the replacement of materials led to savings in the cost of materials for production in the amount of 54.4 thousand rubles. Substitutions of materials can be of two types: 1) forced replacements that are unprofitable for the enterprise.
After considering the total amount of material costs, the analysis should be detailed by individual types of materials and by individual products made from them in order to specifically identify ways to save various kinds materials.
Let us determine the influence of individual factors on the cost of material (steel) for product A using the difference method:
Table No. 18 (thousand rubles)The influence on the amount of material costs of individual factors is: 1) change in the specific consumption of material:
1.5 * 5.0 = 7.5 rubles.
2) change in the procurement cost of a unit of material:
0.2 * 11.5 \u003d + 2.3 rubles.
The total influence of the two factors (balance of factors) is: +7.5 + 2.3 = + 9.8 rubles.
So, the excess of the actual costs of this type of material over the planned ones is caused mainly by the overplanned specific consumption, as well as an increase in the procurement cost. Both should be viewed negatively.
The analysis of material costs should be completed by calculating the reserves for reducing the cost of production. At the analyzed enterprise, the reserves for reducing the cost of production in terms of material costs are:
- elimination of the reasons for the occurrence of excess returnable waste materials in the production process: 50.4 thousand rubles.
- reduction of transportation and procurement costs to the planned level: 19 thousand rubles.
- implementation of organizational and technical measures aimed at saving raw materials and materials (there is no reserve amount, since the planned measures have been fully implemented).
Total reserves for reducing the cost of production in terms of material costs: 69.4 thousand rubles.
Payroll cost analysis
When analyzing, it is necessary to assess the degree of validity of the forms and systems of remuneration used at the enterprise, check compliance with the savings regime in spending money on wages, study the ratio of growth rates of labor productivity and average wages, and also identify reserves for further reducing the cost of production by eliminating the causes unproductive payments.
The sources of information for the analysis are the calculation of the cost of production, the data of the statistical form of the report on labor f. No. 1-t, application data to the balance f. No. 5, accounting materials on accrued wages, etc.
At the analyzed enterprise, the planned and actual data on the payroll can be seen from the following table:
Table No. 18
(thousand roubles.)
This table separately highlights the wages of workers who receive mainly piecework wages, the amount of which depends on changes in the volume of production, and the wages of other categories of personnel, which do not depend on the volume of production. Therefore, the wages of workers are variable, and other categories of personnel - permanent.
In the analysis, we first determine the absolute and relative deviation in the wage fund of industrial and production personnel. The absolute deviation is equal to the difference between the actual and basic (planned) wage funds:
6282.4 - 6790.0 = + 192.4 thousand rubles.
The relative deviation is the difference between the actual payroll fund and the basic (planned) fund, recalculated (adjusted) for the percentage change in output, taking into account a special conversion factor. This coefficient characterizes the share of variable (piecework) wages, depending on changes in the volume of production, in the total amount of the wage fund. At the analyzed enterprise, this coefficient is 0.6. The actual volume of output is 102.4% of the base (planned) output. Based on this, the relative deviation in the wage fund of industrial and production personnel is:
So, the absolute overspending on the wage fund of industrial and production personnel is 192.4 thousand rubles, and taking into account changes in the volume of production, the relative overspending amounted to 94.6 thousand rubles.
Then we should analyze the wage bill of workers, the value of which is mainly variable. The absolute deviation here is:
5560.0 - 5447.5 = + 112.5 thousand rubles.
Let us determine the influence of two factors on this deviation by the method of absolute differences:
- change in the number of workers; (quantitative, extensive factor);
- change in the average annual wage of one worker (qualitative, intensive factor);
Initial data:
Table No. 19
(thousand roubles.)
The influence of individual factors on the deviation of the actual wage fund of workers from the planned one is:
Change in the number of workers:
51 * 1610.3 \u003d 82125.3 rubles.
Change in the average annual wage of one worker:
8.8 * 3434 = + 30219.2 rubles.
The total influence of the two factors (balance of factors) is:
RUB 82125.3 + 30219.2 rubles. = + 112344.5 rubles. = + 112.3 thousand rubles.
Consequently, the overspending on the wage fund of workers was formed mainly due to an increase in the number of workers. The increase in the average annual wage per worker also contributed to this overspending, but to a lesser extent.
The relative variance in the wage bill of workers is calculated without taking into account the conversion factor, since for the sake of simplicity it is assumed that all workers receive piecework wages, the size of which depends on the change in the volume of production. Therefore, this relative deviation is equal to the difference between the actual wage fund of workers and the basic (planned) fund, recalculated (adjusted) for the percentage change in output:
So, for the wage fund of workers there is an absolute overspending in the amount of + 112.5 thousand rubles, and taking into account the change in the volume of production, there is a relative saving in the amount of - 18.2 thousand rubles.
- additional payments to pieceworkers in connection with a change in working conditions;
- overtime pay;
- payment for all-day downtime and hours of intra-shift downtime.
The analyzed enterprise has unproductive payments of the second type in the amount of 12.5 thousand rubles. and the third type for 2.7 thousand rubles.
So, the reserves for reducing the cost of production in terms of labor costs are the elimination of the causes of unproductive payments in the amount of: 12.5 + 2.7 = 15.2 thousand rubles.
Next, the payroll of the remaining categories of personnel is analyzed, i.e. managers, professionals and other employees. This wage is a semi-fixed expense, independent of the degree of change in output, since these employees receive fixed salaries. Therefore, only the absolute deviation is determined here. Exceeding the base value of the wage fund is recognized as an unjustified overspending, the elimination of the causes of which is a reserve for reducing the cost of production. At the analyzed enterprise, the reserve for cost reduction is the amount of 99.4 thousand rubles, which can be mobilized by eliminating the causes of overspending on the wage funds of managers, specialists and other employees.
A necessary condition for reducing the cost of production in terms of wage costs is that the growth rate of labor productivity outstrips the growth rate of average wages. At the analyzed enterprise, labor productivity, i.e. the average annual output per worker increased compared to the plan by 1.2%, and the average annual wage per worker by 1.6%. Therefore, the lead factor is:
The outpacing growth of wages compared to labor productivity (this is the case in the example under consideration) leads to an increase in the cost of production. The impact on the cost of production of the ratio between the growth of labor productivity and average wages can be determined by the following formula:
At wages - Y produces labor multiplied by Y, divided by Y produces. labor.
where, Y is the share of wage costs in the total cost of marketable products.
The increase in the cost of production due to the outstripping growth of average wages compared to labor productivity is:
101,6 — 101,2 * 0,33 = + 0,013 %
or (+0.013) * 19888 = +2.6 thousand rubles.
In conclusion of the analysis of wage costs, it is necessary to calculate the reserves for reducing the cost of production in terms of labor costs, identified as a result of the analysis:
- 1) Elimination of the reasons causing unproductive payments: 15.2 thousand rubles.
- 2) Elimination of the causes of unjustified overspending on payroll funds for managers, specialists and other employees 99.4 thousand rubles.
- 3) Implementation of organizational and technical measures to reduce labor costs, and consequently, wages for output: -
Total reserves for reducing the cost of production in terms of wage costs: 114.6 thousand rubles.
Analysis of costs for production maintenance and management
These costs mainly include the following items in the calculation of the cost of production:
- a) the cost of maintaining and operating the equipment;
- b) overhead costs;
- c) general business expenses;
Each of these articles is various elements costs. The main purpose of the analysis is to find reserves (opportunities) to reduce costs for each item.
The sources of information for analysis are the calculation of the cost of production, as well as analytical accounting registers - sheet No. 12, which records the costs of maintaining and operating equipment and overhead costs, and sheet No. 15, which keeps records of general business expenses.
The costs of maintaining and operating equipment are variable, i.e., they directly depend on changes in the volume of production. Therefore, the basic (as a rule, planned) amounts of these expenses should first be recalculated (adjusted) by the percentage of the plan for output (102.4%). However, in the composition of these expenses there are conditionally constant items that do not depend on changes in the volume of production: “Depreciation of equipment and intrashop transport”, “Depreciation of intangible assets”. These articles are not subject to recalculation.
The actual costs are then compared with the recalculated base amounts and variances determined.
Expenses for the maintenance and operation of equipment
Table No. 21
(thousand roubles.)
|
Composition of expenses: |
Adjusted plan |
Actually |
Deviation from the adjusted plan |
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|
Depreciation of equipment and intrashop transport: |
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|
Operation of equipment (consumption of energy and fuel, lubricants, salary of equipment adjusters with deductions): |
(1050 x 102.4) / 100 = 1075.2 |
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Repair of equipment and intrashop transport: |
(500 x 102.4) / 100 = 512 |
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Intra-factory movement of goods: |
300 x 102.4 / 100 = 307.2 |
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Wear of tools and production fixtures: |
120 x 102.4 / 100 = 122.9 |
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Other expenses: |
744 x 102.4 / 100 = 761.9 |
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|
Total expenses for the maintenance and operation of equipment: |
In general, there is an overrun for this type of expenditure compared to the adjusted plan in the amount of 12.8 thousand rubles. However, if we do not take into account the savings on individual items of expenditure, then the amount of unjustified overspending on depreciation, operation of equipment and its repair will be 60 + 4.8 + 17 = 81.8 thousand rubles. Eliminating the causes of this unlawful overspending is a reserve for reducing the cost of production.
General production and general business expenses are conditionally fixed, i.e. they do not directly depend on changes in the volume of production.
overhead costs
Table No. 22
(thousand roubles.)
|
Indicators |
Estimate (plan) |
Actually |
Deviation (3-2) |
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|
Labor costs (with accruals) for shop management and other shop personnel |
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|
Amortization of intangible assets |
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Depreciation of buildings, structures and inventory of workshops |
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Repair of buildings, structures and inventory of workshops |
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Expenses for tests, experiments and research |
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Occupational health and safety |
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Other expenses (including depreciation of inventory) |
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Overhead costs: a) losses from downtime due to internal reasons b) shortage and loss of damage to material assets |
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Excess material assets (subtracted) |
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Total overhead costs |
In general, for this species expenses there is a saving in the amount of 1 thousand rubles. At the same time, for some items, there is an excess of the estimate in the amount of 1 + 1 + 15 + 3 + 26 = 46 thousand rubles.
Eliminating the causes of this unjustified overspending will reduce the cost of production. Especially negative is the presence of non-productive costs (shortages, losses from damage and downtime).
Then we analyze general expenses.
General running costs
Table #23
(thousand roubles.)
|
Indicators |
Estimate (plan) |
Actually |
Deviations (4 - 3) |
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Labor costs (with accruals) of the administrative and managerial personnel of the plant management: |
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The same for other general staff: |
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Amortization of intangible assets: |
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Depreciation of buildings, structures and general household equipment: |
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Production of tests, experiments, research and maintenance of general laboratories: |
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Occupational Safety and Health: |
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Personnel training: |
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Organized Recruitment of Workers: |
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Other general expenses: |
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Taxes and fees: |
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Overhead costs: a) losses from downtime due to external reasons: b) shortages and losses from damage to material assets: c) other unproductive expenses: |
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Excluded income surplus material assets: |
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|
Total general expenses: |
In general, there is an overspending in the amount of 47 thousand rubles for general business expenses. However, the amount of unbalanced overspending (i.e. without taking into account the savings available for individual items) is 15 + 24 + 3 + 8 + 7 + 12 = 69 thousand rubles. Eliminating the causes of this overspending will reduce the cost of production.
Savings on certain items of general production and general business expenses may be unjustified. This includes such items as expenditure on labor protection, testing, experiments, research, and training. If there are savings on these items, you should check what caused them. There can be two reasons for this: 1) the corresponding costs are made more economically. In this case, the savings are justified. 2) Most often, savings are the result of the fact that the planned measures for labor protection, experiments and research, etc. have not been completed. Such savings are unjustified.
At the analyzed enterprise, as part of general business expenses, there are unjustified savings under the item “Training of personnel” in the amount of 13 thousand rubles. It is caused by the incomplete implementation of the planned training measures.
So, as a result of the analysis, an unjustified overspending on the costs of maintaining and operating equipment (81.8 thousand rubles), on general production costs (46 thousand rubles) and on general business expenses (69 thousand rubles) was revealed.
The total amount of unjustified cost overruns for these cost items is: 81.8 + 46 + 69 = 196.8 thousand rubles.
However, as a reserve for cost reduction in terms of production maintenance and management costs, it is advisable to take only 50% of this unjustified overspending, i.e.
196.8 * 50% = 98.4 thousand rubles.
Here, only 50% of unjustified overspending is conditionally accepted as a reserve in order to eliminate the repeated expense account (materials, wages). When analyzing material costs and wages, reserves have already been identified to reduce these costs. But both material costs and wages are included in the cost of servicing production and management.
In conclusion of the analysis, we summarize the identified reserves for reducing the cost of production:
in terms of material costs, the amount of the reserve is 69.4 thousand rubles. by eliminating above-planned returnable waste of materials and reducing transportation and procurement costs to the planned level;
in terms of wage costs - the amount of the reserve is 114.6 thousand rubles. by eliminating the causes of unproductive payments and the causes of unjustified overspending on payroll funds for managers, specialists and other employees;
in terms of expenses for maintenance of production and management - the amount of the reserve is 98.4 thousand rubles. by eliminating the causes of unjustified cost overruns for the maintenance and operation of equipment, general production and general business expenses.
So, the cost of production may decrease by 69.4 +114.6 + 98.4 = 282.4 thousand rubles. The profit of the analyzed enterprise will increase by the same amount.
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 - itthe 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 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.
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 instance , 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:
- Spending on raw materials and materials necessary for the production of products;
- Energy costs. Some industries take into account the costs associated with the use of a particular type of fuel;
- The cost of machinery and equipment, thanks to which production is carried out;
- Payment of salaries to employees. This item also includes payments related to the payment of taxes and social services. payments;
- Production expenses (rental of premises, advertising campaigns etc.);
- Expenses for holding social events;
- Depreciation deductions;
- administrative costs;
- 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 is spent Money 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 manufacturing process etc;
- Indirect costs are those costs that cannot be attributed directly to production. These include commercial, general 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 a 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 shipbuilding plant, where several ships are produced per year, it is rational to calculate the cost of each separately;
- Transverse method. This method 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 they knead the dough, in another they bake bakery products, in the third they are packaged, etc. In this case, calculate the cost of each process separately;
- Process method. It is used by extractive industries, 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:
- Sum up all the costs associated with the purchase of raw materials and supplies needed for production;
- Calculate how much money was spent on energy resources;
- Add up all the costs associated with paying salaries. Don't forget to add 12% on additional work and 38% on social deductions and health insurance;
- Add deductions for depreciation costs with other expenses that are associated with the maintenance of devices and equipment;
- Calculate the costs associated with the sale of products;
- Analyze and account for other production costs.
Based on the initial data and costing articles, we make calculations:
| Expense Category | Payment | Final value | ||
| Fund contributions | Paragraph 4 of the initial data | |||
| overhead costs | Paragraph 6 of the initial data | |||
| General running costs | Paragraph 5 of the initial data | |||
| Production cost of 1000 m of pipes | The sum of points 1-6 ref. data | 3000+1500+2000+800+200+400 | ||
| Selling costs | Paragraph 7 of the initial data | |||
| Full cost | The amount of production. Costs and distribution costs | |||
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 subdivided into different types and classes. This main factor, which must be taken into account 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 the enterprise "lives its own life", employees are not interested in quick and quality performance their duties, etc., then with great certainty, 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:
- Raise labor productivity;
- Automate workplaces, purchase and install new modern equipment;
- Engage in the enlargement of the enterprise, think about cooperation;
- Expand the range, specifics and volume of products;
- Introduce economy mode throughout the enterprise;
- Use energy resources wisely, use energy-saving equipment;
- Make a careful selection of partners, suppliers, etc.;
- Minimize the appearance of defective products;
- Reduce the cost of maintaining the administrative apparatus;
- Conduct market research regularly.
Conclusion
Cost is one of the most important quality indicators work of any enterprise. It is not a constant value. 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.
Cost is one of key indicators store efficiency and profitability. It can be calculated in several ways using different formulas. In our article, we will give examples and tell you how to determine this indicator correctly.
How to calculate the cost
The cost of products sold, goods, work performed, services rendered is the total of all costs incurred by the store in order to manufacture and sell.
How to calculate the cost? To do this, you need to sum up all the costs and expenses of the store. The full cost price is the totality of all expenses in monetary terms, all the costs incurred by the store to carry out its activities.
In general, in the economy, including the microeconomics of each store, costs are divided into types depending on the methods of their structuring, on how these costs change under the influence of various factors of commercial activity.
Costs are divided by economic elements and by cost items:
- material costs. In the context of retail, this is the cost of products purchased for resale;
- Depreciation of fixed assets;
- Wage;
- Social contributions to off-budget funds. It used to be the ESN;
- Other taxes, for example, transport tax, property tax;
- Rent;
- Third-party company services;
- Telephone and Internet ;
- Other expenses.
The total cost is found by simply adding up all the costs indicated in these paragraphs.
Costs in the cost of production can be considered by calculation items. The cost of calculation items is calculated per unit of manufactured products.
Another way to share costs is by how they behave depending on changes in commercial, production, and management factors. In this context, all costs of the company, including the store, are divided into two groups:
- fixed costs;
- variable costs.
We calculate the cost using an example. Video
The cost of goods in the store
Cost of goods in retail may consist of the following elements:
- The purchase price of goods in the cost of production. This is the cost at which stores buy goods from suppliers, wholesalers, manufacturers for further retail sale;
- Shipping costs;
- Rent outlet- if the store is not owned by the entrepreneur;
- Depreciation of fixed assets in the cost of production. This is commercial equipment, computer equipment. Everything that costs more than 10 thousand rubles;
- The salary is constant. This is the salary of management, accounting, permanent salaries of sellers and sales managers, service personnel;
- Salary is variable. These are percentages of sales, concluded contracts, which are received by sales managers depending on the effectiveness of their work;
- Payroll deductions. These are contributions to off-budget funds, the former UST - to the Pension Fund of the Russian Federation, to the Social Insurance Fund, to the Compulsory Medical Insurance Fund;
- taxes;
- Third-party company services - transport services, Internet, communications, including mobile;
- Other expenses. This usually includes what is not included in the above large groups of expenses: stationery, other expenses.
Costs in retail trade in the cost of production specified in paragraphs 1, 2 and 6 are variable. This means that they change, the amount of costs varies depending on the volume of trade: the more you sell, the more you spend on buying goods.
The rest of the costs are fixed. They do not change depending on the volume of trade: no matter how much you sell - little or a lot - the cost of rent is the same for you, the salary for the store director, along with accountants and cleaners, you pay the same, for communications, the Internet and stationery you spend as much same.
The Business.Ru service will generate reports on the total balances and cash flow of your store, as well as help you compile detailed sales analytics, which will allow you to correctly calculate the cost and profitability of goods in your store.
Cost calculation methods in trade
In retail, it is very important to use one of the three costing methods. Here we mean not the full cost, but the cost of goods.
Namely: at what price to write off the cost, write off the costs of goods purchased for further resale. All other costs mentioned above are simply added to the cost of goods.
There are three methods for determining at what price to write off goods purchased for sale:
- At the cost of each unit of goods;
- at an average cost;
- According to the FIFO method (FIFO: First In First Out - First In, First Out).
Cost of each unit method
It is used in those areas of trade when they sell some piece and expensive goods. It can be cars, jewelry.
This method is used where accuracy is needed in determining the cost, as well as in determining the financial results from each individual sale.
When applying this method, the cost price, the cost is deducted from the amount for which each item was purchased separate item, each individual product, which is then sold.
Average cost method
It lies in the fact that the cost (actual cost) of the goods sold is written off to the costs on a monthly basis not at the price of each individual purchase, but at the arithmetic average, that is, at the average cost. This method is used more often than the first.
The formula for calculating the average cost is as follows:
Average cost =(cost of balances at the beginning of the month + cost of the next delivery) / (quantity of goods at the beginning of the month + quantity of goods in the next delivery)
Example of calculating costs using the average cost method
Let's say you own a butcher shop. At the beginning of the month, you still had sausages in the amount of 5 kilograms at 270 rubles per kilogram (supplier price).
Within a month, you received new sausages in two batches: 7 kilograms for 270 rubles and 7 kilograms for 240 rubles. During the reporting month, you sold 17 kilograms at a selling price of 300 rubles per kilogram.
Let's find the cost of sausages sold per month using the average cost method:
- Balance at the beginning of the month:
5 kg. * 270 rub. = 1350 rubles.- First delivery cost:
7 kg. * 270 rub. = 1890 rubles.- The cost of the second delivery:
7 kg. * 240 rub. = 1680 rubles.- Average cost of sausages:
(1350 + 1890 + 1680) / (5 +7 +7) = 4920 / 19 = 259 rubles.Since you sold 17 kilograms at 300 rubles per kilogram in a month, that is, for 5100 rubles (17 * 300), then you write off 17 kilograms at the average price to the cost of sales:
17 * 259 = 4403
5100 - 2590 = 697 rubles.
FIFO method
This is the most popular costing method used in the trade. It consists in the fact that the cost price is first written off the goods at the price of the first delivery (previous), then at the price of the next one, and so on.
This method may also be more profitable for the store. Let's consider an example, based on the previous sausage data for your butcher shop: you have a balance of 5 kg. 270 rubles each, and two deliveries - 7 kg. for 270 rubles. and 7 kg. for 240 rubles. and sale of 17 kg. 300 rubles each
Example of FIFO cost calculation and financial results:
When you sold 17 kilos, you sold the rest first:
5 kg. for 270 rubles. = 1350 rubles.
Then you sold the first batch:
7 kg. for 270 rubles. = 1890 rubles.
Then you sold 5 kilograms from the second batch:
5 kg. for 240 rubles. = 1200 rubles.
Thus, the total cost (actual cost of sales) of 17 kilograms of sausages sold during the month will be:
1350 + 1890 + 1200 = 4440 rubles . (actual cost of sales)
Profit from the sale of sausages per month will be:
5100 - 4440 \u003d 660 rubles.