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

What is the cost of goods

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

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

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

How to determine the cost of goods

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

What is included in the cost of goods

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

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

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

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

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

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

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

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

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

Types of production costs

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

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

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

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

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

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

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

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

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

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

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

In addition to the cost of production, there is also

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

According to the calculation items:

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

By cost elements:

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

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

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

Theory of Constraints

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

Methods for calculating the cost of goods

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

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

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

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

Method #1

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

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

Method #2

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

Method #3

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

Method #4

The processor method is mainly used in mining enterprises.

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

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

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

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

Production costs:

C \u003d MZ + A + Tr + other expenses

Where C is the cost of expenses;

MZ - material costs of the organization;

A - depreciation deductions;

Tr - waste on wages to employees of the company.

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

Where PS - full cost;

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

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

The cost of goods sold is calculated by the formula:

Where PS is the total cost,

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

OP - the remains of unsold products.

Gross cost is defined as:

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

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

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

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

Cost classification

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

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

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

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

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

Simply put, the cost of production can be defined as the sum of the costs, expressed in monetary terms, aimed at the production and sale of the released goods or services. However, there are many concepts of cost, since it increases at different stages of production and management. The topic of this article is the production cost, and we will consider this concept in more detail.

Production cost of production: definition

The work of companies is always focused on the production of goods. At the same time, the company incurs costs by investing raw materials, labor and energy resources in the manufactured product, i.e. expenses called production.

To find out what costs make up the production cost of a product, we will learn about the main types of cost. With the growth of costs that fit into the price of the goods produced, a distinction is made between shop, production and full costs.

The shop floor is made up of the costs incurred by the production structures of the company involved in the process of creating products. The production cost is formed by the workshop, supplemented by general and target costs. Under the full cost understand the production with added to it the cost of transporting and delivering goods to the market.

So, the production cost is the total of all costs for the release of the product and does not include the costs associated with the sale.

Classification of costs for creating a product

The production cost of products includes the costs of:

• materials;
• shop staff salary;
• contributions to funds;
• depreciation of fixed assets and intangible assets;
• others.

Calculate the cost by cost items aimed at the release and subsequent sale of products by calculating its cost. Typical grouping of costs is used, which allows the most accurate calculation of the cost of the costing object, for example, the type of product being produced. All costs are divided into costing items:

• raw materials and materials, minus useful returnable residues;
• purchased and manufactured semi-finished products;
• fuel, heat and electricity;
• depreciation of fixed assets / intangible assets;
• wages of production workers;
• contributions to funds;
• organization of the production process and its development;
• overhead and general business expenses;
• losses from marriage;
• other production costs;
• selling expenses.

Production cost: formula

The summation of the costs attributed to all the listed items, except for the costs associated with the sale, forms the production cost of the products. A simplified formula for calculating the production cost may look like this: C \u003d M + A + W + P, where M is materials, A is depreciation, W is wages, P is other expenses.

Other costs in this formula are target, general production and general industry costs.

Depending on the field of activity of the company, the production cost of the product may include other industry-specific costs, often prevailing over others. Economists rely on them when they work to reduce costs and increase the profitability of a product. These studies are another purpose of calculating the production cost of goods.

Since expenses are grouped item by item in the cost structure, each indicator included in the calculation corresponds to a percentage, and cost items determine the ratio of the group of expenses in the total amount, clarifying the priority of some and the possibility of reducing others. Since a variety of external and internal economic factors influence the share cost indicator, it is impossible to achieve a constant cost value even for manufacturers of the same products. Therefore, the concept of the actual production cost, i.e., calculated for a given point in time, was introduced.

The calculation of the production cost is important for an enterprise and has a direct impact on building a company's development strategy, its position in the industry, and a competent analysis allows you to use production resources in creating goods most efficiently.

This line reflects information on expenses for ordinary activities that formed the cost of goods sold, products, work performed and services rendered (clauses 9, 21 PBU 10/99).

What expenses form the costsold goods, products, works, services?

The cost of sold goods, works, services includes the following expenses for ordinary activities (clauses 4, 5, 9 PBU 10/99, clauses 11, 22, paragraph 3 clause 23 PBU 2/2008):

- costs associated with the manufacture of products;

- expenses associated with the purchase of goods;

— costs associated with the performance of work;

— costs associated with the provision of services;

- expenses associated with the provision of property for rent (in organizations whose subject of activity is the provision of their assets for rent);

— expenses associated with the granting of rights to use the results of intellectual activity (in organizations whose subject of activity is the granting of such rights for a fee);

— expenses associated with participation in the authorized capitals of other organizations (in organizations whose subject of activity is participation in the authorized capitals of other organizations);

— amounts of deviations, claims, incentive payments recognized as revenue under construction contracts in previous reporting periods, the receipt of which was doubtful (expected losses);

- other expenses depending on their nature, conditions of implementation and activities of the organization.

The amount of expenses is determined based on the price established by the contract, taking into account all the stipulated discounts, regardless of the form of their provision (clauses 6.1, 6.5 PBU 10/99, Appendix to the Letter of the Ministry of Finance of Russia dated 06.02.2015 N 07-04-06 / 5027 ).

For organizations performing work under construction contracts, direct costs under the contract (expenses for ordinary activities) can be reduced by the income of the organization not directly related to the execution of the contract, received in the performance of other contracts (paragraph 3, clause 12, PBU 2/2008 ). For example:

- on income from the sale of materials and structures excessively written off for production;

- for rent for construction equipment that is temporarily not used by the organization itself for the execution of a construction contract.

The cost of sold goods, products, works, services is written off from accounts 20 “Main production”, 23 “Auxiliary production”, 29 “Serving production and facilities”, 41 “Goods”, 43 “Finished products”, 40 “Output of products, works, services” and others to the debit of account 90 “Sales”, sub-account 90-2 “Cost of sales” (Instructions for using the Chart of Accounts).

Note that management expenses recorded on account 26 "General business expenses", in accordance with the accounting policy of the organization (clauses 9, 20 PBU 10/99, Instructions for the application of the Chart of Accounts):

1) may be included in the cost of products, works, services (debited from account 26 to the debit of accounts 20, 23, 29);

2) as conditionally permanent, they can be directly related to the cost of sales of the reporting period in which they arose (debited from account 26 to the debit of account 90, subaccount 90-2).

Note!

General business expenses of construction organizations may be included in the cost of work under construction contracts only if they are reimbursed by the customer (clause 14 PBU 2/2008).

In the first case, these expenses form an indicator in line 2120 "Cost of sales", and in the second case they are shown in line 2220 "Administrative expenses" of the Statement of Financial Performance.

The rules for recognition of expenses in the Statement of Financial Performance are defined in paragraphs 18, 19 of PBU 10/99 and paragraphs 16, 23 of PBU 2/2008. In particular:

— expenses are recognized taking into account their connection with receipts (for example, the cost of performing work is recognized simultaneously with the recognition of proceeds from their sale as part of income);

— if the expenses cause the receipt of income during several reporting periods and the relationship between income and expenses cannot be clearly determined or is determined indirectly, then they are recognized in the Statement of Financial Performance by their reasonable distribution between the reporting periods;

- if a small business organization recognizes proceeds from the sale of products and goods not as the transfer of ownership, use and disposal of the delivered products, goods sold, but after receipt of payment, then the expenses are recognized after the debt is paid off.

Features of calculating the cost of goods, products, works, services are established by industry methodological instructions, recommendations, guidelines (clause 10 PBU 10/99, Letter of the Ministry of Finance of Russia dated 04.29.2002 N 16-00-13 / 03 “On the application of regulatory documents governing issues accounting for production costs and calculating the cost of products (works, services).

What accounting data is usedwhen filling in line 2120 "Cost of sales"?

The value of the indicator of line 2120 "Cost of sales" (for the reporting period) is determined on the basis of data on the total debit turnover for the reporting period on account 90, subaccount 90-2, in correspondence with accounts 20, 23, 29, 41, 43, 40, etc. At the same time, the turnover on the debit of account 90, subaccount 90-2, in correspondence with the credit of account 44, as well as in correspondence with the credit of account 26 (if any) are not taken into account (paragraph 23 of PBU 4/99). The resulting value of the cost of goods sold, products, works, services is indicated in line 2120 "Cost of sales" in parentheses.

Note!

In the event that types of income are allocated in the Statement of Financial Results, each of which individually amounts to five or more percent of the total amount of the organization's income for the reporting year, additional lines are introduced to line 2120 "Cost of sales", which indicate the expenses corresponding to the types allocated by the organization income (clause 21.1 PBU 10/99).

Line 2120 “Cost of sales” = Turnover on the debit of account 90/2 - Turnover on the debit of subaccount 90/2 and credit of account 44 - Turnover on the debit of subaccount 90/2 and credit of account 26 (If, in accordance with the accounting policy of the organization, management expenses as semi-permanent are debited to the debit of account 90, subaccount 90-2)

Line 2120 "Cost of sales" (for the same reporting period of the previous year) is transferred from the Statement of Financial Performance for the same reporting period of the previous year.

Example of filling line 2120"Cost of sales"

Indicators for subaccount 90-2 of account 90 in accounting (excluding turnover on the debit of subaccount 90-2 in correspondence with the credit of accounts 44 and 26): rub.

Fragment of the Statement of Financial Results for 2013

Solution

The cost of sold goods, products, works, services for 2014 is (total) 72,014 thousand rubles.

For types of revenue that are at least 5%, the cost is equal to:

sold products - 53,215 thousand rubles;

goods sold - 15,221 thousand rubles.

A fragment of the Statement of Financial Results will look as follows.

Cost price- these are the costs (costs) for the production of goods, performance of works or provision of services. As a rule, the prime cost is made up of expenses directly related to the manufactured products, but it is also possible to calculate the prime cost, in which managerial and are also distributed to the cost of the manufactured products.

Cost of sales is one of the key indicators in the financial statements (Profit and Loss Statement), coming immediately after Revenue. Revenue minus Cost of Sales is Gross profit (loss). Other general (administrative) expenses are also part of the financial result from sales, but depending on the method of accounting chosen by the enterprise, they may not be singled out in the Profit and Loss Statement as a separate line, but taken into account as part of the cost of sales. In this case, in accounting there is a distribution of general business costs to cost accounting accounts instead of their direct write-off to the sales account as conditionally fixed costs.

Classification

The cost price can be considered in the context of cost elements and costing items.

The following cost elements are distinguished:

• material costs (raw materials, materials, components, overhead costs, etc.);
• wages (employees of the enterprise);
• deductions from wages (social, pension insurance, etc.)
• depreciation of fixed assets;
• other expenses.

The classification of cost by cost items depends on the industry characteristics of the enterprise. Usually, the following cost items are distinguished:

• raw materials
• returnable waste (deductible)
• purchased components, semi-finished products and industrial services;
• fuel and energy for technological purposes;
• labor costs of employees directly involved in the production process;
• deductions from wages for social needs;
• expenses for the preparation and development of production;
• overhead costs;
• general running costs;
• losses from marriage;
• other production expenses;

Cost analysis

The cost price is the most important indicator for analysis in order to improve production efficiency. The analysis can be performed in several sections. For example, all costs are divided into variables (which depend on the volume of output) and fixed (or conditionally fixed, which, within a certain range, do not depend on the amount of output). Such an analysis allows you to determine the production volumes at which the enterprise reaches the cost recovery (break-even point).

The source of information for the analysis of the cost of production is accounting, warehouse and production accounting. To analyze the cost according to public financial statements, as a rule, is possible only in the most general form (increase or decrease in costs, change in profit from sales). For a deeper analysis, data from the accounting system of the enterprise is required.

Still have questions about accounting and taxes? Ask them on the accounting forum.

Cost price: details for an accountant

• Formation of the cost of finished products (works, services)

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• Options for calculating the cost in "1C: Accounting 8", ed. 3.0

  Distribution base Description Planned cost of production In proportion to the planned cost... of a production nature. When calculating the actual cost of production (operation "Closing the month ... step, directly calculating the actual cost. Calculations are performed in several ... by the following reports: reference calculation" Costing "; reference calculation" Distribution of indirect ... expenses"; reference-calculation "Product cost". Standard report "Reference-calculation ...

• Management accounting for the cost of paid services

  General business expenses included in the cost of public services are established directly by the founder ... the ability to apply the method of partial production cost - direct cost. To do this ... an institution can form the full production cost by distributing all general business costs. ... textbooks. When calculating the actual cost of a service, work, product for ... The composition of overhead costs in the formation of the cost of a service (work, product) corresponds to ...

• Can interdependent legal entities sell goods to each other at cost?

  Goods to each other at its cost, and to third parties - at market ... goods to each other at its cost, and to third parties - at market ... for sale by organizations of goods at cost and does not establish a minimum price ... to controlled, sale goods at cost when goods are sold to third parties ...

• Accounting for long-term contracts

  The full cost price for the IFRS method - the truncated cost price, is excluded from the cost indicator ... respectively, without falling into the cost price. It is expedient for management to analyze ... profits. Truncated cost method The main use of cost, given the task ... Some enterprises use the system of full cost, according to the documents of the State customer, ... and actual cost based on the truncated cost method. Implementation of rationing...

In addition, distributed production overheads are included in the cost price ... general production costs include in the cost of finished products in proportion to the coefficient ... fixed production costs that overestimate the cost of production when the production is not fully loaded ... the enterprise generates an incomplete production cost. Moreover, all these indicators ... form an incomplete production cost of finished products. Product cost includes...

• Results of transfer pricing disputes. Part II. Which benchmark will not be challenged by the tax authorities?

  On financial results, as part of the cost of sales, it reflects only the cost of acquired ... commercial expenses are formed separately from the cost of sales. Information about the composition of such ... comparable organizations are included in the cost of sales, in addition to the cost of purchased goods ... no less. Accordingly, the inclusion of more types of expenses in the cost price can ...: transport and other operating expenses, cost of goods sold are not constant ...

• Accounting methodology in ferrous and non-ferrous metallurgy

  Products (works, services), calculation of the cost of production, the accountant should be guided by ... ferrous metallurgy. The uniformity of the cost calculation allows for a comparative analysis ...; – depreciation of fixed assets; - the cost of by-products - the costs of managing ... products are set in proportion to the average cost of production from homogeneous raw materials, ... the total planned cost of the corresponding products is determined by summing ...

• How to speed up reporting in retail by automating transformational adjustments

  To exclude financial expenses from the cost of unsold inventories and reclassify part of ... the current market value and the actual cost of inventories (if they ... relate, that is, the cost of goods for which retrospective bonuses ... upon receipt of goods are taken into account at the actual cost on account a4101, without using ... upon receipt, the goods are accounted for at the actual cost 2. Goods are written off at the average ...

• Accounting for income and expenses in a budgetary institution

  To account for operations on the formation of the cost of finished products, work performed, ... accounting policies, are allocated to the cost of sales of finished products, rendered ... the result of the institution's activities. Formation of the cost in the program "1C: BSU 8 ... cost indicators; Help-calculation "Cost calculation" ("Services, works, production" - "Reports") ... the amounts of costs that formed the actual cost. Specialized reports are recommended to be generated...

• Accounting policy of healthcare facilities - 2020: organization of accounting

  With subsequent clarification of their initial cost in accordance with the provisions of the accounting ... institution, highlighting deviations in the actual cost from transportation costs, margins of intermediary ... organizations. After calculating the actual cost, the identified deviations from the accounting price ... accounting. The institution chooses a method for calculating the cost of a unit of finished products, work (... for planning, accounting and calculating the cost of production (Methodological recommendations). Here ...

• How to account for expenses incurred from rental income?

  Expenses that do not form the cost of work, services. Costs that form the cost of work, services, finished ... (general expenses)). The list of costs that form the cost of work, services, and the distribution procedure ... as a result of income-generating activities, the cost of services, work refers to ... Instructions No. 174n). Expenses that do not form the cost of work, services, are reflected using ... Instruction No. 174n provides for reflecting the generated cost of work, services in the debit of the account ...

• Accounting for souvenirs

  Accounting for the planned (regulatory-planned) cost. At the end of the month, the actual ... museum is determined) made on their own. The cost of souvenirs includes the salary of the master, consisting of ... 370 rubles). The actual cost of souvenirs exceeded the planned cost due to an increase ... 370 The excess of the actual cost over the planned cost (33 900 - 30 ... the purchase of souvenirs is not included in the cost of services provided under the state ...

• Transformation of accounting (financial) statements: practice of carrying out

  At the lower of cost and net realizable value. Cost of inventories determined by... 1,150,749) Liabilities Cr Cost: contributions to collective agreements from... land 99,035 Liabilities Dr Cost: depreciation 99,307 Liabilities... Cr Cost: costs of services for... (784,219) Liabilities Dr Cost: depreciation 339,380 Liabilities Dr... depreciation) 1,170 Liabilities Cr Cost: Mining license costs... 4,050 Liabilities Dr Cost: depreciation 1,170 Reclassification...

• VAT and income tax: reflect in accounting

  Analytical accounts involved in the formation of the cost of goods (works, services). Operations... souvenirs he made. Their cost includes the salary of the master, consisting ... and the cost of consumables. The planned cost of one souvenir is 100 rubles. ... 000 rubles). The actual cost of souvenirs exceeded the planned cost due to... 15,000 The excess of the actual cost over the planned one (37,134 – ... The sold souvenirs were written off at the planned cost 2,401 10,131 ...

The cost price is one of the most important indicators of the efficiency and profitability of the store. 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.

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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:

1. material costs. In the context of retail, this is the cost of products purchased for resale;
2. Depreciation of fixed assets;
3. Wage;
4. Social contributions to off-budget funds. It used to be the ESN;
5. Other taxes, for example, transport tax, property tax;
6. Rent;
7. Third-party company services;
8. Telephone and Internet ;
9. Other expenses.

The total cost is found by simply adding up all the costs indicated in these paragraphs.

You can analyze the cost and markup and calculate the profitability of products in the Business.Ru program. It allows you to predict profits and make purchases based on sales dynamics!

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

The cost of goods in retail trade may consist of the following elements:

1. 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;
2. Shipping costs;
3. Renting a retail outlet - if the store is not owned by the entrepreneur;
4. Depreciation of fixed assets in the cost of production. This is commercial equipment, computer equipment. Everything that costs more than 10 thousand rubles;
5. The salary is constant. This is the salary of management, accounting, permanent salaries of sellers and sales managers, service personnel;
6. Salary is variable. These are percentages of sales, concluded contracts, which are received by sales managers depending on the effectiveness of their work;
7. 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;
8. taxes;
9. Services of third parties - transport services, Internet, communications, including mobile;
10. 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.

Comprehensive trade automation at a minimum cost

We take a regular computer, connect any fiscal registrar and install the Business Ru Kassa application. As a result, we get an economical analogue of a POS-terminal as in a large store with all its functions. We enter goods with prices in the Business.Ru cloud service and start working. For everything about everything - a maximum of 1 hour and 15-20 thousand rubles. for the fiscal registrar.

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 individual product was purchased, each individual product, which was 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 every month 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.