Cost elements and production costs

The costs that form profit are divided into two large classes - the costs of production and sales of products and non-operating costs.

The costs of producing products in their quantitative and qualitative composition are not the same at different enterprises. Therefore, there is a need for a unified classification of costs for all industries according to economic elements .

Element- this is the simplest, homogeneous type of cost, showing what is spent by the organization, regardless of the purpose of the costs (Fig. 6.3).

Rice. 6.3. Main cost elements

Elements include:

· material costs (minus the cost of returnable waste). Material costs reflect the cost of purchased raw materials, materials, components, semi-finished products, fuel and energy of all types, spare parts, tools and devices, work and services of a production nature performed by third parties, costs of using natural raw materials, losses from shortages of material resources within the limits of natural loss;

· labor costs. This element reflects the basic and additional wages of all categories of employees of the organization;

· social contributions. This element reflects deductions according to established standards from labor costs to the social insurance fund, pension fund, and health insurance fund;

· depreciation. This element reflects depreciation of both own and leased fixed assets, depreciation of intangible assets;

· other expenses. This element reflects: taxes, fees, payments (including for compulsory types of insurance), contributions to insurance funds (reserves), payments for emissions (fees) of pollutants, rewards for inventions and rationalization proposals, payment for work on certification of goods and services, costs for business trips, lifting, payment to third-party organizations for fire and security guards, for training and retraining of personnel, payment for communication services, computer centers, rent in the case of renting individual objects of fixed production assets (or their individual parts) and others.

The classification of costs by economic elements serves as the basis for analyzing the operation of an enterprise, including determining the technical level of production, labor intensity, labor productivity, and the enterprise's need for production fixed and working capital.

However, the classification of costs by economic elements does not allow calculating the cost of a unit of production and establishing the amount of costs of individual divisions of the enterprise.

The cost of production is not only the most important economic category, but also a qualitative indicator, since it characterizes the level of use of all resources (variable and constant capital) at the disposal of the enterprise.

· accounting and control of all costs for production and sales of products;

· economic justification acceptance of any management decisions

· the basis for forming the wholesale price for the enterprise’s products and determining profit and profitability;

· economic justification for the feasibility of making real investments in reconstruction, technical re-equipment and expansion operating enterprise;

· determination of the optimal size of the enterprise;

Rice. 6.4. Types of cost

For economic assessment options new technology and choosing the most effective of them is first of all calculated technological cost, which represents the sum of the costs of a given workshop directly related to the implementation of technological operations.

Workshop cost includes all the costs of the workshop for the production of this type of product, i.e. costs of basic and auxiliary materials, fuel, energy, wages of production workers, costs of maintaining and operating equipment and workshop costs associated with managing the workshop.

Production cost- These are the total costs of the enterprise for the production of this type of product. It consists of workshop costs and general plant expenses.

Full cost– reflects the costs of production and sales of products. It includes production costs and non-production expenses.

The cost may be planned (normative) And reporting (actual) .

Planned cost production is calculated on the basis of progressive standards for the consumption of raw materials, fuel materials, energy, equipment, and savings in the costs of management and maintenance of production.

Reported cost products is determined by the actual costs of production and sales of products. Actual costs may be lower or higher than planned.

The role and importance of production costs for an enterprise is great. From an economic and social point of view, the importance of reducing production costs for an enterprise is as follows:

· in increasing the profit remaining at the disposal of the enterprise, and therefore in the emergence of the possibility of not only simple, but also expanded reproduction;

· in the emergence of greater opportunities for financial incentives workers and solutions to many social problems of the enterprise staff;

· in improving the financial condition of the enterprise

· in the possibility of reduction selling price on its products, which can significantly increase the competitiveness of products and increase sales;

· in reducing production costs in joint stock companies, which is a good prerequisite for paying dividends and increasing their rate.

From all that has been said, a very important conclusion follows that the problem of reducing production costs should always be the focus of attention in enterprises.

Classification of costs to determine the planned and actual cost of products (works, services)

To create an asset, perform a work or service, the resources of the most various types. Exactly a large number of operations on the use of certain resources and the long period of their implementation force calculations. Costing refers to the allocation and accumulation of costs incurred to create a product.

To calculate the cost of a unit of production and identify reserves for reducing the cost of production, it is necessary to know not only the total amount of costs of the enterprise for a particular economic element, but also the amount of costs depending on the place of their origin. This opportunity is provided by classification by cost items (according to cost items), the essence of which is precisely the differentiation of costs according to their intended purpose and place of origin.

The classification of costs by costing items has significant differences across industries, reflecting their specifics.

Calculation of the cost of products (works, services)- This is the calculation of the amount of costs attributable to output or per unit of production.

The statement in which the cost per unit of production is calculated is called calculation.

Currently exists standard nomenclature of articles, which includes:

1) raw materials and basic materials;

2) returnable waste (subtracted);

3) purchased products and semi-finished products;

4) fuel for technological purposes;

5) energy for technological purposes;

6) wages of production workers;

7) contributions for the social needs of production workers;

8) expenses for preparation and development of production;

9) general production expenses;

10) general business expenses;

11) losses from marriage;

12) other production costs;

Total production cost

13) selling expenses.

Total full cost

For different sectors of the economy, different combinations of costing items are used, determined by the characteristics of the organization and production technology.

Costs reflected in costing items are classified according to many criteria (see Fig. 6.5).

1. By economic role in the manufacture of products production costs are divided into main and invoices.

Basic costs directly caused by the production process. These include the costs of raw materials, materials, fuel and energy for technological purposes, costs associated with remuneration of workers, their social insurance, maintenance and operation of equipment.

Overheads associated with the management and maintenance of production. They include salaries of administrative and managerial personnel; contributions to his social insurance; maintenance, depreciation and current repairs of buildings, structures and household equipment, etc.

Overhead costs are divided into general production and general economic, depending on the place of occurrence.

The totality of fixed and overhead costs forms the production cost of products. Overhead costs are the most important reserve for reducing production costs.

Rice. 6.5. Methods for classifying costs reflected in costing items.

2. By relation to the object of reference costs are divided into direct and indirect.

Object of cost allocation is called the object in relation to which they accumulate and to which they attributed to.

Grouping costs by main and invoices does not coincide with the grouping of costs into direct and indirect.

Direct costs are which can be directly attributed to a specific type of product or work with the production or implementation of which they are associated or a division of the enterprise.

Indirect costs associated with the manufacture of all types of products or performance of all types of work. Indirect costs are those that cannot be calculated for individual products on the basis of direct ownership, since they are associated with the manufacture of several types of products or with various stages of their processing. They are grouped into complexes and then included in the cost of specific types of products through distribution proportional to some conditional base. Indirect costs include costs for the maintenance and operation of machinery and equipment, preparation and development of production, general production, general business and other production costs.

Expenses for maintenance and operation of machinery and equipment constitute the most important part of all indirect costs.

These include:

depreciation of equipment and Vehicle;

· remuneration of auxiliary workers servicing equipment;

· contributions for the social needs of these workers;

· the cost of auxiliary materials necessary to maintain the equipment;

· the cost of fuel and energy to operate production equipment;

· costs for current repairs of equipment and vehicles;

· intra-factory movement of goods, etc.

IN overhead costs includes remuneration of the workshop management staff, depreciation and current repairs of buildings, structures and equipment for general workshop purposes, labor safety costs. The reported cost includes losses from downtime, damage to material assets and other non-productive expenses.

TO general business expenses include remuneration of the enterprise management apparatus, expenses for the maintenance of fire and security guards, travel expenses, office, postal and telecommunications expenses, expenses for the maintenance of plant management buildings (heating, lighting, routine repairs) and passenger transport, depreciation of fixed assets for general plant purposes.

3. According to the expediency of spending production costs are divided into productive and unproductive.

Productive costs are associated with the production of products.

Unproductive costs are associated with the release of defects, losses from downtime, etc.

4. Depending from connection with production distinguish between production costs and selling costs.

Production expenses are associated with the production of products in the main and auxiliary production shops, and they form production costs.

Selling expenses caused by the process of product sales.

5. Depending on time of occurrence distinguish between one-time, current and future costs.

One-time– costs of preparing and mastering the production of new types of products.

Current costs are charged to the costs of the current period.

Future costs are included in the costs of periods following the reporting period.

6. By homogeneity of composition differentiate costs elemental and complex.

Elemental costs are homogeneous in economic content, these include costs for raw materials and supplies, wages, fuel, energy, etc.

Complex costs are a combination of heterogeneous economic elements. These include general production expenses, general business expenses, expenses for developing the production of new types of products, losses from defects, and selling expenses. Each of the listed items includes, in accordance with their intended purpose, the costs of materials, fuel, wages, etc.

7. By plan coverage possibilities all costs are divided into planned and unplanned.

Planned costs- these are the inevitable costs of the enterprise arising from the nature of its economic activity and provided for by the production cost estimate.

Unplanned- these are unproductive expenses that are not economically inevitable and do not arise from the normal economic activities of the enterprise. These are direct losses that are not included in the production cost estimate; shortages; losses from damage to raw materials and materials during storage; losses from defects and downtime.

In addition to the considered groupings, costs can also be grouped by the nature of production (main and auxiliary); by workshop; by type of product (work, service); for individual orders; by stages of production (phases, repartitions).

All costs industrial enterprise, to be included in the cost of finished products, are ultimately fully distributed, i.e. included in the cost individual species manufactured products (or groups of homogeneous products).

Grouping costs by cost items ensures the allocation of costs associated with the production of individual types of products. These expenses are included in the cost of production directly or indirectly. In general for the industry and its leading them industries, the cost structure is presented in table. 6.1.

Table 6.1

Structure of production costs in industry (%)

Federal Agency for Education

State educational institution of higher professional education

"Yaroslavl State Technical University"

Department of Enterprise Management

Test work is protected

with rating________

Teacher,

M.I. Markin

"__"______20___

Course test

Enterprise economy

YAGTU 080502.65- 017 k/r

Work completed

student of group Z-48a

Smirnova T.V.

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29. Structure of product costs by cost elements.

7. The price of the machine is 47 thousand. d.e. The costs of its transportation and installation are 15%.

Installation = 47 thousand units * 15/100 = 7050 thousand units

First = C + C mont = 54050 thousand units

A= First*At%/100 = 54050*6.5/100= 3513.25 thousand units Na=1/T, T=12 years

A0= Фп* На=54050* 0.08= 4504.17 thousand units

I= (Ф1п-Ф2в)/Ф1

The depreciation rate is 6.5%. Determine the standard service life of the machine and its residual value after 12 years of operation.

16. Production of products per year is 1400 pieces. The material consumption rate for the product is 520 kg, at a price of -290. for 1 kg. The material delivery interval is 70 days, safety stock is 50% of the current stock, preparatory stock is 5 days. Determine the material stock rate in physical and value terms.

49. At the enterprise, by improving technology, labor productivity is planned to increase by 3%. The cost of marketable products is CU 300 thousand, including the cost of raw materials and supplies - CU 225 thousand. Determine the impact on production costs of lower standards and prices for materials.

29. Structure of product costs by cost elements.

Product cost is the current costs of production and sales of products, expressed in monetary terms. Cost is a valuation of the natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources used in the production process, as well as other costs for the production and sale of products. The cost of production is a synthetic, generalizing and one of the main qualitative and quantitative indicators that characterizes all aspects of the enterprise’s activities, as well as reflecting the efficiency of its work. Cost shows how much the products it produces cost the company.

Reducing production costs means saving material and living labor and is the most important factor in increasing production efficiency and increasing savings.

Classification of costs included in the cost of production.

Classification of production costs is the division and grouping of costs that are homogeneous according to a certain characteristic.

Classification of production costs is necessary for:

Determining the cost structure;

Calculation of the cost of individual units of production or production operations;

Determination of costs for individual workshops and production areas;

Analyzing the cost of production and identifying reserves for its reduction.

All costs included in the cost of production are combined into groups in accordance with the following classification criteria: Scheme 1

Depending on

depending on the nature of participation in production

national process

Production

natural

According to the methods of planning, accounting and distribution, costs are classified according to economic elements (estimated cost breakdown) and according to costing items.

Using grouping by primary economic elements, the costs of the enterprise as a whole are determined, without taking into account its internal structure and without identifying types of products. Cost elements are the costs of all services and workshops that are homogeneous in nature for production and economic needs.

A document that presents costs by element is an estimate of production costs, the most general indicator that reflects the entire amount of an enterprise's expenses for its production activities.

The cost amount for each item is determined based on supplier invoices, payroll records, and depreciation.

The costs that form the cost of products (works, services) are grouped in accordance with their economic content into the following elements:

material costs (minus the cost of returnable waste);

labor costs;

contributions for social needs;

depreciation of fixed assets;

other costs.

Material costs reflect the cost of raw materials purchased from outside; cost of purchased materials; the cost of purchased components and semi-finished products; the cost of production work and services paid to third parties; cost of natural raw materials; the cost of fuel of all types purchased from outside, used 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, propulsion and other needs.

From the costs of material resources included in the cost of production, the cost of sold waste is excluded.

Industrial waste refers to the remains of raw materials, materials, semi-finished products, coolants and other types of resources generated during the production process, which have lost completely or partially the consumer qualities of the original resource. They are sold at a reduced or full price of the material resource, depending on their use.

Labor costs reflect the costs of remunerating the company’s personnel, including payments for work actually performed, bonuses, allowances, incentives and compensation payments; the cost of products issued as payment in kind, payment for regular and additional holidays and other payments.

Contributions for social needs reflect mandatory deductions according to the norm of the unified social tax (UST) established by law in the amount of 26% of the wage fund.

These contributions are made according to the norms established by law: to the state social insurance fund - 3.2%, to the pension fund - 20% and to the compulsory medical insurance fund - 2.8%.

Depreciation of fixed assets reflects the amount of depreciation charges for the complete restoration of fixed production assets.

Other costs- these are taxes and fees attributed to the cost price; loan payments within the limits of rates established by law; travel expenses; on training and retraining of personnel; rent; depreciation of intangible assets; contributions to the repair fund; payments for compulsory property insurance; payments for maximum permissible emissions of pollutants; payment for communication services, banks, etc.

Classification of costs by economic elements allows you to determine the cost structure. To do this, calculate the share of each type of cost as a percentage of the entire cost. Industrial sectors differ significantly in the structure of the cost of products (works, services). In some, wage costs predominate (labor-intensive industries), in others - material costs (material-intensive industries), in others - electricity costs (energy-intensive industries), in fourths - depreciation (capital-intensive industries), in fifths - fuel costs (fuel-intensive industries). industry) etc.

59. Economic assessment of fundamental exploratory applied research work.

The innovation sphere, the main component of which is experimental design and research development (hereinafter R&D), at the present stage of development is the main engine of economic growth, and not quantitative growth, which is characteristic of the Russian economy in recent years, but qualitative growth (increased labor productivity, quality of life), which is inherent in developed economies.

Types of research work

Fundamental scientific research is theoretical or experimental activity aimed at obtaining fundamentally new knowledge about the basic laws of development of nature, society, and man. The results of fundamental research are not carriers of value. Their transformation into a product occurs only when their applied value is determined and, on this basis, the ability to use them for commercial purposes.

Product cost

Cost price– all costs incurred by the enterprise for the production and sale of products (works, services)

In economic science and for applied problems, several types of cost are distinguished:
Total cost (average)– the ratio of total costs to production volume;
Marginal cost– the cost of each subsequent unit of production produced;

The cost of products (works, services) is calculated:

1. By cost elements;

2. According to costing items.

Calculation of cost by cost elements

Cost elements– economically homogeneous types of costs:

1. Material costs;

2. Labor costs;

3. Contributions for social needs;

4. Depreciation charges;

5. Other costs.

Material costs.
They reflect the costs of material resources used by the enterprise in the production and sale of products for a certain period, including raw materials, basic and auxiliary materials, purchased semi-finished products and components, packaging, spare parts for repairs, purchased fuel and energy of all types, other low-value and quickly wearable items. The calculations take into account the costs associated with the acquisition of resources, including transportable resources. If there is returnable waste for certain types of resources, then their cost is deducted. Material costs are calculated based on free market or regulated prices for the acquisition of resources, including customs duties, insurance policy premiums excluding VAT. The cost price does not include VAT paid when purchasing a resource.

Labor costs.
They are taken into account for an object for a certain period.
These include:

A. The basic salary of all workers at the facility, i.e. all payments for the time worked for producing products at established tariffs, salaries, prices;

b. All allowances and surcharges to tariffs, salaries, prices;

V. All bonuses for a given period;

d. Additional wages to employees, including all additional payments for overtime;

d. Cost of products issued as payment for labor;

e. Other payments attributed to labor costs (wages fund) for the purpose of profit taxation.

Contributions for social needs.
This takes into account contributions to state and extra-budgetary funds that enterprises make when paying employees. Since 2001, a single social tax, which changed the procedure for contributions to extra-budgetary funds. Its rate depends on the employee’s income and changes regressively depending on the employee’s total income.
Deductions are made to:

A. Pension Fund Russian Federation (20%);

b. Social Insurance Fund (2.9%);

V. Compulsory Health Insurance Fund (3.1%).

Depreciation deductions.
They are taken into account from the enterprise's fixed assets (if they are depreciated). For certain types, accelerated depreciation is possible.

Other expenses.
All those costs that relate to the cost price, but cannot be attributed to the above elements, are taken into account. These are advertising, travel allowances, rent, emission fees harmful substances, depreciation of intangible assets, contributions to the repair fund, part of the taxes - land tax, transport tax, customs duty and others. Moreover, standards have been established for certain species.

Calculation of product costs by costing items.

Costing– an accounting calculation of costs and expenses, in monetary terms, presented in tabular form for the production and sale of a unit of product for a batch of products, as well as for the implementation of work and services.
Unlike elements of cost estimates, costing items combine costs taking into account their specific purpose and place of formation.
Costing objects– individual products, groups of products, semi-finished products, works and services, the cost of which is determined.
When determining the cost of certain types of products (works, services), the grouping of costs per unit of production by costing items is used, which is necessary in the process of pricing for different types products (products), calculating their profitability, analyzing the costs of producing identical products with competitors, etc.
Costing serves as the basis for determining average production costs and establishing the cost of production.
The organization independently establishes a list of cost items. They include the following articles:

1. Basic raw materials and materials;

2. Returnable waste;

3. Purchased products and semi-finished products, industrial services;

4. Basic wages for production workers;

5. Additional wages for production workers;

6. Contributions to extra-budgetary funds;

7. Fuel, energy for technological purposes;

8. Expenses for maintenance and operation of equipment;

9. Expenses for preparation and development of production;

10. Special tool;

11. Losses from marriage;

12. Shop expenses;

13. General plant expenses;

14. Other production costs;

15. Selling expenses (non-production expenses).

By the nature of participation in the creation of products (works, services)
When determining costs both for individual departments and for the enterprise as a whole, the following are distinguished:

1. Direct costs directly related to the process of manufacturing products (performing work, services), in particular the costs of raw materials, basic materials and components, fuel and energy, wages of production workers, etc.

2. Overhead costs (indirect) include:
1. General production costs:

A. Equipment maintenance and operation costs:
-depreciation of production equipment and vehicles assigned to the workshop;
- expenses for equipment repairs, including wages of workers servicing the equipment with deductions to extra-budgetary funds;
-electricity costs for operating equipment and vehicles;
-wear of tools general purpose etc.

b. Workshop expenses:
-salaries of shop personnel;
-expenses for labor protection and safety precautions;
- shortages and losses from damage to material assets during storage;
- losses from downtime due to the fault of the workshop, etc.

2. General expenses:

A. Costs for maintaining the management staff:
- salary of the management staff;
-travel expenses;
- postal and telegraph expenses;
-depreciation, maintenance costs passenger cars;
- expenses for training and retraining of personnel;
- costs of invention and rationalization.

b. Some types of taxes:
-transport tax;
-customs duties;
-land tax.

Direct costs are determined according to regulatory literature:
TER – collection of territorial unit prices;
TSC - a collection of average estimated prices for materials, products, structures, part
1-5.
Overhead costs are determined as a percentage of the wage fund, depending on the type of construction and installation work.

Calculation methods.

The most common calculation methods are:

1. Calculation and analytical method. The essence is that direct costs per unit of production are determined by standard calculation, and indirect costs are determined in proportion to the accepted characteristic.

2. Normative method. When production costs are taken into account according to consumption standards. Used in mass and batch production.

3. Custom method. When costs are taken into account on individual orders. It is used mainly in individual and small-scale production. The actual cost of the order is determined upon completion of product manufacturing and completion of work.

4. Transverse method. It is used in industries in which the raw materials being processed successively go through several processing phases - alterations. It is used in metallurgy, paper, chemical, oil and other industries.

Related information.

Costs are taken into account in any production, as required current legislature, principles accounting and the need for detailed knowledge about the actual state of affairs at the enterprise.

A harmonious system for classifying costs by items and elements has been developed. Let's find out what cost accounting items exist and how costs are broken down into their component elements.

Why consider expenses by item?

All costs must be taken into account in the cost of production. This is necessary for an economist who analyzes the production/sales processes of a company’s products, and for engineers who control the work of workshops, and for designers who rely on previous experience in developing new types of goods. It is known that the most important indicator, which characterizes the profitability of production, is the cost of manufactured products.

What does the economic term “cost” mean?

The economist has to constantly work with this indicator, analyzing its impact on the efficiency of the enterprise as a whole and its structural divisions in particular. Therefore, it is necessary to know what the cost consists of. This indicator reflects all aspects of the company’s financial and economic activities: material and labor resources, the company's current costs for the production and sale of products. Cost not only takes into account the entire range of costs, but also acts as the basis for determining the price of products and the size of profitability, and also calculates the optimal volume of production capacity.

Workshop, consisting of the costs of production in the workshop;

Production, formed from workshop, general production and general business expenses;

Full, i.e. production, increased by the cost of costs not related to production.

Let's consider the cost items that make up the cost. This eternal question: “How to correctly calculate and take into account all costs?” is always relevant. Let's try to figure it out.

Cost items of cost: classification by elements

The cost is collected by cost elements, i.e. all expenses are strictly sorted by direction:

Material costs, i.e. purchased raw materials, semi-finished products, components, energy resources, etc.: the amount of these costs is reduced by the cost of returnable waste arising, for example, during reconstruction or repair work;

Remuneration of personnel;

Costs for major repairs and technical re-equipment of production;

Other expenses - payment for business trips, banking services, advertising expenses, entertainment and other expenses.

Cost items of cost by element serve for a general analysis of activities and subsequent conclusions of the company’s management when making decisions on the justification of investments, but the calculation of the need for materials, the development of estimates, etc. technical documentation will require more detailed information.

Costing cost items

Modern production requires both in-plant planning and the search for reserves for optimization and cost reduction. The economist needs to know not only the amount of costs for a particular element, but also the size of the costs at the point of their occurrence. A more detailed classification of costs, i.e., according to costing items, will help here. Here is an example of such a typical cost grouping for industrial companies. It includes cost items:

Raw materials and materials;

Returnable waste deducted from the first group;

Purchased goods and semi-finished products, as well as production services from third party companies;

Fuel and energy resources used in the process;

Remuneration of shop crews;

Deductions from payroll for social. needs;

Costs aimed at developing new capacities;

General production expenses;

General running costs;

Damage from marriage;

Other production costs;

Business expenses.

The addition of the costs of the first eleven items from this list constitutes the production cost, and together with commercial costs - the total cost. In this way, cost items for the production and sale of manufactured products are classified.

Characteristics of cost items: materials

In the structure of production costs, the lion's share is occupied by the costs of raw materials and materials. At different enterprises they make up from 50 to 80% of all costs. The composition of material costs includes the cost of:

Purchased raw materials and materials;

Purchased components and semi-finished products;

Services performed by third parties;

Fuel supplied from outside;

Energy resources of all types;

Commission fees for the services of brokers and intermediaries.

This group of costs does not include only the cost of sold returnable waste or useful residues generated during the production process. These are any assets that have partially lost their quality. For example, when dismantling old, completely worn-out machines, scrap metal remains, which they come and sell, and since a profit was made from the sale, these useful remains cannot be classified as expenses.

Materials transferred through internal transfer to another workshop are also not taken into account as part of material costs.

Payroll costs

No less important is the item of labor costs. The salary fund includes:

Payment according to tariffs and salaries for hours worked or unworked;

Allowances and surcharges;

Prizes and incentives;

Compensation;

Regular payments for food, housing and fuel provided for by the company charter.

Contributions for social needs

This cost item was created to account for the costs of paying mandatory contributions to extra-budgetary funds. The legislation establishes standards for deductions from the accrued wage fund. For example, in the Pension Fund it is up to 26%, the Compulsory Medical Insurance Fund - 5.1%, in the Social Insurance Fund - 2.9%, etc.

Expenses for preparation and development of production

Cost elements and cost items associated with the achievements of scientific and technical progress and the introduction of new industries and products today occupy a significant part of the expenses of any company. These costs include the following:

To create projects for new products and accompanying equipment;

To develop the technical process for manufacturing the product and tooling;

To develop consumption standards for basic and additional materials;

To adjust technological and design documentation before the start of serial production of the product;

For the production of prototypes and re-adjustment of equipment;

For testing prototypes, etc.

Depreciation of fixed assets

Depreciation or depreciation of equipment involved in production process, accrued monthly according to various methods, approved by the company's accounting policy.

General production expenses

These costs include overhead costs for maintenance and production management, for example, equipment maintenance, labor protection, protection environment and etc.

Cost items of product costs are necessary both for the development of production and for enormous analytical work that helps to identify the necessary reserves and promote new products.

Product cost is the most important indicator economic efficiency its production. It reflects all aspects of economic activity and accumulates the results of using all production resources. Depends on its level financial results activities of enterprises, rates of expanded reproduction, financial condition business entities.

Analysis of the cost of products, works and services is of great importance in the cost management system. It allows you to study trends in changes in its level, establish the deviation of actual costs from normative (standard) ones and their reasons, identify reserves for reducing product costs and assess the enterprise’s work in using opportunities to reduce product costs.

The effectiveness of a cost management system largely depends on the organization of their analysis, which, in turn, is determined by the following factors:

• form and methods of cost accounting used at the enterprise;
• the degree of automation of the accounting and analytical process at the enterprise;
• the state of planning and regulation of the level of operating costs;
• the presence of appropriate types of daily, weekly and monthly internal reporting on operating costs, allowing to quickly identify deviations, their causes and timely take corrective measures to eliminate them;
• the presence of specialists who can competently analyze and manage the cost formation process.

Data is used to analyze product costs statistical reporting“Report on the costs of production and sales of products (works, services) of an enterprise (organization)”, planned and reported calculations of product costs, data from synthetic and analytical cost accounting for main and auxiliary production, etc.

The objects of product cost analysis are the following indicators:

• full cost of production as a whole and by cost elements;
• level of costs per ruble of manufactured products;
• cost of individual products;
• individual cost items;
• costs by responsibility centers.

Product cost analysis usually begins with studying the total cost as a whole and by main elements(Table 11.1).

The total cost of production may change:

• due to the volume of production;
• product structure;
• level variable costs per unit of production;
• amounts of fixed expenses.

When the volume of production changes, products increase only variable expenses(piece-rate wages of production workers, direct material costs, services); fixed costs(depreciation, rent, time wages of workers and administrative personnel, general business expenses) remain unchanged in short term subject to maintaining the same production capacity enterprises (Fig. 11.1).

The cost line in the presence of fixed and variable costs is an equation of the first degree

where Ztot is the total cost of production;

VBP - volume of production of products (services);

b is the level of variable costs per unit of product (service);

A is the absolute amount of fixed costs for the entire output.

Data for factor analysis of the total amount of costs dividing costs into constant and variable are given in table. 11.2 and 11.3.

From the table 11.3 it is clear that due to reduction in production by 5% (I VBP = 0.95) the amount of costs decreased by 2,325 thousand rubles. (63,675 - 66,000).

By changing the product structure the amount of costs increased by 3,610 thousand rubles. (67,285 - 63,675). This indicates that the share of cost-intensive products in the total production volume has increased.

Due to an increase in the level of unit variable costs the total amount of costs increased by 7,543 thousand rubles. (74,828 - 67,285).

Fixed expenses increased by 6,682 thousand rubles. (81,510 - 74,828), which was also one of the reasons for the increase in total costs.

Thus, the total amount of costs is higher than the base by 15,510 thousand rubles. (81,510 - 66,000), or by 23.5%, including due to changes in the volume of production and its structure - by 1,285 thousand rubles. (67,285 - 66,000), and due to the increase in production costs - by 14,225 thousand rubles. (81,510 - 67,285), or by 21.5%.

It is possible to deepen the analysis of the total cost of producing products (services) through the factor decomposition of specific variable costs and the sum of fixed costs (Fig. 11.2).

Mathematically, this relationship can be represented as follows:

Any type of cost can be represented as a product of two factors:

• the amount of resources or services consumed (raw materials, supplies, fuel, energy, man-hours, machine-hours, credits, rented space, etc.);
• prices for resources or services.

In order to establish how much the amount of costs has changed due to these factors, it is necessary to have the following data on the costs of actual production: