For those who decide to start their own business, it will be necessary to study the question of how to calculate the total cost of production. This is important for its implementation. In order to understand this issue, it is necessary to clearly understand what the cost of a product is.

The concept of cost

The cost price is the total and private sum of the costs for the production and sale of the product. Resources required to produce a product:

• the material from which the product is directly produced;
• fuel needed to transport materials for manufacturing or transport already finished products to points of sale;
• repair work;
• workers' wages;
• rental of premises, if required.

Each product is individual, and it requires its own resources for manufacturing. And to figure out how to calculate the cost of production, you need to take into account each stage separately.

Economic concepts of cost

Full cost

This is the ratio of all costs to total production. This calculation is suitable for mass production. The costs include:

1. Employee salary.
2. Contributions to state funds.
3. The raw material used to make the product.
4. Accounting for depreciation of equipment and the cost of its repair (depreciation).
5. Advertising expenses.
6. Other expenses.

It is these costs that determine how to calculate the cost of finished products. Usually used in large, large-scale enterprises.

marginal cost

This concept includes the cost of a manufactured unit of output. How to calculate the actual cost of finished products (it is also called full)? This can be done according to the formula, but for this you need:

1. Calculate how much raw materials and materials it takes to manufacture one copy of the product.
2. Calculate how much fuel and lubricants and electricity is spent on one unit of production.
3. Take into account the cost of semi-finished products purchased from other industries, if any.
4. Calculate how much the employee will receive by manufacturing this type of product (including all social benefits).
5. Know the cost of repairs and depreciation of equipment.
6. Consider tool wear.
7. Calculate the cost of maintaining a production facility.
8. Other costs.

After analyzing the data above, you can imagine how much raw material is spent on the manufacture of a unit of production. And if we add to all this: transportation; contributions to state funds; vacation pay for employees; taxes; expenses incurred by the organization due to unforeseen circumstances - all this will give you a complete picture of how to calculate the actual cost of production.

Cost types

In addition to the main types of cost, there are types that are specific to a particular production.

1. Aggregate cost. The cost of manufacturing a product on a particular machine is estimated, whether it is a technical machine or a woven one.
2. Prime cost. In addition to estimating the costs of manufacturing products in the workshop, the costs of maintaining and servicing the territory itself are also taken into account: heating, security, alarm, fire protection, management structure.
3. General production costs. Consist of the cost of depreciation and repair of equipment, advanced training of workers, taxes.
4. Full cost. In addition to other expenses, it includes the costs of packaging, loading and unloading products, transport services.

Why do you need to calculate the cost of production?

When opening a business, not everyone is in a hurry to immediately calculate the cost of production, thereby making a huge mistake. This mistake can lead you to at least losses, and at most to complete bankruptcy.

What will cost analysis give you:

1. Shows the profitability of all your products. After all, it depends on it how efficiently raw materials and other, monetary and human, resources will be used.
2. Generate retail and wholesale prices. The right effective pricing policy will allow you to make production competitive.
3. It will make it clear how efficiently the production process operates in the enterprise. The lower the cost of production compared to the average data in this industry, the more effective the company will work. Accordingly, the higher the costs, the lower the profitability and efficiency of the enterprise.
4. Forms an indicator of reduction of fixed and variable costs.

Your profit depends on the calculation of the cost price. There is a cycle system here: the lower the cost, the greater the profit, and the higher the cost, the lower the profit. Therefore, each manufacturer seeks to reduce the cost of production in the pursuit of profit. In this case, the quality of the product may also suffer. In order to properly conduct your business, you must definitely calculate the cost of products, this is one of the main elements of management in the enterprise.

How to calculate the cost of production using the example of a furniture workshop

As an example, the furniture company Divan LLC will be taken. You want to calculate the cost of a manufactured product for December. In total, 12 corner sofas, 10 book sofas, 24 easy chairs were produced.

Total Cost Calculation Table

Number	Cost item	corner sofa	Sofa - book	Armchair
1	Raw materials used	RUB 192,000	60 000 rub.	72 000 rub.
2	Energy	21 000 rub.	16 000 rub.	18 000 rub.
3	Workers' wages	36 000 rub.	15 000 rub.	16 800 rub.
4	Fund Contributions	4320 rub.	1500 rub.	1680 rub.
5	Equipment operation	10 000 rub.	7000 rub.	5000 rub.
6	Other costs	2000 rub.	2000 rub.	2000 rub.
Total:		RUB 265,320	RUB 101,500	RUB 115,480

Total:

1. The cost of one corner sofa is: 265,320: 12 = 22,110 rubles.
2. The cost of one sofa-book is: 101,500: 10 = 10,150 rubles.
3. The cost of one chair is: 115,480: 24 = 4,812 rubles.

How to calculate cost of goods sold

Let's take as an example a company already familiar to us for the manufacture of sofas. In December, ten corner sofas, seven sofa-books and twenty armchairs were sold.

Let's use the data above and calculate:

1. Ten corner sofas cost us 221,100 rubles (22,110 x 10).
2. Seven sofa-books - 71,050 rubles (10,150 x 7).
3. Twenty chairs - 96,240 rubles (4812 x 20).

The total result was: 388,390 rubles.

Cost features

In the process of its work, each organization seeks to minimize its production costs. Therefore, the question of how to calculate the cost of production will depend on a number of factors. Directly all costs are included in the cost of production, up to heating the premises in the winter (not in the summer). All this makes it possible to judge that the main mechanism of management is the analysis and accounting of all aspects of the economic activity of the organization, which will make it possible to judge correct work firms. At the same time, a specific cost estimate will depend on the inventory, technological features of the enterprise and on the managers themselves, who own this or that information about production.

Each company has its own method of calculation. So, for example, the production of confectionery according to the costing system will differ significantly from the method of calculating the cost at a furniture factory. In the first case, electricity and shelf life will be of paramount importance (special attention should be paid to it), and in the second case, large financial resources spent on raw materials and transportation of a large-sized product will come first. And, accordingly, for an enterprise producing sweet products, the calculation method is one, and for upholstered furniture - another.

The cost price is the sum of all expenses of the organization that appear in the production of products or the performance of work, as well as the provision of services. This indicator should be known and controlled by any company. Read how the cost of goods is determined, what is included in it, how to calculate and reduce. And also download the calculation method.

Download and get to work:

What will help: document will help financial director evaluate the procedure for the formation of costs, fix the rules for the distribution of costs.

What will help: the report will help the CFO to compare variable and fixed costs, assess their share in the overall cost structure.

Determining the cost

What will help: to determine the real "fair" cost of heterogeneous products manufactured by related activities.

What will help: correctly estimate the cost of a particular order.

Cost types

Economists generally distinguish between two types:

1. Full (it is also sometimes called medium). This indicator is formed on the basis of all expenses of the company: expenses for the purchase of equipment, raw materials, delivery costs, employee salaries, etc. It takes into account all the expenses of the enterprise for the production and sale of products.
2. Marginal is the cost of each subsequent unit of production (goods or services). The indicator depends on the number of products produced. This value shows the effectiveness of further expansion of production.

Other types are also distinguished: by types of costs, costing items, etc. All of them help to make a more detailed account of all expenses.

Workshop- these are the costs of a separate division of the enterprise (structure).

Production- this is the sum of the cost of the workshop, as well as general and target costs.

General business are administrative expenses. That is, costs that cannot be attributed to a specific type of product. It is also called indirect.

Enterprises also consider two more types of cost: planned and actual. Planned - before the start of production, based on an analysis of the costs of past years, projected prices, etc. The consumption of materials is determined on the basis of norms. Therefore, this cost is also called the standard cost. This allows you to tightly control the consumption of materials, which minimizes the occurrence of unnecessary costs.

After that, the actual costs must be considered. Real prices, consumption, etc. are already taken into account here. Then these two indicators are compared. If they are too different from each other (both up and down), the company finds out the reasons for this.

What will help: evaluate the costing methodology, in particular, how correctly it is formed.

Cost Structure

Each type of cost price consists of different components. But in any case, this figure is the cost. What is included in the cost of production:

• premises rental costs
• taxes: transport, etc.
• employee salary
• insurance premiums from wages (note that personal income tax does not need to be included in the cost price - include accrued wages, not the amount payable)
• expenses for equipment, tools, etc.
• depreciation of fixed assets, etc.

How is the cost of production formed?

When an organization determines the cost of production, it adds up the costs of only the production, management and maintenance of production. It does not need to include the cost of shipping the finished product to the buyer. This figure is considered before the sale of goods. It is needed to set the price.

How to reduce cost

Every company is interested in reducing costs. After all, at the same prices, the lower the cost, the greater the profit. On the other hand, by lowering the overall costs, the company will be able to lower the price. So she can get more buyers. Which means total revenue(and as a result profit) will be more.

There are several ways to reduce costs:

• attract qualified personnel. Competent and experienced workers reduce the number of defective products, they work faster and better. But in this case, the company's labor costs increase. Usually such expenses justify themselves;
• use modern equipment. Such equipment works faster, produces better products, usually consumes less electricity, etc. True, if the organization decides to carry fixed assets, then its depreciation charges will increase.
• automate jobs. Some functions the machine can perform better people: she does it faster, allows less marriage, etc. Thus, the organization will reduce labor costs, but depreciation will increase.
• expand sales. The cost of each unit of goods will decrease, as the fixed costs per unit of goods will be reduced.
• optimize management staff. Worth analyzing. Are there any "extra" employees in the organization? Perhaps the functions of some managers can be divided among other employees. This will reduce the company's labor costs.

Also, effective ways to reduce costs are the use of energy-saving equipment, the reduction of defects, the constant search for suppliers with lower prices, the improvement of production technology, etc.

The basic concepts that economic science operates with a certain degree of simplification are income and expenses. Their ratio forms other economic categories. For example, for a single product, the costs of manufacturing and selling form the actual cost, which is included in the price of the product along with the desired profit. Relative to the total turnover of sold products, it reduces the income received by the enterprise, leaving at its disposal gross profit. And now let's move on from simplification to specifics: we will deal with such a multifaceted concept as cost.

The concept of cost in accounting policy

In Russian practice, there are 4 types of cost accounting in an enterprise, which differ in their intended purpose and the specifics of the formation of an analytical cost base, namely:

• accounting;
• tax;
• managerial;
• statistical.

They are carried out at the enterprise at the same time, so it makes no sense to prioritize them. Although, according to the criterion of punishment for improper performance, the tax and accounting types of accounting are the most strictly regulated.

Accounting and tax types of accounting

Within the framework of accounting, on the basis of PBU, its actual purpose is formed - an accurate accounting of costs, summarized in the balance sheet. If the concept of "full cost of goods sold" is present in accounting, then tax accounting replaces it with a simple summation of the company's expenses. Tax accounting involves the correct formation of the tax base for the calculation of corporate income tax. According to the tax code (Chapter 25), in order to find the tax base, the amount of an enterprise's income can be reduced by the amount of expenses, with the exception of the list of expenses presented in Art. 270.

Management and statistical types of accounting

Management cost accounting is used for the purposes of the head of the enterprise. Depending on the tasks of management, cost samples, cost accounting criteria, and cost formation parameters change. For example, within the framework of management accounting, you can track the cost of a new product, to make a decision on the advisability of its further production and sale, you can monitor the work of a particular service in terms of the ratio of costs and income, or calculate the planned cost of the proposed project. In this case, the cost of goods sold, the formula for its calculation and the method of determination will vary greatly.

Statistical accounting is necessary for the study of economic development trends for certain types of activities, it is based on accounting analytics and on the reports of the TEP of the enterprise's activities.

and their relationship with cost

Expenses represent the resources used in the activities of the enterprise, the cost of which is expressed in monetary terms. They can relate to expenses if they are realized in the reporting period.

According to the tax code expenses- these are documented expenses of the enterprise incurred in the reporting period; they lead to a decrease in the organization's income from the main and other activities.

Costs is a concept of economic theory, very close to costs. Costs are the costs of production and / or circulation, presented in value terms. The summation of production and distribution costs forms the cost of goods sold, the formula for calculating which will be discussed below.

Tying expenses to the reporting period and their connection with income makes them the basis for cost formation. Therefore, we will continue to operate with the concept of "expenses", allowing the use of other concepts as synonyms.

Cost price by economic elements

The formation of the cost of economic elements is an enlarged grouping of homogeneous costs, more indivisible and independent of the place of their occurrence. These include the following categories of expenses:

• material (R M);
• wages (R OT);
• social contributions (R CO);
• depreciation (A);
• others (R PR).

When summing expenses by economic elements, the cost price is formed. The calculation formula will be: C RP \u003d R M + R OT + R CO + A + R PR.

According to the specific weight of one or another group of expenses in the overall structure, one can draw a conclusion about the nature of production. For example, with a high share of labor costs and related social contributions, the enterprise is engaged in labor-intensive activities.

Cost by cost items

Structuring expenses by items involves taking into account heterogeneous costs, while a separate costing item may include several economic elements. The typical nomenclature consists of the following consumable items:

1. Workshop costs (R C), which form the workshop cost (C C):

• Materials and raw materials.
• Payroll of the main workers.
• Social contributions to payroll.
• Expenses for operation and maintenance (repair) of equipment.
• Energy and fuel for technological purposes.
• Expenses for the preparation of production, its development.
• Mandatory property insurance.
• Depreciation.
• Other shop expenses.

2. General production costs (R OP), which are added to the workshop. As a result, the production cost of goods sold (C PP) is formed:

• Marriage loss.
• Other

3. Non-manufacturing expenses (R VP):

• Shipping costs, packaging.
• Delivery.
• Scientific and technical developments.
• Personnel training.
• Other non-manufacturing expenses.

4. Selling expenses (R K).

According to the specified costing items, the cost price is formed. The calculation formula will look like: C RP \u003d R C + R OP + R VP + R K.

Cost types

Based on the costs, there are several types of cost.

1. shop cost calculates all the costs of the shop associated with the production of products, namely wages with deductions, the cost of maintaining equipment, materials and energy, management shop expenses.
2. Production cost is the summation of the costs of manufacturing products of this type, taking into account the cost of workshop and general production costs.
3. Commercial (full) cost is the cost of finished goods sold, including all possible costs for the full life cycle goods for production and distribution.

Methodology for calculating the cost

There are several methods of cost accounting and cost formation.

1. Cost accounting for actual cost- based on accurate accounting of existing actual costs of the enterprise.
2. Cost accounting for standard cost- the method is relevant for mass and serial production, which are distinguished by homogeneous repetitive operations, the cost is formed in accordance with the standards and norms adopted by the enterprise. An analogue of this method is the foreign "standard-cost".
3. Cost accounting for planned cost- used for planning, based on predicted figures, which are calculated according to actual data using predictive coefficients, suppliers' proposals, expert evaluation results.

Cost in formulas

A) Determine the cost of goods sold, the formula for its calculation is as follows:

S RP \u003d S PP + R VP + R K - O NP, where all indicators in value terms:

• C RP - cost of goods sold;
• With PP - full production cost;
• Р VP - non-production expenses;
• R K - commercial expenses;
• О NP - unsold products.

B) Given the volume of products sold (O RP), you can find the cost per unit of goods. To do this, you need to divide the entire cost by volume (Task No. 1):

S ED = S RP: O RP.

C) For analytical purposes, relative indicators are used (Task No. 2):

Marginal profit margin(N MP), which shows the ratio of variable and fixed costs in the enterprise, it is calculated by the formula:

N MP \u003d (P M / V) ´ 100%, where

• P M - marginal profit;
• B - proceeds from the sale of goods.

Cost of goods sold ratio(refers to operating costs), shows the share of costs in revenue and allows you to evaluate the reasons for the decrease in profit from the sale of goods, it is determined by the formula:

K SRP = (S RP / V) ´ 100%.

Profitability threshold(or break-even production) shows at what volume of production the costs pay off, it is calculated as follows:

TB \u003d R POST / (C - R TRANS.ED), where

• TB - breakeven point;
• P POST - fixed costs for the entire volume of production;
• P PER.ED - variable costs per unit of output;
• C - the price of the goods.

Task number 1 to determine the production cost of a unit of goods

Calculate the total production cost of a liter of juice. We will use the following data for the calculation.

1. Direct costs, thousand rubles:

• material (concentrate) - 2500,
• labor − 70.

2. Overhead costs of production, thousand rubles. − 2600.

3. During the reporting period, juice concentrate was used, thousand liters - 130.

4. Juice production technology involves the loss of concentrate up to 3%, while the share of concentrate in the finished product is not more than 20%.

Solution progress:

1. Summing up all the costs, we get the cost of goods sold, thousand rubles:

2500 + 70 + 2600 = 5170.

2. Let's find the volume of finished juice in physical terms, taking into account technological losses, thousand liters:

130,0 − 3% = 126,1

126,1*100% / 20% = 630,5.

3. Calculate the cost of production of a liter of juice, rubles:

5170 / 630,5 = 8,2.

Task number 2 to calculate the break-even point, profit margin and operating costs

The table presents data on the formation of profits of an individual enterprise, thousand rubles. During the reporting period, the volume of products sold amounted to 400 units.

For each additional unit of the goods sold, marginal profit will gradually cover fixed costs. If one unit of goods is sold, fixed costs will decrease by 200 rubles. and will amount to 69.8 thousand rubles. etc. In order to fully cover fixed costs and reach the break-even point, the company needs to sell 350 units of goods based on the following calculated data: 70,000 / (500 − 300).

To determine operating costs, the full cost of goods sold is used, the calculation formula is as follows: (120,000 + 70,000) * 100% / 200,000 \u003d 95%.

The rate of marginal profit will be 40% according to the calculation: 80000*100% / 200000 = 40%. It shows how the marginal profit will change with a change in revenue, for example, an increase in revenue by 1 ruble will lead to an increase in profit by 40 kopecks, subject to the same fixed costs.

The ability to calculate the cost of production, vary income and expense transactions, analyze the economic situation in each specific period in any context of data is the key to the success of the enterprise.

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

General concept of cost

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

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

Under the costs understand the costs associated with the purchase of raw materials and materials necessary for production, remuneration of employees, 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 example , the technological processes of an ice cream factory and a soft toy factory are completely different.

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

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

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

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

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

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

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

Formation of production cost

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

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

There are several ways to calculate it, but the most common is costing. Thanks to him, you can calculate how much 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 the production process, etc.;
• Indirect costs are those costs that cannot be attributed directly to production. These include commercial, general and general production costs. For example, 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 shipyard, where several ships are produced per year, it is rational to calculate the cost of each separately;
• Transverse method. This method is used by enterprises that carry out mass production, and the manufacturing process consists of several stages. The cost price is calculated for each stage of production. For example, at a bakery, products are made in several stages. In one workshop 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:

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

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

Expense category		Calculation		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 is the main factor to consider when calculating the cost of the enterprise.

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

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

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

Cost reduction methods

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

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

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

Conclusion

Cost is one of the most important quality indicators of any enterprise. It is not a constant value. 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.

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 monetary value 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 financial expenses organizations for production. 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 the 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 materials;
• 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.

Maintenance costs entrepreneurial activity and it is customary to divide it 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.);
• Costs for wages employees (remuneration of workers, auxiliary workers, for example, servicing equipment, remuneration 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 - production cost product, which is calculated on the basis of production costs (expenses for materials and raw materials, depreciation 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 commercial activities enterprises,

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 decisions taken) and irrelevant (not related to decisions).

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.