Production cost

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

AT economics and for applied tasks, several types of cost are distinguished:
Total cost (average)- the ratio of total costs to the volume of production;
marginal cost- the cost of each subsequent unit of output produced;

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

1. By cost elements;

2. According to the calculation items.

Cost calculation by cost elements

Cost elements- economically homogeneous types of costs:

1. Material costs;

2. Labor costs;

3. Deductions for social needs;

4. Depreciation charges;

5. Other expenses.

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

Labor costs.
They are accounted for the object for a certain period.
These include:

a. The basic salary of all employees in the facility, i.e. all payments for the time worked to produce products at established rates, salaries, rates;

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

in. All awards for a given period;

d. Additional wages to employees, including any additional payments for hours worked;

e. The cost of products issued as wages;

f. Other payments attributable to labor costs (wage fund) for income tax purposes.

Deductions for social needs.
It takes into account deductions to state and non-budgetary funds that enterprises make when paying employees. Since 2001, a unified social tax has been introduced, which changed the procedure for deductions to off-budget funds. Its rate depends on the amount of income of employees and varies regressively depending on the total income of the employee.
Payments are made to:

a. Pension Fund of the Russian Federation (20%);

b. Social Insurance Fund (2.9%);

in. Compulsory Medical Insurance Fund (3.1%).

Depreciation deductions.
They are taken into account from the fixed assets of the enterprise (if they are depreciated). Accelerated depreciation is possible for certain types.

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

Calculation of the cost of production according to costing items.

Calculation- an accounting calculation of costs, expenses, in monetary terms, presented in tabular form, for the production and sale of a unit of a product in a batch of products, as well as for the implementation of work, services.
Unlike the elements of the cost estimate, 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), calculation of their profitability, cost analysis for the production of identical products with competitors, etc.
Calculation serves as the basis for determining the average production costs and establishing the cost of production.
The organization independently establishes a list of cost items. They include the following articles:

1. Main raw materials and supplies;

2. Returnable waste;

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

4. Basic wages of production workers;

5. Additional wages for production workers;

6. Deductions to off-budget funds;

7. Fuel, energy on technological goals;

8. Expenses for the maintenance and operation of equipment;

9. Costs for preparation and development of production;

10. Spec. tool;

11. Losses from marriage;

12. Workshop expenses;

13. General factory expenses;

14. Other production expenses;

15. Selling expenses (non-production expenses).

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

1. Direct costs directly related to the process of manufacturing products (performance of works, 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 production equipment and Vehicle assigned to the workshop;
-expenses for the repair of equipment, including the wages of workers servicing the equipment with deductions to off-budget funds;
-expenses of electricity for actuation of equipment and vehicles;
- wear of general purpose tools, etc.

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

2. General business expenses:

a. Expenses for the maintenance of the administrative apparatus:
- salaries to the management apparatus;
- travel expenses;
- postal and telegraph expenses;
- depreciation, maintenance costs cars;
- expenses for training, retraining of personnel;
-expenses for invention and rationalization.

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

Direct costs are determined according to the regulatory literature:
TER - a 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 normative calculation, and indirect costs are proportional to the accepted attribute.

2. Normative method. When production costs are taken into account at the rate of consumption. It is used in mass and serial production.

3. Custom method. When costs are taken into account for individual orders. It is mainly used in individual and small-scale production. The actual cost of the order is determined at the end of the manufacture of the product, the performance of work.

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

Similar information.

The classification of costs reveals the categories of costs that actually exist.

The classification is not formal and is necessary for cost management in the enterprise.

Costs can be classified according to a number of criteria:

on economic elements; according to calculation items, according to

participation in the production process, depending on the volume of production, the division of costs into fixed and overhead, according to the share of costs in the cost of production.

Classification by economic elements.

The grouping of costs by economic elements provides for the grouping of individual costs on the basis of their homogeneity, regardless of what and where they were spent. When forming costs for ordinary activities, the following cost elements are used:

• 1. Material costs minus returnable waste, incl. the cost of raw materials, materials, purchased components and semi-finished products of work and services of an industrial nature, performed by third parties and used in the manufacture of products; in addition, material costs include the cost of fuel, energy, raw materials, auxiliary materials, spare parts, and other material assets used in the production of products.
• 2. Labor costs. Includes costs for remuneration of full-time and non-staff personnel, including basic and additional wages, bonuses for production results, incentive and compensatory payments
• 3. Deductions for social needs (UST)
• 4. Depreciation. Includes the amount of depreciation deductions for the full restoration of fixed assets, intangible assets, profitable investments in material values
• 5. Other expenses. They include expenses that were not included in the previous 4 groups: rent, travel expenses, hospitality expenses, advertising expenses, training and retraining of personnel, etc.

Grouping by economic elements is used when preparing estimates of production costs for an enterprise, workshops, other cost management objects, when planning cost reduction, rationing working capital, business plans, etc.

This grouping quantitatively reflects how much and what costs will actually be incurred, regardless of their place of origin and production purpose.

Classification by costing items is a division of costs by production purpose and place of occurrence in the process of production and sale of products.

The costs for individual costing items are determined on the basis of the normative calculation of direct costs for the manufacture of products and the distribution of indirect costs for the cost of individual types of products in proportion to any base.

Calculating the cost of production - calculating the amount of costs per unit of production, and the statement in which the costs per unit of production are calculated is called costing.

Accounting production costs and cost calculation is the most important section in the management system, which has a direct impact on the continuous improvement of the technical level of production and its efficiency.

The main tasks of accounting for production costs are:

• * timely, complete and reliable reflection of the actual costs associated with the production of products;
• * identification of unproductive costs and losses allowed in certain areas of production;
• * control of rational use raw materials, materials, fuel, wages and other costs, i.e. compliance with progressive norms for the expenditure of resources and cost estimates for the management and maintenance of production;
• * checking the implementation of plans at cost and identifying reserves for further reduction costs;
• * revealing results production activities both in the organization as a whole and in its departments.

The rational organization of accounting for production costs requires a clear and justified classification.

This grouping allows you to highlight the costs associated with the production of certain types of products. The list of costing items varies by industry and is advisory in nature (this does not apply to state-owned enterprises).

A typical classification of articles by costing is as follows:

• 1) raw materials and basic materials;
• 2) returnable waste (subtracted);
• 3) purchased products, semi-finished products and production services of third-party organizations;
• 4) auxiliary materials;
• 5) fuel and energy for technological purposes;
• 6) basic wages of production workers;
• 7) the additional salary of production workers is the salary for unworked time (holidays, lead time public duties). It is set as a percentage.
• 8) deductions for social needs;
• 9) expenses for the preparation and development of production (in accordance with regulatory documents).
• 10) overhead costs, depending on the size and type of activity of the enterprise, can be divided into:
  • - shop expenses;
  • - expenses for the maintenance and operation of equipment;
• 11) general business expenses;
• 12) loss from marriage;
• 13) other production expenses;
• 14) non-production or commercial expenses.

Depending on the volume of production, costs are divided into variable and conditionally fixed. Variables include raw materials, materials, basic wages. Conditionally fixed include depreciation deductions, salaries of administrative and managerial personnel, heating costs, lighting of buildings and workshops, etc. Costs are called conditionally fixed because they are constant over a certain period (constant relative to the relevant period).

Direct costs - costs directly related to the production of products. They are referred to certain types products according to established norms or orders (materials, fuel, energy, wages).

Indirect - associated with the work of the shop or the enterprise as a whole. They are attributed to the cost of production in proportion to any indicator. Base (an indicator in proportion to which expenses are distributed) -- salary the main production workers, direct costs (expenses).

Indirect costs include the costs of maintaining and operating equipment, general production, general business expenses, etc.

The division of expenses into fixed and overhead. The main costs are directly related to the technological process of manufacturing products (costs for raw materials, materials, fuel, energy for technological needs, wages of production workers). Overhead costs - costs associated with the organization, management, maintenance of production. These include general production, general business and non-manufacturing expenses.

According to the share of costs in the cost of production, material-intensive, fuel-intensive, energy-intensive, capital-intensive and labor-intensive products are distinguished.

The main task of cost classification is the formation of the cost of production. With the help of classification, costs are grouped by type and directly or indirectly related to the cost of production. The cost of production, consisting of various types of costs, can be analyzed and identified due to which costs it increased or decreased and then affect its size in the future. The cost of production, and, consequently, the costs included in it, have a huge impact on the profit of the enterprise, its profitability, on the value of the prices of products and others. economic indicators. Naturally, the reduction of costs and costs is the main direction of improving the activities of any enterprise, which directly affects its competitiveness, financial stability and successful work in future.

* I Material costs:

o 1) Raw materials, materials, components, etc.;

o 2) Fuel, energy;

o 3) General production costs.

* II Remuneration of labor - wages:

o 1) main production staff;

o 2) auxiliary production personnel (maintenance of equipment, etc.);

o 3) intellectual personnel;

o 4) employees (management, managers, accountants, etc.);

o 5) junior service personnel.

* III Deductions for social events.

* IV Depreciation of fixed assets.

* V Other (overhead costs directly related to production and sales; marketing expenses etc.)

AT element "Material costs" the cost is reflected: purchased from the side of raw materials and materials that are part of the manufactured products;

purchased materials used in the production process to ensure a normal technological process and for product packaging, as well as spare parts for equipment repair;

purchased components and semi-finished products, subject to further installation or additional processing on this enterprise;

works and services of an industrial nature performed by other enterprises or productions of the same enterprise that are not related to the main type of activity;

purchased from the side of fuel and energy of all types, spent for technological purposes.

AT element "Costs of labor"include: the cost of remuneration of the main production personnel of the enterprise, including bonuses to workers and employees for production results, as well as compensation in connection with price increases and indexation of income within the limits prescribed by law;

compensations paid in the amounts established by law to women who are on partially paid leave to care for a child until the child reaches the age determined by law.

Element "Deductions for social needs" includes mandatory contributions in accordance with the norms established by law (state social insurance bodies. pension fund, state fund employment, etc.) from the amount of labor costs (element of the cost of production "labor costs").

In the element "Depreciation of fixed assets" reflects the amount of depreciation deductions for the full restoration of basic production assets determined on the basis of their book value and approved in in due course norms, including accelerated depreciation of their active part.

To the element "Other costs" includes:

depreciation on intangible assets;

rent;

rewards for inventions and rationalization proposals;

compulsory insurance payments;

interest on bank loans;

daily and lifting;

taxes included in the cost of products (works, services);

contributions to off-budget funds;

calculation - determination of the cost of individual products.

In enterprises, as a rule, they make up planned and actual cost estimates. The former are calculated according to the planned cost rates, the latter - according to their actual level.

The object of calculation is the product or work (service) whose cost is calculated. The objects of calculation are: main and auxiliary products (tools, energy, spare parts); service or work (repair, transportation, etc.). The main object of calculation is finished products that are supplied outside the enterprise (to the market). Calculation of other products is of secondary importance.

For each calculation object, the corresponding calculation unit is selected - the unit of its quantitative measurement. For example, the object of calculation is tractors, the calculation unit is one tractor of a certain type (purpose);

Calculation methods

Normative method of calculation- this is a method of calculating the cost, used in enterprises with mass, serial and small-scale production and in other industries. The prerequisites for the correct application of the normative method of calculation are:

* Compilation of normative calculation according to the norms in force at the beginning of the month;

* identification of deviations of actual costs from the current norms at the time of their occurrence;

* taking into account changes in existing regulations;

* reflection of changes in existing norms in normative calculations.

The current standards are those according to which it is produced in given time release of materials to workplaces and payment to workers for work performed.

Custom costing method- This is a costing method used in enterprises where production costs are taken into account for individual orders for a product or work. These are mainly enterprises with individual and small-scale production types. In a broad sense, an order represents one or a small series of homogeneous products accounted for in such a way as to distinguish this product from another. The object of accounting and costing is the order, which is assigned a number. In a narrower sense, an order is understood as “... a complex product (its units, components) in a single production, small batches of identical products in small-scale production, as well as certain types of work (repair, construction and installation, etc.)”. To account for the costs for each order, a separate analytical account (card) is opened indicating the order code, which is affixed to all primary documents. Production costs are aggregated in analytical accounting in strict accordance with open orders. Thus, this method allows you to isolate production costs and individualize them for each calculated object. The use of an order-based costing method is justified only when the following conditions are met: the ability to select a costing object at a certain stage of its creation and implementation; there is an objective need to obtain data not on the average, but on the individual cost of objects for each open order.

Transitional costing method- this is a method of calculating the cost used in enterprises where the source material in the production process undergoes a number of redistributions or where from one source material in one technological process receive different kinds products. Calculation of the cost of production by the peredelelnoy method can be of two options: semi-finished and non-semi-finished. In the semi-finished version, the cost of production is calculated for each stage, which consists of the cost of the previous stage and the costs for this stage. The cost of production of the last processing is also the cost of finished products. With the non-semi-finished version, only the cost of production of the last processing stage is calculated. With this option, the costs are taken into account separately for each stage, without taking into account the cost of production of previous stages. The cost of finished products includes all the costs of its production in all stages. With the perepredelnoy method of costing, as well as with other methods, first determine the cost of all products, and then the cost of its unit. The cost of a unit of production is calculated in various ways, depending on the characteristics of the technological process.

From cost management

Cost elements are the costs of production and sale of products that are similar in composition. Grouping is necessary to combine homogeneous costs that arise at each stage of the manufacture and sale of goods. Cost types are grouped according to their economic elements and cost items. In the article we will consider their composition and characteristics.

Costs and cost

The differentiation of costs included in the cost of production is of great importance in a market economy. The question of the involvement of costs in the pricing of a certain type of product is decided based on the following criteria:

• direct connection with the production process;
• arise due to payment for labor, natural, material resources used in the manufacture of products;
• involved in innovation activities;
• related to the improvement of working conditions and environmental protection.

There are many more "other" expenses that can be included in the cost price. The main criterion is the nature of their occurrence. They affect the price of products only if they are directly related to its release.

Cost Structure

What factors affect the cost? Indeed, even identical enterprises sometimes have different levels of costs for the production of the same product. The main role is played by the technical equipment of the industrial facility. It depends on the level of costs for wages and material values.

Another component of the cost structure is specialization. production process and its mass. For example, small-scale production of products leads to higher labor costs than mass production. The level of prices for materials and raw materials, fuels and lubricants and energy has an equally significant impact on the amount of costs, as well as the remoteness of the enterprise from suppliers.

It is the grouping of costs by individual elements that allows you to highlight the cost structure of a particular enterprise. Depending on its indicators, capital-intensive, material-intensive, energy-intensive and labor-intensive industries are distinguished. Of course, such a gradation is relative, but it still has its significance in the economic analysis of the enterprise.

Classification of costs by elements

Accounting considers the components of the cost for each type of product separately. Economic analysis looks at the big picture. Cost elements for him are homogeneous groups of expenses that are formed in general by the enterprise, regardless of the extent to which they relate to a particular product. Data on each of them allows management to understand which cost item takes the most money from the organization and most significantly affects the cost price. There will be no clear distinction between, for example, the wages of an employee of the main shop and the auxiliary one. From an economic point of view, together they constitute one of the cost elements.

The grouping of costs by elements is used in any organization, regardless of the type of activity and their legal structure. The purpose of such a gradation is to combine together the composition of the costs that will form the cost. Observing the sign of homogeneity, the costs are divided into the following elements:

• material (excluding returnable waste);
• wage;
• social payments;
• depreciation of fixed assets and intangible assets;
• other costs.

Thus, there are five homogeneous cost groups that are involved in the formation of the cost of any product at each enterprise.

Composition of material costs

Products are made from material assets, which, after the production process, turn into finished products. The costs associated with the acquisition of raw materials to create a product, the first and intuitively correct cost item that affects the cost. What is included? The cost elements for material resources are the sum of the cost:

• raw materials and materials;
• semi-finished products;
• accessories;
• works and services of an industrial nature;
• natural resources and emissions into the environment;
• packages and containers (minus the price of its possible sale);
• necessary inventory and non-depreciable property.

Material costs are included in the prime cost by means of their evaluation by one of the possible methods (FIFO, LIFO, weighted average or accounting, taking into account the deviation from the actual cost of the price).

Salary

It is possible to transform material values ​​into objects of labor only with the participation of a person, i.e., a worker in production. Even automated machines require supervision and control. And the work must be paid. This results in the formation of the largest item of expenditure - wages, on which many enterprises are trying to save. The elements of production costs for the most part consist precisely of labor costs.

This includes amounts:

• calculated based on official salaries, tariff rates and piece rates;
• production line personnel bonuses;
• compensation payments.

However, not all funds transferred to employees are included in the cost of production. Cost elements exclude bonuses paid through earmarked funding, material assistance and additional vacation pay. This does not include other payments that are not related to wages.

Social Security

Employees, in addition to wages, receive from the employer social Security. These are payments to state non-budgetary funds: FSS, FFOMS and PF. The basis for calculation is wages. individual worker. This is a very important part of payments, because it forms the composition of state non-budgetary funds. Evasion of such payments threatens with serious fines and problems with the law.

Depreciation deductions

The cost of cost elements consists of those cost groups that are directly related to the production and output of products. Direct participation in the manufacturing process, of course, plays the equipment and all the property that is involved in it. From year to year it wears out, morally and physically obsolete. To recoup these losses, the accounting department calculates depreciation - the amount of depreciation in monetary terms.

In practice, the classification of costs is mainly used, taking into account costs by costing items and cost elements. A typical calculation includes eleven articles, namely:

• 1. Raw materials and materials (excluding waste).
• 2. Purchased products, semi-finished products and services of cooperative enterprises.
• 3. Basic wages of production workers.
• 4. Salary additional production workers.
• 5. Social security contributions from the basic and additional wages of production workers.
• 6. Costs for the preparation and development of production.
• 7. Expenses for the maintenance and operation of equipment.
• 8. Shop expenses.
• 9. General factory expenses.

Y. Losses from marriage.

11. Non-manufacturing expenses.

The first eight cost items are the shop cost. Shop cost plus general factory costs and waste from marriage make up the production cost. All eleven cost items make up the total cost of production.

Methods for calculating the cost of production

There are the following main methods for calculating the cost of production:

• direct account;
• normative;
• settlement and analytical;
• parametric.

At direct count method unit cost of production is determined by dividing the total cost by the number of manufactured products. This method is used in the manufacture of homogeneous products, but it does not imply the possibility of cost analysis for individual costing items.

Normative method calculation of the cost of production is based on the application of standards for the use of labor, material and financial resources.

Calculation and analytical method the most accurate and perfect method of calculating the cost of production, as it provides opportunities for a comprehensive analysis of the state of production, possible changes in it. The influence of production factors on the cost of production, as well as on working conditions in the projected period, is studied.

Parametric method It is used when calculating the cost of products of the same type, but different in quality. It allows you to determine the change in production costs depending on the quality characteristics of the product. Using this method, you can calculate the additional costs for improving the quality characteristics of products. Planning and cost accounting in construction organization carried out in accordance with industry guidelines with the allocation of a grouping of costs by cost elements, which, in turn, allows you to determine the material intensity, energy intensity, labor intensity, capital intensity, as well as to establish the impact of scientific and technological progress on the amount of costs.

According to the method of attributing costs to the cost of production during its calculation, the costs are grouped into direct and indirect.

Direct costs are directly related to the manufacture of certain products (raw materials, materials, wages of production workers, etc.).

Indirect costs related to the work of the shop, section or enterprise as a whole. They relate to the cost of a unit of production by distribution according to some established feature (in proportion to the volume of production or costs). An example of indirect costs are workshop and general factory costs, the cost of maintaining and operating equipment, etc. AT foreign countries with a developed market economy, enterprises and firms carry out a comparative analysis of the production costs of competitors. This makes it possible to analyze the amount of costs by cost elements. own production in comparison with competitors. Based on this analysis, measures are developed to reduce costs, as well as the identification of benefits that can increase the competitiveness of the enterprise.

PRACTICAL TASK No. 8 Compilation of costing for production and sale

products

	Name	Thousand rub.
	Raw materials
	Waste production
	Purchased products, semi-finished products and services of cooperative enterprises
	Basic salary of production workers
	Additional wages for production workers
	Deductions for social insurance from the wages of the main and additional production workers -
	Costs for preparation and development of production
	Depreciation of equipment and vehicles
	Equipment operation and maintenance of equipment and vehicles
	Intra-factory movement of goods
	Depreciation of low-value and high-wearing tools and fixtures
	Depreciation of buildings, structures and inventory
	Occupational Safety and Health
	Other shop expenses
	Downtime losses
	Other shop contingencies
	Surplus work in progress
	Expenses for the maintenance of the plant management apparatus
	Other general factory expenses
	Taxes, fees and other mandatory contributions
	General factory non-manufacturing expenses
	Loss from marriage
	Loading, unloading and transportation costs
	Shipping and packaging costs
	Other distribution costs

Initial data: Perform a grouping of costs by calculation items and determine workshop, general factory and non-production costs according to the following data:

• 1) Determine the amount of expenses for the maintenance and operation of the equipment (positions of the initial data = p. 8 + p. 9 + p. 10 + p. 11):
• 16,000 + 25,000 + 10,000 + 12,000 = 63,000 thousand rubles.
• 2) Determine the amount of shop expenses (positions of the initial data = p. 12 + p. 13 + p. 14 + p. 15 + p. 16 + p. 17 + p. 18 + + p. 19):
• 4000 + 15 000 + 11 500 + 3500 + 600 + 300 + 250 + 700 =

RUB 35,850 thousand

• 3) Determine the amount of general factory expenses (positions of the initial data = item 20 + item 21 + item 22 + item 23):
• 5000 + 20,000 + 33,500 + 1250 = 59,750 thousand rubles.
• 4) Determine the amount of non-production costs (positions of the initial data = p. 25 + p. 26 + p. 27):
• 25,000 + 7,000 + 1,600 = 33,600 thousand rubles
• 5) Determine the shop cost of production (positions of the initial data = item 1 + item 2 + item 3 + item 4 + item 5 + item 6 + item 7 + + costs for the maintenance and operation of equipment + workshop costs) :
• 22 500 + 4300 + 42 000 + 45 000 + 18 000 + 25 000 + 9000 +

63,000 + 35,850 = 458,550 thousand rubles

• 6) We determine the production cost of products (positions of the initial data = item 24 + shop cost + + overhead costs):
• 3750 + 458 550 + 59 750 = 522 050 thousand rubles.
• 7) Determine the total cost of production (production cost + non-manufacturing costs):
• 522,050 + 33,600 = 555,650 thousand rubles