What does the calculation look like? What is the cost of services - a general concept

Hello! Today we will talk about the cost of services, its calculation and formation. Any business whose enterprise specializes in the provision of services must establish real competitive prices for their services. In order to do this, it is necessary to calculate the actual cost of services, because it is this indicator that affects pricing. Let's figure out together what is hidden under the term "cost" and how it is determined.

What is the cost of services - a general concept

With the help of determining the cost, you can. There are several types of costs. It is determined individually for each enterprise. If the company is engaged in the production of products, then it is calculated. If the goods are services, then the cost of services is calculated.

For a better understanding, we will give examples. If the enterprise is engaged in the production of soft toys, then the cost of the toy is calculated. If we consider the transport company that is engaged in transportation, then it is calculated cost of transport services.

Cost of services - this is the sum of all costs, expressed in monetary terms, that the enterprise has incurred to provide the service.

This qualitative indicator is used in determining the efficiency of the enterprise and its financial condition. It depends on the type of service provided.

For example, if we consider a hairdressing and outsourcing company that specializes in providing accounting services, then cost of services sold the first organization will be higher than the second. This is due to the fact that the provision of hairdressing services requires more consumables, tools, etc. than for an outsourcing company.

Types / types of cost of services and its structure

There are several types of costs.

• Full cost of services is the ratio of all costs of the enterprise to the total volume of production. That is, the total production indicators are taken into account.
• Marginal cost of services is the cost of each individual service.

• the cost price according to costing items;
• cost by cost elements.

What is the cost of a company's services?

Cost of services provided is the total cost of a business. They are divided into the following types:

1. Direct - wages to employees who are directly involved in the process of providing services.
2. Indirect - wages to the heads of the enterprise.
3. Permanent - depreciation deductions. They do not depend on the volume of services provided.
4. Variables - the cost of purchasing materials.

Consider all types service costs with a simple example. If you are the owner of a wedding agency and organize celebrations, then you incur direct costs when you pay wages to the toastmaster, musicians, wedding coordinators. Indirect - this is your salary. You incur fixed costs when you pay for the rent of the premises, utilities, taxes, etc. Decorating restaurants with fresh flowers and other wedding paraphernalia, you incur variable costs.

How to calculate the cost of services - costing

There are several ways to calculate the cost of services. To do this, you need to clearly understand that certain materials and material assets are necessary for the provision of services. The cost of a service consists of the cost of materials and the cost of performing work to provide services.

We have compiled a small plan with which you can calculate the cost of services. When calculating, the following must be taken into account:

1. Expenses related to tax deductions and entrepreneurial activities;
2. Capital and current costs;
3. material costs;
4. Payment of salaries to employees;
5. Social Security contributions;
6. Depreciation deductions;
7. Other expenses.

Determining the cost of services It is necessary to take into account the materials that are used in the performance of the work. If the process is not labor-intensive, and does not require a large amount of materials, then you can sum up all the costs and display the cost.

If the work involves the presence of a large amount of materials, you can make a separate estimate for the client. There will be prices for all materials. A separate amount will be assigned for the provision of services.

Let's look at these principles with examples.

If you are engaged in tutoring, then you need to have several books and notebooks for work. The prime cost of paid services will consist of expenses for literature and stationery. When drawing up a price list for your services, you simply include the cost of materials in the price for the client. So you count standard cost of services.

The second example will concern a cleaning company. Before concluding an agreement, the entire list of services that will be provided to the client is negotiated with the client. In this case, the cost of all detergents and inventory can be placed in a separate price list. The customer will pay separately for materials and separately for the work of personnel.

Calculation of the cost of works and services

Here is an example of calculating the cost of services for eyelash extensions.

1. For the extension procedure, special artificial hairs will be required. We determine the cost of artificial eyelashes that will be required per person. If the price of a package of single artificial hairs is 4,000 rubles, there are 4,000 of them in a package, and an average of 100 cilia will be required per client, then the cost of hairs can be calculated from this. We divide the package price by the volume and multiply by the number of customers.
2. It is impossible to increase the volume and length of eyelashes with the help of extensions without special glue. It is also necessary to calculate the amount of this material per client. Glue with a volume of 5 ml costs 3500 rubles. Approximately 0.2 ml “leaves” for one client. With these data, we make a calculation. The total cost of glue is divided by its volume and multiplied by the amount of material for one person.
3. For this, not very complicated procedure, you do not need to have special equipment, one disposable brush will be enough. These brushes are sold in a set of 50 pcs. The cost of the set is 500 rubles. From here we calculate the cost of one brush. To do this, we divide the cost of the set by the number of brushes and multiply by the number of brushes that is necessary for one procedure.
4. Another material that will be required is medical adhesive tape. It is sold in rolls of 6 meters. The cost of such a tape is 400 rubles, and 10 cm is needed for one procedure. We calculate: the total cost of the tape is divided by the volume of the roll and multiplied by the amount of material for one client.
5. We sum up all the costs and as a result we get cost of selling services.

For clarity and better understanding, we will calculate the cost of services using an example:

The example given is very simple. It does not take into account the cost of renting a room, taxes, the salary of a master, payment of utility bills, etc. This calculation will be reliable if you work for yourself and provide services at home. At the same time, do not spend money on advertising campaigns.

Conclusion

Determination of the cost of services This is one of the main tasks of an entrepreneur. The correct calculation will allow you to form a real price and prevent or. Determining the cost of a service is easy. It is enough to sum up absolutely all the costs that the company incurs when providing the service.

In order for a business to generate income and develop, it is necessary to keep a strict record of costs in the provision of services and try to reduce costs. To do this, use the article about. As a result, costs will decrease and profits will increase.

The success of a service business largely depends on proper pricing. It is necessary to determine the exact amount of costs and take it into account in the final cost.

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What formula is used to calculate the cost of services in 2019? The main goal of entrepreneurship in any field is to make a profit.

But it is not enough just to realize the product of activity. It is necessary to cover the costs of production through sales and receive income.

To do this, you need to take into account all the nuances of pricing. What formula should be used in 2019 to calculate the cost of services?

What you need to know

Among the many concepts used in the field of commerce and entrepreneurship, one of the most popular is the cost.

The product cost formula is time-varying. The calculation can be carried out in any period of time, which makes it possible to determine the profitability of the chosen development strategy, taking into account the seasonality factor.

Qualitatively produced calculation of the cost of production costs has a significant impact on the entire subsequent process of business development.

It is the price of the goods that plays a key role in the level of the company's competitiveness, consumer confidence and profit.

Required terms

The cost price is the valuation of current costs for the production and sale of manufactured products.

In this case, the costs are understood as cash, labor and natural costs. The cost includes such costs as:

• related to the implementation of entrepreneurial activities;
• related to production activities;
• relating to the sale of products;
• documented expenses;
• defined at the legislative level.

Cost accounting is carried out in the reporting period to which they are directly related, regardless of the time of payment.

The purpose of costing is to accurately estimate how much it costs a company to produce and sell products.

By determining this economic indicator and adjusting it, it is possible to increase the profitability of entrepreneurial activity.

Cost determination is indispensable in the following situations:

• evaluation of cost dynamics;
• calculation of the profitability of general activities and specific areas;
• identification of reserves to reduce costs;
• calculation of selling prices for products;
• determining the effectiveness of the introduction of new products, etc.

What are the types

The variety of cost types determines the impact of certain criteria:

The total cost includes the costs of the main production, general and company expenses, including selling expenses.

The classification of cost types is carried out according to two fundamental features:

1. Calculated according to costing items.
2. Calculated by cost elements.

The cost structure is built from several blocks of cost elements:

In each specific production, each block of costs is recognized as significant in the overall cost structure.

By determining the cost for each cost element, you can analyze the production process and find a way to reduce costs.

Normative base

In different areas of activity, the concept of cost is interpreted taking into account specific features.

From the point of view of economics, this qualitative indicator implies the monetary expression of all costs for the production and sale of products.

Until 2002, the definition of prime cost was formulated at the legislative level in clause 1 of the “Regulations on the composition of costs”.

In 2019, there is no regulated definition of the indicator, just as there are no regulations or guidelines for its definition.

In accounting, the traditionally established practice of cost accounting and cost formation is used.

In the current Russian legislation, the cost price is mentioned in cases when it comes to the actual costs of purchasing materials for production and the costs necessary for the production and sale of products.

In relation to tax accounting, according to the concept of cost in determining the financial result, it is not taken into account. The tax is calculated on the basis of accounting for the income and expenses of the organization.

How to correctly calculate

The complexity of determining the cost of services is due to the fact that the final product is intangible. But by choosing the appropriate method, you can calculate the indicator with extreme accuracy.

In total, at this time there are four main methods for calculating the cost, the choice of which is determined by the type of control over cost accounting objects:

What is the purpose of the indicator?

It is necessary to consider the cost price from the standpoint of economic science. As an economic category, the cost price performs such basic functions as:

• accounting and control of expenses for the production and sale of products;
• formation of the wholesale price for the manufactured product;
• analysis of the feasibility of changing production and implementing decisions.

With a phased cost estimate, you can determine which changes will help reduce the indicator and which costs are unnecessary.

Therefore, with any change in the production process, it is important to calculate the cost indicator.

This allows you to track the dynamics of pricing and timely implement solutions that have a positive impact on the final cost of a product or service.

What algorithm is used

As part of accounting, the calculation of the cost of services (products) is carried out in several stages:

The scheme for calculating the cost indicator is not legally regulated. Therefore, organizations are free to choose the most appropriate method.

Calculation scheme

When calculating the cost of services, the following costs are taken into account:

• material costs;
• depreciation of fixed assets involved in the production of services;
• salary of employees involved in the production and provision of services;
• deductions to funds from the salaries of employed employees;
• Administrative expenses;
• other costs.

For each item, the total amount of reasonable costs is determined. Then all the values ​​are added up. This will be the cost of the service.

If it is not possible to determine the cost of a one-time provision of a service, then the calculation is carried out in relation to a certain period.

The cost estimate determines the total amount of costs associated with . Then the number of services rendered is determined and the total cost is divided by this value.

Emerging nuances

When the cost price is calculated in relation to services, it is necessary to follow simple rules:

For example, calculating the cost of services requires taking into account the cost of repairing housing, maintaining it in good condition and paying taxes.

But when calculating the cost of car service services, you will need to take into account many more factors - wages of employees, consumables, energy costs, etc.

Calculation of the cost of fitness club services

When calculating the cost of a separate fitness club service, you should determine:

• the amount of the total cost of providing the service;
• the number of visitors who can simultaneously use this service;
• markup coefficient, determined at will or taking into account market prices.

When calculating the amount of expenses, expenses per month for:

• (in the presence of);
• social contributions;
• fixed salary of employees;
• advertising;
• household goods and office;
• for staff;
• staff training, etc.

The resulting amount of expenses is divided by the number of people visiting the club during the month. The result is the cost of a subscription for one service per month.

The resulting value must be multiplied by the markup coefficient to get the cost of a subscription for a month.

If several services are supposed to be provided, then the cost price for each individual service is first calculated and then the total cost price is found by adding the results.

In a budget institution

The cost of services in a budgetary institution is subject to direct, overhead and general business costs, as well as distribution costs.

Although budget accounting involves cost accounting in accordance with, specific definitions of costs have not been established.

Direct and overhead costs include costs related to the provision of services. General business expenses are expenses for the needs of management.

Distribution costs are the costs incurred as a result of the provision of services and their promotion. The cost classification is determined by the institution.

Video: calculation of the cost of services

It also determines how the overheads are distributed. The calculation method is determined by the institution independently or approved by a higher authority.

For housing and communal services

The cost of housing and communal services is determined according to. The planned cost becomes the basis for setting the tariff.

Costs are determined separately for each service based on:

• analysis of actual expenses in a certain period;
• accounting for approved industry and regional standards for the relevant types of costs.

When determining the cost of housing and communal services, the following factors are certainly taken into account:

The unit cost of a service is found by dividing the total amount of costs by the volume of services in physical terms, determined on the basis of consumption standards and the total number of consumers.

Beauty saloon

When calculating the cost of beauty salon services, calculations are carried out for each individual service.

The cost of the service includes payment for the work of the master, the amount of consumables and related costs.

General costs include electricity, advertising, security, depreciation of equipment, etc. When determining the price of consumables, it is important to consider every little thing.

- an extremely important parameter, the definition of which ensures a reduction in the cost of material and labor resources. This value is necessary for competent production management.

What is costing

Costing is the determination of the cost per unit of output. For example, a company is engaged in the production of doors. In this case, the cost of manufacturing one door is calculated. The cost includes costs in the following areas:

• Transportation of products.
• Cost of goods.
• Delivery of raw materials or products.
• Duty and customs payments.
• Material, raw material.

The cost includes many parameters. Calculation allows you to determine the costs for each direction. In the future, you can analyze the rationality of these expenses, and then reduce them. The manager is looking for the most effective methods to reduce costs.

Varieties of costing

The following types of calculations can be distinguished:

• Normative. When determining the cost, the raw material consumption rates valid at the beginning of the month are taken into account. It must be said that the real norms (which are used in the calculations) and the planned norms may differ from each other. For this reason, the target and planned costs will also be different.
• Planned. The cost of production in this case will be average. It is set for a specific planning period. When calculating, you need to take into account the average cost standards. If the company executes one-time orders, an estimate is generated. There is also an accounting calculation needed to determine the cost of the service. It does not include spending rates.
• Reporting. Determined at the end of the reporting period. When generating a reporting cost estimate, accounting data will be required: actual costs, production costs, quantity of manufactured goods. This form provides the ability to track the implementation of the plan to reduce the cost of production. Reporting costing is needed to establish the dynamics of reducing or increasing the cost. It allows you to find the real cost of the product, to determine the difference between the cost of actual and planned nature.

A cost estimate is classified according to the information that is used in the calculation.

Methods

Calculation can be carried out in various ways:

• Transverse. The redistribution represents the final step of processing and production. Calculations are carried out on the basis of information on processing or manufacturing. The method under consideration is used in the oil refining and food industries. Transitional costing is considered simple. It does not involve the compilation of statements, the redistribution of indirect costs. The first step is to perform the calculation in conventional units. The second step is to establish the cost of a conventional unit of goods. The third step is to determine the cost.
• Process. When calculating, you need to use information on a specific redistribution, which includes a list of processes. The process is a technological stage that is a component of production. The considered method is suitable for the mining, chemical industry. Relevant for mass production of goods. If there are no work-in-progress items, the cost is determined by dividing the costs by the number of manufactured products. Both expenses and the volume of goods are determined for a certain reporting period. If the release cycle is long, the costs must be allocated between production and work in progress.
• Custom. Relevant for the construction, aviation industry. It is used in small and medium businesses. Suitable for companies engaged in tailoring, furniture production, repair. This is an easy way to track costs. The peculiarity of this technique lies in the fact that it can be applied only after completion of work. This is due to the fact that all the completeness of information is needed for calculations.

The considered costing methods are necessary for the effective management of the production department.

Example of costing

The company is engaged in the production of interior doors. Calculations are carried out as follows:

• Raw material consumption. It is necessary to take into account the cost per unit of raw materials. For production, 6.8 units of glass will be needed. The price per unit is 85 rubles. The cost must be multiplied by the number of units (85 * 6.8). Calculations are carried out in relation not only to glass, but also to wood, paint and varnish products, and components.
• Electricity costs. First, the amount of electricity needed to illuminate the production facility and the operation of the equipment is calculated. Then the cost of 1 kW is determined. Then the amount of energy is multiplied by the cost of one unit.
• Payment for the work of workers. You need to determine the salary of all employees, paid for the entire order, and then divide it by the number of doors. Salary includes various bonuses.
• Repair. Spending on current repairs and maintenance of the equipment used is divided by the number of doors.
• Target spending. The target costs include the earnings of managers, the cost of maintaining the premises. This figure must be divided by the number of doors.
• Commercial spending. These include spending on advertising, shipping. This indicator is similarly divided by the number of doors.

All obtained values ​​must be added. The resulting number is the cost.

Basic tasks of costing

What is the calculation for? It is required for the following tasks:

• Determining the real cost of a particular product, work or service.
• Control over expenses, taking into account regulations and spending standards.
• Establishing profitability.
• Evaluation of the effectiveness of labor activity.
• Evaluation of the performance of individual departments.
• Collection of information about the upcoming analysis of the reserve to reduce the cost.
• Valuation of stocks of finished products and semi-finished products.

FOR YOUR INFORMATION! Based on the cost price, the retail price of the goods is determined. It is unprofitable for the entrepreneur to reduce the retail price below the cost price. In this case, the company will go negative. Therefore, the cost price is the basis for setting a reasonable price.

What does the cost include?

The components of the cost depend on the specifics of the organization. For example, the cost of construction and installation works may include the following elements:

• Material and raw materials.
• Employee earnings.
• Equipment content.
• . Other expenses (rent of premises, assistance from third-party companies, insurance premiums).

Transport services may include these components:

• Basic expenses (earnings of drivers, taking into account deductions to non-budgetary funds).
• Fuel costs and vehicle depreciation.
• Vehicle maintenance costs (purchase of spare parts, maintenance of a garage, depreciation).
• General business expenses.
• Commercial spending.
• Management expenses.

Cost includes only actual costs. For example, if a company does not rent a room, then the cost of rent will not be included in the price. If the organization offers services, then the cost will include those materials that are used in the provision of services.

Pricing takes into account various factors. An important role is played by the cost of services. It includes all costs of the contractor, including those not related to the work.

The cost of a service is the sum of the contractor's expenses incurred in the course of its implementation. The indicator also includes other costs, without which the work would not be possible. For example, equipment depreciation. In the future, the indicator is used to assess the financial condition, performance and make important decisions for the company.

What is included?

The cost includes the following costs:

• direct (staff salaries);
• indirect (salary to management);
• permanent (depreciation deductions);
• variables (purchase of materials).

Direct costs include those costs that are directly related to the provision of services, while indirect costs are all the rest. Fixed costs do not depend on the volume of work, variables - on the contrary.

What costs are included depends on the service. In the video, an example of how to calculate the cost of a manicure in a studio:

The work may require material values. There are two options for how to proceed: add everything together (relevant if the amount of expenses is small) or take it out of the estimate and charge the client separately for materials. The second option is applicable if the choice is strictly individual and must be made by the customer. For example, in the cost of accounting services, it is advisable to include the cost of paper for the preparation of documents. However, when carrying out repairs, you cannot buy building materials to your liking without agreement with the client, therefore this item of expenditure is always taken out of the scope of the service. But you can include help with the selection.

The best way to represent costs is in the form of a diagram:

Calculation example

To calculate the cost of a service, you need to determine what is included in its composition. For example, to install a ready-made online store based on a standard template, you need to:

• register a domain name;
• order hosting;
• buy licenses for the necessary software products (engine, template, plug-ins, modules, etc.);
• install and configure.

From all this, the client himself pays the cost of the domain, hosting, licenses at the price of suppliers. The installation company may additionally calculate the cost of ordering services from suppliers or add to the setup price. One employee can cope with such work, so only his time is taken into account in the calculation. However, if we take the development of an online store from scratch and on a turnkey basis, it requires the involvement of various specialists.

How much can the cost of developing an online store cost? The cost of attracting specialists is best calculated based on the time they spend on work.

* According to the production calendar 2015 with a 40-hour work week.

To calculate the total cost of the project, you need to take into account all other costs. For example, if there is one specialist in the state, the team can develop 5 online stores per month, if other work is not too distracting.

Thus, in terms of a month, the company's costs for the development of IM will amount to 139,120 rubles. Accordingly, the cost of one service is 27,824 rubles.

Summing up the results of activities and making important decisions for the company is impossible without calculating important indicators. such as the cost of production. In its analysis, different cost items are used: fixed and variable costs, direct and indirect.

The cost of production is the basis for calculating the effectiveness of activities. It is involved in determining the margin, profit, revenue, return on sales, depreciation and other economic indicators and represents the amount of the company's expenses for the production of goods. Different categories of expenses can be included: raw materials, wages, packaging, delivery to the buyer, etc.

What turns on?

The cost includes expenses for:

• production of products (raw materials, energy carriers, containers);
• maintenance of fixed assets (equipment, production shop);
• sale of goods (packaging, sorting, delivery to the buyer).

Which expenses need to be included depends on the product itself and the way it is sold.

Thus, the cost structure depends entirely on the product, the method and conditions of its sale. Products can be given for sale, then you need to include expenses for the return of unsold balances. Do not discount the percentage of defects that may occur during production and sale. Perishable products have a shorter shelf life, so the cost of selling them may be higher (additional advertising, for example).

Costs are direct and indirect. By direct means such expenses, the size of which depends on the batch (for example, raw materials). Indirect ones are not directly related to the volume of production (salaries of management personnel). Also, costs are divided into fixed (they are always present in the same volume) and variable (depending on the volume of production).

Also, the total cost depends on the type of cost:

• workshop (only manufacturing costs);
• production (all target costs);
• full (all costs of the manufacturer for production and marketing).

For more information about the varieties, see the video:

What costs should be included are decided at each enterprise independently. There is no universal option. This indicator will subsequently be used in calculating the efficiency of financial and economic activities, and it can also support important decisions.

Calculation example

We calculate the cost of one knitted hat and a batch of knitted hats in a workshop with one working knitting machine (actual data was used, but planned ones can also be used).

Initial data:

• 1 machine works in the workshop and 1 person serves it;
• 300 caps are produced per season per month;
• yarn consumption per item is 150 g;
• accessories are not used.

The cost of one cap is 347 rubles, and a batch of 300 pcs. - 103 950 rubles.

The structure of spending is dominated by fixed costs (67%).

The main share of spending on raw materials (28%). Delivery of products to stores (2%) and utility bills (2%) have a smaller share.

It is best to analyze production costs in dynamics. This will allow you to identify changes in the structure, understand which costs have decreased and which have increased, and also track seasonal fluctuations.

The reduction in variable costs is associated with seasonal demand for the product. Accordingly, fewer products are produced during the summer months, so the cost per batch is lower. Fixed costs remain almost unchanged.

In the above example, the cost of production was calculated for all costs incurred by the enterprise. There is another approach that takes into account only variable costs that depend on the batch size.

Which method to use depends on the product itself and the production situation. The decision to launch a new line, which should become a "lifeline" for the enterprise, is best made knowing the full cost of production, taking into account fixed costs. However, in a successful company, this method may not be appropriate. In any case, each production has its own way of calculating the cost and determining the costs that will be included in it.