Production costs (cost)- this is the current costs of the company for the production and sale of products, expressed in monetary terms, which are the estimated price base
Calculation unit- this is a unit of a specific product (service) according to costing items (according to costing)
The basis for calculating prices is costing (distribution costs).
It is compiled for the unit of measurement of the quantity of manufactured products adopted taking into account the specifics of production (1 meter, 1 piece, 100 pieces, if produced at the same time). The calculation unit can also be the unit of the leading consumer parameter of the product.
Lists of costing items reflect the features of production.
For modern domestic practice, the following list of costing items can be considered the most characteristic:
- raw materials and materials;
- fuel and energy for technological purposes;
- wages of production workers;
- payroll of production workers;
- overhead costs;
- general running costs;
- other production expenses;
- business expenses.
Items 1-7 are called production costs, as they are directly related to the maintenance of the production process. The amount of production costs is production cost. Article 8 (sales expenses) expenses associated with the sale of products: the cost of packaging, advertising, storage, partly transportation costs. The sum of production and selling expenses is total cost of production. There are direct and indirect costs. Direct costs relate directly
on the cost of a particular product. According to the above list, direct costs are represented by items 1-3, which is typical for most industries. indirect costs are usually associated with the production of all products or several of its types and are indirectly related to the cost of specific products - using coefficients or percentages. Depending on the specifics of production, both direct and indirect costs can vary greatly. For example, in mono-production, direct costs are almost all costs, since the result of production is the release of one product (ship building, aircraft building, etc.). On the contrary, in instrumental processes (chemical industry), where a range of other substances is obtained simultaneously from one substance, almost all costs are indirect.
There are also conditionally fixed and conditionally variable costs. conditionally permanent called costs, the volume of which does not change or changes slightly with a change in the volume of output. For the vast majority of industries, general production and general business expenses can be considered as such. conditional variables consider the costs, the volume of which is directly proportional to the change in the volume of output. Usually these are material, fuel and energy costs for technological purposes, labor costs with accruals. The specific list of costs, as we have already said, depends on the specifics of production.
Manufacturer's profit in price - the amount of profit, minus indirect taxes, received by the manufacturer from the sale of a unit of goods.
If the prices for the goods are free, then the amount of this profit depends directly on the pricing strategy of the manufacturer-seller (Chapter 4).
If prices are regulated, then the amount of profit is determined by the rate of return established by the authorities, and with the help of other levers of direct price regulation (Chapter 2).
In modern Russian conditions, the objects of direct price regulation at the federal level are natural gas prices for monopoly associations, electricity tariffs regulated by the Federal Energy Commission of the Russian Federation, tariffs for modes of transport with the largest freight turnover (primarily tariffs for freight rail transport), the price of vital medicines and services that are most significant from the economic and social standpoints.
The object of direct price regulation by the constituent entities of the Russian Federation and local authorities is a much wider list of goods and services. This list depends to a decisive extent on two factors: the degree of social tension and the possibilities of regional and local budgets. The higher the social tension and the larger the amount of budgetary funds, the greater, other things being equal, the scale of direct price regulation.
In Russian practice, with state regulation of prices and in the overwhelming majority of cases with a system of free prices, the full cost of a unit of goods is taken into account as the basis for using the percentage of profitability when calculating profits.
Example. The cost structure for costing items per 1000 products is as follows:
- Raw materials and basic materials - 3000 rubles.
- Fuel and electricity for technological purposes - 1500 rubles.
- Remuneration of the main production workers - 2000 rubles.
- Accruals for wages - 40% of the wages of the main production workers
- General production expenses - 10% of the wages of the main production workers.
- General business expenses - 20% of the wages of the main production workers.
- The cost of transportation and packaging - 5% of the production cost.
It is necessary to determine the level of the manufacturer's price for one product and the amount of profit from the sale of one product, if the profitability acceptable to the manufacturer is 15%.
Calculation
1. We calculate in absolute terms indirect costs, given as a percentage of the wages of the main production workers, per 1000 products:
- accruals for wages = 2000 rubles. *40% : 100% = 800 rubles;
- overhead costs \u003d 2000 rubles. *10% : 100% = 200 rubles;
- general expenses = 2000 rubles. *20% : 100% = 400 RUB
2. We define the production cost as the sum of the costs of articles 1-6.
- Production cost of 1000 items = 3000 + 1500 + 2000 + 800 + 200 + 400 = 7900 (rubles).
3. Costs for transportation and packaging = 7900 rubles. 5%: 100% = 395 rubles.
4. Full cost of 1000 products = 7900 rubles. + 395 rub. = 8295 rubles; total cost of one product = 8.3 rubles.
5. Manufacturer's price for one product = 8.3 rubles. + 8.3 rubles. 15%: 100% = 9.5 rubles.
6. Including profit from the sale of one product = 8.3 rubles. 15%: 100% = 1.2 rubles.
Manufacturer price- the price, including the cost and profit of the manufacturer.
Actual sale of goods (services) according to manufacturer's prices(manufacturer's price, factory price) is possible mainly when there are no indirect taxes in the price structure. In modern economic practice, the list of such goods (services) is limited. As a rule, indirect taxes are present in the price structure as direct pricing elements. In absolute prices
most goods (services) included value added tax(VAT).
The structure of prices for a number of goods contains excise. This indirect tax is included in the price of goods that are characterized by inelastic demand, i.e., an increase in the price level as a result of the inclusion of an excise in it does not lead to a decrease in the volume of purchases of this product. Thus, the fiscal tax function is implemented - ensuring budget revenues. At the same time, excisable goods should not be essential goods: the introduction of an excise tax in this case would be contrary to the requirements of social policy. In this regard, both in domestic and international practice, primarily alcoholic products and tobacco products are excisable. Goods such as sugar and matches, which are characterized by the highest degree of demand inelasticity, are not excisable, since they are included in the list of essential goods.
Along with the main federal taxes (value added tax and excise), prices may include other indirect taxes. For example, before 1997 in Russia, a special tax was included in the price structure. In 1999 sales tax was introduced in almost all regions of the Russian Federation. Later, these indirect taxes were removed.
Let us dwell on the methodology for calculating the value of value added tax in the price as the most common tax.
The price without VAT is the basis for calculating value added tax. VAT rates are set as a percentage of this base.
Example. Manufacturer price level -
9.5 rub. for one product. The value added tax rate is 20%. Then the level of the selling price, i.e., the price exceeding the manufacturer's price by the amount of VAT, will be:
- Tsotp \u003d Cizg + VAT \u003d 9.5 rubles. + 9.5 rubles. 20%: 100% = 11.4 rubles.
Elements of the price are also intermediary wholesale markup And trade allowance, if the product is sold through .
Selling price- the price at which the manufacturer sells products outside the enterprise.
The selling price exceeds the manufacturer's price by the amount of indirect taxes.
Rules for accounting and regulation of intermediary services
Intermediary (trade) allowance (discount)- the form of price compensation of the wholesale (trading) intermediary.
Distribution costs- the intermediary's own costs, excluding the costs of the purchased goods.
Both the wholesale intermediary and trade markups, by economic nature, as noted in Chapter 2, are the prices of services of the intermediary and trade organizations, respectively.
Like any price, an intermediary price reward contains three elements:
- intermediary costs or distribution costs;
- profit;
- indirect taxes.
Rice. 9. General price structure in modern Russian conditions. Ip - production costs (cost); П - profit; Hk - indirect taxes included in the price structure; Nposr - wholesale intermediary allowance.
As competition develops, the chain of intermediaries decreases. Currently, in domestic practice, a wide range of consumer goods is sold only with the help of a reseller and directly from the manufacturing plant.
In business practice brokerage fee can be calculated in the form allowances And discounts.
In absolute terms, the intermediary discount and surcharge are the same, since they are calculated as the difference between the price at which the intermediary purchases the goods - purchase price, and the price at which it sells - selling price. The difference between the concepts of "discount" and "surcharge" appears if they are given in percentage terms: the 100% base for calculating the markup is the price at which the intermediary purchases the goods, and the 100% base for calculating the discount is the price at which the intermediary sells this product.
Example.
- The intermediary purchases goods at a price of 11.4 rubles. and sells it at a price of 13 rubles.
- In absolute terms, discount = surcharge = 13 rubles. - 11.4 rubles. = 1.6 rubles.
- The percentage of the allowance is 1.6 rubles. · 100%: 11.4 rubles. = 14%, and the discount percentage is 1.6 rubles. · 100% : 13 rub. = 12.3%.
Under conditions of free prices, intermediary allowances are used when the seller does not experience hard price pressure, i.e., takes the position of a monopolist (leader) in the market. In such a situation, the seller has the opportunity to directly add remuneration for intermediary services.
However, more often intermediary allowances are used as a lever of price regulation by the authorities, when market conditions allow selling goods at a price higher than allowed by the interests of national economic and social policy. So, in Russia for a long time supply and marketing allowances for the most important types of fuel were applied. These allowances were regulated by federal authorities. At present, in almost all regions of Russia there are trade allowances for products of increased social importance. These allowances are regulated by local authorities. The scale of their use increased significantly after the 1998 crisis.
Under conditions of free prices, intermediary discounts are used when the seller is forced to calculate his indicators in strict dependence on the prices prevailing in the market. In this case, the calculation of the intermediary's remuneration is based on the principle of "discarding" this remuneration from the level of the market price.
Intermediary discounts are usually provided by manufacturers to sales intermediaries and their permanent representatives.
Along with intermediary discounts and surcharges associated with the price level, a wide
such a form of remuneration for an intermediary as establishing for him percent of the cost of goods sold.
The profit of the intermediary is determined using the percentage of profitability to distribution costs. Distribution costs- the intermediary's own costs (for example, rent for premises, labor costs, packaging and storage of goods).
The costs associated with the purchase of goods are not included in the distribution costs.
Example. Taking into account the conditions of the previous example, we determine the maximum allowable distribution costs for an intermediary if the minimum acceptable profitability for him is 15%, and the VAT rate for intermediary services is 20%.
We can represent the absolute value of the intermediary remuneration by an equation, taking for x the maximum allowable distribution costs:
- x + x * 0.15 + (x + 0.15x) * 0.2 = 1.6;
- x = 1.16 (rubles).
If the sale of goods is accompanied by the services of not one, but several intermediaries, then the percentage of the markup of each subsequent intermediary is calculated on the price of its purchase.
Example. An intermediary sells goods to a trade organization. Subject to the above conditions, this sale will be carried out at a price of 13 rubles. (11.4 + 1.6).
Then the retail price at the maximum allowable markup of 20% will be 15.6 rubles. (13 + 0.2 * 13).
Intermediary discounts and surcharges must be distinguished from price discounts And allowances.
The former, as mentioned above, constitute remuneration for intermediary services, therefore their presence is always associated not with one, but with several price stages (their number is directly proportional to the number of intermediaries).
Price discounts and markups are sales promotion tools (Chapter 4). They are used in relation to one price level and are associated with one price stage.
The general structure of the price in modern Russian conditions, taking into account all of the above elements, is shown in fig. 9.
The formation of the price for certain services depends on the cost of the cost of its provision, which includes the costs of materials, wages, depreciation and other costs expressed in monetary terms. In this regard, accountants of business entities providing services to the population are wondering what the calculation of the cost of services looks like (sample).
What is meant by the cost of services
Providing a certain type, type and nature of services to the population, business entities determine its cost, the amount of which is individual for each of the services. To do this, a set of amounts for the implementation of costs in the provision of a specific service is calculated. All costs included in the cost of services are grouped:
- according to costing items;
- by cost elements.
The cost of production of works, services is the cost of resources spent in the process of production of products, provision of services or performance of work. The cost of the spent resources is calculated both for the production of products (provision of services, performance of work), and for the sale of services, works, products.
Table 1. Calculation of the cost of the service "Regular manicure without coating"
Analysis of the cost of products works services
Consider an example of an analysis of the cost of services provided by an enterprise by cost elements in table 2.
Table 2. Analysis of the cost of services by cost elements of Avtoservis LLC for 2014 - 2016
| Name of cost elements | changes, | changes, |
||||||||
| 2015 | 2016 | 2015 | 2016 |
|||||||
| Material costs | ||||||||||
| Labor costs | ||||||||||
| Deductions for social needs | ||||||||||
| Depreciation | ||||||||||
| Total cost | ||||||||||
From Table 2 we can conclude that in 2014 material costs accounted for 29.58% (2375 thousand rubles), in 2015 - 28.68% (2604 thousand rubles), in 2016 - 27.83% (3033 thousand rubles). The share of material costs in the total cost in 2015 compared to 2014 decreased by 0.9%, and in 2016 compared to 2015, the share of these costs decreased by 0.85%.
The share of labor costs in the total cost in 2015 increased by 1% compared to 2014, and by 0.11% in 2016 compared to 2015. The share of expenses for social contributions in 2014 was 1.29%, in 2015 - 1.38%, in 2016 - 1.26%. The share of contributions for social needs in 2015 compared to 2014 increased by 0.09%, in 2016 compared to 2015 decreased by 0.12%.
Depreciation in the total cost of the enterprise in 2014 is 6.55%, in 2015 - 7.38%, in 2016 - 6.24%.
Other expenses in the total amount of expenses amounted to 56.85% in 2014, 55.81% in 2015, and 57.82% in 2016. The share of other costs in the total cost in 2015 compared to 2014 decreased by 1.04%, and in 2016 compared to 2015 increased by 2.01%.
Service costing (sample)
- 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.
The procedure and rules for registration of cost accounting for services
Purpose of the document
Calculation is in demand when determining the cost (value expression) of production, both for one costing object and for a group of these objects. A cost object is a specific product or service. A calculation unit is understood as a unit of measurement (pieces, liters, etc.). Calculation deals with the accumulation of all costs that are directly or indirectly related to the main activity - with the release of products, the provision of services. On the basis of the calculations made, the actual full or partial cost is determined, and on its basis - the price. It should be noted that the calculation of finished products differs from the calculation of the cost of the service provided, in particular: the cost of production can be determined for a unit of product, a batch of products, for a group of homogeneous products, for a separate production operation, etc. For the service, an estimate of the planned costs and their monetary value is compiled, and this is always individual. There is no concept of "homogeneous services"; for products, the standard cost can be determined, on the basis of which pricing is based. And to determine the result from the sale of products, the actual cost is used, which is determined at the end of the production process or a certain period of time. The difference between the standard and actual valuation becomes profit or loss. And the next batch of products will be evaluated for the consumer in a new way, taking into account previously identified deviations in cost; for services, a preliminary estimate is always calculated based on the volume of the planned activity. In other words, there are a number of standard estimated indicators that are used when calculating the cost of a service and are adjusted for the prices in force in the current year. The calculation of services and products is carried out for a number of cost items, the list of which may vary depending on the industry and the specifics of the activity, as well as depending on the accepted cost calculation methodology.
Calculation methods.
The calculation method is understood as a set of methods used to reflect the costs of production and sales, which allow you to determine the actual cost. In the economic nature are distinguished: Process method. With this method, costs are grouped either by individual production processes, or by stages of these production processes. That is why this technique is applicable where raw materials go through several successive stages of processing. At the same time, each product released at a specific stage cannot be considered either a finished product or a semi-finished product; The forward method. This method includes a semi-finished costing option and a non-semi-finished one. With the latter option, the cost of the product is calculated at the stage of the last redistribution. And with semi-finished - the calculation of the cost is made for each redistribution. At the same time, it includes the costs of the current redistribution and the cost of the previous redistribution; Order method. This method is used where there is small-scale or individual production. It involves accounting for production costs for individual orders for services or products; normative method. It is used by enterprises with mass, serial and small-scale production. It is based on determining the deviation between the standard cost and actual costs. The revealed deviations then lay down in new normative calculations. For accounting purposes, costing is a grouping of costs in accordance with accounting policies and for certain costing items. But it differs: Direct costing. This cost grouping method is a technology in which the cost is calculated only at variable costs, and fixed costs, which include all general business, sales and general production costs, are fully written off as part of current costs for financial results. Thus, the products in the balance and work in progress are valued at partial cost, and all indirect costs are fully written off when selling products or even without selling products - to the financial result of the enterprise as a whole; Full cost method or absorption costing. It implies the participation of all costs - both indirect and direct - in the calculation of the cost of products or services. As a result, the products in the balance and when sold will be valued at the sum of all the costs that were incurred for its production. And indirect costs will be evenly included in the cost of products, regardless of whether they are sold or not. When applying each of the methods, the correct classification of costs and their grouping by costing items is very important. Classification of costs and their distribution by items The assignment of costs to different cost groups occurs according to a number of criteria: by the method of including costs in the cost price - direct and indirect. Direct costs are understood as costs that are directly related to the release of products and are included in the valuation immediately. Indirect costs include costs that are associated with the maintenance of production, with the management of the enterprise, etc. They are of a general nature, are related to the activities of the company as a whole and are subject to distribution; by appointment - overhead and main. The main ones include the costs of materials, raw materials, fuel and other production resources that are converted into a finished product (or service). Under the overhead understand the costs that are associated with the organization and management of the enterprise; in terms of content - complex and single-element. Single-element costs include costs that form the cost: wages, depreciation, materials, etc. To complex - general business and general production costs; in relation to the volume of production. Differentiate between fixed and variable costs. Fixed do not depend on the volume of output - these are administrative and general production costs. But variable costs are completely dependent on the number of products produced - these are materials, fuel and wages of the main workers; in relation to activities - other (non-operating) and ordinary. This classification is important for accounting and it differs from the classification of expenses by purpose, since it groups all expenses first according to the principle of their correlation with the type of activity, i.e. with the usual and additional (non-operating). And then the grouping within the expenses for ordinary activities takes place according to accounting accounts and at the same time according to economic characteristics. These economic signs represent an enlarged grouping of costing items: material costs (raw materials, semi-finished products, fuel and other similar cost items); payroll costs; contributions to social, medical and pension insurance; depreciation; other expenses - general business, commercial and general production. And for the purposes of the calculation itself, a more detailed grouping of articles is used: material costs are the costs of raw materials and materials; energy and fuel that are needed to ensure production; wages of only production (main) workers; extrabudgetary contributions from their wages; general production costs - depreciation of equipment and buildings of workshops, maintenance of the production process, and other similar expenses; general running costs. They are also called managerial. These include the cost of managing the enterprise, salaries of administrative staff, etc. other production expenses. This includes those costs that were not included in overhead costs; business expenses. These are advertising campaigns, packaging, transportation of products to the consumer and other similar expenses. All costs, starting with material and ending with other production costs, constitute the partial cost of the product (service) or production. And together with commercial expenses, this is the full cost price.
Compilation procedure.
In order to properly calculate the service, you need to follow the methodological instructions for the industry. In addition, it is very important to correctly allocate the primary costs of accounting accounts. This will allow you to accurately assess the cost of services and perform pricing. And such a posting is done on the accounts on the basis of primary documents that allow you to determine the production and non-production nature of the costs.
Example of a cost estimate
As for the costing process itself, it includes two main stages: you should initially decide on direct and indirect costs. It is most convenient to do this according to accounting data, where the entire grouping of expenses on this basis takes place on accounting accounts; further, based on the accepted method of calculation, there is a distribution of costs. This is very important, especially if several types of services are provided. Here it will be necessary to determine the values of general business, general production and commercial expenses, which are either subject to distribution between types of services with respect to any sign (for example, wages of key workers), or attributed without distribution in full to revenue.
Similar information.
Calculation is the process of calculating the cost of a batch of products, a unit of products, a group of homogeneous products of an enterprise, a set of products (order), a separate production operation, a separate stage of production or sale of goods, a separate service or work. The results of this process are more reliable if the calculation objects are established in relation to the technological processes of production and sale of goods. Depending on the purposes of costing, its object can be either a finished product (goods), or a work in progress, or a separate operation to promote goods to the market.
The following units of measurement are used as quantitative meters of the calculation object:
natural (pieces, tons, meters, etc.);
cost;
units of work of personnel or means of labor (standard hour of work of a specialist, machine hour, ton-kilometer of transportation, etc.).
According to the time of preparation of the calculation, they are divided into two groups:
preliminary (planned);
subsequent (control).
In the group of preliminary calculations, the following stand out:
design calculations (when calculating construction projects, reconstruction, development of new products and technologies);
regulatory (based on costs established by enterprises or specialized organizations of the norms); estimates (for products and works performed in the form of separate orders).
Subsequent cost estimates are generated after the product or work has been completed, based on actual cost data.
COST CALCULATION METHODS
Depending on the nature of the business, different costing methods are used. It is important that the costing system suits the nature of the business and the requirements of the enterprise's production structure.
There are the following calculation systems:
custom;
process-by-process;
intermediate costing methods using custom and process costing techniques.
Custom Method
As the name implies, the order-based costing method is used when products are produced in separate batches or as part of a separate order. Custom costing is used in publishing, construction, design and research work, and professional services.
With order-based costing, direct material costs and wages of production personnel are attributed to a specific type of work (order). Costs that are not directly traceable (general production and administrative overheads) are attributed to individual work using correction factors or overhead rates established at the enterprise.
The need to allocate overhead and overhead costs arises in most cases of calculations. When forming the full cost, this is assumed by definition. Even if a limited cost is calculated with the inclusion of only direct costs, in some cases a part of direct costs must be distributed, since direct economic costs, due to the specifics of the technological process, cannot or should not be taken into account separately, for individual orders.
The most commonly used indirect cost allocation scheme is as follows:
1. selection of an object to which indirect costs are allocated (product, product group, order)
2. selection of the distribution base for this type of indirect costs - the type of indicator using which the distribution of costs is made (labor costs, basic materials, occupied production areas, etc.)
3.calculation of the distribution coefficient (rate) by dividing the amount of distributed indirect costs by the amount of the selected distribution base
4. determination of the amount of indirect costs for each object by multiplying the calculated value (rate) of the distribution of costs by the value of the distribution base corresponding to this object.
Example 1
The amount of overhead costs of the enterprise, which must be distributed over several orders completed per month, is 120,000 rubles.
When fulfilling this order, the direct costs taken into account were:
- basic raw materials and materials - 10,000 rubles;
- labor costs of the main production workers - 20,000 rubles.
|
Allocation rate |
General production costs |
1.5 (or 150%). |
|||
|
120 000 |
|||||
|
80 000 |
|||||
Based on this distribution rate, overhead costs are charged for specific orders, batches of products, products.
In this case, the overhead costs allocated to the order will be as follows:
|
Wages of key production workers |
Allocation rate |
20,000 × 1.5 = 30,000. |
Thus, the production cost of order fulfillment (as the sum of direct and overhead costs) will be:
10,000 + 20,000 + 30,000 = 60,000 rubles
Such a simple distribution scheme is not always consistent with the organization of the business. Then more complex calculation methods are used. For example, general production costs are first divided by place of origin (production departments), and then by individual orders.
For a logical (fair) distribution of costs among products, when choosing a distribution base, it is necessary to observe the principle of proportionality: the amount of distributed costs and the value of the selected distribution base must be in direct proportion to each other (the larger the distribution base, the greater the amount of distributed costs). But to find such a base for heterogeneous indirect costs is almost impossible. In order to increase the validity of the distribution for different types of overhead costs, different distribution bases are used:
the costs of paying administrative and managerial personnel are distributed in proportion to the wages of the main production workers;
the cost of maintaining and repairing buildings for general production purposes - in proportion to the area occupied by the production unit;
expenses for the maintenance and operation of equipment - in proportion to the cost and time of operation of the equipment;
storage costs - in proportion to the cost of materials;
selling expenses - in proportion to the sales proceeds.
Example 2
Let's introduce additional data in Example 1.
1. In the total amount of overhead costs:
labor costs for administrative and managerial personnel - 50,000 rubles;
payment for utilities and rent for industrial premises - 55,000 rubles;
commercial expenses - 15,000 rubles.
2. The area of production premises occupied by the subdivision that carried out the order in question is 40% of all production areas.
3. The share of revenue from this order is 35% of the total revenue of the entire enterprise for the period under review.
4. The share of labor costs for this order is 25% of the total labor costs of production workers of the enterprise.
Calculate the cost of the order under the specified conditions.
The amount of distributed expenses for the remuneration of administrative and managerial personnel:
50,000 × 25% = 12,500 rubles
Amount of allocated costs for utilities and rent:
55,000 × 40% = 22,000 rubles
Amount of shared business expenses:
15,000 × 35% = 5250 rubles
4. The production cost of order fulfillment (the sum of direct and general production costs) will be:
10,000 + 20,000 + 12,500 + 22,000 + 5250 = 69,750 rubles.
The result obtained differs from the first version of the calculation. It is more accurate, but its calculation is more laborious.
Process costing method
The second method of costing is called process-by-process (or by-process). It has been used in the production of homogeneous mass products, i.e., where for a long time mass products are processed through several stages, called redistributions. The process method is also used in the service sector, for example, in catering enterprises that use a self-service system. In process costing, production costs are grouped by department or by production process.
Consider the process-by-process method of costing on a separate example.
Example 3
The production process consists of two stages (repartitions), at each of which processing costs are incurred
Goiter, consisting of the cost of wages of production personnel:
Goiter 1 \u003d 20,000 rubles;
Goiter 2 \u003d 15,000 rubles.
Basic materials (Sm1) are included in the production at the beginning of the process, additional materials (Sm2) are also used in the second production stage:
Zm1 \u003d 80,000 rubles;
Zm2 \u003d 30,000 rubles.
After the first stage, 200 kg of the product is formed, of which 150 kg is further processed in the period under review (the remaining 50 kg will be used in the next reporting period).
After the second stage, 100 kg of product is formed. It is necessary to determine the cost of products after each stage of the production process, as well as the unit cost of the product after the second stage of processing.
After the first stage, the cost per 200 kg of product will be:
80,000 + 20,000 = 100,000 rubles
Cost of 1 kg of product:
100,000: 200 = 500 rubles
For 150 kg, which go for further processing, we have:
500 × 150 = 75,000 rubles
After the second stage, the cost per 100 kg of product will be:
Zm + Goiter + Z of the first stage = 30,000 + 15,000 + 75,000 = 120,000 rubles.
Cost of 1 kg: 120,000: 100 = 1200 rubles.
It should be noted that we considered only the production cost without including administrative, management and selling expenses.
Exclusion and allocation methods
If in the course of the technological process at a certain stage two or more products are simultaneously obtained, then the elimination method and the distribution method are used to calculate their cost.
In this case, the problem lies in the distribution of the costs of the first stage of processing between products at subsequent stages.
When using the elimination method, one of the products is selected as the main one, the rest are recognized as by-products. Only the main product is costed. The cost of by-products is deducted from the total cost of integrated production. The resulting difference is divided by the quantity of the main product obtained. The following indicators can be used to determine the cost of by-products:
market value of by-products at the point of separation;
the possible cost of selling by-products at the split point;
standard cost;
indicators in physical terms (units of production), etc.
Example 4
Complex production consists of two stages (repartitions). After the first stage, the production process is divided into two products, each of which is independently processed. At all stages, processing costs are incurred, consisting of labor costs for production personnel:
Goiter 1 \u003d 20,000 rubles;
Zob.2_1 \u003d 15,000 rubles;
Zob.2_2 \u003d 25,000 rubles.
The main materials are included in the production in the first stage, additional materials are also used in the second production stage for each product:
Zm1 \u003d 80,000 rubles;
Zm2_1 = 30,000 rubles;
Zm2_2 \u003d 45,000 rubles.
After the first stage, 200 kg of product 1 and 30 kg of product 2 are formed. All products obtained after the first stage are further processed. According to an expert assessment, the market price of product 1 at the dividing point is 600 rubles/kg, product 2 is 40 rubles/kg.
After the second stage, 100 kg of product 1 and 10 kg of product 2 are formed. It is necessary to determine the unit cost of product 1. The decision was made on the basis that its market price and production volume are higher than those of product 2.
After the first stage, the costs of complex production Zk.p will be: 80,000 + 20,000 = 100,000 rubles.
The unit cost of product 1 at the dividing point will be:
|
From 1_1 |
Z to .P– cost of product 2 |
(100,000 - 30×40) |
494 rub./ kg . |
||
After the second production step, the costs per 100 kg of product 1 will be the costs “incoming” from the first step, plus the costs of the materials of step 2, plus the costs of processing of step 2:
494 × 200 + 30,000 + 15,000 = 143,800 rubles.
Cost of 1 kg of product 1:
143 800: 100 = 1438 rubles.
Then the calculation can be repeated, taking product 2 as the main one.
Now consider the same example using distribution costing.
When using this method, the cost of both products is calculated.
Example 5
The initial conditions are the same as in example 4.
The cost of products after the first redistribution is determined by the formulas:
1) For the first product:
|
From 1_1 |
Z to .P× product cost 1 : amount |
= (100,000 × 600 × 200) : (600 × 200 + |
|
|
Received amount of product 1 |
2) for the second product:
|
From 1_2 |
Z to .P× product cost 2 : amount the value of all received products |
= (100,000 × 40 × 30) : (600 × 200 + 40 × 30) : 30 = 33 rubles/kg. |
|
|
Received amount of product 2 |
Further calculation of the cost of each product after the second production stage is similar to the calculation when applying the elimination method.
The choice of one or another calculation method largely depends on the characteristics of the production process and the types of products produced. If it is the same type of product that moves from one production site to another in a continuous flow, the process-by-process costing method is preferable. However, if the production costs of various products differ significantly from each other, then the use of such a calculation method cannot provide adequate information on production costs. In this case, it is more appropriate to use the order-based costing method. In some cases, a mixed use of two systems is possible, depending on the nature of the movement of products through production areas.
/ Directory of the head of a small business /
