As you know, in the production of goods, an enterprise spends certain funds on the purchase of materials, raw materials, fuel and other things. In the process of manufacturing products used machines, tools. Equipment maintenance and repair is regularly performed. Certain means are also spent on this. In addition, people whose work is paid take part in the production process. The company incurs some costs in connection with the sale of its goods.
The sum of all the above costs is the cost of production. When calculating (costing) all costs are grouped. Thus, various expense items are formed : on materials and raw materials, energy and fuel, on production (technological) needs, wages of the main production workers, and so on.
Calculation allows you to calculate how much it costs to manufacture products not only in the whole enterprise, but in each unit in particular. In addition, the calculations make it possible to determine which costs relate directly to production and which are related to the organization of management and maintenance. It is also determined which part of the costs are spent on manufacturing, and which - on the sale of goods.
The concept of cost is used in determining the effectiveness and quality of the enterprise.
When calculating all expenses are divided into indirect and direct.
The second group includes the costs of materials, raw materials, process fuel, and wages.
Indirect costs include maintenance (operation and maintenance) of machinery, equipment, tools, as well as non-manufacturing and general costs of the enterprise. These costs are associated with the whole production. At the same time, the costs of heating, lighting, maintenance of premises and equipment do not directly affect the cost of production. In this regard, the distribution of indirect costs is carried out in proportion to the cost of labor or direct costs, or in accordance with other characteristics.
When reducing the cost of production, the accumulation of funds for the expansion of the enterprise. This is an important factor in increasing the profitability of the company.
The cost of production is considered one of the main quality indicators of the business entities and structural units that make up their composition. This indicator affects the financial performance, the pace of expansion of enterprises.
The composition of the costs that are included in the cost of production is determined by state standards, and the methods of calculation are determined directly by business entities.
To identify opportunities to increase the efficiency of the use of resources in the production and sale of goods, an analysis of all costs associated with these processes is carried out.
Distinguish between provisional (preliminary), reporting and planned costs.
In the first case, accounting actual costs and data on the output of goods for a specific period of the year are taken into account. Also take into account the planned calculations of costs and the estimated output before the end of the reporting year. Indicators of provisional cost are used for preliminary determination for the reporting year of the results of the enterprise and the industry as a whole.
In the second case, the calculation is carried out in accordance with the accounting data. The reporting cost reflects the actual cost of sales and production for the year.
In the latter case, the calculation is carried out for the estimated period in accordance with progressive norms of labor costs and production assets. The planned cost reflects subsequent technological progress and improvement of the organization of labor and production.