As of today, a large number of citizens of the country have the opportunity to engage in one or another type of business. But they do not always manage to correctly calculate the final cost of a particular type of product. Yes, and calculate profits - also for many, the task is not an easy one. For this, a production cost formula is needed . After all, knowing her, you can make all the necessary calculations.
To carry out such a calculation, it is necessary to understand what exactly is calculated, and in general, what is the cost price, the formula of which is necessary for correct calculations. This concept does not mean anything to some, although its meaning is already visible in the name itself. Simply put, the cost, the formula of which is extremely necessary for calculating both the profit and the final price of the goods, is represented as the total monetary expression of all the funds that were spent on the production and sale of a particular product.
In order to carry out its calculation, it is necessary to understand what individual elements it can consist of. It would be logical to say that any production process for the production of a unit of production will include the use of components such as raw materials, electricity, fuel, labor and natural resources, etc.
Economists know several ways in which the total cost can be calculated. The formula of this process is derived using the elements of economic costs using costing (certain types of costs) items.
So, the first method is used in calculating the cost of large-scale, mass production. Here the costs will be composed of such individual components as:
- material costs,
- raw materials, which are intended for the production of products;
- funds intended for remuneration of employees;
- depreciation or amortization of funds that are used directly in the production process ;
- systematic deductions, which are intended for transfer to state funds for various social needs;
- other costs that are not directly related to the production process (overhead in the production process, implementation costs, costs of advertising campaigns, etc.).
After summing the above items of costs, they get the total cost of the batch of a particular product in its entirety.
Used to calculate unit cost, the formula for calculating the cost of manufacturing a unit of an item of a particular product will be expressed as the sum of the following calculation items:
- the amount of raw materials necessary for the production of a unit of production;
- the amount of fuel and electricity needed for production needs;
- semi-finished products, components, spare parts and other that are provided from other industries;
- main and additional wage funds for employees;
- social benefits;
- depreciation of structures and equipment;
- wear of low-value tools and devices;
- the total amount of other costs in the shop where the production process takes place.
The resulting amount of the above costs will be called “cost”: its formula is displayed specifically for each individual type of production or the performance of any services.
As soon as the products are sent for sale or the service becomes available to the consumer, the following costs should be added to the indicated amount:
- the sum of the total costs of the enterprise as a whole;
- advertising;
- other non-manufacturing costs that are necessary for the transportation and sale of created products.