Cost price- all costs (expenses) incurred by the enterprise for the production and sale (sale) of products or services. The cost structure is understood as its composition by elements or items and their share in the total cost. Types of cost:
Cost by costing items (distribution of costs for compiling cost by accounting items);
Cost by cost elements.
Cost by costing items:
1) Materials, other (components, semi-finished products, units, components, etc.)
2) Fuel, energy used for production
3) Depreciation of fixed production assets (OPF, or 2nd group of fixed assets: equipment, machines, equipment, etc.)
4) Basic wages of key personnel (salary, tariff)
5) Additional wages of key personnel (allowances, additional payments to tariff rates and official salaries in the amounts provided for by current legislation; calculated as a percentage of clause 4)
6) Contributions for social events (pension fund, unemployment fund, social insurance fund, accident fund; calculated as a percentage of the basic salary)
Points 4, 5 and 6 form the wage fund (payroll).
7) General production expenses (OPR: sales costs, internal production costs, payroll of employees, etc. (for example, repairs: purchase of parquet, glue, laminate, plaster, etc.); calculated as a percentage of item 4)
8) Travel expenses - cost of tickets, daily allowance, payment for housing
9) Work of third-party organizations (counterparties)
10) Administrative expenses - expenses for maintaining the management apparatus
Cost by cost elements:
I Material costs:
1) Raw materials, materials, components, etc.;
2) Fuel, energy;
3) General production costs.
II Remuneration - wages:
1) main production personnel;
2) auxiliary production personnel (equipment maintenance, etc.);
3) intellectual personnel;
4) employees (management, managers, accountants, etc.);
5) junior service personnel.
III Contributions for social events.
IV Depreciation of fixed assets.
V Other (overhead costs directly related to production and sales; marketing costs, etc.)
69 Determination of product prices at the end of the second year with a known value of the indices: f 1 and f 2 - annual inflation rates. Distribution and use of profits.
Price at the end of 2nd year
C k2 =(1+0.09)(1+0.08) C n1 =1.172 C n1
Price n1 - price at the beginning of the 1st year
Price k2 – price at the end of the 2nd year
Using variance
Up to 10% - weak
11 – 25% - average
More than 25% is high.
70 determination of the degree of risk using the coefficient of variation. Low variability, medium and high variability
To assess the degree of risk, a coefficient is used. variations which calc. according to the formula:
Where is the standard deviation of the discount* rate.
Average amplitude value of the discount rate at the consumption horizon*.
Using variance
In economic The following estimates of various economic variations have been established in the literature.
Up to 10% - weak
11 – 25% - average
More than 25% is high.
The science of production organization.
An enterprise (joint stock company) as a primary link in the economy, organization of production and management. What is a Holding Center?
Formation of a production system. Types of production.
Determination of the actual fund of time.
The essence of preliminary determination of the amount of equipment. Refined calculation method.
Finding the number of jobs associated with performing these operations.
Preliminary calculation of the number of machines, the number of main workers.
Production line design. Calculation of production line cycle.
Estimated number of machines, main workers, load optimization.
Determining the area of the building to accommodate the machines.
Determining the area of the building to accommodate the warehouse.
Investments in fixed assets.
Calculation of investments, capital investments in buildings.
Expenses for the maintenance of production and workshop buildings.
Calculation of capital investments in working equipment.
Current costs per output volume.
Calculation of costs associated with the purchase of raw materials and materials.
Returnable waste, calculated at the current price for waste minus collection and processing costs
Fuel and energy for technological purposes.
Calculation of basic wages for production workers.
Total fund of main production workers for one year.
Contributions to the budget.
General production expenses.
Costs of organization, maintenance and production management
Expenses for maintenance and operation of equipment.
Electricity costs of machines.
Expenses for testing, experimentation, research, rationalization and invention. Non-production and other expenses.
General expenses.
29. Calculation of costs for moving goods.
Business expenses.
Methodology for calculating depreciation charges.
Land tax.
Production cost.
Calculation of unit cost of production.
Determining the price of finished products.
36. Analysis and evaluation of profits.
Determining the current value of an annuity, for example for five years, at a constant discount rate.
Means and methods for substantiating plan decisions: Net present value, characterizing the actual effect of the implementation of plan activities.
Determination of operational time.
Determination of basic or technological time for all types of work performed on metalworking machines.
Working capital of the enterprise, determining the need for working capital.
Working capital standard for creating a stock of finished products in the enterprise warehouse.
Finding piece-calculation time.
Tariff schedule.
Finding a price for a product.
Costs of lighting buildings.
Building heating costs.
Costs of water used for household needs.
Methodology for calculating depreciation charges for the section of general business expenses.
Determination of the price of a product for T years, at known inflation rates.
Targeted collection to the Republican budget from sales proceeds.
Determining the load level of a group of equipment.
Tool economy of an enterprise, company. Organization, determination of consumption rates.
Selection of inter-operational transport means, for example, the use of a crane.
Organization of rationing of working capital.
Work in progress. Essence, cost calculation.
Determining the break-even point.
Determination of tool costs, taking into account the annual labor intensity, resource (durability) and cost of one unit of the tool used.
Calculation of non-production expenses and contributions to the innovation fund.
Variable expenses.
Conditionally fixed expenses.
Methodology for calculating property taxes.
Transport tax and city infrastructure tax.
Assessing the degree of risk using the coefficient of variation.
Calculation of reduced costs for the annual output of finished products.
Planning the wage fund for workers in main production using the average tariff rate for one standard hour.
Determination of the discount factor when calculating the integral economic effect of a unit of new technology,
Cost structure by items and cost elements.
Determination of product prices at the end of the second year with a known value of the indices: f 1 and f 2 - annual inflation rates. Distribution and use of profits.
70. Determining the degree of risk using the coefficient of variation. Low variability, medium and high variability.
Cost price- all costs (expenses) incurred by the enterprise for the production and sale (sale) of products or services. The cost structure is understood as its composition by elements or items and their share in the total cost. Types of cost:
Cost by costing items (distribution of costs for compiling cost by accounting items);
Cost by cost elements.
Cost by costing items:
1) Materials, other (components, semi-finished products, units, components, etc.)
2) Fuel, energy used for production
3) Depreciation of fixed production assets (OPF, or 2nd group of fixed assets: equipment, machines, equipment, etc.)
4) Basic wages of key personnel (salary, tariff)
5) Additional wages of key personnel (allowances, additional payments to tariff rates and official salaries in the amounts provided for by current legislation; calculated as a percentage of clause 4)
6) Contributions for social events (pension fund, unemployment fund, social insurance fund, accident fund; calculated as a percentage of the basic salary)
Points 4, 5 and 6 form the wage fund (payroll).
7) General production expenses (OPR: sales costs, internal production costs, payroll of employees, etc. (for example, repairs: purchase of parquet, glue, laminate, plaster, etc.); calculated as a percentage of item 4)
8) Travel expenses - cost of tickets, daily allowance, payment for housing
9) Work of third-party organizations (counterparties)
10) Administrative expenses - expenses for maintaining the management apparatus
Cost by cost elements:
I Material costs:
1) Raw materials, materials, components, etc.;
2) Fuel, energy;
3) General production costs.
II Remuneration - wages:
1) main production personnel;
2) auxiliary production personnel (equipment maintenance, etc.);
3) intellectual personnel;
4) employees (management, managers, accountants, etc.);
5) junior service personnel.
III Contributions for social events.
IV Depreciation of fixed assets.
V Other (overhead costs directly related to production and sales; marketing costs, etc.)
69 Determination of product prices at the end of the second year with a known value of the indices: f 1 and f 2 - annual inflation rates. Distribution and use of profits.
Price at the end of 2nd year
C k2 =(1+0.09)(1+0.08) C n1 =1.172 C n1
Price n1 - price at the beginning of the 1st year
Price k2 – price at the end of the 2nd year
Using variance
Up to 10% - weak
11 – 25% - average
More than 25% is high.
70 determination of the degree of risk using the coefficient of variation. Low variability, medium and high variability
To assess the degree of risk, a coefficient is used. variations which calc. according to the formula:
Where is the standard deviation of the discount* rate.
Average amplitude value of the discount rate at the consumption horizon*.
Using variance
In economic The following estimates of various economic variations have been established in the literature.
Up to 10% - weak
11 – 25% - average
More than 25% is high.
The science of production organization.
An enterprise (joint stock company) as a primary link in the economy, organization of production and management. What is a Holding Center?
Formation of a production system. Types of production.
Determination of the actual fund of time.
The essence of preliminary determination of the amount of equipment. Refined calculation method.
Finding the number of jobs associated with performing these operations.
Preliminary calculation of the number of machines, the number of main workers.
Production line design. Calculation of production line cycle.
Estimated number of machines, main workers, load optimization.
Determining the area of the building to accommodate the machines.
Determining the area of the building to accommodate the warehouse.
Investments in fixed assets.
Calculation of investments, capital investments in buildings.
Expenses for the maintenance of production and workshop buildings.
Calculation of capital investments in working equipment.
Current costs per output volume.
Calculation of costs associated with the purchase of raw materials and materials.
Returnable waste, calculated at the current price for waste minus collection and processing costs
Fuel and energy for technological purposes.
Calculation of basic wages for production workers.
Total fund of main production workers for one year.
Contributions to the budget.
General production expenses.
Costs of organization, maintenance and production management
Expenses for maintenance and operation of equipment.
Electricity costs of machines.
Expenses for testing, experimentation, research, rationalization and invention. Non-production and other expenses.
General expenses.
29. Calculation of costs for moving goods.
Business expenses.
Methodology for calculating depreciation charges.
Land tax.
Production cost.
Calculation of unit cost of production.
Determining the price of finished products.
36. Analysis and evaluation of profits.
Determining the current value of an annuity, for example for five years, at a constant discount rate.
Means and methods for substantiating plan decisions: Net present value, characterizing the actual effect of the implementation of plan activities.
Determination of operational time.
Determination of basic or technological time for all types of work performed on metalworking machines.
Working capital of the enterprise, determining the need for working capital.
Working capital standard for creating a stock of finished products in the enterprise warehouse.
Finding piece-calculation time.
Tariff schedule.
Finding a price for a product.
Costs of lighting buildings.
Building heating costs.
Costs of water used for household needs.
Methodology for calculating depreciation charges for the section of general business expenses.
Determination of the price of a product for T years, at known inflation rates.
Targeted collection to the Republican budget from sales proceeds.
Determining the load level of a group of equipment.
Tool economy of an enterprise, company. Organization, determination of consumption rates.
Selection of inter-operational transport means, for example, the use of a crane.
Organization of rationing of working capital.
Work in progress. Essence, cost calculation.
Determining the break-even point.
Determination of tool costs, taking into account the annual labor intensity, resource (durability) and cost of one unit of the tool used.
Calculation of non-production expenses and contributions to the innovation fund.
Variable expenses.
Conditionally fixed expenses.
Methodology for calculating property taxes.
Transport tax and city infrastructure tax.
Assessing the degree of risk using the coefficient of variation.
Calculation of reduced costs for the annual output of finished products.
Planning the wage fund for workers in main production using the average tariff rate for one standard hour.
Determination of the discount factor when calculating the integral economic effect of a unit of new technology,
Cost structure by items and cost elements.
Determination of product prices at the end of the second year with a known value of the indices: f 1 and f 2 - annual inflation rates. Distribution and use of profits.
70. Determining the degree of risk using the coefficient of variation. Low variability, medium and high variability.
The cost of production is the most important indicator of the economic efficiency of its production. It reflects all aspects of economic activity and accumulates the results of using all production resources. The financial results of enterprises, the pace of expanded reproduction, and the financial condition of business entities depend on its level.
Analysis of the cost of products, works and services is of great importance in the cost management system. It allows you to study trends in changes in its level, establish the deviation of actual costs from normative (standard) ones and their reasons, identify reserves for reducing product costs and assess the enterprise’s work in using opportunities to reduce product costs.
The effectiveness of a cost management system largely depends on the organization of their analysis, which, in turn, is determined by the following factors:
- form and methods of cost accounting used at the enterprise;
- the degree of automation of the accounting and analytical process at the enterprise;
- the state of planning and regulation of the level of operating costs;
- the presence of appropriate types of daily, weekly and monthly internal reporting on operating costs, allowing to quickly identify deviations, their causes and timely take corrective measures to eliminate them;
- the presence of specialists who can competently analyze and manage the cost formation process.
To analyze the cost of products, statistical reporting data “Report on the costs of production and sales of products (works, services) of an enterprise (organization)”, planned and reported calculations of product costs, data from synthetic and analytical cost accounting for main and auxiliary production, etc. are used. .
The objects of product cost analysis are the following indicators:
- full cost of production as a whole and by cost elements;
- level of costs per ruble of manufactured products;
- cost of individual products;
- individual cost items;
- costs by responsibility centers.
Product cost analysis usually begins with studying the total cost as a whole and by main elements(Table 11.1).
| Cost elements | Amount, thousand rubles | Cost structure, % | ||||||
| t 0 | t 1 | +, - | t 0 | t 1 | +, - | t 0 | t 1 | |
| Remuneration | 13 500 | 15 800 | +2 300 | 20,4 | 19,4 | -1,0 | 16,88 | 15,75 |
| Contributions for social needs | 4 725 | 5 530 | +805 | 7,2 | 6,8 | -0,4 | 5,90 | 5,51 |
| Material costs | 35 000 | 45 600 | +10 600 | 53,0 | 55,9 | +2,9 | 43,75 | 45,45 |
| Including: raw materials and supplies fuel electricity, etc. |
25 200 |
31 500 |
6300 |
38,2 |
38,6 |
0,4 |
31,50 |
31,40 |
| Depreciation | 5 600 | 7 000 | +1 400 | 8,5 | 8,6 | +0,1 | 7,00 | 6,98 |
| Other costs | 7175 | 7 580 | +405 | 10,9 | 9,3 | -1,6 | 8,97 | 7,56 |
| Full cost | 66 000 | 81 510 | +15 510 | 100 | 100 | - | 82,50 | 81,25 |
| Including: variable expenses fixed costs |
46 500 |
55 328 |
9 828 |
70,5 |
1,5 |
58,12 |
55,15 |
|
The total cost of production may change:
- due to the volume of production;
- product structures;
- level of variable costs per unit of production;
- amounts of fixed expenses.
When the volume of production changes, products increase only variable expenses(piece-rate wages of production workers, direct material costs, services); fixed costs(depreciation, rent, time wages of workers and administrative and managerial personnel, general business expenses) remain unchanged in the short term, provided that the previous production capacity of the enterprise is maintained (Fig. 11.1).
The cost line in the presence of fixed and variable costs is an equation of the first degree
where Ztot is the total cost of production;
VBP - volume of production of products (services);
b is the level of variable costs per unit of product (service);
A is the absolute amount of fixed costs for the entire output.
Data for factor analysis of the total amount of costs dividing costs into constant and variable are given in table. 11.2 and 11.3.
| Cost level, rub. | Volume | |||||||
| View | base | current | production, pcs. | |||||
| products | Total | Including | Total | Including | base | current | ||
| change- new |
constant new |
change- new |
constant new |
|||||
| A | 4 000 | 2 800 | 1 200 | 4 800 | 3 260 | 1 540 | 10 000 | 13 300 |
| B | 2 600 | 1 850 | 750 | 3 100 | 2 100 | 1 000 | 10 000 | 5 700 |
| Etc. | ||||||||
|
Cost |
Amount, thousand rubles |
Cost drivers |
|||
| Product output volume | Product structure | Variable costs | Fixed costs | ||
|
base period: ∑(VBP i0 ·b i0)+A 0 | |||||
|
base period, recalculated to the actual volume of production of the reporting period while maintaining the basic structure: ∑(VBP i1 ·b i0) ·I VBP +A 0 | |||||
|
at the base level for the actual output of the reporting period: ∑(VBP i1 ·b i0)+A 0 | |||||
|
reporting period at the “base value of fixed costs: ∑(VBP i1 ·b i1)+A 0 | |||||
|
reporting period: ∑(VBP i1 ·b i1)+A 1 | |||||
|
Change in costs | |||||
From the table 11.3 it is clear that due to reduction in production by 5% (I VBP = 0.95) the amount of costs decreased by 2,325 thousand rubles. (63,675 - 66,000).
By changing the product structure the amount of costs increased by 3,610 thousand rubles. (67,285 - 63,675). This indicates that the share of cost-intensive products in the total production volume has increased.
Due to an increase in the level of unit variable costs the total amount of costs increased by 7,543 thousand rubles. (74,828 - 67,285).
Fixed expenses increased by 6,682 thousand rubles. (81,510 - 74,828), which was also one of the reasons for the increase in total costs.
Thus, the total amount of costs is higher than the base by 15,510 thousand rubles. (81,510 - 66,000), or by 23.5%, including due to changes in the volume of production and its structure - by 1,285 thousand rubles. (67,285 - 66,000), and due to the increase in production costs - by 14,225 thousand rubles. (81,510 - 67,285), or by 21.5%.
It is possible to deepen the analysis of the total cost of producing products (services) through the factor decomposition of specific variable costs and the sum of fixed costs (Fig. 11.2).
Mathematically, this relationship can be represented as follows:
Any type of cost can be represented as a product of two factors:
- the amount of resources or services consumed (raw materials, supplies, fuel, energy, man-hours, machine-hours, credits, rented space, etc.);
- prices for resources or services.
In order to establish how much the amount of costs has changed due to these factors, it is necessary to have the following data on the costs of actual production:
In general, the amount of variable costs for actual production and the amount of fixed costs in the reporting period are higher than planned by 14,225 thousand rubles. (81,510 - 67,285), including due to:
a) the amount of resources consumed
64,700 - 67,285 = -2,585 thousand rubles;
b) prices for consumed resources and services
81,510 - 64,700 = +16,810 thousand rubles.
Consequently, the increase in production costs at this enterprise is mainly due to an increase in prices for consumed resources. At the same time, one should positively evaluate the enterprise’s efforts aimed at the economical use of resources, which is why the cost of actual production decreased by 3.84% (2585: 67,285).
During the analysis process, it is also necessary to evaluate changes in the structure of cost elements. If the share of wages decreases and the share of depreciation increases, then this indicates an increase in the technical level of the enterprise and an increase in labor productivity. The share of wages also decreases if the share of components increases, which indicates an increase in the level of cooperation and specialization of the enterprise.
As can be seen from table. 11.1 and fig. 11.3, growth occurred in all elements and especially in material costs. The amount of both variable and fixed expenses has increased. The cost structure has also changed somewhat: the share of material costs and depreciation of fixed assets due to inflation has increased, and the share of wages has decreased slightly.
11.2. Product cost analysis
Cost intensity (costs per ruble of products produced) a very important general indicator characterizing the level of production costs for the enterprise as a whole. Firstly, it is universal: it can be calculated in any industry and, secondly, it clearly shows the direct connection between cost and profit. This indicator is calculated by the ratio of the total cost of production and sales of products (3 total) to the cost of manufactured products in current prices. At a level below one, production is profitable, at a level above one it is unprofitable.
| Year | Analyzed enterprise | Competitor enterprise | Industry average | |||
| Indicator level, kopecks | Growth rate, % | Indicator level, kopecks | Growth rate, % | Indicator level, kopecks | Growth rate, % | |
| xxx1 | 84,2 | 100 | 85,2 | 100 | 90,4 | 100 |
| xxx2 | 83,6 | 99,3 | 85,0 | 99,7 | 88,2 | 97,6 |
| xxx3 | 82,9 | 98,5 | 84,0 | 98,6 | 86,5 | 95,7 |
| xxx4 | 82,5 | 98,0 | 83,8 | 98,4 | 85,7 | 94,8 |
| xxx5 | 81,25 | 96,5 | 82,0 | 96,2 | 84,5 | 93,5 |
During the analysis, you should study implementation of the plan and dynamics of product cost intensity, as well as conduct inter-farm comparisons for this indicator (Table 11.4).
Based on the data presented, we can conclude that the cost intensity of products at the analyzed enterprise is decreasing at a less rapid rate than that of a competing enterprise and the industry average, but the level of this indicator still remains lower.
It is also necessary to study changes in the level of product cost intensity for individual cost elements (Table 11.5).
After this, you need to establish the factors for changing the total cost intensity, shown in Fig. 11.4.
| Cost elements | Costs per ruble of products, kopecks. | ||
| t 0 | t i | +, - | |
| Salary with deductions | 22,78 | 21,26 | -1,52 |
| Material costs | 43,75 | 45,45 | +1,70 |
| Depreciation | 7,00 | 6,98 | -0,02 |
| Others | 8,97 | 7,56 | -1,41 |
| Total | 82,5 | 81,25 | -1,25 |
To calculate their influence, you can use the following factor model:
The calculation is made using the chain substitution method given in Table. 11.3 and the data below on the cost of manufactured products.
Calculation of the influence of factors on changes in the cost intensity of products is given in Table. 11.6.| Costs per ruble of products | Calculation | Factors | ||||
| Production volume | Production structure | Amount of resources consumed | Prices for resources (services) | Selling prices for products | ||
| IE 0 | 66 000: 80 000 = 82,50 | t 0 | t 0 | t 0 | t 0 | t 0 |
| IE USL1 | 63 675: 76 000 = 83,78 | t 1 | t 0 | t 0 | t 0 | t 0 |
| IE USL2 | 67 285: 83 600 = 80,48 | t 1 | t 1 | t 0 | t 0 | t 0 |
| IE USL3 | 64 700: 83 600 = 77,39 | t 1 | t 1 | t 1 | t 0 | t 0 |
| IE USL4 | 81 510: 83 600 = 97,50 | t 1 | t 1 | t 1 | t, | t 0 |
| IE 1 | 81 510: 100 320 = 81,25 | t 1 | t 1 | t 1 | t 1 | t 1 |
|
ΔIE total = 81.25-82.50 = -1.25; V including due to: | ||||||
Analytical calculations given in table. 11.6 show that the amount of costs per ruble of products has changed due to the following factors:
decrease in production volume: 83.78 - 82.50 = +1.28 kopecks;
changes in the structure of production: 80.48 - 83.78 = -3.30 kopecks;
amount of resources consumed 77.39 - 80.48 = -3.09 kopecks;
increase in prices for resources: 97.50 - 77.39 = +20.11 kopecks;
increase in product prices: 81.25 - 97.50 = -16.25 kopecks.
Total: -1.25 kopecks.
After this, you can establish the influence of the factors under study on the change in the amount of profit. To do this, the absolute increases in product cost intensity due to each factor must be multiplied by the actual sales volume of products in the reporting period, expressed in prices of the base period (Table 11.7):
ΔП Xi =ΔИ Xi ·∑(VPП i1 ·Ц i0)
Based on the data presented, we can conclude that the amount of profit has increased mainly due to rising prices for the company’s products, an increase in the share of more profitable products and a more economical use of resources.
| Factor | Impact calculation |
Change in profit amount, thousand rubles. |
Product output volume |
1,28-80 442/100 | |
|
Product structure |
3,30-80 442/100 | |
|
Product resource intensity |
3,09-80 442/100 | |
|
Prices for consumed resources |
20,11-80 442/100 | |
|
Changes in the average level of selling prices for products |
16,25-80 442/100 | |
|
Total |
It should also be noted that the rate of growth in prices for resources outstrips the rate of growth in prices for the company's products, which indicates the negative effect of inflation.
11.3. Analysis of the cost of individual types of products
For a more in-depth study of the reasons for changes in cost, they analyze the reporting calculations for individual products, compare the actual level of costs per unit of production with the planned level and data from previous periods, other enterprises as a whole and by cost items.
The influence of first-order factors on changes in the level of cost per unit of production is studied using a factor model
where C i is the cost per unit of the i-th type of product;
A i - fixed costs attributed to the i-th type of product;
b i - variable costs per unit of the i-th type of product;
The dependence of the cost per unit of production on these factors is shown in Fig. 11.5.
Using this model and the data in Table. 11.8, we will calculate the influence of factors on the change in the cost of product A using the chain substitution method.
| Indicator | According to plan | Actually | Deviation from plan |
|
Volume of production (VBP), pcs. | |||
|
Amount of fixed costs (A), thousand rubles. | |||
|
Amount of variable costs per product (b), rub. | |||
|
Cost of one product (C), rub. |
The total change in unit cost is
ΔС total = С 1 – С 0 = 4,800 - 4,000 = +800 rub.,
including due to changes:
a) volume of production
ΔС VBP = С conv1 –С 0 = 3,700 - 4,000 = -300 rub.;
b) the amount of fixed costs
ΔCa= With condition2 - With condition1 = 4,340 - 3,700 = +640 rub.;
c) the amount of unit variable costs
ΔС b = С 1 - С conv2 = 4,800 - 4,340 = +460 rub.
Similar calculations are made for each type of product (Table 11.9).
|
Product type |
Volume of production, pcs. |
Fixed costs for the entire output, rub. |
Variable costs per unit of production, rub. |
|||
| B | 2 100 | |||||
| Etc. | ||||||
|
Product type |
Product cost, rub. |
Change in cost, rub. |
||||||
|
general |
Including due to |
|||||||
|
output volume |
fixed costs |
variable costs |
||||||
| B | ||||||||
| Etc. | ||||||||
After this, the cost of production for each cost item is studied in more detail, for which the actual data is compared with the data of the plan, past periods, and other enterprises (Table 11.10).
The data presented show an increase in all cost items and especially in material costs and wages of production personnel.
Similar calculations are made for each type of product. Established deviations for cost items are the object of factor analysis. As a result of an item-by-item analysis of product costs, internal and external, objective and subjective factors of changes in its level should be identified. This is necessary for qualified management of the cost formation process and the search for reserves for their reduction.
| Cost item | Product costs, rub. | Cost structure, % | ||||
| Raw materials and basic materials | 1700 | 2115 | +415 | 42,5 | 44,06 | +1,56 |
| Fuel and energy | 300 | 380 | +80 | 7,5 | 7,92 | +0,42 |
| Wages of production workers | 560 | 675 | +115 | 14,0 | 14,06 | +0,06 |
| Contributions for social needs | 200 | 240 | +40 | 5,0 | 5,0 | - |
| Expenses for maintenance and operation of equipment | 420 | 450 | +30 | 10,5 | 9,38 | -1,12 |
| General production expenses | 300 | 345 | +45 | 7,5 | 7,19 | -0,31 |
| General expenses | 240 | 250 | +10 | 6,0 | 5,21 | -0,79 |
| Losses from marriage | - | 25 | +25 | - | 0,52 | +0,52 |
| Other production costs | 160 | 176 | +16 | 4,0 | 3,66 | -0,34 |
| Business expenses | ||||||
I Material costs:
- 1) Raw materials, materials, components, etc.;
- 2) Fuel, energy;
- 3) General production costs.
II Remuneration - wages:
- 1) main production personnel;
- 2) production support personnel (equipment maintenance)
- 3) intellectual personnel;
- 4) employees (management, managers, accountants, etc.);
- 5) junior service personnel.
III Contributions for social events.
IV Depreciation of fixed assets.
V Other (overhead costs directly related to production and sales; marketing costs, etc.)
Reserves for reducing the cost of manufactured products
In recent years, in Russian practice, cost planning for production and sales of products in the context of variable and fixed costs has become increasingly used. Such planning makes it possible to find out the dependence of the financial results of the enterprise on costs and volume of product sales.
As noted above, variable costs are those costs that change in direct proportion to changes in the volume of production. These include the costs of raw materials, fuel, energy for technological purposes, piecework wages, transportation costs, etc.
Fixed costs are those costs that do not change when the volume of production changes over a certain period of time. They include depreciation, interest on loans, management salaries, administrative expenses and miscellaneous expenses. However, if there is a significant change in production volume, fixed costs may change. Thus, fixed costs in this case move to a new level and remain relatively unchanged for a certain period. To characterize this period, the concept of a relevant interval of change in the volume of product sales is used, during which the amount of fixed costs remains unchanged.
The same types of costs for production may be variable for some enterprises, but constant for others. An example of such costs would be depreciation charges on equipment. If depreciation charges are calculated in a linear manner, that is, their value does not change from period to period, then these are fixed costs. If, for example, an enterprise charges depreciation charges in proportion to the volume of output in physical terms, then in this case depreciation charges move from fixed costs to the category of variable ones. A similar situation is typical for labor costs. With piecework payment, these are variable costs, with a fixed employee salary, these are constant costs.
Along with the noted types of costs, mixed ones are also distinguished, which consist of fixed and variable parts. An example of such costs can be postal and telegraph costs, costs for routine repairs of equipment, rent, etc. To ensure greater accuracy of planned indicators, mixed costs must be divided into fixed and variable parts and taken into account respectively in fixed and variable costs. Let's consider the procedure for dividing mixed costs using a specific example. In order to differentiate costs between fixed and variable, the following three methods can be used:
- - method of maximum and minimum points;
- - graphical (statistical method);
- - least squares method.
Using the listed methods allows you to calculate the rate of variable costs per unit of production and, on its basis, the t-value of fixed costs as part of mixed costs.
Cost management is necessary primarily for:
- - obtaining maximum profit;
- - improving the financial condition of the company;
- - increasing the competitiveness of the enterprise and products;
- - increasing the efficiency of the enterprise;
- - reducing the risk of becoming bankrupt, etc.
To solve the problem of reducing production costs and sales of products, the enterprise must develop a general concept (program), which must be adjusted annually taking into account changing circumstances at the enterprise. This program must be comprehensive, i.e. must take into account all factors that influence the reduction of production and sales costs.
- - a set of measures for a more rational use of material resources (introduction of new equipment and waste-free technology, allowing for more economical consumption of raw materials, materials, fuel and energy; improvement of the regulatory framework of the enterprise; introduction and use of more advanced materials; integrated use of raw materials and materials; use of production waste ; improving product quality and reducing the percentage of defects, etc.);
- - measures related to determining and maintaining the optimal size of the enterprise, allowing to minimize costs depending on the volume of production;
- - measures related to improving the use of fixed assets (releasing an enterprise from excess machinery and equipment; leasing out enterprise property; improving the quality of maintenance and repair of fixed assets; ensuring greater utilization of machinery and equipment; increasing the level of personnel qualifications; using accelerated depreciation; introducing more progressive machines and equipment, etc.);
- - measures related to improving the use of labor (determining and maintaining the optimal number of personnel; increasing the level of qualifications; using progressive systems and forms of remuneration; improving the regulatory framework; improving working conditions; mechanization and automation of all production processes; ensuring motivation for highly productive work, etc. .);
- - activities related to improving the organization of production and labor (increasing concentration, specialization, cooperation, combination and diversification of production; introducing a brigade form of organizing production and labor; introducing NOTES; improving the organizational structure of company management, etc.).
It should also be emphasized that planning and implementing only individual measures to reduce production costs, although they provide a certain effect, do not solve the problem as a whole.
The profit of an enterprise is the most important economic category and is traditionally considered the main goal of any commercial organization. However, this interpretation of the role of profit is currently not the only one. From the point of view of the modern Anglo-American financial school, which has gained recognition in many countries of the world, the priority in the activity of an enterprise is not so much profit as its derivative - maximizing the income of owners. This target setting is due to the fact that the enterprise can ensure profit growth, for example, by saving costs on production maintenance or personnel training. However, in the future this may lead to a decrease in the efficiency of its operation due to the high level of depreciation of fixed assets or the low level of management at the enterprise. Therefore, the conversation, obviously, should be not only about the formation of the enterprise’s financial resources, including profits, but also about such directions of their distribution and use that would allow the enterprise to maximize its market value and, accordingly, ensure an increase in the income of the owners. At the same time, without optimizing the enterprise’s profit, these goals cannot be achieved.
The decisive condition for reducing costs is continuous technical progress. The introduction of new technology, comprehensive mechanization and automation of production processes, improvement of technology, and the introduction of advanced types of materials can significantly reduce the cost of production.
A serious reserve for reducing production costs is the expansion of specialization and cooperation. In specialized enterprises with mass production, the cost of production is significantly lower than in enterprises producing the same products in small quantities. The development of specialization requires the establishment of the most rational cooperative ties between enterprises.
Reducing production costs is achieved primarily by increasing labor productivity. With an increase in labor productivity, labor costs per unit of production are reduced, and consequently, the share of wages in the cost structure decreases.
The success of the struggle to reduce costs is determined primarily by the increase in worker productivity, which, under certain conditions, ensures savings on wages. Let us consider under what conditions, with an increase in labor productivity at enterprises, the cost of workers' wages decreases. An increase in output per worker can be achieved through the implementation of organizational and technical measures, due to which, as a rule, production standards and, accordingly, prices for work performed change. An increase in output can also occur due to exceeding established production standards without carrying out organizational and technical measures. Production rates and prices in these conditions, as a rule, do not change.
- - In the first case, when production standards and prices change, the enterprise receives savings on workers' wages. This is explained by the fact that due to a decrease in prices, the share of wages in the cost of a unit of production decreases. However, this does not lead to a decrease in the average wages of workers, since the given organizational and technical measures enable workers to produce more products with the same labor costs. Thus, carrying out organizational and technical measures with a corresponding revision of production standards makes it possible to reduce production costs by reducing the share of wages in a unit of production simultaneously with an increase in the average wage of workers.
- - In the second case, when the established production standards and prices do not change, the cost of workers' wages in the cost of a unit of production does not decrease. But with an increase in labor productivity, the volume of production increases, which leads to savings on other expense items, in particular, production maintenance and management costs are reduced. This happens because in shop costs a significant part of the costs (and in general plant costs almost entirely) are semi-fixed costs (depreciation of equipment, maintenance of buildings, maintenance of shop and general plant equipment and other expenses) that do not depend on the degree of implementation of the production plan. This means that their total amount does not change or almost does not change depending on the implementation of the production plan. It follows that the greater the output, the smaller the share of workshop and general plant expenses in its cost.
With an increase in production volume, the enterprise's profit increases not only due to lower costs, but also due to an increase in the number of products produced. Thus, the greater the production volume, the greater, other things being equal, the amount of profit received by the enterprise.
The most important importance in the struggle to reduce production costs is compliance with the strictest savings regime in all areas of the enterprise’s production and economic activities. The consistent implementation of the economy regime at enterprises is manifested primarily in reducing the cost of material resources per unit of production, reducing production maintenance and management costs, and eliminating losses from defects and other unproductive expenses.
Material costs, as is known, in most industries occupy a large share in the structure of product costs, so even a slight saving of raw materials, materials, fuel and energy in the production of each unit of production for the entire enterprise has a major effect.
The enterprise has the opportunity to influence the amount of material resource costs, starting with their procurement. Raw materials and supplies are included in the cost price at their purchase price, taking into account transportation costs, so the correct choice of material suppliers affects the cost of production. It is important to ensure the supply of materials from suppliers who are located a short distance from the enterprise, as well as to transport goods using the cheapest mode of transport. When concluding contracts for the supply of material resources, it is necessary to order materials that, in size and quality, exactly correspond to the planned specification for materials, strive to use cheaper materials, without at the same time reducing the quality of the product.
The main condition for reducing the cost of raw materials and supplies per unit of production is improving product designs and improving production technology, the use of advanced types of materials, and the introduction of technically sound standards for the consumption of material assets.
Reducing production maintenance and management costs also reduces production costs. The size of these costs per unit of production depends not only on the volume of output, but also on their absolute amount. The lower the amount of workshop and general plant expenses for the enterprise as a whole, the lower, other things being equal, the lower the cost of each product.
Significant reserves for reducing costs are contained in reducing losses from defects and other unproductive expenses. Studying the causes of defects and identifying its culprit makes it possible to implement measures to eliminate losses from defects, reduce and use production waste in the most rational way.
The scale of identifying and using reserves for reducing product costs largely depends on how the work is carried out to study and implement the experience available at other enterprises.
* I Material costs:
o 1) Raw materials, materials, components, etc.;
o 2) Fuel, energy;
o 3) General production costs.
* II Remuneration - wages:
o 1) main production personnel;
o 2) auxiliary production personnel (equipment maintenance, etc.);
o 3) intellectual personnel;
o 4) employees (management, managers, accountants, etc.);
o 5) junior service personnel.
* III Contributions for social events.
* IV Depreciation of fixed assets.
* V Other (overhead costs directly related to production and sales; marketing costs, etc.)
IN element “Material costs” reflects the cost of: purchased 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 that are subject to further installation or additional processing at this enterprise;
works and services of a production nature performed by other enterprises or production facilities of the same enterprise that are not related to the main type of activity;
purchased from fuel and energy of all types, spent on technological purposes.
IN element "Labor costs""includes: labor costs for 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 income indexation within the limits provided for by law;
compensation paid in the amounts established by law to women on partially paid parental leave until the child reaches the age specified by law.
Element “Deductions for social needs” includes mandatory deductions according to the norms established by law (state social insurance bodies, pension fund, state employment fund, etc.) from the amount of labor costs (element of production costs “labor costs”).
In the element “Depreciation of fixed assets” reflects the amount of depreciation charges for the complete restoration of fixed production assets, determined on the basis of their book value and duly approved norms, including accelerated depreciation of their active part.
TO The element “Other costs” includes:
depreciation of intangible assets;
rent;
rewards for inventions and innovation proposals;
mandatory insurance payments;
interest on bank loans;
daily allowances and allowances;
taxes included in the cost of products (works, services);
contributions to extra-budgetary funds;
costing - determining the cost of individual products.
At enterprises, as a rule, they prepare planned and actual calculations. The first are calculated according to planned cost standards, the second - 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 delivered outside the enterprise (to the market). Calculation of other products is of auxiliary value.
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);
Costing methods
Standard calculation method is a method of calculating cost used in enterprises with mass, serial and small-scale production and in other industries. Mandatory conditions for the correct application of the standard calculation method are:
* drawing up standard calculations according to the norms in force at the beginning of the month;
* identifying deviations of actual costs from current standards at the time of their occurrence;
* taking into account changes in current standards;
* reflection of changes in current standards in standard calculations.
Current standards are those according to which materials are currently released to workplaces and workers are paid for work performed.
Custom costing method is a method of calculating cost used in enterprises where production costs are taken into account on 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 calculation is an 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 of each order, a separate analytical account (card) is opened indicating the order code, which is entered in 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 the custom costing method is justified only when the following conditions are met: the ability to highlight the 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.
Lateral calculation method- this is a method of calculating cost used in enterprises where the source material undergoes a number of reprocessing processes during the production process or where different types of products are obtained from the same source materials in one technological process. Calculation of product costs using the incremental method can be of two options: semi-finished and unfinished. 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 of this stage. The cost of production of the final stage is also the cost of the finished product. In the non-semi-finished version, only the cost of production of the final stage is calculated. With this option, costs are taken into account separately for each processing stage without taking into account the cost of production from previous processing stages. The cost of finished products includes all costs of its production in all stages. With the incremental costing method, as with other methods, the cost of all products is first determined, and then the cost of its unit. The cost per unit of production is calculated in various ways depending on the characteristics of the technological process.
From cost management
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