One of the most important tasks of management is the calculation of the cost of production. The cost of production is the cost of its production and sale, expressed in cash. The cost of production (works, services) of an enterprise consists of the costs associated with the use in the production process of products (works, services) of natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production and sale .
The cost of production is a qualitative indicator, the results of the economic activity of the organization are reflected in a concentrated manner. Its achievements and available reserves. The lower the cost of production, the more labor is saved, the better the use of fixed assets, materials, fuel, the cheaper the production of products costs both the enterprise and the whole society.
The cost of production, in particular, includes:
1) the cost of labor, means and objects of labor for the production of products at the enterprise. These include: the cost of preparation and development of production; costs directly related to the production of products (works, services) due to the technology and organization of production, including costs for monitoring production processes and the quality of products; costs associated with invention and rationalization; expenses for maintenance of the production process, ensuring normal working conditions and safety; costs associated with the recruitment of labor force, training and retraining of personnel; deductions for state social and compulsory medical insurance; production management costs, etc.;
2) costs associated with the sale of products: packaging, storage, loading and transportation (except when they are reimbursed by the buyer in excess of the price of products); payment for the services of forwarding and intermediary organizations, commission fees and remuneration paid to sales and foreign trade organizations; advertising expenses, including participation in exhibitions, fairs and others;
3) expenses not directly related to the production and sale of products at this enterprise, but their reimbursement by including them in the cost of production of individual enterprises is necessary in the interests of ensuring simple reproduction (deductions to cover the costs of geological exploration and geological prospecting, for land reclamation ; payment for standing wood, as well as payment for water).
In addition, the cost of products (works, services) also reflects
losses from marriage, from downtime for internal production reasons, shortage of material assets in production and in warehouses within the norms of natural loss, payment of benefits as a result of disability due to industrial injuries (based on court decisions).
There are two ways to determine the cost. In the first case, an estimate of production costs is compiled, in which the costs are grouped by elements, in the second case, the costs are grouped by items, on the basis of this grouping, a calculation is made, here the costs are grouped depending on the place of origin and direction of use. For the enterprise itself, reliable information about the cost structure is important - the enterprise gets the opportunity to influence it, i.e. manage your costs.
Depending on what costs are included in the cost price
products, in the economic literature, its types are distinguished:
1. workshop - includes direct costs and general production costs; characterizes the costs of the shop for the manufacture of products;
2. production - consists of the workshop cost and
general business expenses; testified to the costs of the enterprise associated with the release of products;
3. full cost - production cost, increased
for the amount of marketing expenses. This indicator integrated the total costs of the enterprise associated with both production and sales of products.
Types of calculation.
Calculation is defined as a system of economic calculations of the unit cost of certain types of products (works, services). In the process of costing, the costs of production are compared with the quantity of products produced and the unit cost of production is determined. The end result of costing is the preparation of estimates.
The task of calculation is to determine the costs that fall per unit of their carrier, i.e. per unit of production (works, services) intended for sale, as well as for domestic consumption.
Depending on the purposes of costing, there are planned, estimated and actual cost estimates. All of them reflect the costs of production and sale of a unit of a particular type of product in the context of cost items.
Standard cost estimate is compiled for the planning period on the basis of the norms and estimates in force at the beginning of this period.
Estimated costing is calculated when designing new industries and designing newly mastered products in the absence of consumption rates.
Actual (reporting) costing reflects the totality of all costs for the production and sale of products. It is used to monitor the implementation of planned targets to reduce the cost of various types of products, as well as for the analysis and dynamics of the cost.
Consider types of costing depending on various factors
Standard cost estimate- determines the average cost of products (works, services) for the planning period (quarter, year), is compiled on the basis of the norms of consumption of raw materials, materials, fuel, energy, labor costs, use of equipment and norms of expenses for the organization of production maintenance that are in force at the beginning of this period. These norms are average for the planned period. Planned estimates are used in the preparation of business plans, are the basis for the development of planned accounting prices for products.
Design (budget) costing- compiled during the design and construction of new industries, new products being mastered or for one-time work. This type of costing is the basis for planned cost estimates during the period of mass production of new products after their development or settlements with customers for one-time work.
Normative costing- is compiled on the basis of the current cost rates in force at the beginning of the month, i.e., the consumption rates of raw materials, materials and other costs. Current cost rates correspond to the production capabilities of the enterprise at this stage of its operation. It is used in the normative method of planning and cost accounting.
Unlike planned costing, normative costing takes into account changes in the norms in the production process, changes are made to the norms, and deviations are determined during the reporting period.
Expected (provisional) costing- compiled as of October 1 of the current reporting year based on actual accounting data for the past 9 months and estimated data on costs and output for the remaining period until the end of the year. The data is used to preliminarily determine the results of the organization or industry, as well as to develop measures to further reduce the cost of production and increase the profitability of production for the period remaining until the end of the year.
Reporting (actual) costing- compiled according to accounting data on the actual costs of production (work performed, services rendered) for the reporting period. Actual cost indicators are used to determine the actual financial result of the enterprise's production activities.
Depending on the place where the expenses are made and the amount of expenses included in the cost of production, the calculation can be self-supporting, production, full (commercial).
Self-supporting costing- includes actual labor costs, the cost of inventory at planned accounting prices, actual general team expenses, the cost of services of auxiliary production at planned accounting prices and the amount of general business expenses according to the estimate. It is a kind of reporting cost estimate, but differs from it in that it reflects the actual costs of resources at planned prices.
Production cost estimate- includes self-supporting cost and the amount of deviations: the actual cost of inventory items from the cost calculated in planning and accounting prices; the actual cost of auxiliary production services from planned accounting prices; actual general business expenses from the estimate.
Full (commercial) costing- includes the production cost and non-manufacturing costs associated with the sale of products.
The cost price is formed in accordance with industry guidelines on planning, accounting and costing of products (works, services), taking into account the nature and structure of production.
At industrial enterprises, when forming the cost price, the following components are taken into account: raw materials and materials; returnable waste; purchased products, semi-finished products and services of an industrial nature of third-party organizations and enterprises; fuel and energy for technological purposes; wages of production workers; deductions for social needs; expenses for the preparation and development of production; overhead costs; losses from marriage; other production expenses; business expenses.
Contract costing- a system of accounting and costing of large products with a long cycle of reproduction. The contract provides for interim payments to the manufacturer by stages for the work performed. The amount of payments is determined by the cost of the work performed, confirmed by the customer's act. As payment is received, costs are determined that must be included in the cost of goods sold to calculate profit for a given period, and the amount of unexpired costs is determined, i.e. the cost of work in progress and undelivered.
Conclusion
Costing is a special system of calculations, through which the cost can be determined, both for all manufactured products and for each unit of its type. In order to introduce calculation methods that ensure the optimal level of costs, uniformity in determining the composition of costs that form the cost of industrial products, the revised Instruction for calculating the cost of production at enterprises of the dairy, butter, cheese and milk-canning industries, approved by the Ministry of Agriculture and Food of the Russian Federation on October 12, is used 1999
The Instruction presents a modern nomenclature of cost items, in particular, transport and procurement, general production, general business and commercial expenses; the methodology for calculating prices for skimmed milk, buttermilk and whey is given. Later, additions to the Instructions were approved, which give an example of calculating the cost of production based on the instructions, as well as an example of calculating the cost of energy consumption (steam, electricity, water, cold), etc.
When calculating the costs that form the cost of production, the following types of cost groupings are distinguished:
By the place of occurrence of costs (workshops, sites);
By types of products (works, services);
By types of expenses (elements of expenses).
Depending on the nature and purpose of the work performed, the following classification has been established: main production; ancillary industries. In addition, there are non-industrial farms at the enterprises of the dairy industry.
Depending on the volume of costs, production and full cost of production are distinguished. According to the method of attributing costs to the cost of production, costs are divided into direct and indirect.
Literature
1. Khamidulina G. R. Cost management - “Exam”: M .: 2003.
2. Lebedev V.G. Drozdova T.G. and others. Cost management - publishing house "Business Press", S-P .: 2000.
3. Kotlerov S. A. Cost management - St. Petersburg / St. Petersburg, 2003.
4. V. Paly, Vander Management accounting (with elements of financial accounting), M .: "Economics", 1999.
5. Karpova T. P. "Fundamentals of management accounting", M.; "INFRA-M", 2003
6. Vakhrushina M.A. Accounting management accounting: Textbook / VZFEI. - M.: CJSC "Finstat-inform", 1999.
Similar information.
Calculation - a method of grouping (generalizing) costs, expressed in monetary terms, per unit of output, work performed, services rendered, acquired material assets.
The economic significance of costing is that the cost shows the amount of costs associated with the procurement, production and sale of products. The amounts of costs recorded on the calculation accounts serve as the basis for determining the cost. In the process of calculating the cost of production, the correct choice of costing objects for determining the costing unit is important. The objects of calculation are certain types of products, works, services; products (works, services) of subdivisions of the main and auxiliary industries; all products received by the organization. For example, the objects for calculating the cost of production in crop production are certain types of main and associated products. By-products are not calculated, but are valued at the prices of their possible sale. The calculation unit is a measure in kind of a homogeneous amount of work performed or finished products received. According to the nature of use, calculation units can be: natural, labor, cost; according to the content of the work performed - specific (for certain types of work), complex (for calculating the cost of a set of works); from the point of view of the purposes of calculation - self-supporting (at the level of responsibility centers), economic (to assess the costs of the entire organization); in relation to related technological industries and the quality of manufactured products - conditionally natural units, enlarged - natural units. Costs that form the cost of products (works, services) are grouped according to economic elements, i.e. by types of costs and by cost items.
Costs are grouped according to the following economic elements:
material costs;
labor costs;
deductions for social needs;
depreciation of fixed production assets;
other costs.
For the organization of analytical cost accounting, control over the production activities of the organization, its divisions, as well as cost planning for accounting and calculation objects, the relevant ministries and departments are developing a unified nomenclature of cost items. Methods and methods for calculating the cost of production (works, services) are also being developed - a normative method of calculation, a method of summing production costs, a method for excluding the cost of by-products from the total amount of production costs, a method of direct calculation, a combined method of calculation, order-by-order, per-process, process-by-process, proportional, method of price coefficients for calculating the cost.
Depending on its purpose, the calculation is subdivided: by the time of compilation; by periods covering the calculation; by the volume of included costs in the cost price.
By time of compilation cost estimates are divided into planned, normative, provisional, reporting.
Standard cost estimate is compiled before the start of the reporting period and is a calculation of the planned cost of production of specific types of products (works, services). The planned cost is calculated on the basis of planned costs and planned output of products (works, services). Products obtained in agriculture are taken into account in the planned assessment.
Normative costing is compiled at the beginning of the reporting period and represents the amount of costs that the organization at the time of calculating the cost can spend per unit of output, taking into account applicable norms and standards. Normative costing is used in organizing the normative method of accounting and managing production costs.
Calculation, compiled after the completion of business processes, is called actual costing.
For the analysis and forecasting of economic activity in order to make the necessary management decisions in individual seasonal industries, a calculation is made until the completion of the entire production cycle. This calculation is called provisional costing production cost.
Based on the period of time, production cycle, technological redistribution, process, for which data are taken for calculating the cost, there are calculations: monthly, quarterly, annual, production cycle, specific technological stage or process.
By the volume of included costs in the cost price costing are divided: costing for direct costs; costing for variable costs; costing for total costs; calculation of the full commercial cost; general business costing: brigade (shop, technological) costing.
In Russian, the word "calculation" (from the Latin calculatio-calculation) appeared in the 2nd half of the 19th century and means cost calculation. Calculation as an element of accounting has not always existed, its emergence is directly related to the development of the productive forces of society.
In modern economic literature, costing is defined as economic calculations of the unit cost of certain types of products (works, services). In the process of costing, production costs are compared with the quantity of output and the cost of a unit of production is determined.
The task of calculation is to determine the costs that fall per unit of their carrier, i.e. per unit of production intended for sale, as well as for domestic consumption.
The end result - costing is the compilation of estimates. Depending on the purposes of costing, there are planned, estimated and actual cost estimates. All of them reflect the costs of production and sale of a unit of a particular type of product in the context of cost items.
In the system of production cost management at enterprises, various types of costing of production are used. According to the time of compilation, they are divided into preliminary and subsequent. Preliminary ones include forecast, design, planning, cost estimates and normative calculations, compiled before the processes of manufacturing products, performing work and rendering services. The following include the actual cost estimate compiled after the manufacture of the product.
Forecast costing is compiled on the basis of forecast norms and standards to characterize the estimated costs for the production of products (works, services) in several options. The best of them serves as the basis for the preparation of design, planning, cost estimates and standard calculations.
Project costing is intended for the economic justification of new construction, expansion and reconstruction of existing enterprises, industries and workshops, equipment modernization, production of new types of Products, development of new technological processes, introduction of inventions and rationalization proposals. It is compiled on the basis of a relatively narrow range of data for calculating the cost of production: equipment productivity, output, specific consumption rates of material resources, forecast prices, estimated cost of fixed assets, projected number of employees. These conditions determine the nomenclature of cost elements and methods of their calculation.
Planned costing is compiled on the basis of predictive, permissible progressive norms and economic standards for the year and quarters and is a task for the enterprise and its divisions in terms of the maximum cost for the production of the relevant types of products, works and services.
Estimated costing is a type of planned costing. It is compiled for products and works performed on a one-time basis. Estimated costing is used to set prices, settle accounts with customers and justify the cost of manufacturing products.
Normative costing is the calculation of the cost price based on the norms and cost standards in force at the beginning of the month. Unlike the planned standard costing, it expresses the level of cost at the time of its compilation. It uses the norms and standards of costs, reflecting the achieved level of technology, technology, organization of production and labor.
Normative costing is used to manage, control and analyze production processes, calculate the actual cost of production, identify deviations from current cost standards, causes, perpetrators and places of their occurrence, evaluate the effectiveness of implemented organizational and technical measures.
Actual costing is the calculation of the actual cost of manufactured products. It is compiled according to the cost accounting data for the calculation items of expenses provided for by the plan. It also reflects expenses and losses that are not provided for by the planned cost estimate.
Actual costing reflects the prevailing level of cost for certain types of expenses, serves as a means of controlling the level of production costs, allows you to assess the progressiveness of the forecast and current consumption rates of enterprise resources and the efficiency of the use of the resources themselves, and is also the most important source of information for planning and economic analysis.
Calculation methods as a pricing base
The basis for making decisions on setting prices is the cost of production. There are four cost-based pricing methods.
1. Method of variable costs. The first of the cost-based pricing products is that some percentage premium is calculated on the variable direct costs for a natural product.
2. Gross profit method. The pricing method as a calculation base calculates the gross profit, which is determined as the difference between the proceeds from sales and the cost of goods sold.
3. The method of profitability of sales. When using this method, the percentage markup includes only the desired amount of profit. For this method to be effective, all costs must be allocated to units of output.
4. The method of return on assets. Establishing a price based on the return on assets should provide the enterprise with a certain level of return on assets.
Sincerely, Young Analyst
The basis for determining the cost is the amount of costs shown on the accounts. The process of calculating costs is carried out in a special document that contains a list of costs and is called costing.
Calculation is a way of summarizing the costs, expressed in monetary terms, per unit of production, a specific type of work, service.
Calculation issues arise before the accountant at all stages of the circulation of economic assets: in the process of procurement of raw materials and materials, production and sales of products.
To calculate the cost of production, one should proceed from a clear understanding of what a costing object and a costing unit, a cost element and a cost item are.
In accounting, the object of calculation is the product of production (detail, assembly, product, groups of homogeneous products), technological phase (processing, production), stage, etc., i.e. products of varying degrees of readiness, types of work or services.
A costing unit is a measure of the costing object.
Calculation depends on the rationality of grouping costs, the validity of the choice of distribution of indirect costs and the accuracy of cost calculation. The rationality of cost grouping is determined by the degree of its compliance with the requirements of theory and practical expediency. The grouping of current costs is carried out by elements and costing items.
Grouping by cost elements answers the question: “What is spent on this object?”. It is necessary to identify all production costs by their types.
Cost elements:
1. material costs (minus the cost of returnable waste);
2. labor costs;
3. depreciation of depreciable property;
4. other costs (taxes, fees, payments for compulsory property insurance, etc.).
At the enterprise level, this grouping allows you to establish how much they spent during the reporting period of certain types of material, labor and financial resources for production as a whole. With the help of this grouping, it is not possible to exercise daily control over the activities of the enterprise and its structural divisions (individual industries, workshops, sections). This problem is solved by grouping by cost items, answering the question: "What are the costs incurred for?" - and allowing to calculate the cost of a separate accounting object. This grouping is called costing items. Approximate list of articles:
1. raw materials and supplies;
2. returnable waste (subtracted);
3. purchased products, semi-finished products and production services of third-party enterprises and organizations;
4. fuel and energy for technological purposes;
5. wages of production workers;
6. deductions for social needs;
7. overhead costs;
8. general business expenses;
9. expenses for the preparation and development of production;
10. losses from marriage;
11. other production expenses;
12. selling expenses.
The accuracy of calculating the cost of the calculated object depends on the organization of accounting. You should pay attention to the detailed analytics of cost accounting, the documentation of all operations associated with the calculated object, the correct grouping of costs.
There are normative, planned (estimated) and actual (reporting) costing.
Normative costing is calculated at the beginning of the reporting period and represents the amount of costs that the enterprise at the time of the costing, based on the technical level of production and existing technology, will spend per unit of output, taking into account the current norms and standards by itemized.
Planned (estimated) costing is the cost of each product, type or group of products, calculated for individual cost items, the amount of which the company intends to achieve by the end of the reporting period, having previously implemented pre-planned organizational and technical measures in the reporting period. It is believed that the value of the planned calculation of the cost of production should be below the standard.
Actual (reporting) costing is the result of the actual value of costs for a particular type of product in the reporting period. It simultaneously characterizes the level of deviation of the cost, the established normative or planned cost estimate.
All costs related to the product released from production are calculated and divided by its quantity. In this way, the unit cost of a particular product is determined.
In individual productions, all costs for a specific order executed by the enterprise represent its actual cost.
Lecture 6. DOCUMENTATION AND INVENTORY
1. Documentation and its essence
2. Classification of documents
3. Ways to correct errors in accounting
4. Inventory and its place in primary accounting
