At industrial enterprises, various methods of calculating the cost of production are used, These are methods of direct accounting, calculation-analytical, parametric, cost exclusion, coefficient and combined.
The direct accounting method is used in determining the cost of homogeneous products (coal, ore, potash salt, etc.). Costs per unit of output are determined by dividing the total cost by the quantity of output produced.
The calculation-analytical method is used in multi-nomenclature production. This method is based on the use of a system of norms and standards for the consumption of certain resources in determining direct costs. The calculation and analytical method is used in determining the cost of production by costing items.
The parametric method is based on establishing the dependence of the change in cost on the change in the main parameters of the product. It is used to calculate the cost of the same type, but different in quality products.
Methods of cost exclusion, coefficient and combined are based on determining the total amount of all costs for processing raw materials and their subsequent distribution to the products. They are used in complex production, where several heterogeneous types of products (oil refining, coke-chemical, meat and dairy production) are obtained from one raw material in a single technological process.
The most common and accurate method for determining the cost of production is the calculation-analytical, i.e. calculation of costs for costing items.
Consider the algorithm for compiling a planned calculation.
Raw materials and basic materials (minus returnable waste).
Costs for this item are determined for all types of basic materials according to the formula:
Cm = Σ Nmi * Cmi * Ctz – Σ Oti * Tsoti,
where: Nmi is the rate of consumption of material of the I-th type in physical terms per unit of production, kg / piece, m / piece, etc.
Cmi – the price of the material of the i-th type, rubles / kg, rubles / m, etc.
CTZ – coefficient that takes into account transport and procurement costs;
Oti is the value of returnable waste in physical terms;
Tsot – the price of waste disposal, rubles.
Purchased components and semi-finished products. Include the cost of purchasing finished products and semi-finished products that require additional labor costs for their assembly or processing when assembling finished products, as well as paying for the services of cooperative enterprises. The amount of costs for this item is determined by the formula:
Spi = CtzPkj
* CPJ,
where: Pcj is the number of purchased products of the J-th type used in the production of a unit of production, pcs.;
Cpij – price of the j-th purchased product, rubles.
Auxiliary materials, fuel and energy for technological needs are determined on the basis of consumption rates per unit of production, wholesale prices and transport and procurement costs. Basic wages of the main production workers.
Includes payment for the performance of operations and works at piece-rate rates, as well as at hourly tariff rates of the main workers engaged in the manufacture of products, surcharges and bonuses. Under the piecework system, wages are determined on the basis of time norms (production rates) and the average hourly tariff rate (piecework rates) corresponding to the category of work, with time-based – on the basis of time norms and hourly tariff rate.
The additional wages of the main production workers are determined as a percentage of the main one. It includes payments provided for by law (payment for vacations, preferential hours for adolescents, time for the performance of state duties, etc.). Deductions for social needs.
Include contributions to the social protection fund and the state employment promotion fund. They are determined as a percentage of the basic and additional wages of the main production workers.
Expenses for the preparation and development of production of new types of products. This item takes into account the costs of designing and constructing the product, developing the technological process of its manufacture, developing and formalizing expenditure standards, adjusting technical documentation, etc.
The costs of this item are determined by the formula:
Sosv = Szo *Sacred/ 100,
where Szo is the basic wage of the main production workers;
Posv is the percentage of repayment of expenses for the preparation and development of production, defined as the ratio of the total amount of costs for these purposes and the basic wage fund of the main production workers, %.
Wear of tools and devices for the intended purpose.
The cost of special tools and devices, the cost of repair and maintaining them in good condition are taken into account. It is determined by the formula:
Ssi = Cm /N.
where CM – the cost of purchasing and manufacturing a tool according to the estimate, rubles;
N – number of products planned for release in the calculation period, pcs.
Expenses for maintenance and operation of equipment.
They consist of the following items of expenditure: depreciation of equipment and vehicles, the cost of lubricants, wiping materials, wages of auxiliary workers with deductions for social needs, depreciation of low-value and fast-wearing tools and devices, etc.
General production expenses include the costs of the workshop for: wages of administrative and managerial personnel of the workshop with deductions for social needs, depreciation, maintenance and current repair of buildings, structures and equipment for general production purposes, labor protection costs, etc. General economic expenses include salaries of managers and specialists with deductions for social needs, depreciation of buildings and structures for general plant purposes, their maintenance and current repairs, travel expenses, etc.
Expenditures under articles 10 to 12 are distributed among different types of products in proportion to the sum of the basic wages of the main production workers.
Other production costs.
Take into account the costs of warranty service, certification and standardization, etc. Determined as a percentage of the amount of articles 1-12.
Business expenses. Contain the costs of selling products, conducting advertising activities, etc. Are determined as a percentage of the production cost (the amount of articles 1-13).
After calculating all the items, a calculation of the cost of production is drawn up, which is the basis for the formation of the price of the product.
There are wholesale, selling and retail prices of the product.
The wholesale price includes the total cost of production (JV) and the planned profit (Pr):
Tsop = SP + etc.
The selling price is formed taking into account the wholesale price and indirect taxes.
Tsotp = Tsop + Mb + RF + VAT,
where: MB – a targeted fee for the formation of local housing and investment funds and a collection to finance the costs associated with the maintenance and repair of the housing stock;
Rf – deductions to the Republican Fund for the Support of Producers of Agricultural Products, Food and Agrarian Science and Road Funds;
VAT is a value-added tax.
The retail price is formed taking into account the selling, wholesale and trade surcharges.
Ways to reduce the cost of production
The successful functioning and development of the enterprise in a market economy largely depends on how the enterprise solves the issues of reducing the cost of production. High cost of production reduces its competitiveness, profit, requires additional working capital costs. If earlier Belarusian goods broke into the Russian market due to their low cost, now this factor is gradually coming to naught. After all, per unit of production, we consume raw materials, materials and labor costs several times more than in developed countries. Along with improving the quality of products, reducing production costs and, accordingly, prices is one of the conditions for increasing the competitiveness of the enterprise. All this forces the company to constantly work to find reserves for reducing the cost of production.
The cost price as a generalizing economic indicator reflects all aspects of the enterprise’s activities: the degree of technological equipment of production and the development of technological processes; the level of organization of production and labor, the degree of use of production facilities; efficiency of the use of material and labor resources and other conditions and factors characterizing production and economic activity. Therefore, the solution to the problem of reducing the cost of production is directly related to improving the efficiency of the entire enterprise.
All the variety of factors that affect the cost of production can be classified into three categories:
Introduction of innovations aimed at improving the technical level of production: mechanization, automation, computerization of production, the use of modern technologies, new types of materials, improving the design of the product; Introduction of innovations in the field of management, organization of production and labor: organization of controlling and management accounting, creation of automated workplaces for managers and specialists, introduction of scientific organization of labor, expansion of service areas, etc .; Economic factors: improvement of material incentives for personnel, attraction of investments, introduction of progressive norms and standards, etc.
Internal reserves for reducing the cost of production include:
(a) Improving the efficiency of the use of economic resources, contributing to a reduction in the material, labour and energy intensity of products;
b) elimination of unproductive expenses and losses;
c) professional development of personnel, prevention of losses from marriage;
d) adaptation of accounting to the requirements of the cost management system, criteria for assessing the effectiveness of the enterprise.
Security questions for topic No7
What are production costs? What is the difference between current and one-time costs? What is meant by the cost of production? What types of prime cost are determined in the enterprise? What indicators are used in planning and accounting for the cost of production? What are the characteristics of the classification of production costs? How are costs grouped by economic elements? What economic cost elements do you know? What is the difference between the classification of costs by economic elements and costing items? What are the direct costs? What are complex cost items? How is the production cost of production determined? What is the difference between the technological cost and the full cost? What is the cost of production calculation? What ways to reduce the cost of production are available at the enterprise.