Cost reflects a complete set of all produced by the enterprise the cost of production and further implementation of its products. The structure of the cost – its composition on articles costing or cost components according to the ratio of each element (or component) in total cost of products.
There are two ways by which you can calculate the cost:
1) cost items (organized into separate groups according to the economic content);
2) for articles costing (in this case focuses on a division of costs according to their role, purpose and place of the occurrence).
Under the cost elements understand:
• material costs;
• payment of wages to employees;
• contributions to social funds;
• other costs.
The cost is Calculated in several stages:
1. First is determined by its production value;
2. By adjusting the production rate changes in the balance of expenditure for the future periods calculated cost gross production;
3. Calculated the cost of commercial products (those products that are scheduled for release and realization for a certain period ) by adjusting the gross changes in the balance of production is incomplete;
4. Is determined by the rate of cost of sales (cost of products planned for delivery to the customer at the same time pay for the scheduled period) by adjusting the previous figure for change in stocks of manufactured products.
The cost Structure is not static, it is in constant motion. The dynamics of the cost structure is determined by many factors, which include:
1. The specifics of enterprise. On this basis allocate labor-intensive enterprises (for which a large share of the cost falls on workers ' wages), material (high material costs), capital intensive (significant depreciation), energy intensive (manufacturing requires a large share of fuel and energy);
2. A factor in accelerating technical and scientific progress, which determines the possibility of reducing the share of living labour and, consequently, increasing labour embodied (that is, not creating the value of the goods, and the condition of its creation);
3) Geographical position (location) of the company;
4) the Level of specialization, combination, concentration, cooperation and diversification of production;
5) Inflation combined with the potential change in interest rates of Bank credit.
The cost Structure is characterized by such indicators as:
• the percentage of each element (or calculation items) in the full costs;
• the ratio of living labor (human activity, the cost of their mental and physical energy on the production or performance of works) and hard (work that was previously spent on the extraction of raw materials, creating devices, materials production, building construction, etc. It is embodied in the means of production and characterizes the technological potential of the enterprise);
• the ratio of fixed costs and variables; basic and invoices industrial and commercial, direct and indirect expenses, etc.
The cost Structure is continually analyzed to rationalize the cost management with the aim of minimizing.
The Structure and types of costs are interrelated. It is the part of the cost allows you to select the types of production costs: process, craft (includes technology and overhead costs), production (includes workshop, General expenses and possible loss of marriage), complete (includes production and distribution costs). Thus, the total cost for graphical otrajeniem all costs and for production and for its implementation.
The Company is engaged in calculation of cost per unit of output of each type; product,gross sales, finished goods and work in progress. Distinguish between the cost of the planned, actual and normative.
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