The Cost Of Production Of The Enterprise

Date:

2020-07-03 03:02:07

Views:

657

Rating:

1Like 0Dislike

Share:

Table of contents:

The Cost of production enterprises, in fact, represents the entire amount of direct costs that are directly associated with the production, as well as all costs for the creation and implementation of products.

Production Costs the company includes direct costs of materials, employee salaries, and variable costs in the form of material costs, depreciation, wages of personnel, main and auxiliary, as well as overheads that are incurred in connection with the necessities of production and sales.

Distinguish between these types of costs as full production.

The Cost of production of the enterprise is one of the most significant and important performance indicators of the company. It is used in financial planning to calculate the profit and the profitability of different types of products and total sales.

Total cost all products, which is planned for release, is reflected in the estimate of expenses for production costs and sales. Thus the total cost is different from cost of products sold. The difference that exists between these indices is due to the fact of the presence of residues of the part of unsold goods, which remains at the beginning (end) of the planned period.

If the revenues you receive for the receipt of funds to the account of the manufacturer (or in cash Desk of the enterprise), the leftovers, which was not implemented at the beginning of the period, include funds in the calculations, the goods storage and finished goods located in warehouses.

To determine the full cost of these balances are accounted for at production cost during the reporting period in the amount of their actual availability.

The Cost of production of the enterprise in the form of money expresses the company's costs of production. Distinction is therefore made between the planned and actual costs.

When calculating the planned cost to include the highest possible costs that are provided for in the plan. the Actual cost of production is the size of resources actually spent on production.

The profit of the enterprise depends not only on the quality of technologies and industrial processes, perfect products and efficient management of the production processes, but also from the management level of costs. Therefore, Accounting of production costs is the center of attention of representatives of all schools of accounting.

The development of the economy as a whole is determined by the development of its individual units  - industrial enterprises. Their work and efficiency is determined by management, through which the company receives the economic independence and competitive position among other market entities.

Effectiveness of cost control is particularly relevant in terms of the need to adapt pretty quickly to changing conditions in the external environment.

The concept of «cost control" of today is not yet particularly widely recognized because more attention is paid to calculation and accounting aspects.

Under product cost management understand  the process of continuous accounting, planning, analysis and control, which are elaborated managerial decisions aimed at optimization and cost reduction.

 cost Management system includes measures to impact on specific aspects of the enterprise to increase efficiency and the maximum possible profit increase.  the Process of management consists of the functions of planning, motivation, organization and control. These control functions are combined by processes of communication and common decisions.

 


Article in other languages:

AR: https://tostpost.com/ar/business/22891-the-cost-of-production-of-the-enterprise.html

BE: https://tostpost.com/be/b-znes/40289-sabekosht-pradukcy-pradpryemstva.html

DE: https://tostpost.com/de/business/39854-produktionskosten-des-unternehmens.html

ES: https://tostpost.com/es/centro-de/39572-el-costo-de-producci-n-de-la-empresa.html

HI: https://tostpost.com/hi/business/21537-the-cost-of-production-of-the-enterprise.html

JA: https://tostpost.com/ja/business/22437-the-cost-of-production-of-the-enterprise.html

KK: https://tostpost.com/kk/biznes/40673-n-mn-z-nd-k-ny-k-s-poryn.html

PL: https://tostpost.com/pl/biznes/37777-koszty-produkcji-przedsi-biorstwa.html

PT: https://tostpost.com/pt/neg-cios/37854-o-custo-de-produ-o-da-empresa.html

TR: https://tostpost.com/tr/business/37304-retim-maliyeti-letmeler.html

UK: https://tostpost.com/uk/b-znes/38242-sob-vart-st-produkc-p-dpri-mstva.html

ZH: https://tostpost.com/zh/business/18606-the-cost-of-production-of-the-enterprise.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

Comments (0)

This article has no comment, be the first!

Add comment

Related News

The profitability of assets in terms of prospects for investment

The profitability of assets in terms of prospects for investment

the result of the transition of the Russian economy in the area of market relations was a fundamental change in relationships to collect from a business entity of information on the economic condition. The financial performance of...

Models Of Economic Growth

Models Of Economic Growth

 the Concept of economic growth reveals his main definition, according to which  economic growth is considered to be the quantitative and qualitative changes of the social product over a specific period of time. the Russ...

To Non-Profit Organizations Include

To Non-Profit Organizations Include

 In accordance with article 50 of the Civil code, all legal entities in Russia are divided into commercial and non-commercial. the Purpose of the commercial organizations – profit and its distribution between all partic...

Commercial and non-profit Organizations

Commercial and non-profit Organizations

What is commercial and non-profit organizations? commercial and non-Commercial organizations, in fact, a legal entity, subdivided, thus, depending on the purpose of creation. First my aim is making a profit from commercial activit...

Commercial Proposal Is

Commercial Proposal Is

offer ads is a document of the organization involved in sales, production or provision of services, which in the most presentable way to learn about the possible conditions of cooperation with interested customers and partners. th...

The market Mechanism and its Elements

The market Mechanism and its Elements

the Relationship and interaction of the most important elements of the market, which are the supply, demand and price form a market mechanism. The market mechanism and its elements are designed to meet the needs of society. To mee...