Estimating the cost of manufacturing products (classification of costs by economic elements). Economic costs The following elements are included in the cost estimate
According to the economic content, they are grouped according to the following economic elements: material costs, labor costs, deductions for social needs, depreciation of fixed assets, and other costs. Their structure is formed under the influence of various factors: the nature of the products produced and the consumed material and raw materials, the technical level of production, the forms of its organization and placement, the conditions for the supply and sale of products, etc.
According to the functions of the enterprise in the production management system, costs are divided into:
- supply and procurement;
- production;
- commercial and marketing;
- organizational and managerial.
The division of costs by functions of activity allows planning and accounting to determine the amount of costs in the context of divisions of each area, which is one of the important conditions for organizing on-farm settlement.
According to the economic role in the production process, costs are divided into main and overhead.
The mainthe costs directly related to the technological production process are called: raw materials and materials, fuel and energy for technological purposes, labor costs of production workers, etc.
Overheadsare formed in connection with the organization, maintenance and management of production. They consist of complex general production and general expenses. The amount of these costs depends on the management structure of departments, shops and enterprises.
By way of inclusionin the cost of production, costs are divided into direct and indirect.
Direct costs
associated with the production of a certain type of product and can be, based on the data of primary documents, directly and directly attributed to its cost.
Indirect costs are associated with the release of several types of products, for example, the costs of managing and maintaining production.
The choice of the distribution base is determined by the peculiarities of the organization and production technology and is established by sectoral instructions for planning, accounting and calculating the cost of production.
In practice, the costs of an enterprise are traditionally grouped and accounted for by composition and types, places of origin and carriers.
By composition costs are subdivided into single-element and complex.
Single element are called costs consisting of one element - materials, wages, depreciation, etc. These costs, regardless of their place of origin and intended purpose, are not divided into various components.
Integrated refers to costs that are made up of multiple elements, such as shop floor and general plant costs, which include salaries for related personnel, depreciation of buildings, and other one-element costs.
Accounting by type of costclassifies and evaluates the resources used in the production and sale of products. On this basis, costs are classified according to costing items and economic elements.
The composition of costs included in the cost of production is regulated by the relevant regulations.
A single list of economically homogeneous enterprises has been established for all enterprises. cost elements:
- material costs;
- labor costs;
- deductions for social needs;
- depreciation of fixed assets;
- other costs.
The economic element of costs is usually understood as an economically homogeneous type of costs for and sale of products (works, services), which at the enterprise level cannot be decomposed into separate components.
The grouping of costs by economic elements is an object of financial accounting and shows what exactly is spent on the production of products, what is the ratio of individual elements in the total cost. It allows you to determine and analyze the structure of the current costs of production and circulation. To carry out this kind of analysis, it is necessary to calculate the specific weight of one or another element in the total cost.
The grouping of costs by economic elements is the amount of current production or circulation costs incurred by the organization for a given reporting period, regardless of whether the product is finished or the work is done. The significance of this classification increases as the prerequisites are created for the division of the accounting system of enterprises into financial (accounting) and internal (production, management) subsystems.
To calculate the cost of individual types of products, manufacturing enterprises use cost grouping by calculation items.
Calculation of the cost of products (works, services) is the calculation of the amount of costs per unit (output) of products. The statement in which the calculation is made per unit of production is called a cost estimate.
Estimated costs are kept on special forms, which reflect data on planned and actual costs by cost items for the entire production of marketable products for the reporting period. The document in which these costs are entered is called a calculation, and the calculation system for determining the cost of production is called a calculation. In contrast to the grouping by economic elements, costing allows you to take into account the costs directly related to the production of a particular type of product. These costs include both material costs and the cost of creating, maintaining and managing the production of this type of product. On the basis of costing calculations, its workshop, production and total cost are determined.
Each organization sets the nomenclature of articles for itself independently, taking into account its specific needs. An approximate list of them is established by industry instructions for accounting and calculating the cost of production.
In the most general form, the nomenclature of costing items is as follows:
- "Raw materials and basic materials".
- “Semi-finished products of our own production”.
- “Returnable waste” (deducted).
- "Supporting materials".
- "Fuel and energy for technological purposes".
- "Labor costs of production workers."
- "Deductions for social needs."
- "Expenses for preparation and development of production."
- "Expenses for the operation of production machinery and equipment."
- "Shop costs".
- "General running costs".
- "Losses from marriage".
- "Other production costs".
- "Selling expenses".
The total of the first ten items allows you to get the shop cost, the total of the first thirteen items forms the production cost, and the total of all fourteen items is the full cost of production.
The list of cost items, their composition and methods of distribution by types of products (works, services), as well as the procedure for assessing the balance of work in progress and finished products are determined by industry guidelines. In principle, calculation items are different for each industry. In some industries, for example, transportation and procurement costs (due to the large share), depreciation deductions (due to the high capital intensity of production), etc.
At the place of origin costs are grouped and accounted for by production, workshops, sections, departments and other structural units of the enterprise, i.e. by centers of responsibility.
Cost grouping is important in relation to production... On this basis, costs are divided into fixed and variable.
Fixed costsdo not depend on the dynamics of production and sales of products, that is, do not change when the volume of production changes.
Variable costsdepend on the volume and change in direct proportion to the change in the volume of production (or business activity) of the company. As it increases, variable costs also increase, and vice versa (for example, the wages of production workers who manufacture a certain type of product, the cost of raw materials and materials).
Variable costs per unit of output are constant.
In addition, there are mixed costs.
The division of costs into production and periodic ones is based on the fact that only production costs should be included in the cost of production. They, as necessary, form the production cost of products and are used to calculate the cost of a unit of production.
Production costs include:
- direct material costs;
- direct costs of remuneration of labor with deductions for social needs;
- losses from marriage;
- production overheads.
Production overheads consist of the operating costs of production machinery and equipment and shop floor costs.
Recurring expensesare subdivided into:
- commercial;
- are common;
- administrative.
These include a significant part of the total mass of expenses for management, production maintenance, sales of products, which does not depend on the volume of production and sales, but on the organization of production and commercial activities, the business policy of the administration, the duration of the reporting period, the structure of the enterprise and other factors.
By technical and economic purpose distinguish between basic (technological) and overhead costs.
Basic (technological) costs are directly related to the production and provision of services, these include the first six cost items: labor costs, cost of materials, fuel, electricity, other costs associated with a specific object of calculation.
Invoices - are associated with the maintenance of individual departments (workshops, sections) or the organization as a whole and their management.
When calculating the cost and evaluating the finished product, it is important to group costs depending on the time of their occurrence and attribution to the cost price products. On this basis, costs are divided into:
- current;
- future reporting period;
- upcoming.
Current expenses include the costs of production and sales of products of this period. They brought income in the present and lost the ability to generate income in the future.
Future expenses are expenses incurred in the current reporting period, but to be included in the cost of products that will be produced in subsequent reporting periods
The upcoming ones include costs that have not yet been made in this reporting period, but for the correct reflection of the actual cost price, they must be included in the production costs for this reporting period in the planned amount (expenses for paying workers' vacations, payment of a one-time remuneration for length of service and other costs that have periodic).
In the process of making managerial decisions, he must have sufficient information that would promise the benefit of the enterprise from the production of a particular type of product. In these conditions, the division of costs into the following types is of particular importance:
- alternative (imputed);
- differential;
- irrevocable;
- incremental;
- margin;
- relevant.
By the degree of controllability costs are subdivided into fully, partially and poorly regulated.
The degree of cost control depends on the specifics of a particular enterprise: the technology used; organizational structure; corporate culture and other factors. Therefore, there is no universal methodology for classifying costs by the degree of controllability; it can be developed only in relation to a specific enterprise. The degree of cost control will vary depending on the following conditions:
- the duration of the period of time (with a long period, it becomes possible to influence those costs that are considered set in a short period);
- authority of the decision-maker (costs that are set at the level
Depending on the prevailing share of individual cost elements, the following types of industries and industries are distinguished: material-intensive, labor-intensive, capital-intensive, fuel- and energy-intensive, and mixed. The cost structure does not remain constant, it is dynamic.
The grouping of costs is used in the preparation of estimates for the production of all manufactured products. An estimate is necessary not only to reduce costs for their elements, but also to draw up material balances, rationing working capitaldeveloping financial plans.
Cost estimate for the production and sale of products is a document in which the current costs attributable to the cost of production are grouped by the same economic elements without dividing costs by type of product and service. The costs of the same name assume that this element takes into account all costs for the consumption of this type of resource.
The cost estimate calculates the cost of gross, marketable and sold products, changes in the balance of work in progress, costs are written off to non-production accounts, profit (or loss) of goods sold and costs per ruble of marketable products are established. The estimated cost profile allows you to determine the total amount of consumed types of resources, determines the need for working capital.
The production cost estimate is a summary calculation that summarizes the costs of manufacturing and marketing products. The estimate is drawn up by economic elements, the list and composition of which is unified. This provides cost redundancy across the items as a whole and allows you to track changes in the cost structure.
Budgeting begins with determining the cost estimate for the auxiliary shops, i.e. auxiliary shops are consumed by the main shops, the costs are included in the prime cost of the main shops. The cost estimate for auxiliary shops includes: own costs of the auxiliary shop, the cost of work and services performed or provided to them by other shops, the cost of work and services for other shops. Then, estimates are made for maintenance and production management (general production, general business, non-production costs), as well as estimates for certain types of special costs (estimates of commissioning for product development, transportation and procurement costs). The presence of these estimates allows you to go to the preparation of estimates of production costs for the main shops, which allows you to determine the cost estimate for the business entity as a whole.
Making management decisions by the management and managers of various levels of an economic entity is facilitated by the allocation of various classification features of costs and an analysis based on them. The division of costs into cost elements allows to determine the structure of costs for the production of products of an economic entity.
Cost composition by item
By elements, costs are subdivided into the following categories, presented in the table.
Table. Classification of costs by economic elements
| Cost item name | What is included |
|---|---|
| Material | This element includes the costs incurred by the economic entity:
|
| For wages | This cost element reflects the costs incurred by an economic entity for the following purposes:
|
| For deductions for social needs | This cost element includes the costs of an economic entity aimed at deductions to off-budget funds, namely:
|
| Depreciation | This element reflects the costs associated with depreciation charges of an economic entity for fixed assets and intangible assets. At the same time, the costs for these purposes are reflected here, both for own fixed assets, and for those that were leased by an economic entity. |
| Other | This element includes those costs that were not included in the previous cost elements. For example, this element reflects taxes, fees, deductions that are included in the cost of production. |
For example, as can be seen from the table, the element “labor costs” reflects compensatory payments to employees of the enterprise, which take into account a certain mode of work or special working conditions. Among them are payments for:
- the time when an employee of an economic entity combined professions;
- the time when the employee of the business entity worked at night;
- the time when an employee of the business entity performed overtime work, etc.
By grouping costs by item, you can define the cost structure. It is the same for all sectors of the economy and makes it possible to establish how much and what funds were spent, regardless of where they were produced and what they were spent on. This grouping is used to estimate production costs.
Cost elements are similar (homogeneous) costs incurred by economic entities in the production and sale of products.
The resources consumed (in monetary terms) in the production and sale of products of an economic entity are collected in homogeneous types, called elements.
When classifying costs by elements, costs are collected and grouped in value terms for all costs incurred by an economic entity. Based on this data, the cost of specific types of products will then be calculated.
Assignment of cost classification by economic elements
This classification is useful in the following cases:
- when planning the production activities of an economic entity is carried out;
- when the cost estimates are formed;
- when planning and determining how much resources will be needed;
- when the analysis of the financial activities of an economic entity is carried out.
Elements of production costs are grouped on a homogeneous basis costs of production.
Cost estimate for the production and sale of productsis a consolidated plan of all expenses of the enterprise for the forthcoming period of production and financial activities. It is drawn up in order to determine the total cost of the enterprise (by economic elements) and to link this section with other sections of the business plan of the enterprise.
The cost estimate includes all the costs of the main and auxiliary divisions of the enterprise involved in the production of industrial products, as well as the performance of work and services of a non-industrial nature, both for the farms of the enterprise (capital construction, etc.) and for third-party organizations.
The cost estimate also includes the cost of mastering the production of new products, the cost of preparing for production, the cost of selling products, etc.
In the estimate, production costs are grouped by primary elements on an economic basis. Cost estimates are made for the year with distribution by quarters. According to the cost estimate, the structure of the production cost is determined, in addition, the estimate is the basis for calculating the working capital.
Costs in the estimate are grouped according to the following economic elements:
· Material costs (less the cost of returnable waste);
· Labor costs;
· Deductions for social needs;
· Depreciation of fixed assets;
· Other costs.
Material costs include:
The cost of raw materials for purchased semi-finished products;
Fare;
The cost of fuel, electricity.
Labor costs include:
Basic salary, bonuses, year-end bonuses, premiums for professional skills and additional payments for night hours, overtime, combining professions, expanding service areas, for working in difficult, harmful conditions;
Utilities cost;
Cost of overalls given out free of charge; travel to the place of rest; payment of preferential hours for teenagers; breaks in the work of nursing mothers; fulfillment of public duties;
Employee benefits due to layoffs; seniority payment; payment of vacations for students.
Social contributions are 26% and include:
Social security contributions;
Pension funds;
State Employment Fund;
Health insurance.
Depreciation of fixed assets:
The element "Depreciation of fixed assets" reflects the amount of depreciation charges for the full restoration of fixed assets (own and leased), as well as the amount of increase in depreciation charges as a result of their indexation.
Other costs include:
Taxes, fees, property insurance;
Rewards for rationalization proposals; payments on loans, payment for the certification of products; payment for fire protection; personnel training; payment for services of computing centers, banks; payment of rent, repair fund.
The aggregate of these costs for the elements listed in paragraphs 1-5 is the total cost of production. However, the total amount of costs reflected in the cost estimate includes not only the costs of producing commercial products, but also the costs associated with an increase in the balance of work in progress (including semi-finished products of our own production), deferred costs and the provision of services that are not included in commercial products. ...
To determine the production cost of marketable products, it is necessary:
1) exclude from the total production costs the costs attributable to non-production accounts (the cost of capital construction and overhaul of buildings and structures that were carried out for their enterprise, transport services provided to third-party organizations, non-industrial enterprises of the enterprise, the cost of research and development performed for third parties, etc.);
2) take into account the change in the balances of deferred expenses (when they increase, the amount of the increase is deducted from the amount of production costs, and when it decreases, it is added);
3) take into account the change in the balances of work in progress (in the industries where it is planned): an increase reduces the cost of marketable products, a decrease - increases.
The amount received after the amendments provided for in paragraphs (1), (2) and (3) are the production cost of marketable products. For determining full cost of marketable products it is necessary to add to its production cost selling expenses, which include the costs of packing products in the warehouse, transportation of products, commission fees and other costs associated with the sale of products. The total cost of marketable products differs from cost of goods sold, on the basis of which the amount of profit is determined by the presence of balances of unsold products. To determine the products sold, it is necessary to add to the total cost of marketable products the cost of the remainder of unsold products at the beginning of the planning period and subtract the cost of the remainders of unsold products at the end of the planning period.
The estimate of production costs is used in the development of the financial plan of the enterprise, to determine the need for working capital, when drawing up a balance of income and expenses and determining a number of other indicators of the financial activity of the enterprise.
All estimates can be divided into two large groups:
· Estimates of current costs;
· Estimates of capital costs.
Estimated operating costs -these are estimates that reflect ongoing operations during the normal production process.
The main estimates of the current costs of the enterprise are:
· Sales program... This is the most important plan of the enterprise, since the volume of operations of any department directly depends on the volume of sales. All other plans are based on the sales program. Special attention must be paid to the development of a sales program. If you fail to make it as realistic as possible, then other estimates will be wrong.
· Production plan. This plan covers the manufacturing process. The total production is determined based on the sales program. The amount of stocks of material resources required for the beginning of the next period is also determined.
· Estimated general production and general business expenses... This plan includes the costs of maintaining fixed assets in good condition and the costs of managing the enterprise as a whole.
· These estimates include projected working capital - cash on hand, accounts receivable, inventory and projected short-term liabilities, that is, accounts payable, bank overdraft and other short-term liabilities.
Capital cost estimates are compiled when planning long-term operations of the enterprise. They can be divided into two groups:
· Estimates of the need for fixed assets... These include investments in assets that will generate profits in future periods.
· Estimates of the need for working capital. Each major investment is usually accompanied by a corresponding investment in working capital. This is especially true for investment projects that are related to the expansion of capacities or the development of new markets.
Preparing and evaluating capital estimates is an important part of financial management, as investments have a significant long-term impact on the future operations of an enterprise.
Calculation(from the Latin calculatio - counting, counting) is the calculation of the cost of a unit of production - 1 piece, 1 ton, 1 thousand, etc. by cost item.
Grouping costs by economic elements reflected in cost estimate for production and sales of products (works, services). It collects the costs of a common economic content, according to their natural purpose. So, for the element "Remuneration", the entire wage fund of the enterprise is shown, regardless of which category of workers it is intended for: production workers, office workers or junior service personnel. Depreciation of fixed assets also reflects the total amount of accrued depreciation from all types of fixed assets of the enterprise: machines on which products are manufactured; all types of industrial buildings, including plant management; trucks and cars, etc. The list of elements of the estimate characterizes the composition of the costs for their economic purpose. The cost estimate for the production and sale of products (works, services) is given in table. one.
The estimate collects the total amount of resources used in the production process - "Total production costs". This amount is deducted from costs not related to the production of products (works and services in the non-production area, deferred expenses, etc.) and is determined production cost of gross output. If we take into account (add or subtract) the change in the balance of work in progress in the cost of gross production, then we define the production cost of marketable products. After adding to it a group of non-production costs associated with the sale of products and the deduction of funds to higher organizations, we get full cost of commodity - products. In the estimate, the result from the production and sale of products is planned - profit or loss. All indicators of the estimate have a quarterly breakdown
The classification of costs by economic elements is important for an enterprise. The estimated cost profile allows you to determine the total volume of various types of resources consumed by the enterprise. The estimate reflects the costs of resources purchased from outside and paid to suppliers. The planned costs in the estimate meet all the needs of the enterprise related to the production and sale of products, the creation of stocks of work in progress, the provision of auxiliary production, service, subsidiary and subsidiary farms.
On the basis of the estimate, the sections of the production and financial plan of the enterprise are linked: for material and technical supply, for labor, the need for working capital is determined, etc. All types of business plans are based primarily on budget figures. The economic relations of the enterprise with suppliers of resources, with financial and credit institutions are formed using estimates of production costs.
Table 1
Cost estimate for the production and sale of products for 200_.
| Elements of the estimate | Plan for 20 y. | Including by quarters | |||
| I | II | III | IV | ||
| Raw materials and basic materials (excluding waste) | |||||
| Purchased semi-finished products and components | |||||
| Supporting materials | |||||
| Fuel from the side | |||||
| Energy from the outside | |||||
| Basic and additional wages | |||||
| Social contributions | |||||
| Depreciation | |||||
| other expenses | |||||
| Total production costs | |||||
| Costs of works and services of a non-production nature | |||||
| Change in balances of prepaid expenses (decrease<-», увеличение «+») | |||||
| Total cost of gross production | |||||
| Change in the cost of work in progress (increase "-", decrease "+") | |||||
| Production cost of marketable products | |||||
| Non-production costs | |||||
| Full cost of marketable products | |||||
| Volume of marketable products in sales prices | |||||
| Profit (+), losses (-) from the production of marketable products | |||||
| Change in the cost of unsold product balances (increase "-", decrease "+") | |||||
| Cost of goods sold | |||||
| The volume of products sold in sales prices | |||||
| Profit (+), losses (-) from products sold |
At the same time, on the basis of the estimated section, it is impossible to determine the specific direction and place of the use of costs (production process, maintenance of the workshop, maintenance of the plant management, etc.), which does not allow analyzing the efficiency of using costs, revealing reserves for their reduction. And most importantly, on the basis of the elements of the estimate, it is impossible to determine the cost of a unit of manufactured products in the context of the entire assortment, as well as each name, group, type. These tasks are solved by cost classification by items of calculation.
The main task of determining the cost is to establish the optimal level of costs, to identify savings reserves. The grouping of costs by economic elements is reflected in the estimate of costs for the production and sale of products (works, services).
The estimate collects the costs of the general economic content. For example, for the element "Basic and additional wages", the entire payroll is shown, regardless of which category of workers it is intended for.
Depreciation of fixed assets reflects the total amount of accrued depreciation from all types of fixed assets (equipment, industrial and office buildings, transport, etc.).
The cost estimate for production and implementation acts as a consolidated generalizing document. Based on the estimate,
the total costs of production and sales are added (for this, all production costs are summed up, the amount shows the total cost of production and sales.
The cost estimate calculates the cost of gross, commercial and sold products, changes in the balance of work in progress, costs are written off to non-production accounts, the profit (or loss) of sold products and costs per 1 ruble of commercial products are established. The estimated cost profile allows you to determine the total amount of consumed types of resources, determines the need for working capital.
Estimated production and sales costs are a summary calculation that summarizes the costs of manufacturing and marketing products. The estimate is drawn up by economic elements, the list and composition of which is unified. This provides cost redundancy across the items as a whole and allows you to track changes in the cost structure.
Budgeting begins with determining the cost estimate for the auxiliary shops, i.e. the products of the auxiliary shops are consumed by the main shops, the costs are included in the cost of the main shops. The cost estimate for auxiliary shops includes: own costs of the auxiliary shop, the cost of work and services performed or provided to them by other shops, the cost of work and services for other shops. Then, estimates are made for maintenance and production management (general production, general business, non-production costs), as well as estimates for certain types of special costs (estimates for commissioning, product development, transportation and procurement costs). The presence of these estimates allows you to move on to drawing up estimates of production costs for the main shops, which allows you to determine the cost estimate for the business entity as a whole.
The amount of costs according to the estimate is greater than the cost of gross production. To determine the cost of gross production, it is necessary to deduct the cost of performing work and services that are not included in the gross output from the amount of costs according to the estimate (costs associated with servicing household needs; costs
you're on capital construction; losses from natural disasters) and take into account changes in costs of future periods:
VPS \u003d Ism - Rne incl. vp + irbp,
the increase is subtracted and the decrease is summed, with
VPS - the cost of gross production, ISM - the total according to the estimate;
Rne incl. VP - expenses not included in the gross output;
Ирбп - change in expenses of future periods.
Based on the cost of gross output, the cost of marketable products is determined, which makes it possible to calculate costs per 1 ruble of marketable products (31rtp):
TPs - VPS + Rkom + Inzp.
When calculating the cost of commercial products, the cost of gross output is increased by commercial (non-production) expenses (Rcom) and is adjusted for changes in work in progress (Inzp).
In conclusion, the cost of goods sold (RPS) is determined:
RPs \u003d TPs + Igp.
The cost of goods sold is determined by adjusting the cost of marketable products for the change in finished goods in the warehouse (IGP).
Waste losses are not planned, they are included in the actual cost. The cost estimate includes the costs of all departments.
The cost estimate is drawn up without intra-plant turnover, i.e. it does not include the cost of own production.
More on the topic Question 8.3. Classification of costs by economic elements. Cost estimate:
- DIFFERENT APPROACHES TO THE CLASSIFICATION OF COSTS ON PRODUCT QUALITY OF AN INDUSTRIAL ENTERPRISE
- Question 1.3. Entrepreneurship is the most important type of economic activity. Forms and types of entrepreneurship.
