Coursework: Analysis of factors influencing the reduction of production costs.

Production cost estimates

The cost estimate is a summary plan of all expenses of the enterprise for the upcoming period of production and financial activities. It determines the total amount of production costs by types of resources used, stages of production activity, levels of enterprise management and other areas of expenditure. The estimate includes the costs of the main and auxiliary production associated with the manufacture and sale of products, goods and services, as well as the maintenance of administrative and managerial personnel, the implementation various works and services, including those not included in the main production activity of the enterprise. The planning of cost types is carried out in monetary terms for the costs provided for in annual projects. production programs, goals and objectives, selected economic resources and technological means for their implementation. All planned tasks and indicators are specified at the enterprise in the appropriate estimates, including a cost estimate of costs and results. For example, a cost estimate is drawn up as a plan of expected costs for various types of work performed and resources used. The estimate of prospective income establishes the planned cash receipts and expenses for the coming period. The cost estimate for the production of products shows the planned levels of inventories, volumes of products, cost various kinds resources, etc. The summary estimate shows all the costs and results for the main sections of the annual plan for the socio-economic development of the enterprise.

For any organization, the quality of decisions made regarding cost management is a guarantee of its effective work. The cost of production is a complex concept, and it depends on the influence of a large number of various factors. All factors, firstly, can be divided into two main categories: external origin, i.e. located outside the enterprise, and internal order. TO external factors include: changes in prices for materials, semi-finished products, fuel, tools and other valuables received by the enterprise for production needs; changing the established minimum wages, as well as all kinds of mandatory contributions, deductions and charges. The main internal factors are a decrease in the labor intensity of manufacturing products, an increase in labor productivity, a decrease in the material consumption of manufactured products, the elimination of losses from marriage, etc.

Secondly, the most important technical and economic factors affecting the level of production costs can be divided into four groups: factors determined by the technical level of production; factors determined by the level of organization of production, labor and management; factors associated with changes in the volume and range of products; national economic factors.

The first group of factors takes into account the impact of scientific and technological progress on reducing the cost of production through the introduction new technology, technology and modern resource-saving equipment, mechanization and automation of production processes, improvement of the design and technical characteristics of manufactured products. The reduction in the consumption of materials and the increase in labor productivity, achieved as a result of technological progress, can reduce the cost by reducing the cost of materials and wages with deductions from it.

The second group of factors affects the reduction of production costs by improving the methods of organizing production and labor, better use of working time, reducing the technological cycle of production and sales of products, improving production management, reducing management costs on this basis, etc. When assessing the influence of factors of this group the results of reducing downtime and loss of working time should be taken into account. The same group of factors includes improved use of basic production assets leading to lower depreciation costs.

The third group of factors takes into account the impact of changes in the volume and range of products on the cost. Thus, an increase in output on the same production areas and equipment leads to a decrease in the cost of production by reducing the share of fixed costs.

The fourth group of factors determines the impact on the cost of changes in prices, tariff rates, transport tariffs, tax rates, inflation, interest rates on bank loans, etc. The factors of the fourth group are external in relation to the industrial enterprise.

The degree of influence on the level and structure of production costs is different for each group of factors. For example, when increasing production up to a certain limit, cost reduction is achieved by reducing the share of fixed costs per unit of output, as well as by increasing labor productivity as a result of improving work skills. Raising the technical level of production has a significant impact on reducing production costs as a result of the introduction of advanced technology and production technology, modernization and replacement of obsolete equipment, mechanization and automation of production processes.

Factors affecting the cost of production can be classified according to several criteria.

To technological - change in the range of products; duration of the production cycle; improving the use and application of new types of raw materials and materials, the use of cost-effective substitutes and the full use of waste in production; improvement of production technology, reduction of its material consumption and labor intensity.

2. According to the time of occurrence, planned and sudden factors are distinguished. The enterprise can plan the following activities - commissioning and development of new shops; preparation and development of new types of products and new technological processes; optimal placement certain types products for the enterprise. Sudden (not planned) factors include production losses; change in the composition and quality of raw materials; change in natural conditions; deviations from the established production standards and others.

3. According to the place of occurrence, factors are divided into external (independent of the enterprise) and internal (depending on the enterprise). The cost of production, regardless of the enterprise, can be affected by the economic situation in the country, inflation; natural and climatic conditions; technical and technological progress; changes in tax legislation and other factors. The internal ones include the production structure of the enterprise; management structure; the level of concentration and specialization of production; duration of the production cycle.

4. According to the purpose, the main and secondary factors are distinguished. This group of factors depends on the specialization of the enterprise. If we consider material-intensive production, for example, a meat processing enterprise, then the following factors can be attributed to the main ones: prices for material resources and the consumption of raw materials and other materials; technical equipment of labor; technological level of production; production rate; nomenclature and range of products; organization of production and labor. To a lesser extent, the cost of production will be affected by the management structure; natural and climatic conditions; wages of production workers.

The cost of a unit of production is also influenced by economic and technical factors, which are divided into four groups:

1. Factors of technical level.

2. Organizational level factors.

3. Graduating level factors.

Factors of the economic level.

8. Classification of costs.

Expenses - more general concept than costs. Expenses are economically justifiable costs recognized for tax purposes. Expenses are considered as a part of expenses pr-i. Costs- all payment transactions are made, regardless of the purpose of their implementation.

Expenses- this is the valuation of production resources pr-I spent in the process of production and sale of products. We will assume that costs = costs.

1. Classification by cost elements in accordance with their economic content:

4. material costs;

5. labor costs;

6. depreciation of fixed assets;

7. deductions for social needs;

8. other costs (taxes, fees, payments).

2. By role in the production process costs are divided into fixed and overhead.

The main ones are the costs caused directly by the production process.

Overhead is the cost of servicing the production process and creating conditions for the operation of the enterprise as a whole.

According to the place of occurrence, overhead costs, in turn, are divided into:

general shop;

general production;

general business.

9. Accounting for the total cost of production. Composition of cost elements.

Accounting for the total amount of production costs is organized by economic cost elements, and accounting and calculation of the cost of certain types of products, works and services - by cost items.

The costs included in the cost of products (works, services) are grouped according to their economic content according to following elements:

material costs (minus the cost of returnable waste);

labor costs;

insurance premiums;

depreciation of fixed assets;

other expenses.

Other expenses include:

operation of buildings, premises, structures, equipment, inventory, etc.;

business trips related to production activities;

payment for communication services, services provided by third-party management organizations, in the event that the staffing table or job descriptions no management functions are provided;

payment for consulting, information and audit services;

the cost of providing security guards;

entertainment expenses, in particular the reception and maintenance of representatives of other organizations who arrived for negotiations in order to establish and maintain mutual cooperation;

payment of scholarships, payment for tuition under agreements with educational institutions for training, advanced training and retraining of personnel;

reimbursement to employees of transportation costs (in the form of payment for received travel documents);

amortization of intangible assets;

selling expenses;

Typical costing items that form the cost of products, works and services are:

materials;

returnable waste (subtracted);

purchased semi-finished products;

auxiliary materials;

fuel and energy for technological needs;

the basic wages of production workers;

additional wages for production workers;

insurance premiums;

costs of preparation and development of production;

overhead costs;

general running costs;

losses from marriage;

selling expenses.

Here is more if you wake up a little =) http://www.aup.ru/books/m203/7_2.htm

10. Definition, purpose and methods of calculating depreciation of fixed assets.

Depreciation of fixed assets

Depreciation is the process of gradual transfer of the value of fixed assets to manufactured products (works, services).

Why it is needed: There are several points of view on the economic meaning of depreciation. Some experts believe that with the help of the depreciation mechanism, cash flows are created that will later be directed to the reproduction of fixed assets, others consider depreciation as a way of spreading large-scale expenses over periods, according to the accrual principle.

Example: A firm works, spends money on production, manufactures products, sells them. After the product is released, its cost is formed, the desired profit is added to the cost, as a result, the price is formed. The costs of fixed assets are to be included in the cost of production on a straight-line basis, because if all costs are written off at a time to the cost price, product prices will increase many times and become uncompetitive.

The depreciation amount is determined monthly, separately for each depreciable property, i.е. for fixed assets subject to depreciation.

The annual amount of depreciation deductions is determined by:

with the straight-line method - based on the original cost or (current (replacement) cost (in the event of a revaluation) of an item of fixed assets and the depreciation rate calculated based on the useful life of this item;

with the reducing balance method - based on the residual value of the fixed asset at the beginning of the reporting year and the depreciation rate calculated on the basis of the useful life of this item and a coefficient not higher than 3 established by the organization;

when the method of writing off the cost by the sum of numbers of years of the useful life - based on the original cost or (current (replacement) value (in the event of a revaluation) of the fixed asset and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object, and in the denominator - the sum of the numbers of years of the useful life of the object.

During the reporting year, depreciation charges on fixed assets are accrued monthly, regardless of the accrual method used, in the amount of 1/12 of the annual amount.

For fixed assets used in organizations with a seasonal nature of production, the annual amount of depreciation on fixed assets is accrued evenly during the period of operation of the organization in the reporting year.

With the method of writing off the cost in proportion to the volume of production (work), depreciation is charged based on the natural indicator of the volume of production (work) in the reporting period and the ratio of the initial cost of the fixed asset object and the estimated volume of production (work) for the entire useful life of the fixed asset object.

Depreciation is not charged for:

fixed assets, consumer properties which do not change over time (land plots, nature management objects, objects classified as museum objects and museum collections, etc.).

housing stock (if they are not used to generate income)

objects of external improvement and other similar objects of the road economy

productive livestock

perennial plantations that have not reached operational age

fixed assets used to implement the legislation of the Russian Federation on mobilization preparation and mobilization, which are mothballed and are not used in the production of products, in the performance of work or the provision of services, for the management needs of the organization or for provision for a fee for temporary possession and use or for temporary use

11) Direct costs are costs that can be attributed directly to a specific cost object in an economically feasible way.

Indirect costs are costs that cannot be attributed directly to a particular cost object in an economically viable way.

Direct costs can be directly attributed to a product, service, order, or other specific medium. Indirect costs can be directly attributed to the carrier only by performing auxiliary calculations.

The classification of costs as direct or indirect depends on what is the cost object. For example, depreciation of machine tools and heating of a shop are direct costs in relation to this shop, but are indirect costs in relation to certain types of products that are produced in this shop.

Thus, the same costs can be direct and indirect in relation to different objects.

12) Logistics costs are a monetary expression of the labor force used, means and objects of labor, financial costs and various negative consequences of force majeure events that are caused by the promotion of material values (raw materials, materials, goods) at the enterprise and between enterprises, as well as maintaining stocks.

To take into account changes in production volumes, it is customary to divide costs by variables and conditionally permanent. TO variable costs include those components that change in proportion to the scale of logistics activities. These can be the cost of using automotive fuel or the cost of raising capital to finance reserves (if it is raised solely to finance reserves and varies in proportion to the volume of reserves), etc.

Semi-fixed logistics costs are cost components that do not change within certain boundaries of logistics activities, for example, storage costs depend more on the overall potential of the warehouse (its area or capacity) than on the degree to which this potential is used.

13) Break-even point - the minimum volume of production and sales of products at which costs will be offset by income, and in the production and sale of each subsequent unit of production, the enterprise begins to make a profit. The break-even point can be determined in units of production, in monetary terms, or taking into account the expected profit margin.

Synonyms: critical point, CVP-point.

Not to be confused with the payback point (of the project). It is calculated to determine the time when the profit of the project exceeds the costs spent on it, this is the same break-even point, only it is measured not in pieces, but in months and years.

The break-even point in monetary terms is such a minimum amount of income at which all costs are fully paid off (the profit is zero in this case)

The break-even point determines what the sales volume should be in order for the company to break even, to cover all its expenses without making a profit. In turn, how profit grows with a change in revenue is shown by the Operating leverage (operating leverage).

To calculate the break-even point, you need to divide the costs into two components:

Variable costs - increase in proportion to the increase in production (the volume of sales of goods).

Fixed costs - do not depend on the number of products produced (goods sold) and on whether the volume of operations is growing or falling.

The break-even point is of great importance in terms of the viability of the company and its solvency. So, the degree of excess of sales volumes over the break-even point determines the margin of financial strength (margin of stability) of the enterprise.

The target profit method, taking into account break-even - provides for the following steps:

1. Determination of the desired rate of net return on capital.

2. Determination of the absolute value of the target profit.
3. Establishing a price range for competing products

(alternative options).

4. Determination of the volume of break-even issue ( break-even points ) for each price option.

5. Determining the amount of output (sales) of goods that provide the desired net profit.

6. Estimation of the probability of selling the quantity of goods that provides the target profit.

7. Choice of the level of application of the price and volume of output (sales).

14)
The word "calculation" means the calculation of the cost of production. In modern economic literature calculation defined as a system economic calculations the cost of certain types of products (works, services). In the process of costing, production costs are compared with the quantity of products produced and the unit cost of production is determined.

The task of calculation is to determine the costs that fall per unit of their carrier, that is, per unit of production, order, service, work intended for sale, as well as internal consumption.

The end result of costing is to leave cost 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.

Standard cost estimate is compiled for the planning period on the basis of the norms and estimates in force at the beginning of the period.

Estimated costing is calculated when designing new production facilities 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.

Calculation allows you to study the cost of specific products obtained in the production process.

15) Transaction costs in logistics
Transaction costs - costs arising in connection with the conclusion of contracts (including using market mechanisms); costs accompanying the relationship of economic agents. Allocate

The costs of collecting and processing information,

costs of negotiations and decision making,

control costs

The costs of legal protection of the performance of the contract by the use of the market.

Transaction costs are a central concept of neo-institutional economics and the Transaction Cost Theory. Ronald Coase, conducting a thought experiment describing an economy without transaction costs, showed that in this case the action of social institutions becomes unimportant (respectively, economic formations become unimportant), since people can agree on any profitable solution at no cost.

The production process always requires certain costs, but in the LAN, where there are several participating organizations, in addition to internal costs, transaction costs also arise, which include all costs (for interconnections in the supply chain, in addition to own costs, production of trade and services). This type of costs, called transaction costs, is of particular importance for LANs, where there are a variety of material, informational and financial flows.

Under transaction costs the costs of economic interaction between economic entities are understood. In order for a transaction to take place, it is necessary to collect information about the prices and quality of goods and services, agree on its conditions, control the conscientiousness of its implementation by the partner, and obtain compensation in case of termination of the transaction.

Therefore, transactions are associated with various losses and costs, which must be considered as a separate category.

Behind any communication in a LAN there are costs for its implementation, and transaction costs are a kind of “friction force” economic system. Transaction costs in LS include the costs of making decisions, developing plans and organizing future activities, negotiating its content and conditions when two or more participants enter into a business relationship; costs associated with changing plans, renegotiating the terms of the transaction and resolving disputes when new circumstances dictate it; costs incurred by compliance with the agreements by all participants *. Transaction costs (TAI) also include any losses arising from:

• inefficiency of joint decisions, plans, agreements and established structures;

• inefficient responses to changing conditions;

• ineffective protection of agreements.

The level of transaction costs is determined by the characteristics of transactions. Transactions differ in terms of what demands they make on the limited rational abilities of economic agents acting in the LAN, and what scope is left for their "opportunistic" behavior. For each type of transaction, special coordinating and protective mechanisms are created to mitigate possible friction and losses associated with it.

Boiler method for calculating the cost of production

The boiler method of calculating the cost of production is the least common in practice. This is due to the fact that its information content is minimal: accounting can provide information only about what it cost the organization to produce all products. Usage this method justified only for small enterprises or for industries where homogeneous products are produced - the so-called mono-product industries (for example, in the coal mining industry for calculating the cost of coal or shale in individual mines or open pits). The cost of a unit of production in boiler accounting is the result of dividing the total amount of costs accumulated over the period by the volume of produced products in natural terms (in our example, by the number of tons of coal).

Custom method of calculating the cost of production

The order-by-order method of calculating the cost of production got its name due to the fact that the object of calculation is a production order opened for a product (a small group of products), separate work or a service. As a rule, each order is intended for a separate customer, consumer, recipient, and the quantity of products (products) for each order is known in advance. The actual cost of products manufactured to order is determined only after it has been completed by summing up all the costs for it. To determine unit cost, the total cost of the order is divided by the number of items produced. Therefore, the principal feature of the order-by-order method is the formation of the volume of costs for each completed order, and not for a period of time. The custom method is used for single or small-scale production of products, as well as for calculating the cost of repair and experimental work.

Examples of custom production are construction, science and intellectual services (audit, consulting), printing and publishing business, furniture industry, repair services, etc.

Proper (by-process) method of calculating the cost of production

The line-by-line method of accounting is used in enterprises with a homogeneous source material and the nature of the processing of mass products, in which physicochemical and thermal production processes predominate, and with the transformation of raw materials into finished products under conditions of a continuous and, as a rule, short technological process or a series of sequential production processes, each of which or a group of which constitutes separate independent redistributions (phases, stages) of production (for example, in the chemical and metallurgical industries, a number of forestry, light and Food Industry and etc.). The progressive method of accounting is also used in industries with the integrated use of raw materials.

The method received the name peredelenny (by-process) due to the fact that the object of calculation is a redistribution or some process. At the same time, the redistribution (process) is understood as the finished part of the technological process, which ends with the release of an intermediate or final product (semi-finished product or finished product). The allocation of each intermediate product is carried out on the condition that it has its own direction of use, which means that it can be sold to the side.

The transverse method is characteristic:

for mass production, in which finished products are produced by processing raw materials (blanks) at several stages (processing stages, processes) following one after another;

for the production of sufficiently homogeneous products;

in the case of a short technological cycle;

provided that the entire production process can be broken down into constantly repeating operations.

Progressive (per-process) costing is typical for industries where products are transferred from one unit (process) to another until the product is completely manufactured. Cost accounting with this method is carried out according to the stages (phases) of the production process, for example, at textile mills - in three stages: spinning, weaving finishing production. Classical examples of cross-cutting production are the chemical industry, oil refining, metallurgy, textile, cement, paint and varnish, food, flour milling, pulp and paper, and glass industries. Sufficiently effectively, cross-sectional accounting can be used in large-scale mechanical engineering (for example, in the automotive industry).

Cost of products (works, services)- these are the current costs of the enterprise for the production and marketing of products (works, services) expressed in monetary terms.

The cost of production is a capacious, diverse and dynamic economic category. It is the most important quality indicator that shows what the production and marketing of products costs the enterprise. The lower the cost, the higher the profit and, accordingly, the profitability of production.

The company needs to calculate the cost of production for:

Estimates of the implementation of the plan for this indicator and its dynamics;

Determining the profitability of production and certain types of products;

Implementation of intra-production cost accounting;

Identification of reserves to reduce the cost of production;

Determination of product prices;

Calculation of the economic efficiency of the introduction of new equipment, technology, organizational and technical measures;

Justification of the decision on the production of new types of products and the removal from production of obsolete products, etc.

The cost of production includes various types of costs that depend and do not depend on the operation of the enterprise, arising from the nature of this production and not directly related to it.

The influence of the state on the formation of the cost of production is manifested in the following cases:

Division of enterprises' costs into current production costs and long-term investments;

Separation of enterprises' costs into those attributable to the cost of production and reimbursed from other sources of financing (financial results, special funds, targeted financing and targeted income, etc.);

Establishment of norms for depreciation of fixed assets, tariffs for deductions for social needs, the amounts of various taxes and fees.

In addition, it must be borne in mind that at enterprises, although part of the costs is included in the cost of production in the amount actually produced, for tax purposes their amounts are adjusted taking into account the limits, norms, standards and rates approved in the prescribed manner (travel expenses, hospitality expenses ).

The cost estimate may vary depending on the following factors:

1) depending on the degree of readiness of products and their implementation, the cost of gross, marketable, shipped and sold products is distinguished;

2) depending on the quantity of products - the cost of a unit of production, the total volume of output;

3) depending on the completeness of the inclusion of current costs in the cost of the object of calculation - the full actual cost and reduced (truncated) cost;

4) depending on the efficiency of cost formation - actual, normative, planned;

5) depending on the cost accounting center, allocate:

a) shop cost - represents the costs of the shop associated with the production of products;

b) production cost - in addition to the costs of workshops, it includes general business expenses;

c) full cost - reflects all costs of production and sales, the sum of the production cost and selling expenses.

Thus, it is clear that in the theory and practice of accounting there is more than one concept of cost, and it is necessary each time to clarify which of the indicators in question.

One of the main conditions for obtaining reliable information about the cost of production is a scientifically based classification of costs included in its composition.

Cost Accounting

The method of calculating the cost of production, in which direct costs are calculated based on the actual amount of resources consumed and actual prices, and indirect costs based on the actual distribution ratio, is called actual costing.

Actual Costs = Actual Number of Resources Used x Actual Price of Resources Used

(See the concept of cost in question 17)

This method is widely used to justify the following decisions: setting a long-term price threshold, changing the portfolio of orders.

P total cost- production cost, increased by the amount of selling and marketing expenses. This indicator integrates the total costs of the enterprise associated with both production and sales of products.
Full cost - the sum of the costs associated with the production of products and the costs of its implementation (production cost + selling expenses).

19)
Standard costing

Standard costing (standard costing) - a system of cost accounting and costing using standard costs. Standard costs are called costs, the value of which is set in advance and which serve as the necessary guidelines, as well as indicators of the extent to which it was possible to achieve the intended goals. Standard costs consist of 3 main elements of manufacturing costs: material costs, labor costs and general manufacturing costs.

The Standard Costing system is based on following principles:

1. preliminary rationing of costs by elements and cost items;

2. drawing up standard calculations for the product and its components;

3. separate accounting of standard costs and deviations;

4. analysis of deviations;

5. clarification of calculations when changing norms.

20)
Direct costing

In 1936, the American economist Jonathan Garrison created the "Direct Costing" doctrine, according to which only direct costs should be taken into account in the cost price.

Direct costing is a method based on the division of costs into fixed and variable depending on the change in production volumes, which allows you to objectively reflect the impact on the magnitude of the change in production volume.

Main Feature direct costing is that the cost is taken into account and planned only in terms of variable costs, since it is assumed that the fixed ones remain unchanged.

When using this method, fixed costs are not included in the cost of production and are written off directly to reduce the profit of the organization, and the difference between the proceeds from the sale of products and variable costs is marginal income.

The Direct Costing system uses the following model for generating financial results from the sale of products (works, services):

Revenue (net) from the sale of products (works, services)

variable costs

Marginal income

fixed costs

Profit (loss) from sales

Direct costing allows management to focus on changes in marginal income both for the enterprise as a whole and for various products; identify products with greater profitability in order to switch mainly to their production, tk. the difference between the selling price and the sum of variable costs is not obscured by writing off fixed costs to the cost of specific products. The system provides the ability to quickly reorient production in response to changing market conditions.

Despite the fact that accounting standards do not allow the full use of the Direct Costing system for external reporting and tax calculation, this method now finds more and more widespread use in domestic accounting practice. It is used in internal accounting to conduct a feasibility study and justification for the adoption of both prospective and operational management decisions in the field of break-even production, pricing, etc.

However, the organization of management accounting according to the direct costing system is associated with a number of problems that arise from the features inherent in this system.

1. Difficulties arise when dividing costs into fixed and variable, since there are not so many purely fixed or purely variable costs. Basically, the costs are semi-variable, which means that there are difficulties in their classification. Besides, in various conditions the same expenses can behave differently.

2. Opponents of direct costing believe that fixed costs are also involved in the production of this product and, therefore, should be included in its cost. Direct costing does not answer the question of how much the manufactured product costs, what is its full cost. Therefore, additional distribution of conditionally fixed costs is required when it is necessary to know the total cost finished products or work in progress.

3. Maintaining cost accounting for a reduced nomenclature of items does not meet the requirements of domestic accounting, one of the main tasks of which until recently was the preparation of accurate estimates.

MACO– marginal cost– margin, marginal income, marginal revenue. Shows the amount of profit from production activities without fixed costs. Of course, this indicator is of interest not only in absolute value but also in percentage terms. The following are the items of fixed costs and the corresponding indicators of financial results:

The method of accounting and costing for the functions of "AVS-costing".

This is a method of accounting and costing for activities (Activity-Based Costing).

The ABC method is based on the fact that costs are generated as a result of performing certain operations. The costing process involves costing in 3 steps:

At the first stage, the cost of indirect costs is transferred to resources in proportion to the selected cost drivers. Knowing the reasons for the occurrence of each group of indirect costs, it is possible to more reasonably attribute them to the cost of a particular type of product or service. Therefore, first of all, it is necessary to correctly identify the factors that determine them (cost drivers).

At the second stage, the structure of operations (actions) necessary to create products is developed. After this, the cost of resources calculated in the previous step is transferred to operations (actions) in proportion to the selected resource drivers.

At the third stage, the cost of operations is "absorbed" by cost objects in proportion to the drivers of operations. The result is an accurately calculated cost of cost objects, such as products or services.

The main advantage of accounting and costing by activity is that it is more accurate than traditional method distribution of costs calculation of the cost of the product. This characterizes more informed pricing decisions.

Advantages of the method:

- cost reduction. The real picture of costs makes it possible to more accurately determine the types of costs that need to be optimized.

- pricing policy . The exact allocation of costs to the objects of calculation allows you to determine the lower limit of prices, a further decrease in which relative to such a limit leads to unprofitability of the product.

- product assortment policy. The real cost allows you to develop a program of action in relation to a particular product - to withdraw from production, optimize costs or maintain at the current level.

- transaction cost estimates. You can decide whether it makes sense to outsource certain operations or whether organizational changes are necessary.

22. The concept of management at the target cost "Target-costing".

It is a holistic management concept that supports the cost reduction strategy and implements the functions of planning the production of new products, preventive cost control and target costing in accordance with market realities.

The very idea underlying the concept is simple and revolutionary at the same time. Japanese managers simply turned the traditional pricing formula inside out:

Cost + Profit = Price,

which in the concept was transformed into equality:

Price - Profit = Cost.

The "target-costing" system, in contrast to traditional pricing methods, provides for the calculation of the cost of a product based on a pre-set selling price. This price is determined with the help of market research, i.e. is actually the expected market price of the product or service.

To determine the target cost of the product, the amount of profit that the company wants to receive is subtracted from the expected market price. Further, all participants in the production process - from the manager to a simple worker - work to design and manufacture a product that meets the target cost.

Advantages of the method:

1. An integrative approach to developing a new product provides a step-by-step understanding of every nuance regarding the cost. Managers and employees, striving to get closer to the target cost, often find new, non-standard solutions in situations that require innovative thinking.

When carrying out economic and production activities at any enterprise, raw materials, materials, fuel, energy are naturally consumed, wages are paid to employees, payments are deducted for their social and pension insurance, depreciation is charged, and a number of other necessary costs are made. Through the circulation process, these costs are constantly reimbursed from the company's proceeds from the sale of products (works, services), which ensures the continuity of the production process. To calculate the amount of all expenses of the enterprise, they must be brought to a common denominator, that is, presented in monetary terms. This indicator is the cost.

The cost of production (works, services) is a complex indicator on the basis of which one can judge the efficiency of the use of various types of resources by an enterprise, as well as the level of labor organization at an enterprise. The cost of production is interconnected with indicators of production efficiency. It reflects a large part of the cost of production and depends on changes in the conditions of production and sale of products.

The cost price includes all the costs of the enterprise for the production and marketing of these products in the context of cost items.

The cost of products or services is one of the most important economic indicators of the activities of enterprises, expressing in monetary terms all the costs of the enterprise associated with the production and sale of products or services.

The cost structure has a number of components. Chief among them is wages.

The cost includes the costs of past labor transferred to the product (depreciation of fixed assets, the cost of raw materials, materials, fuel and other material resources) and the cost of remuneration of employees of the enterprise (wages).

The costs of enterprises included in the cost of production are divided into direct and indirect. Direct costs include costs directly related to the manufacture of products and accounted for in a direct way for its individual types: the cost of basic materials, fuel and energy for technological needs, the wages of basic production costs, etc. Indirect costs include costs that are impossible or impractical to directly to attribute to the cost of specific types of products: shop expenses, general production costs for the maintenance and operation of equipment.

The cost of production is a qualitative indicator that characterizes the production and economic activities of a manufacturing enterprise. The cost of production is the cost of the enterprise in monetary terms for its production and marketing. 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 capacities; profitability of the use of material and labor resources and other conditions and factors that characterize production and economic activity.

In the Big Economic Dictionary compiled by A.B. Borisov, the cost price is given the following definition: it is the valuation of products (works, services) used in the production process natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production and sale.

In other words, the cost of production (works, services) shows what the production and sale of products (works, services) costs for each organization, how diverse the costs incurred are.

However, the cost estimate may vary depending on the following factors:

a) depending on the degree of readiness of the product and its implementation, the cost of gross, marketable, shipped and sold products is distinguished;

b) depending on the quantity of products - the cost of a unit of production, the total volume of output;

c) depending on the completeness of the inclusion of current costs in the cost of the object of calculation - the full actual cost and reduced (truncated) cost;

d) depending on the speed of formation of the cost - actual (historical, "posthumous") or regulatory, planned.

Thus, it is clear that in the theory and practice of accounting there is more than one concept of cost, and it is necessary each time to clarify which of the indicators in question.

The determination (calculation) of the amount of costs per unit of production is called costing, and the statement (register) in which the cost is calculated is called costing.

Calculating the cost of products (work performed, services rendered) is one of the main issues accounting. On the one hand, a reliable and detailed cost calculation is necessary for internal users of accounting information - administration, founders, owners. This data allows you to determine how profitable a particular type of activity in certain economic conditions whether the existing system of organizing the production process is effective, what can and should be changed, in what direction to develop. On the other hand, the composition of the organization's production costs is one of the most important indicators necessary for the calculation and payment of mandatory tax payments, primarily income tax. Errors in costing can lead to serious tax consequences.

Factor classification

Factors affecting the cost of production can be classified according to several criteria.

The technical ones include, for example, the introduction of new progressive technology, mechanization and automation of production, scientific and technological achievements, improved use of fixed assets, technical and energy equipment of labor.

According to the time of occurrence, planned and sudden factors are distinguished. The enterprise can plan the following activities - commissioning and development of new shops; preparation and development of new types of products and new technological processes; optimal placement of certain types of products in the enterprise. Sudden (not planned) factors include production losses; change in the composition and quality of raw materials; change in natural conditions; deviations from the established production standards and others.

According to the place of occurrence, factors are divided into external (independent of the enterprise) and internal (depending on the enterprise). The cost of production, regardless of the enterprise, can be affected by the economic situation in the country, inflation; natural and climatic conditions; technical and technological progress; changes in tax legislation and other factors.

The internal ones include the production structure of the enterprise; management structure; the level of concentration and specialization of production; duration of the production cycle.

By appointment, the main and secondary factors are distinguished. This group of factors depends on the specialization of the enterprise. If we consider material-intensive production, for example, a meat processing enterprise, then the following factors can be attributed to the main ones: prices for material resources and the consumption of raw materials and other materials; technical equipment of labor; technological level of production; production rate; nomenclature and range of products; organization of production and labor. To a lesser extent, the cost of production will be affected by the management structure; natural and climatic conditions; wages of production workers; structure of other costs and other factors.

Ways to reduce production costs

The following main directions for reducing the cost of production of an industrial enterprise can be distinguished:

1. Raising the technical level of production. This is the introduction of a new, progressive technology, mechanization and automation of production processes; improving the use and application of new types of raw materials and materials; change in the design and technical characteristics of products; other factors that increase the technical level of production. For this group, the impact on the cost of scientific and technological achievements and best practices is also analyzed.

Cost reduction can occur when creating automated systems management, use of computers, improvement and modernization of existing equipment and technology. Costs are also reduced as a result of the integrated use of raw materials, the use of economical substitutes, and the full use of waste in production. A large reserve conceals the improvement of products, the reduction of their material and labor intensity, the reduction in the weight of machinery and equipment, the reduction overall dimensions and etc.

2. Improving the organization of production and labor. Cost reduction can occur as a result of changes in the organization of production, with the development of production specialization; improvement of production management and cost reduction; improving the use of fixed assets; improvement of material and technical supply; reduction of transport costs; other factors that increase the level of organization of production.

A serious reserve for reducing the cost of production is the expansion of specialization and cooperation. At specialized enterprises with mass-flow production, the cost of production is much lower than at enterprises that produce the same products in small quantities.

The reduction in current costs occurs as a result of improving the maintenance of the main production, for example, the development of mass production, the streamlining of auxiliary technological work, the improvement of the tool economy, and the improvement of the organization of control over the quality of work and products. A significant reduction in the cost of living labor can occur with a reduction in the loss of working time, a decrease in the number of workers who do not fulfill production standards. Additional savings arise from the improvement of the management structure of the enterprise as a whole. It is expressed in the reduction of management costs and in the savings in wages and accruals on it in connection with the release of managerial personnel.

With the improvement of the use of fixed assets, the cost reduction occurs as a result of an increase in the reliability and durability of equipment; improving the system of preventive maintenance; centralization and introduction of industrial methods of repair, maintenance and operation of fixed assets.

The improvement of material and technical supply and the use of material resources is reflected in a decrease in the consumption rates of raw materials and materials, a decrease in their cost by reducing

procurement and storage costs. Transportation costs are reduced as a result of lower costs for the delivery of raw materials and materials, for the transportation of finished products.

Certain reserves for cost reduction are incorporated in the elimination or reduction of costs that are not necessary in the normal organization of the production process (excessive consumption of raw materials, materials, fuel, energy, additional payments to workers for deviation from normal working conditions and overtime, payments for regressive claims, etc.). P.). This also includes the most common production losses, such as losses from marriage. Identification of these unnecessary costs requires special methods and attention of the enterprise team. The elimination of these losses is a significant reserve for reducing the cost of production.

The next factor affecting the cost of production is labor productivity. At the same time, it must be taken into account that the reduction in the cost of production is largely determined by the correct ratio of the growth rates of labor productivity and wage growth. The growth of labor productivity should outpace the growth of wages, thus ensuring a reduction in the cost of production.

Let us consider under what conditions, with the growth of labor productivity at enterprises, labor costs per unit of output are reduced. An increase in production output per worker can be achieved through the implementation of organizational and technical measures, due to which the production rates and, accordingly, the prices for the work performed are changed and by overfulfilling the established production standards without organizational and technical measures.

In the first case, the enterprise receives savings on the wages of workers. This is explained by the fact that in connection with the reduction in prices, the share of wages in the unit cost of production decreases. However, this does not lead to a decrease in the average wages of workers, since the ongoing organizational and technical measures make it possible

workers with the same labor costs to produce more products.

In the second case, the cost of wages of workers in the unit cost of production does not decrease. But with the growth of labor productivity, the volume of production increases, which leads to savings in other items of expenditure, in particular, the costs of servicing production and management are reduced.

It is also important to reduce shop floor and general factory costs. This consists primarily in simplifying and reducing the cost of the administrative apparatus, in saving on administrative expenses; as well as in reducing the cost of wages of auxiliary and ancillary workers.

3. A change in the volume and structure of products can lead to a relative decrease in semi-fixed costs (except for depreciation), depreciation deductions, a change in the range and range of products, and an increase in their quality. With an increase in production volume, the number of semi-fixed costs per unit of production decreases, which leads to a decrease in its cost.

Changing the range and range of products is one of the important factors affecting the level of production costs. With different profitability of individual products (in relation to the cost), shifts in the composition of products associated with improving its structure and increasing production efficiency can lead to both a decrease and an increase in production costs.

4. Better use of natural resources. This takes into account: changes in the composition and quality of raw materials; changes in field productivity, volumes preparatory work during extraction, methods of extraction of natural raw materials; change in other natural conditions. These factors reflect the influence of natural (natural) conditions on the amount of variable costs.

5. Industry and other factors: commissioning and development of new workshops, production units and industries, preparation and development of production in existing associations and enterprises; other factors.

Significant reserves are laid down in the reduction of costs for the preparation and development of new types of products and new technological processes, in the reduction of the costs of the start-up period for newly commissioned shops and facilities.

The impact on the cost of commercial products of changes in the location of production is analyzed when the same type of product is produced at several enterprises that have unequal costs as a result of the use of various technological processes. At the same time, it is advisable to calculate the optimal distribution of certain types of products among the enterprises of the association, taking into account the use of existing capacities, reducing production costs and, based on a comparison of the optimal variant with the actual one, identify reserves.

If changes in the value of costs in the analyzed period were not reflected in the above factors, then they are referred to others: for example, a change in the size or termination of various kinds of mandatory payments, a change in the value of costs included in the cost of production, etc.

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Coursework: Analysis of factors influencing the reduction of production costs.

Send your good work in the knowledge base is simple. Use the form below

Similar Documents