Cost estimate for production and sales of products represents a consolidated plan of all expenses of the enterprise for the upcoming period of production and financial activities. It is compiled in order to determine the total amount of the enterprise’s costs (by economic elements) and the mutual coordination of this section with other sections of the enterprise’s business plan.
The cost estimate includes all costs of the main and auxiliary divisions of the enterprise involved in the production of industrial products, as well as the performance of non-industrial works and services both for the farms of the enterprise (capital construction, etc.) and for third-party organizations.
The cost estimate also includes costs for mastering the production of new products, costs for preparing production, costs for marketing products, etc.
In the estimate, production costs are grouped by primary elements according to economic basis. Cost estimates are made for the year and distributed quarterly. Based on the cost estimate, the structure of the product cost is determined; in addition, the estimate is the basis for calculating working capital.
Costs in the estimate are grouped according to the following economic elements:
· material costs (minus the cost of returnable waste);
· labor costs;
· deductions for social needs;
· depreciation of fixed assets;
· other costs.
Material costs include:
Cost of raw materials and purchased semi-finished products;
Fare;
Cost of fuel, electricity.
Labor costs include:
Basic salary, bonuses, year-end remuneration, allowances for professional excellence and additional pay for night hours, overtime, combination of professions, expansion of service areas, for work in difficult, harmful conditions;
Price utilities;
Cost of protective clothing issued free of charge; travel to a place of rest; payment for teenagers' preferential hours; breaks in the work of nursing mothers; performance of government duties;
Payments to employees in connection with layoffs; long service pay; payment of vacations to students.
Contributions for social needs are 26% and include:
Social insurance contributions;
State Fund employment;
Health insurance.
Depreciation of fixed assets:
The element "Depreciation of fixed assets" reflects the amount of depreciation charges for the complete restoration of fixed assets production 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 improvement proposals; loan payments, payment for product certification work; payment for fire protection; personnel training; payment for services of computer centers and banks; rent payment, repair fund.
The totality of these costs for the elements listed in paragraphs 1-5 constitutes the total cost of production. However, the total amount of costs reflected in the cost estimate includes not only the costs of producing marketable products, but also costs associated with the increase in work in progress balances (including semi-finished products own production), deferred expenses and the provision of services not included in commercial products.
To determine the production cost of commercial products, it is necessary:
1) from the total amount of production costs, exclude costs attributed to non-production accounts (cost of capital construction work and major renovation buildings and structures that were carried out for their enterprise, transport services provided to third-party organizations, non-industrial enterprises, the cost of research work performed for third-party organizations, etc.);
2) take into account the change in balances of deferred expenses (if they increase, the amount of increase is subtracted from the amount of production costs, and if they decrease, it is added);
3) take into account the change in the balances of work in progress (in industries where it is planned): an increase reduces the cost of marketable products, a decrease increases it.
The amount received after making the changes provided for in paragraphs (1), (2) and (3) is production cost of commercial products. For determining full cost of commercial products It is necessary to add commercial expenses to its production cost, which include the cost of packaging products in a warehouse, transporting products, commission fees and other costs associated with the sale of products. Full cost commercial products differ 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 sold products, it is necessary to add to the total cost of marketable products the cost of the remaining unsold products at the beginning of the planning period and subtract the cost of the remaining unsold products at the end of the planning period.
Production cost estimates are used in development financial plan enterprises 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:
· current cost estimates;
· capital cost estimates.
Current cost estimates - These are estimates that reflect current transactions in the normal course of business. production process.
The main estimates of the current costs of the enterprise are:
· Sales program. This is the most important plan enterprises, since the volume of operations of any department directly depends on the volume of sales. All other plans are drawn up on the basis of the sales program. The development of a sales program must be given Special attention. If you fail to make it as realistic as possible, then other estimates will be erroneous.
· Production plan. This plan covers the production process. The total production volume is determined on the basis of the sales program. The amount of reserves of material resources required to begin the next period is also determined.
· Estimate of general production and general economic 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 planned working capital - cash, accounts receivable, inventories and planned short-term liabilities, that is, accounts payable, bank overdraft and other short-term liabilities.
Capital Cost Estimates compiled when planning long-term operations of an enterprise. They can be divided into two groups:
· Estimates of the need for fixed assets. They involve investments in assets that will generate profits in future periods.
· Estimates of working capital requirements. Every major investment is usually accompanied by corresponding investments in working capital. This especially applies to investment projects that involve expanding capacity or developing new markets.
Preparing and estimating capital cost estimates is an important part of management financial activities, since investments have a significant long-term impact on the future activities of the enterprise.
By calculation(from Latin calculatio - counting, counting) is called the calculation of the cost of a unit of production - 1 piece, 1 ton, 1 thousand, etc. by cost item.
When deciding on the advisability of opening a new production, any entrepreneur spends not only on purchasing equipment, but also draws up a document such as an estimate of production costs. In a general sense, this is a collection of expense items, divided into several items.
The production cost estimate is a set of planned costs, expressed in monetary terms and associated mainly with the execution of work and production of products corresponding to the company's production program. As a rule, the estimate is developed on the basis of a unified nomenclature of economic elements. The preparation of these documents is of great importance in the process. When preparing such an important document as an estimate of the costs of production, it is necessary to take into account not only the principle of minimum cost. This point is significant, since in most enterprises, in order to achieve success, the coordinated work of production and marketing structures is needed. Sales specialists must know what the consumer wants more at a particular point in time in a certain market segment, what is preferred, price or quality. Based on these data, the costs of implementing such a program should be formed and it is advisable to include them in the production cost estimate. Such close cooperation in the work of individual structures of the enterprise makes it possible to significantly reduce production costs per unit of production.
When planning production, you should rely not only on the cost of production, but also on the need for it, since if there is adequate demand, you can increase sales volumes, thereby reducing production costs over time, which, no doubt, will be reflected in the estimate.
In most cases, the cost estimate for production of products is a generalized document of a consolidated type. This is where the negative aspects of budgeting lie, since such summary estimates are often very arbitrary and are not always accurate. At best, the actual cost of the costs will differ slightly from their estimated cost. Based on the estimate, the level of costs for production, as well as the sale of goods from the nomenclature list of the enterprise, is established.
Using the cost estimate, the cost of sold commodity and gross output is calculated, the movement of balances is also recorded. Among other things, taking into account this document, costs are written off to non-production accounts and the amount of profit from sales is established. For analysis production costs The estimated section makes it possible to see the total volume of consumption for each type of resource, as well as determine the level of need for current assets. Basically, the estimate is based on economic elements, the composition and list of which are homogeneous. This production cost accounting system has not exhausted its relevance over time, since with its help you can easily monitor changes occurring in
When drawing up an estimate, auxiliary components are initially taken into account. production sites, since their products are included in the cost of main production. Having prepared estimates of this type, we move on to production cost estimates for the main production departments. As a result, it can be noted that the preparation of cost estimates in the production process leaves its mark on the final cost per unit of production.
| Parameter name | Meaning |
| Article topic: | Production cost estimate |
| Rubric (thematic category) | Production |
Production cost estimate – These are the costs of an enterprise associated with the main activity for a certain period, regardless of whether they are included in the cost of production in a given period or not. For this reason, the production estimate and the cost of the entire volume of production do not coincide.
The production cost estimate characterizes the entire amount of expenses of the enterprise in the context of economically homogeneous elements. The industry has adopted the following grouping of costs by economic elements:
A) material costs include costs for:
Raw materials and supplies (minus the cost of returnable waste at the price of their possible use or sale);
Purchased components and semi-finished products;
Supporting materials;
Fuel and energy spent on technological or economic needs;
Production services of third-party enterprises, as well as their own farms not related to the main activity, and some other expenses.
b) labor costs – include expenses for remuneration of industrial and production personnel of the enterprise, including bonuses, incentives and compensation payments;
V) social contributions – contributions to extra-budgetary funds (pension, social insurance, compulsory health insurance, etc.) according to established standards from labor costs;
G) depreciation of underlying assets – costs equal to the amount of depreciation charges for the complete restoration of basic production assets, including accelerated depreciation;
d) other costs , not included in the previously listed cost elements. These are taxes, fees, contributions to special funds, payment for communication services, computer centers, business travel costs, property insurance, rewards for invention and innovation, payment for product certification, rent and others.
The production cost estimate groups costs by cost elements, regardless of where they arise, and shows their resource structure, which is very important for the analysis of factors influencing the reduction of production costs.
Cost estimates for production - concept and types. Classification and features of the category "Production cost estimate" 2017, 2018.
Accounting and planning of costs associated with the production and sale of products is carried out by drawing up two documents: cost estimates for production and sales of products and calculation of product costs. Cost estimate for production of products (work,... .
The production cost estimate characterizes the entire amount of expenses of the enterprise in the context of economically homogeneous elements. It groups costs by cost elements, regardless of where they arise, and shows their resource structure, which is very important for analysis... .
EXAMPLE. Production building materials According to industry methods. The general list of items is determined by Methods of cost accounting and calculating actual costs Standard Transmission Order-by-order is used on... .
Calculation of the cost per unit of production can be carried out on the basis of estimated, planned, standard calculations. The cost level is related to the volume and quality of products, the use of working time, raw materials, materials, equipment, the expenditure of funds... .
Classification of production costs The concept and composition of the costs of production and sales of products Costs are monetary costs production factors necessary for the enterprise to carry out its production and commercial... .
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Name of articles Previous year Reporting year Product volume in current prices Cost of marketable products Costs of production and sales of products Including: Material costs: -raw materials... .
One of the tasks of accounting for production costs is the formation of an information and analytical base for managing the production activities of an organization. Management goals are also achieved through budget planning. We will tell you about the production cost estimate in our material.
Production cost estimate
The production cost estimate is a summary of all costs associated with the production of products, performance of work or provision of services. This is a planning document that determines the forecast value of costs based on the norms and prices established by the organization, as well as taking into account technological features.
Each organization decides for itself the issue of drawing up production cost estimates independently, taking into account its specifics. Therefore, there is no single form of estimate suitable for all organizations.
Let us give an example of production cost estimates for forestry enterprises (approved by the Ministry of Industry and Science on December 26, 2002). It is assumed that this estimate is developed for the year, broken down by quarter in the following form:
| № № p/p | Cost elements | According to plan | Actually |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| 1 | Material costs minus returnable waste, including: | ||
| 1.1 | Raw materials and basic materials | ||
| 1.2 | Components and semi-finished products | ||
| 1.3 | Returnable waste (subtracted) | ||
| 1.4 | Auxiliary materials | ||
| 1.5 | Fuel from side | ||
| 1.6 | Energy from the outside | ||
| 1.7 | Production services | ||
| 2 | Labor costs | ||
| 3 | The amount of accrued depreciation for the complete restoration of fixed assets | ||
| 4 | Other expenses, including: | ||
| 4.1 | Payment for standing timber | ||
| 4.2 | Payment for the right to harvest resin | ||
| 4.3 | Payment for other resources, for water | ||
| 4.4 | Amounts of the single social tax | ||
| 5 | Total production costs | ||
| 6 | Costs of work and services not included in gross output (excluded) | ||
| 7 | Change in balances of deferred expenses (increase is deducted, decrease is added) | ||
| 8 | Change in reserve balances for future expenses (increase is added, decrease is subtracted) | ||
| 9 | Cost of gross output | ||
| 10 | Change in the cost of work in progress balances and tools of own production (the increase is subtracted, the decrease is added) | ||
| 11 | Production cost commercial products | ||
| 12 | Selling expenses | ||
| 13 | Full cost of commercial products | ||
| 14 | Commercial products | ||
| 15 | Profit (+), losses (-) from the production of marketable products | ||
| 16 | Costs per ruble of commercial products in kopecks | ||
| 17 | Change in the cost of the balances of unsold products in the warehouse and shipped (the increase is subtracted, the decrease is added) | ||
| 18 | Cost of marketable products sold | ||
| 19 | Products sold | ||
| 20 | Profit (+), losses (-) from sales of commercial products |
Main production cost report
The production cost estimate may only include planned costs. And it may contain information about planned and actual costs. In the first case, performance analysis and cost management are carried out by comparing the report on actual costs or the cost sheet for the main production with the estimate. In the second case, the estimate already contains forecast and current information.
Documenting production costs are carried out by the organization based on the type of costs and the forms of primary accounting documents used. Cost data is accumulated in the system accounting in the corresponding .
Therefore, in any case, it is the accounting system that will be information base for budget planning, analysis of deviations and development of measures to improve the efficiency of production and financial activities.
Production cost estimate- this is a set of planned costs (in value terms) for the production of products, the performance of work and services in accordance with the production program of the enterprise. The production cost estimate is developed according to a unified nomenclature of homogeneous economic elements.
The composition of the costs of an enterprise in a particular industry is determined in accordance with the Standard Recommendations for Accounting and Calculating Costs in Industry, agriculture, construction, trade, catering and in other sectors developed by ministries (departments) in agreement with the Ministry of Finance of the Russian Federation. Costs include expenses for:
- production of products (performance of work, provision of services),
- management and sales of products (costs for capital investments, for the development of new types of products, and non-production expenses are not included in production costs).
Grouping of costs in the estimate by economic elements:
- material costs (raw materials, purchased components, semi-finished products, fuel, spare parts, etc.);
- labor costs (wages, bonuses for achieving production targets, payments in the form of length of service, reserve for vacation pay);
- contributions to social funds;
- depreciation charges (for fixed assets (funds), intangible assets, low-value and wear-and-tear items);
- other costs (payment for services of third-party organizations, business expenses, expenses for advertising and sales of products, etc.).
Calculate production cost estimates based on:
- business plan in part production program for the next financial year,
- analysis of actual data of the past period and calculated standards for cost items adopted in the organization.
Estimated standards for cost items are planned based on analysis:
- current market prices for similar manufactured products,
- actual sales prices of products of the past financial year.
Based on these data, the maximum production cost standard is determined at the existing level of market (negotiable) price. The maximum standard cost per unit of production calculated in this way, taking into account the standards adopted at the enterprise for cost items, makes it possible to determine the planned estimate in terms of items and elements.
Taking into account the specifics of the organization’s industry activities, production cost estimates are compiled by segments (types) of activity, types of products, works, services; further grouping is possible by structural divisions.
At the final stage of planning production cost estimates, a consolidated estimate is drawn up for the planned production program, taking into account production volumes.
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