The concept of "enterprise costs" is closely related to the concept of "cost". The cost price plays a leading role in the overall system of indicators characterizing the efficiency economic activity enterprise and its structural divisions.
The cost price is a general indicator of the use of all types of enterprise resources. The cost price also provides for the recovery of these resources, which is necessary to continue production process. The level and dynamics of the cost allow assessing the feasibility and rationality of the use of resources that are at the disposal of the enterprise. The cost of production reflects the technical level and organization of production, the efficiency of management in general. According to NP (C) BU No. 16, for goods and services involved in the economic turnover at the enterprise, three types of cost can be distinguished:
1. cost of goods;
2. cost of goods sold;
3. production cost.
The cost of goods is determined in accordance with NP(S)BU 9 "Stocks".
The production cost of products (works, services) sold during the reporting period includes only direct costs. Thus, the production cost of production includes only those overhead costs that can be distributed among all types of products (works, services).
The cost of goods sold includes:
production cost;
Excess costs;
unallocated overhead costs.
The cost of production represents the current costs of enterprises for the production and sale of products (works, services) expressed in monetary terms.
The cost of production is a qualitative indicator, since it characterizes the level of use of all resources at the disposal of the enterprise.
The cost of production of a particular enterprise is determined by the conditions in which it operates. This cost is called individual.
If, on the basis of the individual cost of enterprises, we determine the weighted average of the costs for the industry, such a cost will be called the industry average. The average industry cost is closer to the public necessary costs labor.
The main document that guides the formation of the cost of production at the enterprise is the Regulation on the composition of costs for the production and sale of products (works, services) and on the procedure for the formation of financial results taken into account when taxing profits.
In order to analyze, record and plan the whole variety of costs included in the cost of production, two complementary classifications are used: element-by-element and costing.
When grouping costs by elements, the costs of the enterprise as a whole are determined, without taking into account its internal structure and without distinguishing the types of products produced. The document, which presents the cost of the elements, is an estimate of the costs of production. The cost estimate is compiled to calculate the total need of the enterprise for material and financial resources. The amount of costs for each element is determined on the basis of supplier invoices, accrual statements wages and depreciation.
Cost elements are the costs of all services and workshops that are homogeneous in nature for production and economic needs.
The costs that form the cost of products (works, services) are grouped according to their economic content according to the following elements:
Material costs (minus the cost of returnable waste);
Labor costs;
Deductions for social needs;
Depreciation of fixed assets;
Other costs.
Material costs reflect the cost of raw materials and materials purchased from the outside; the cost of purchased materials; the cost of purchased components and semi-finished products; the cost of works and services of an industrial nature paid to third parties; the cost of natural raw materials; the cost of all types of fuel purchased from the side, consumed for technological goals, production of all types of energy, heating of buildings, transport work; the cost of purchased energy of all types, spent on technological, energy, motor and other needs.
The cost of sold waste is excluded from the costs of material resources included in the cost of production.
Production waste refers to the remains of raw materials, materials, semi-finished products, heat carriers and other types of material resources formed during the production process that have completely or partially lost the consumer qualities of the original resource. They are sold at a reduced or full price of a material resource, depending on their use.
Labor costs reflect the cost of labor production staff enterprises, including bonuses to workers and employees for production results, incentive and compensatory payments.
Until recently, deductions for social needs reflected mandatory deductions from the cost of remuneration of employees included in the cost of products (works, services). These deductions were made in accordance with the norms established by law to state social insurance bodies, pension fund, state fund employment and health insurance.
From 1 Jan. 2001 all contributions to social non-budgetary funds were replaced by a single social tax.
Depreciation of fixed assets reflects the amount of depreciation deductions for the full restoration of fixed assets.
Other costs are taxes, fees, deductions to extra-budgetary funds, payments on loans within rates, travel expenses, training and retraining costs, rent, depreciation on intangible assets, a repair fund, payments for compulsory property insurance, etc. d.
Grouping costs by economic elements does not allow accounting for individual departments and types of products; this requires accounting for costing items.
Calculation is the calculation of the unit cost of a product or service by item of expenditure. Unlike the elements of the cost estimate, costing items combine costs, taking into account their specific purpose and place of formation.
There is a standard nomenclature of costs for costing items, but ministries and departments can make changes to it depending on industry specifics.
The typical nomenclature includes the following articles:
1. Raw materials and materials.
2. Returnable waste (deductible).
3. Purchased products, semi-finished products and production services of third-party enterprises and organizations.
4. Fuel and energy for technological purposes.
5. Wages of production workers.
6. Deductions for social needs.
7. Costs for the preparation and development of production.
8. General production costs
9. General business expenses.
10. Loss from marriage.
11. Other operating expenses.
12. Selling expenses.
The total of the first 9 articles forms the shop cost, the total of 11 articles - the production cost, the total of all 12 articles - the total cost.
The shop cost is the cost production unit enterprises for production.
The production cost, in addition to the costs of workshops, includes the general costs of the enterprise.
The total cost includes the costs of both production and sales of products.
General production costs are the costs of maintaining and managing production. They include the cost of maintenance and operation of equipment and workshop costs.
General business expenses are expenses associated with the management of the enterprise as a whole: administrative and managerial, general business, taxes, mandatory payments, etc.
Selling expenses include costs for tare and packaging, transportation costs, advertising costs, and other distribution costs.
Cost items included in the calculation are divided into simple and complex. Simple ones consist of one economic element (wages). Complex items include several cost elements and can be decomposed into simple components (general production, general business expenses ...).
Cost accounting is necessary to determine the financial results of the enterprise.
This line contains information about the costs of ordinary species activities that formed the cost of goods sold, products, work performed and services rendered (clauses 9, 21 PBU 10/99).
What expenses form the costsold goods, products, works, services?
The cost of sold goods, works, services includes the following expenses for ordinary activities (clauses 4, 5, 9 PBU 10/99, clauses 11, 22, paragraph 3 clause 23 PBU 2/2008):
- costs associated with the manufacture of products;
- expenses associated with the purchase of goods;
— costs associated with the performance of work;
— costs associated with the provision of services;
- expenses associated with the provision of property for rent (in organizations whose subject of activity is the provision of their assets for rent);
— expenses associated with the granting of rights to use the results of intellectual activity (in organizations whose subject of activity is the granting of such rights for a fee);
- expenses associated with participation in authorized capitals other organizations (in organizations whose subject of activity is participation in the authorized capital of other organizations);
— amounts of deviations, claims, incentive payments recognized as revenue under construction contracts in previous reporting periods, the receipt of which was doubtful (expected losses);
- other expenses depending on their nature, conditions of implementation and activities of the organization.
The amount of expenses is determined based on the price established by the contract, taking into account all the stipulated discounts, regardless of the form of their provision (clauses 6.1, 6.5 PBU 10/99, Annex to the Letter of the Ministry of Finance of Russia dated 06.02.2015 N 07-04-06 / 5027 ).
For organizations performing work under construction contracts, direct costs under the contract (expenses for ordinary activities) can be reduced by the income of the organization not directly related to the execution of the contract, received in the performance of other contracts (paragraph 3, clause 12, PBU 2/2008 ). For instance:
- on income from the sale of materials and structures excessively written off for production;
- for rent for construction equipment that is temporarily not used by the organization itself for the execution of a construction contract.
The cost of goods sold, products, works, services is debited from accounts 20 "Main production", 23 "Auxiliary production", 29 "Service production and farms", 41 "Goods", 43 " Finished products”, 40 “Output of products, works, services” and others to the debit of account 90 “Sales”, subaccount 90-2 “Cost of sales” (Instructions for using the Chart of Accounts).
Note that management expenses recorded on account 26 "General business expenses", in accordance with the accounting policy of the organization (clauses 9, 20 PBU 10/99, Instructions for the application of the Chart of Accounts):
1) may be included in the cost of products, works, services (debited from account 26 to the debit of accounts 20, 23, 29);
2) as conditionally permanent, they can be directly related to the cost of sales of the reporting period in which they arose (debited from account 26 to the debit of account 90, subaccount 90-2).
Note!
General running costs construction organizations may be included in the cost of work under construction contracts only if they are reimbursed by the customer (clause 14 PBU 2/2008).
In the first case, these expenses form an indicator on line 2120 "Cost of sales", and in the second case they are shown on line 2220 "Administrative expenses" of the Report on financial results.
The rules for recognition of expenses in the Statement of Financial Performance are defined in paragraphs 18, 19 of PBU 10/99 and paragraphs 16, 23 of PBU 2/2008. In particular:
— expenses are recognized taking into account their connection with receipts (for example, the cost of performing work is recognized simultaneously with the recognition of proceeds from their sale as part of income);
— if the expenses cause the receipt of income during several reporting periods and the relationship between income and expenses cannot be clearly determined or is determined indirectly, then they are recognized in the Statement of Financial Performance by their reasonable distribution between the reporting periods;
- if a small business organization recognizes proceeds from the sale of products and goods not as the transfer of ownership, use and disposal of the delivered products, goods sold, but after receipt of payment, then the expenses are recognized after the debt is paid off.
Features of calculating the cost of goods, products, works, services are established by industry methodical instructions, recommendations, instructions (clause 10 PBU 10/99, Letter of the Ministry of Finance of Russia dated April 29, 2002 N 16-00-13 / 03 “On the application of regulatory documents governing the accounting of production costs and calculation of the cost of products (works, services)” ).
What accounting data is usedwhen filling in line 2120 "Cost of sales"?
The value of the indicator of line 2120 "Cost of sales" (for the reporting period) is determined on the basis of data on the total debit turnover for the reporting period on account 90, subaccount 90-2, in correspondence with accounts 20, 23, 29, 41, 43, 40, etc. At the same time, the turnover on the debit of account 90, subaccount 90-2, in correspondence with the credit of account 44, as well as in correspondence with the credit of account 26 (if any) are not taken into account (paragraph 23 of PBU 4/99). The resulting value of the cost of goods sold, products, works, services is indicated in line 2120 "Cost of sales" in parentheses.
Note!
In the event that types of income are allocated in the Statement of Financial Results, each of which individually amounts to five or more percent of the total amount of the organization's income for the reporting year, additional lines are introduced to line 2120 "Cost of sales", which indicate the expenses corresponding to the types allocated by the organization income (clause 21.1 PBU 10/99).
Line 2120 “Cost of sales” = Turnover on the debit of account 90/2 - Turnover on the debit of subaccount 90/2 and credit of account 44 - Turnover on the debit of subaccount 90/2 and credit of account 26 (If, in accordance with the accounting policy of the organization, management expenses as conditionally permanent are debited to the debit of account 90, subaccount 90-2)
Line 2120 "Cost of sales" (for the same reporting period of the previous year) is transferred from the Statement of Financial Performance for the same reporting period of the previous year.
Example of filling line 2120"Cost of sales"
Indicators for subaccount 90-2 of account 90 in accounting (excluding turnover on the debit of subaccount 90-2 in correspondence with the credit of accounts 44 and 26): rub.
| Turnover for the reporting period (2014) | Sum |
| 1 | 2 |
| 1. For the debit of sub-account 90-2 | 72 013 678 |
| 1.1. According to the debit of sub-account 90-2, an analytical account for accounting for the cost of sales of finished products | 53 214 540 |
| 1.2. According to the debit of sub-account 90-2, an analytical account for accounting for the cost of sales of goods | 15 220 638 |
| 1.3. According to the debit of sub-account 90-2, an analytical account for accounting for the cost of providing intermediary services | 1 678 500 |
| 1.4. According to the debit of sub-account 90-2, an analytical account for accounting for the cost of performing car repair work | 1 900 000 |
Fragment of the Statement of Financial Results for 2013
Solution
The cost of sold goods, products, works, services for 2014 is (total) 72,014 thousand rubles.
For types of revenue that are at least 5%, the cost is equal to:
sold products - 53,215 thousand rubles;
goods sold - 15,221 thousand rubles.
A fragment of the Statement of Financial Results will look as follows.
| Explanations | Name of indicator | The code | For 2014 | For 2013 |
| 1 | 2 | 3 | 4 | 5 |
| Cost of sales | 2120 | (72 014) | (71 165) | |
| including: | ||||
| products sold | 2121 | (53 215) | (52 600) | |
| goods sold | 2122 | (15 221) |
Simply put, the cost of production can be defined as the sum of the costs, expressed in monetary terms, aimed at the production and sale of the released goods or services. However, there are many concepts of cost, since it increases at different stages of production and management. The topic of this article is the production cost, and we will consider this concept in more detail.
Production cost of production: definition
The work of companies is always focused on the production of goods. At the same time, the company incurs costs by investing raw materials, labor and energy resources in the manufactured product, i.e. expenses called production.
To find out what costs make up the production cost of a product, we will learn about the main types of cost. With the growth of costs that fit into the price of the goods produced, a distinction is made between shop, production and full costs.
The shop floor is made up of the costs incurred by the production structures of the company involved in the process of creating products. The production cost is formed by the workshop, supplemented by general and target costs. Under the full cost understand the production with added to it the cost of transporting and delivering goods to the market.
So, the production cost is the total of all costs for the release of the product and does not include the costs associated with the sale.
Classification of costs for creating a product
The production cost of products includes the costs of:
- materials;
- shop staff salary;
- contributions to funds;
- depreciation of fixed assets and intangible assets;
- others.
Calculate the cost by cost items aimed at the release and subsequent sale of products by calculating its cost. Typical grouping of costs is used, which allows the most accurate calculation of the cost of the costing object, for example, the type of product being produced. All costs are divided into costing items:
- raw materials and materials, minus useful returnable residues;
- purchased and manufactured semi-finished products;
- fuel, heat and electricity;
- depreciation of fixed assets / intangible assets;
- wages of production workers;
- contributions to funds;
- organization of the production process and its development;
- overhead and general business expenses;
- losses from marriage;
- other production costs;
- selling expenses.
Production cost: formula
The summation of the costs attributed to all the listed items, except for the costs associated with the sale, forms the production cost of the products. A simplified formula for calculating the production cost may look like this: C \u003d M + A + W + P, where M is materials, A is depreciation, W is wages, P is other expenses.
Other costs in this formula are target, general production and general industry costs.
Depending on the field of activity of the company, the production cost of the product may include other industry-specific costs, often prevailing over others. Economists rely on them when they work to reduce costs and increase the profitability of a product. These studies are another purpose of calculating the production cost of goods.
Since expenses are grouped item by item in the cost structure, each indicator included in the calculation corresponds to a percentage, and cost items determine the ratio of the group of expenses in the total amount, clarifying the priority of some and the possibility of reducing others. Since a variety of external and internal economic factors influence the share cost indicator, it is impossible to achieve a constant cost value even for manufacturers of the same products. Therefore, the concept of the actual production cost, i.e., calculated for a given point in time, was introduced.
The calculation of the production cost is important for an enterprise and has a direct impact on building a company's development strategy, its position in the industry, and a competent analysis allows you to use production resources in creating goods most efficiently.
The most important indicators expressing the cost of production are the cost of all commercial products, the cost of 1 ruble of commercial products, the cost of a unit of production.
The sources of information for the analysis of the cost of production are: form 2 "" and form 5 Appendix to the balance sheet annual report enterprises, cost estimates for marketable products and cost estimates for certain types of products, consumption rates of material, labor and financial resources, cost estimates for the production of products and their actual implementation, as well as other accounting and reporting data.
As part of the cost of production, variable and conditionally fixed costs (costs) are distinguished. Value variable costs changes with a change in the volume of products (works, services). Variables include material costs for production, as well as piecework wages of workers. The amount of semi-fixed costs does not change with a change in the volume of production (works, services). Fixed costs include depreciation, rental of premises, time wages for administrative and management and maintenance personnel, and other costs.
So, the task of the business plan for the cost of all marketable products has not been completed. The above-plan increase in the cost of production amounted to 58 thousand rubles, or 0.29% of the plan. This happened due to comparable marketable products. (Comparable products are not new products, which was already issued in the previous period, and therefore its release in the reporting period can be compared with the previous period).
Then it is necessary to establish how the plan was fulfilled for the cost of all marketable products in the context of individual costing items and determine which items have savings, and which ones have overruns. Let's present the relevant data in Table 1.
Table 1. (thousand rubles)
|
Indicators |
The total cost of actually manufactured products |
Deviation from the plan |
||||
|
at the planned cost of the reporting year |
at the actual cost of the reporting year |
in thousand rubles |
||||
|
to the plan for this article |
to the full planned cost |
|||||
|
Raw materials |
||||||
|
Returnable waste (deductible) |
||||||
|
Purchased products, semi-finished products and services of cooperative enterprises |
||||||
|
Fuel and energy for technological purposes |
||||||
|
Basic wages of key production workers |
||||||
|
Additional wages for key production workers |
||||||
|
Deductions for insurance |
||||||
|
Expenditures for the preparation and development of the production of new products |
||||||
|
Costs for the maintenance and operation of equipment |
||||||
|
General production (general shop) expenses |
||||||
|
General business (general factory) expenses |
||||||
|
Loss from marriage |
||||||
|
Other operating expenses |
||||||
|
Total production cost of marketable products |
||||||
|
Selling expenses (sales expenses) |
||||||
|
Total total cost of commercial products: (14+15) |
||||||
As you can see, the increase in the actual cost of marketable products compared to the planned one is caused by overspending of raw materials and materials, additional wages of production workers, an increase against the plan of other production costs and the presence of losses from marriage. For the rest of the calculation items, savings take place.
We considered the grouping of the cost of production by costing items (cost items). This grouping characterizes the purpose of the costs and the place of their occurrence. Another grouping is also used - according to homogeneous economic elements. Here the costs are grouped by economic content, i.e. regardless of their intended purpose and the place where they are spent. These elements are as follows:
- material costs;
- labor costs;
- deductions for insurance;
- depreciation of fixed assets (funds);
- other costs (depreciation of intangible assets, rent, mandatory insurance payments, interest on bank loans, taxes included in the cost of production, deductions to off-budget funds, travel expenses, etc.).
When analyzing, it is necessary to determine the deviations of the actual production costs by elements from the planned ones, which are contained in the estimate of production costs.
So, the analysis of the cost of production in the context of costing items and homogeneous economic elements allows us to determine the amount of savings and cost overruns. certain types costs and promotes the search for reserves to reduce the cost of products (works, services).
Cost analysis for 1 ruble of marketable products
— relative indicator, which characterizes the share of the cost in the wholesale price of products. It is calculated according to the following formula:
Costs per 1 ruble of marketable products is the total cost of a marketable product divided by the cost of a marketable product at wholesale prices (without value added tax).
This indicator is expressed in kopecks. It gives an idea of how many kopecks of costs, i.e. the cost price, falls on each ruble of the wholesale price of products.
Initial data for analysis.
Costs per 1 ruble of marketable products according to the plan: 85.92 kopecks.
Costs per 1 ruble of actually produced marketable products:
- according to the plan recalculated for the actual output and range of products: 85.23 kopecks.
- actually in the prices in force in the reporting year: 85.53 kopecks.
- actually in the prices accepted in the plan: 85.14 kopecks.
On the basis of these data, we determine the deviation of the actual costs per 1 ruble of marketable output in prices in effect in the reporting year from the costs according to the plan. To do this, subtract line 1 from line 2b:
85,53 — 85,92 = - 0.39 kopecks.
So, the actual figure is less than planned by 0.39 kopecks. Let us find the influence of individual factors on this deviation.
To determine the impact of a change in the structure of output, we compare the costs according to the plan, recalculated for the actual output and range of products, and the costs according to the plan, i.e. lines 2a and 1:
85.23 - 85.92 \u003d - 0.69 kop.
It means that by changing the structure of products the analyzed indicator has decreased. This is the result of an increase in the proportion of more profitable types of products that have a relatively low level of costs per ruble of products.
We will determine the impact of changes in the cost of individual types of products by comparing the actual costs in prices accepted in the plan with the planned costs recalculated for the actual output and range of products, i.e. lines 2c and 2a:
85.14 - 85.23 \u003d -0.09 kop.
So, by reducing the cost of certain types of products the indicator of costs per 1 ruble of marketable products decreased by 0.09 kopecks.
To calculate the impact of changes in prices for materials and tariffs, we will divide the amount of change in the cost price due to changes in these prices by the actual marketable products in the wholesale prices adopted in the plan. In the example under consideration, due to the increase in prices for materials and tariffs, the cost of commercial products increased by + 79 thousand rubles. Consequently, the cost of 1 ruble of marketable output due to this factor increased by:
(23,335 thousand rubles - actual marketable products in wholesale prices adopted in the plan).
The influence of changes in wholesale prices for the products of this enterprise on the cost indicator for 1 ruble of marketable products will be determined as follows. First, let's determine the overall influence of 3 and 4 factors. To do this, we compare the actual costs per 1 ruble of marketable output, respectively, in the prices in force in the reporting year and in the prices adopted in the plan, i.e. lines 2b and 2c, we determine the impact of price changes on both materials and products:
85.53 - 85.14 = + 0.39 kop.
Of this value, the impact of prices on materials is + 0.33 kopecks. Consequently, the impact of product prices accounts for + 0.39 - (+ 0.33) = + 0.06 kopecks. This means that the decrease in wholesale prices for the products of this enterprise increased the cost of 1 ruble of marketable products by + 0.06 kopecks. The total influence of all factors (balance of factors) is:
0.69 kop. - 0.09 kop. + 0.33 kop. + 0.06 kop. = - 0.39 kop.
Thus, the decrease in the cost indicator per 1 ruble of marketable output took place mainly due to a change in the structure of output, as well as due to a decrease in the cost of certain types of products. At the same time, an increase in prices for materials and tariffs, as well as a decrease in wholesale prices for the products of this enterprise increased costs by 1 ruble of marketable products.
Material cost analysis
The main place in the cost of industrial products is occupied by material costs, i.e. costs for raw materials, materials, purchased semi-finished products, components, fuel and energy, equated to material costs.
The share of material costs is about three-quarters of the cost of production. It follows that the saving of material costs to a decisive extent ensures a reduction in the cost of production, which means an increase in profits and an increase in profitability.
The most important source of information for analysis is the calculation of the cost of production, as well as the calculation of individual products.
The analysis begins with a comparison of the actual material costs with the planned ones, adjusted for the actual volume of production.
Material costs at the enterprise increased in comparison with their envisaged value in the amount of 94 thousand rubles. This increased the cost of production by the same amount.
Three main factors influence the amount of material costs:
- change in the specific consumption of materials per unit of production;
- change in the procurement cost of a unit of material;
- replacing one material with another material.
1) The change (reduction) in the specific consumption of materials per unit of production is achieved by reducing the material consumption of products, as well as by reducing the waste of materials in the production process.
Material consumption of products, which is specific gravity material costs in the price of products, is determined at the stage of product design. Directly in the course of the current activity of the enterprise, the reduction in the specific consumption of materials depends on the reduction in the amount of waste in the production process.
There are two types of waste: returnable and non-returnable. Returnable waste materials are further used in production, or sold to the side. irretrievable waste further use are not subject. Returnable waste is excluded from production costs, since it is again added to the warehouse as materials, but waste is received not at the price of full value, i.e. raw materials, but at the price of their possible use, which is much less.
Consequently, the violation of the specified specific consumption of materials, which caused the presence of excess waste, increased the cost of production by the amount:
57.4 thousand rubles - 7 thousand rubles. = 50.4 thousand rubles.
The main reasons for changing the specific consumption of materials are:
- a) change in material processing technology;
- b) change in the quality of materials;
- c) replacement of missing materials with other materials.
2. Change in the procurement cost of a unit of material. The procurement cost of materials includes the following main elements:
- a) the wholesale price of the supplier (purchase price);
- b) transportation and procurement costs. Value purchase prices for materials does not directly depend on the current activities of the enterprise, and the amount of transportation and procurement costs depends, since these costs are usually carried out by the buyer. They are influenced by the following factors: a) changes in the composition of suppliers located at different distances from the buyer; b) changes in the method of delivery of materials;
- c) changes in the degree of mechanization of loading and unloading operations.
Wholesale prices of suppliers for materials increased against provided by the plan for 79 thousand rubles. So, the total increase in the procurement cost of materials due to the growth of wholesale prices of suppliers for materials and the increase in transport and procurement costs is 79 + 19 = 98 thousand rubles.
3) the replacement of one material with another material also leads to a change in the cost of materials for production. This can be caused by both different specific consumption and different procurement costs of the replaced and replacing materials. The influence of the replacement factor will be determined by the balance method, as the difference between the total deviation of actual material costs from planned ones and the influence of already known factors, i.e. specific consumption and procurement cost:
94 - 50.4 - 98 \u003d - 54.4 thousand rubles.
So, the replacement of materials led to savings in the cost of materials for production in the amount of 54.4 thousand rubles. Substitutions of materials can be of two types: 1) forced replacements that are unprofitable for the enterprise.
After considering the total amount of material costs, the analysis should be detailed for individual types of materials and for individual products made from them in order to specifically identify ways to save various types of materials.
Let us determine the influence of individual factors on the cost of material (steel) for product A using the difference method:
Table No. 18 (thousand rubles)The influence on the amount of material costs of individual factors is: 1) change in the specific consumption of material:
1.5 * 5.0 = 7.5 rubles.
2) change in the procurement cost of a unit of material:
0.2 * 11.5 \u003d + 2.3 rubles.
The total influence of the two factors (balance of factors) is: +7.5 + 2.3 = + 9.8 rubles.
So, the excess of the actual costs of this type of material over the planned ones is mainly caused by the overplanned specific consumption, as well as an increase in the procurement cost. Both should be viewed negatively.
The analysis of material costs should be completed by calculating the reserves for reducing the cost of production. At the analyzed enterprise, the reserves for reducing the cost of production in terms of material costs are:
- elimination of the reasons for the occurrence of excess returnable waste materials in the production process: 50.4 thousand rubles.
- reduction of transportation and procurement costs to the planned level: 19 thousand rubles.
- implementation of organizational and technical measures aimed at saving raw materials and materials (there is no reserve amount, since the planned measures have been fully implemented).
Total reserves for reducing the cost of production in terms of material costs: 69.4 thousand rubles.
Payroll cost analysis
When analyzing, it is necessary to assess the degree of validity of the forms and systems of remuneration used at the enterprise, check compliance with the savings regime in spending money on wages, study the ratio of growth rates of labor productivity and average wages, and also identify reserves for further reducing the cost of production by eliminating the causes unproductive payments.
The sources of information for analysis are product cost estimates, data statistical form labor report f. No. 1-t, application data to the balance f. No. 5, materials accounting on payroll, etc.
At the analyzed enterprise, the planned and actual data on the payroll can be seen from the following table:
Table No. 18
(thousand roubles.)
This table separately highlights the wages of workers who receive mainly piecework wages, the amount of which depends on changes in the volume of production, and the wages of other categories of personnel, which do not depend on the volume of production. Therefore, the wages of workers are variable, and the rest of the categories of personnel are constant.
In the analysis, we first determine the absolute and relative deviation in the wage fund of industrial and production personnel. The absolute deviation is equal to the difference between the actual and basic (planned) wage funds:
6282.4 - 6790.0 = + 192.4 thousand rubles.
The relative deviation is the difference between the actual payroll fund and the basic (planned) fund, recalculated (adjusted) for the percentage change in output, taking into account a special conversion factor. This coefficient characterizes the share of variable (piecework) wages, depending on changes in the volume of production, in the total amount of the wage fund. At the analyzed enterprise, this coefficient is 0.6. The actual volume of output is 102.4% of the base (planned) output. Based on this, the relative deviation in the wage fund of industrial and production personnel is:
So, the absolute overspending on the wage fund of industrial personnel is 192.4 thousand rubles, and taking into account changes in the volume of production, the relative overspending amounted to 94.6 thousand rubles.
Then we should analyze the wage bill of workers, the value of which is mainly variable. The absolute deviation here is:
5560.0 - 5447.5 = + 112.5 thousand rubles.
Let us determine the influence of two factors on this deviation by the method of absolute differences:
- change in the number of workers; (quantitative, extensive factor);
- change in the average annual wage of one worker (qualitative, intensive factor);
Initial data:
Table No. 19
(thousand roubles.)
The influence of individual factors on the deviation of the actual wage fund of workers from the planned one is:
Change in the number of workers:
51 * 1610.3 \u003d 82125.3 rubles.
Change in the average annual wage of one worker:
8.8 * 3434 = + 30219.2 rubles.
The total influence of the two factors (balance of factors) is:
RUB 82125.3 + 30219.2 rubles. = + 112344.5 rubles. = + 112.3 thousand rubles.
Consequently, the overspending on the wage fund of workers was formed mainly due to an increase in the number of workers. The increase in the average annual wage per worker also contributed to this overspending, but to a lesser extent.
The relative variance in the wage bill of workers is calculated without taking into account the conversion factor, since for the sake of simplicity it is assumed that all workers receive piecework wages, the amount of which depends on the change in output. Therefore, this relative deviation is equal to the difference between the actual wage fund of workers and the basic (planned) fund, recalculated (adjusted) for the percentage change in output:
So, for the wage fund of workers there is an absolute overspending in the amount of + 112.5 thousand rubles, and taking into account the change in the volume of production, there is a relative saving in the amount of - 18.2 thousand rubles.
- additional payments to pieceworkers in connection with a change in working conditions;
- overtime pay;
- payment for all-day downtime and hours of intra-shift downtime.
The analyzed enterprise has unproductive payments of the second type in the amount of 12.5 thousand rubles. and the third type for 2.7 thousand rubles.
So, the reserves for reducing the cost of production in terms of labor costs are the elimination of the causes of unproductive payments in the amount of: 12.5 + 2.7 = 15.2 thousand rubles.
Next, the payroll of the remaining categories of personnel is analyzed, i.e. managers, professionals and other employees. This wage is a semi-permanent expense that does not depend on the degree of change in the volume of production, since these employees receive certain salaries. Therefore, only the absolute deviation is determined here. Exceeding the base value of the wage fund is recognized as an unjustified overspending, the elimination of the causes of which is a reserve for reducing the cost of production. At the analyzed enterprise, the reserve for cost reduction is the amount of 99.4 thousand rubles, which can be mobilized by eliminating the causes of overspending on the wage funds of managers, specialists and other employees.
A necessary condition for reducing the cost of production in terms of wage costs is that the growth rate of labor productivity outstrips the growth rate of average wages. At the analyzed enterprise, labor productivity, i.e. average annual output production per worker increased compared to the plan by 1.2%, and the average annual wage per worker by 1.6%. Therefore, the lead factor is:
The outpacing growth of wages compared to labor productivity (this is the case in the example under consideration) leads to an increase in the cost of production. The impact on the cost of production of the ratio between the growth of labor productivity and average wages can be determined by the following formula:
At wages - Y produces labor multiplied by Y, divided by Y produces. labor.
where, Y is the share of wage costs in the total cost of marketable products.
The increase in the cost of production due to the outstripping growth of average wages compared to labor productivity is:
101,6 — 101,2 * 0,33 = + 0,013 %
or (+0.013) * 19888 = +2.6 thousand rubles.
In conclusion of the analysis of wage costs, it is necessary to calculate the reserves for reducing the cost of production in terms of labor costs, identified as a result of the analysis:
- 1) Elimination of the reasons causing unproductive payments: 15.2 thousand rubles.
- 2) Elimination of the causes of unjustified overspending on payroll funds for managers, specialists and other employees 99.4 thousand rubles.
- 3) Implementation of organizational and technical measures to reduce labor costs, and consequently, wages for output: -
Total reserves for reducing the cost of production in terms of wage costs: 114.6 thousand rubles.
Analysis of costs for production maintenance and management
These costs mainly include the following items in the calculation of the cost of production:
- a) the cost of maintaining and operating the equipment;
- b) overhead costs;
- c) general business expenses;
Each of these items consists of different cost elements. The main purpose of the analysis is to find reserves (opportunities) to reduce costs for each item.
The sources of information for analysis are the calculation of the cost of production, as well as analytical accounting registers - sheet No. 12, which records the costs of maintaining and operating equipment and overhead costs, and sheet No. 15, which keeps records of general business expenses.
The costs of maintaining and operating equipment are variable, i.e., they directly depend on changes in the volume of production. Therefore, the basic (as a rule, planned) amounts of these expenses should first be recalculated (adjusted) by the percentage of the plan for output (102.4%). However, in the composition of these expenses there are conditionally constant items that do not depend on changes in the volume of production: “Depreciation of equipment and intrashop transport”, “Depreciation of intangible assets”. These articles are not subject to recalculation.
The actual costs are then compared with the recalculated base amounts and variances determined.
Expenses for the maintenance and operation of equipment
Table No. 21
(thousand roubles.)
|
Composition of expenses: |
Adjusted plan |
Actually |
Deviation from the adjusted plan |
||
|
Depreciation of equipment and intrashop transport: |
|||||
|
Operation of equipment (consumption of energy and fuel, lubricants, salary of equipment adjusters with deductions): |
(1050 x 102.4) / 100 = 1075.2 |
||||
|
Repair of equipment and intrashop transport: |
(500 x 102.4) / 100 = 512 |
||||
|
Intra-factory movement of goods: |
300 x 102.4 / 100 = 307.2 |
||||
|
Wear of tools and production fixtures: |
120 x 102.4 / 100 = 122.9 |
||||
|
Other expenses: |
744 x 102.4 / 100 = 761.9 |
||||
|
Total expenses for the maintenance and operation of equipment: |
In general, there is an overrun for this type of expenditure compared to the adjusted plan in the amount of 12.8 thousand rubles. However, if we do not take into account the savings on individual items of expenditure, then the amount of unjustified overspending on depreciation, operation of equipment and its repair will be 60 + 4.8 + 17 = 81.8 thousand rubles. Eliminating the causes of this unlawful overspending is a reserve for reducing the cost of production.
General production and general business expenses are conditionally fixed, i.e. they do not directly depend on changes in the volume of production.
overhead costs
Table No. 22
(thousand roubles.)
|
Indicators |
Estimate (plan) |
Actually |
Deviation (3-2) |
|
|
Labor costs (with accruals) for shop management and other shop personnel |
||||
|
Amortization of intangible assets |
||||
|
Depreciation of buildings, structures and inventory of workshops |
||||
|
Repair of buildings, structures and inventory of workshops |
||||
|
Expenses for tests, experiments and research |
||||
|
Occupational health and safety |
||||
|
Other expenses (including depreciation of inventory) |
||||
|
Overhead costs: a) losses from downtime due to internal reasons b) shortages and loss of damage material assets |
||||
|
Excess material assets (subtracted) |
||||
|
Total overhead costs |
In general, for this species expenses there is a saving in the amount of 1 thousand rubles. At the same time, for some items, there is an excess of the estimate in the amount of 1 + 1 + 15 + 3 + 26 = 46 thousand rubles.
Eliminating the causes of this unjustified overspending will reduce the cost of production. Especially negative is the presence of non-productive costs (shortages, losses from damage and downtime).
Then we analyze general expenses.
General running costs
Table #23
(thousand roubles.)
|
Indicators |
Estimate (plan) |
Actually |
Deviations (4 - 3) |
|
|
Labor costs (with accruals) of the administrative and managerial personnel of the plant management: |
||||
|
The same for other general staff: |
||||
|
Amortization of intangible assets: |
||||
|
Depreciation of buildings, structures and general household equipment: |
||||
|
Production of tests, experiments, research and maintenance of general laboratories: |
||||
|
Occupational Safety and Health: |
||||
|
Personnel training: |
||||
|
Organized Recruitment of Workers: |
||||
|
Other general expenses: |
||||
|
Taxes and fees: |
||||
|
Overhead costs: a) losses from downtime due to external reasons: b) shortages and losses from damage to material assets: c) other unproductive expenses: |
||||
|
Excluded income surplus material assets: |
||||
|
Total general expenses: |
In general, there is an overspending in the amount of 47 thousand rubles for general business expenses. However, the amount of unbalanced overspending (i.e. without taking into account the savings available for individual items) is 15 + 24 + 3 + 8 + 7 + 12 = 69 thousand rubles. Eliminating the causes of this overspending will reduce the cost of production.
Savings on certain items of general production and general business expenses may be unjustified. This includes such items as expenditure on labor protection, testing, experiments, research, and training. If there are savings on these items, you should check what caused them. There can be two reasons for this: 1) the corresponding costs are made more economically. In this case, the savings are justified. 2) Most often, savings are the result of the fact that the planned measures for labor protection, experiments and research, etc. have not been completed. Such savings are unjustified.
At the analyzed enterprise, as part of general business expenses, there are unjustified savings under the item "Training of personnel" in the amount of 13 thousand rubles. It is caused by the incomplete implementation of the planned training measures.
So, as a result of the analysis, an unjustified overspending on the costs of maintaining and operating equipment (81.8 thousand rubles), on general production costs (46 thousand rubles) and on general business expenses (69 thousand rubles) was revealed.
The total amount of unjustified cost overruns for these cost items is: 81.8 + 46 + 69 = 196.8 thousand rubles.
However, as a reserve for cost reduction in terms of production maintenance and management costs, it is advisable to take only 50% of this unjustified overspending, i.e.
196.8 * 50% = 98.4 thousand rubles.
Here, only 50% of unjustified overspending is conditionally accepted as a reserve in order to eliminate the repeated expense account (materials, wages). When analyzing material costs and wages, reserves have already been identified to reduce these costs. But both material costs and wages are included in the cost of servicing production and management.
In conclusion of the analysis, we summarize the identified reserves for reducing the cost of production:
in terms of material costs, the amount of the reserve is 69.4 thousand rubles. by eliminating above-planned returnable waste of materials and reducing transportation and procurement costs to the planned level;
in terms of wage costs - the amount of the reserve is 114.6 thousand rubles. by eliminating the causes of unproductive payments and the causes of unjustified overspending on payroll funds for managers, specialists and other employees;
in terms of expenses for maintenance of production and management - the amount of the reserve is 98.4 thousand rubles. by eliminating the causes of unjustified cost overruns for the maintenance and operation of equipment, general production and general business expenses.
So, the cost of production may decrease by 69.4 +114.6 + 98.4 = 282.4 thousand rubles. The profit of the analyzed enterprise will increase by the same amount.
If the definition of cost itself seems intuitive, then the formulas for its calculation are already strict mathematical expressions. To understand them, it is necessary to study the analysis technique used in each specific case.
First step cost calculation always is the determination of the costs of producing a product or service. This process is denoted economic term: "product costing". Costing can be planned, normative or actual. The first and second expresses the idea of how the economic process should be built. The actual calculation is based on real data.
Product costing in the Republic of Belarus is a process regulated by many legislative and industry standards. This is due to the practice of setting prices based on the value of the declared cost. In many cases, instead of market price changes, enterprises have to resort to regulation of the cost calculation system through the redistribution of costs from one type of product to another in order to have a legal opportunity to raise / lower the price.
After finding out the amount of costs and their distribution by expenditure items, it is the turn to calculate their specific value. This is exactly what cost formulas are for.
Costing is a universal procedure for any economic process. Such calculations have the greatest complexity in the analysis industrial production. It also uses the largest number of different types of formulas for calculating the cost. These formulas can be adapted for other economic processes as well.
Total cost formula
For a general assessment of the economic efficiency of an enterprise, the full cost formula is often used. In its simplest form, it looks like this:
Total cost = the sum of production costs + sales costs.
The full cost price shows the largest amount of planned or actual costs. The results of all other cost formulas are parts of this total.
For great importance is not just produced, but sold products. Therefore, the cost formula takes the following form:
Cost of goods sold = total cost - cost of unsold products.
An example of calculating the full cost in expanded form, i.e. with the selection of individual elements, it will look something like this:
Full cost = Raw material costs + Energy costs + Depreciation charges + Key personnel wages + Management and support staff wages + Payroll deductions + Sales and sales service costs + Transportation costs + Other costs.
Special costing formulas
Knowing the total amount of costs for the production and sale of a product or service does not provide sufficient information for understanding and evaluating the individual elements of this system. So out total cost the cost per unit of output is not visible. The cost of the individual process remains uncertain. For this, many specific cost formulas have been developed that calculate individual values.
Given the fact that some costs depend on the volume of production, and some do not, it is customary to distinguish between variable and fixed costs.
The size fixed costs is calculated by summing up the values of some unavoidable costs of the enterprise. Calculation example:
Fixed costs \u003d Fixed part of the salary + Expenses for rent and maintenance of premises + Depreciation deductions + Property taxes + Advertising expenses.
Methodology for calculating variable costs in general view can be represented by the following formula:
Variable costs \u003d Variable part of the salary + Cost of raw materials and materials + Cost of energy resources + Costs of transporting products + Variable part of commercial expenses.
The cost of a unit of production in general terms can be found by simply dividing the sum of costs by the volume of output in physical terms:
Unit cost = Total cost/Number of units.
For realities commercial organization a more complex version of the same formula is more suitable:
Unit Cost = Production Costs/Number of Units Produced + Sales Costs/Number of Units Sold.
There are many other formulas for calculating the cost. Their exact number is difficult to determine, because. each of them is formed according to the requirements of the accepted calculation methodology.
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