Types of production costs. Depending on what costs are included in the cost of production, in Russian practice and theory it is customary to distinguish. What costs are included in the single tax base? Costs are included

As a result of activities, business entities make management decisions that are based on the division of costs for certain classification criteria. The composition of costs included in the cost of products (works, services) differs in each industry; in this regard, the question remains relevant: what costs are included in the cost of production.

How are costs included in the cost price?

The process of including costs for finished products consists of assigning direct costs to account 20, then writing off indirect costs from accounts 25 and 26 to account 20. The costs of auxiliary production collected on account 23 are included in the cost of production in the corresponding part of services provided, work performed, manufactured products. Indirect costs collected on accounts 25 and 26 are included in the cost of production (on account 20) according to the distribution coefficient. This is the attribution of costs to cost.

Cost division in decision making

One of the signs of classifying costs in relation to making management decisions is their division in relation to the volume of production into those that depend on changes in the volume of production, i.e., variable, and those that do not change when the volume of production changes, i.e. . permanent or conditionally permanent.

Regarding the decision made, costs are divided into those that:

taken into account and taken into account, i.e. those costs, the value of which depends on the specific decision being made (relevant);
are not taken into account, i.e. those costs, the value of which does not depend on the specific decision being made (irrelevant).

The classification of costs for making management decisions was discussed above.

Working time expenses: classification

Working hours divided into the time during which the employee performs labor actions(working time), and break time.

Table 1 shows working time costs.

Table 1. Working time costs

Cost	Explanations
1. Working time	Time costs in this case are divided into: time spent on preparation and completion of work (preparatory and final time); time spent during which the objects of labor are changed and the technological operation is performed (operational time); the cost of time during which actions are taken to care for the worker’s place and keep it in a condition suitable for work (work place maintenance time)
2. Break time	These time costs include: provided breaks for personal needs and rest; breaks due to the specifics of the production process (regulated breaks); time costs that arise due to violations ( labor discipline) and problems (technical, organizational) (unscheduled breaks)

Table 1 briefly presents the classification of working time costs.

Cost accounting in agriculture

Agricultural enterprises carry out activities related to the cultivation of crop and livestock products. To account for costs and calculate costs in crop production, a special sub-account is used, opened to account 20, which is called “Crop Production”.

Cost accounting and calculation of the cost of crop products is carried out using account 20/1; on its debit side, all costs incurred for growing crop products are recorded. The credit side of this account reflects the output of crop production according to planned cost.

Specific cost items in crop production are the costs of seeds, various types of fertilizers, products used to protect plants, etc.

Accounting for reduced costs

Cost accounting can be carried out using a reduced cost system (direct costing). The reduced cost accounting system assumes the following cost accounting:

costs, the change of which depends on changes in volume, i.e., variables, are planned and charged to the cost of production;
costs, the change of which does not depend on changes in production volume, i.e., semi-fixed, are written off to the results of the activities of the business entity.

Costs for regulation and control: what are they?

Classification of costs for control and regulation involves dividing costs into:

those that can be regulated (i.e., regulated), and those costs that cannot be regulated (unregulated);
costs that can be controlled during the production process of an economic entity (controllable), and those costs that cannot be controlled (uncontrollable).

Types of organization costs

Cost classification - table 2.

Table 2. Cost classification

What is included in the commercial cost

The commercial cost of production includes the costs of production and the costs of its marketing (sales).

The main condition effective management a manufacturing enterprise is the completeness, reliability and timeliness of information on costs that form the cost of products (works, services). It is about the composition and classification of costs included in the cost of production that we will talk about in this section of the thematic issue.

Expenses that form the cost of production

For the purposes of calculating the cost of production, we are interested in the costs that are included specifically in the accounting cost. But we know that in order to calculate the corporate profit tax in tax accounting, it is also necessary to determine the so-called tax cost. How similar they are to each other, you will learn from the material below.

Let us immediately note that in accounting there are implementation cost and production. At the same time, it is part of the cost of sales and includes the following expenses: direct material costs, other direct costs, as well as variable production overhead and constant distributed overhead expenses ( para. 2 clause 11 P(S)BU 16). Finished products and work in progress are assessed at production costs. In addition to production costs, sales value also include unallocated fixed overhead costs and ( para. 1 clause 11 P(S)BU 16). Thus, production cost products only includes costs, directly related to its production, due to technology and organization of production, and in terms of management costs (overheads) - general production expenses only. Those types of indirect (overhead) costs that are not directly related to the manufacture of products(administrative expenses, sales expenses and other expenses operational activities enterprises), are not included in production costs and, therefore, are not distributed to each unit of the costing object.

In tax accounting, a slightly different term of cost is used, namely - cost of manufactured and sold goods, work performed, services provided. Although it essentially includes the same expenses as accounting cost of sales, except for excess production costs. The following table will tell you more about tax and accounting costs.

Composition of expenses forming accounting costs			Composition of expenses forming the tax cost
Cost of products sold (works, services)	Production cost of products (works, services)	Direct material costs	Cost of goods manufactured and sold, work performed, services provided	Direct material costs
				Cost of purchased services directly related to the production of goods, performance of work, provision of services
		Direct labor costs		Direct labor costs
		Other direct expenses		Depreciation of industrial fixed assets and intangible assets directly related to the production of goods, performance of work, provision of services
				Other direct costs, including acquisition costs electrical energy(including jet)
		Variable and fixed distributed overhead costs		General production expenses related to the cost of goods manufactured and sold, work performed, services provided in accordance with P(S)BU 16
	Unallocated fixed overhead costs
	Excessive production costs

We will decipher the composition of the cost elements in more detail in the table below.

Type of expenses	Composition of expenses
	in accounting	in tax accounting

Direct material costs	clause 12 P(S)BU 16	p.p. 138.8.1 NK
	The cost of raw materials and basic materials that form the basis of manufactured products, purchased semi-finished products and components, auxiliary and other materials that. Direct material costs reduced by the cost of return waste obtained during the production process, which are assessed in the manner set out in clause 11 P(S)BU 16
Direct labor costs	clause 13 P(S)BU 16	p.p. 138.8.2 NK
	Wages and other payments to employees engaged in the production of products, performance of work or provision of services that can be directly attributed to a specific cost object
Other direct expenses	clause 14 P(S)BU 16
	All other production costs that can be directly attributed to a specific cost object, in particular:
	deductions for social events, rental payments for land and property shares, depreciation, losses from defects, consisting of the value that was finally rejected for technological reasons	contributions for social events specified Art. 143 NK, rent for land and property shares, cooperative payments individuals- members of production agricultural
	products (products, components, semi-finished products), reduced by their fair value, and the costs of correcting such technically inevitable defects	cooperatives who are not entrepreneurs and take part in the activities of such an agricultural cooperative. This also includes losses from defects, consisting of the cost of products (products, components, semi-finished products) that were finally rejected for technological reasons and the costs of correcting such technically inevitable defects, if such products are sold* ( clause 138.7 Tax Code)
* Until the establishment of norms for technically inevitable marriage central authority executive branch in the relevant area such standards are established self-tax payer in the order for the enterprise subject to justification of its size.
For the organization of accounting for direct production costs, see p. 17 of this issue.
Variable overhead costs	para. 2 clause 16 P(S)BU 16	p.p. 14.1.84 NK
	Expenses for maintenance and production management (workshops, areas), which change straight (or almost straight) proportional to the change in the volume of activity. Variable overhead costs distribute for each cost object (labor hours, wages, volume of activity, direct costs, etc.), based on actual capacity of the reporting period
Fixed overhead costs	para. 3 clause 16 P(S)BU 16	p.p. 14.1.84 NK
	Maintenance and production management costs that remain unchanged(or almost unchanged) when the volume of activity changes. Fixed overhead costs distribute for each expense item using distribution base(hours of labor, wages, volume of activity, direct costs, etc.) when normal power. Unallocated fixed overhead costs are included in the cost of products sold (work, services) during the period of their occurrence*
* Under normal power according to paragraph 4 of P(S)BU 16, they understand the expected average volume of activity that can be achieved under the conditions of normal activity of the enterprise over several years or operating cycles taking into account planned production maintenance.
Keep in mind: the total amount of allocated and unallocated fixed overhead costs cannot exceed their actual value. For more information on overhead costs and their distribution, see p. 28 of this issue.
Excessive production costs	letter dated April 15, 2005 No. 31-04220-20-17/6687
	Expenditure (use) of resources for production in excess of norms, standards, prices, etc., approved by the authorized body
Please note: excess costs are included in the cost of products sold (works, services) according to the decision authorized person(manager) of the enterprise only if they not associated with shortages, damage, non-technological use and violation of storage rules.

As you can see from the tables above, accounting and tax costs are almost identical. Thus, the cost of manufactured products (work performed, services provided) sold during the reporting period, both in accounting and tax accounting, includes direct costs(i.e. expenses directly related to the production of such goods (performance of work, provision of services)) and overhead costs(constant and variable). But excess production costs will be included in the selling cost only in accounting, in tax accounting the way to any expenses is closed to them. This is evidenced by clause 140.3 of the Tax Code, according to which the expenses do not include the amount of actual losses of goods, except for losses within the limits of natural loss or technical (production) losses* and imbalance costs natural gas in gas distribution networks that do not exceed the size determined by the Cabinet of Ministers of Ukraine, or other body determined by the legislation of Ukraine. Thus, any excess production expenses are not included in tax expenses.

* Technological consider losses due to the level of technological development and associated with technological processes for the manufacture of parts, assemblies, products (insufficient controllability of individual operations of the technological process; imperfection technological equipment and measuring equipment; non-compliance of individual physical and chemical properties of the materials used and semi-finished products with production requirements, etc.) (paragraphs 406 and 422 of Method Recommendations No. 373).

Note that the determined production cost of products (works, services) does not reflect the total amount of costs that are necessary when planning the activities of the enterprise as a whole and in the context of the production of individual types of activities, as well as when calculating the selling price of manufactured products (works, services). An indicator that includes all enterprise costs associated with the production and sale of products is full cost. It is different from production cost by the amount of administrative and sales expenses and is calculated only by commercial products (administrative expenses and sales expenses are not allocated to semi-finished products of own production and finished products used for domestic consumption, since these types of inventories are valued at production costs).

Classification of production costs

Even from a simple listing of the component costs that form the cost of production, it is clear that they are not the same not only in their composition, but also in their importance in the manufacture of products, performance of work and services. Some costs are directly related to the production of products (for example, the cost of raw materials), others are related to the management and maintenance of production (for example, the cost of maintaining a management apparatus), and others, although not directly related to production, are still current legislation included in production costs (for example, unified social contributions). In addition, part of the costs is directly included in the cost of specific types of finished products, and the other part, in connection with the production of several types of products, is indirectly included.

Therefore, for effective organization of accounting, it is necessary to apply an economically sound classification of costs according to certain criteria. You can see it summarized in the table below.

Signs
By responsibility center (cost center)	Costs of production, workshop, site, technological stage, service
By type of product, work, service	Costs of products, typical representatives of products, groups of similar products, parts, assemblies, orders, processes
According to the unity of composition (homogeneity) of costs	Single element, complex
By methods of transferring to the cost of products	Direct, indirect
According to the degree of influence of production volume on the level of costs	Variables, constants
By definition of the relationship to the cost of production	Product costs, period costs
By calendar periods(time of occurrence)	Current, future and future costs
According to the expediency of spending	Effective (productive), ineffective (unproductive)
In relation to costs to production process	Basic, invoices
By type of cost (economic content)	Costs by economic elements, costs by costing items

Classification by place of origin

Production costs are grouped by place of origin by workshops, sections, services and other structural divisions of the enterprise, i.e. according to the centers of responsibility, which are allocated to independent objects accounting. This selection allows already at the initial stage accounting classify costs arising in departments of the enterprise and ensure differentiated distribution of costs incurred per unit of production, necessary for accurate cost calculation.

Depending on the nature and purpose of the processes performed, production is divided into:

1) main production, including workshops, areas that are directly involved in the production of products(works, services) for which this enterprise is intended to produce;

2) auxiliary production, intended for maintenance of main production tools, devices, spare parts for equipment repair, various types energy, transport and other works and services (tool and repair shops, transport departments, laboratories, etc.). As part of auxiliary production, auxiliary productions are also planned and taken into account (with the exception of auxiliary agriculture);

3) non-industrial production and farms, combining non-industrial transport, housing and communal services and social and cultural facilities, subsidiary agricultural enterprises and other structural units that do not participate in production.

Cost centers are objects of analytical accounting of production costs according to production cost elements and cost calculation items. The nomenclature (list) of cost centers is established for a certain period and secured by an order from the head of the enterprise on the organization of accounting.

Classification by types of products, works, services

All production costs include the cost of individual types of products (works, services) and are grouped by types (series, groups) of products or by individual production orders. This grouping is subject to the requirements of calculation and pricing. It is used to determine economic profitability of production of certain types of products. Costs included in the production cost of products (except for general production costs) are divided into primary documentation by individual, separate stages of the production process: stages, phases, repartitions, processes, operations, etc.

Classification according to the unity of cost composition

Costs are differentiated based on the degree of homogeneity or unity of composition. single-element, i.e. homogeneous in economic content, and complex, consisting of elements of different economic content. In other words, single-element ones consist of one cost element, and complex ones consist of several economic elements.

Single-element ones include, for example, the costs of raw materials and supplies, wages, fuel, energy costs, etc., and complex ones include general production costs, which include wages workshop personnel, materials used for the economic needs of the workshop, depreciation of equipment and workshop buildings, etc.

Classification according to the method of transfer to the cost of production

According to the method of transferring costs to products, costs are distinguished straight And indirect.

Direct consider the costs associated with production certain types of products or performing specific work and can be charged directly to their cost, without distribution, according to primary documents. In most industries, such costs include the consumption of raw materials, basic materials, purchased products and semi-finished products, basic wages of production workers, etc.

Indirect are the costs that are associated with production several types of products and therefore must be distributed accordingly with the help special methods. This includes general production expenses.

Indirect costs are first collected on the collection and distribution account 91 “General production expenses”, and then included in the cost of specific products using special distribution calculations. The choice of distribution base is determined by the characteristics of the organization and production technology and is established by the enterprise independently in the order accounting policy. Moreover, the installed base should not change throughout the entire financial year.

Note that dividing costs into direct and indirect has conditional character. Whether certain types of costs are direct or indirect is to a certain extent determined by the peculiarities of the technological process and the organization of production. For example, in the mining industry, in enterprises producing electrical and thermal energy, and in a number of others, all production costs are direct. In those industries in which several types of products are produced from raw materials and in one technological process (for example, the oil refining industry), even the costs of raw materials and basic materials require indirect distribution.

Dividing costs into direct and indirect should not be combined with dividing them into main and invoices(about them a little further), since often the main costs, based on specific conditions, have to be distributed indirectly, and some overhead costs are attributed to the cost of production on a direct basis.

Classification according to the degree of influence of production volume on the level of costs

According to this classification, costs are divided into variables And permanent.

Under variables understand the costs, the absolute value of which changes(increases, decreases) depending on changes in production volume. For example, an increase in production volume causes greater consumption of raw materials and materials, purchased semi-finished products, basic wages of production workers and other expenses that are caused directly by the technological process of production and, conversely, the lower the production volume, the lower their consumption.

However, not in all cases this dependence is proportional. Some of the variable costs may increase to a lesser extent than the volume of production, since with an increase in production volume favorable conditions are created for better use of operating systems, fuel, materials, increasing labor productivity, reducing the material consumption of products, etc. Therefore, it is more correct to consider this group of expenses conditional variable.

Permanent calculate costs, the absolute value of which does not change significantly with changes in production volume. These include part of general production expenses (costs for maintaining the workshop management apparatus, for heating premises, depreciation charges, etc.). However, in some cases, with an increase in production output, these costs may increase slightly, but since this increase is insignificant, such costs are conditionally considered constant.

It should be pointed out that P(S)BU 16 provides special order distribution of fixed overhead costs, which you can read about on p. 29.

Classification by determining the relationship to the cost of production

By definition, the relationship to the cost of production is distinguished product costs And period expenses.

Product costs - these are expenses associated with the production of products and making up the cost of manufactured products according to the standards P(S)BU 16.

Period expenses - these are expenses that are not included in production costs and are considered as expenses the period in which they were incurred. These are management (administrative) costs, product sales and other operating expenses, as well as unallocated fixed overhead costs and excess production costs.

Classification by time of occurrence

Based on this criterion, costs are divided into current, future periods And upcoming expenses.

TO current include production costs of this reporting period which should be included in the cost of products manufactured during this reporting period.

Deferred expenses are the costs incurred in the current reporting period, but subject to inclusion in the cost of products that will be produced in subsequent reporting periods(for example, advance payments for rent, by subscription to periodicals etc.).

TO upcoming include expenses that have not yet been produced in the reporting period, but for the correct formation of the actual cost of production to be included in production costs for this reporting period in the planned amount(for example, ensuring vacation payments).

The division of expenses (reporting, future reporting period and upcoming) is carried out for the most complete and uniform reflection of all costs in the cost price.

Classification according to expediency of expenditure

According to the criterion of expediency, costs are distinguished effective And ineffective.

Effective - This productive costs provided by the technology and organization of production. A ineffective - these are costs unproductive nature, as a result of which no income will be received, since the product will not be produced. Such costs are optional and arise as a result of certain shortcomings in the organization of production, disruption of technology, etc. Ineffective costs are losses in production. We will talk about them in detail on p. 24. The obligation to identify ineffective costs is justified in order to prevent losses from penetrating planning and regulation, and excess costs from entering production costs.

Classification according to the ratio of costs to the production process

In relation to the production process or technical and economic purpose, costs are divided into basic directly related to technological production processes, and invoices, determined by the management and maintenance of production. For example, the wages of production workers are directly related to the technological processes of production, while the wages of auxiliary workers, specialists and shop floor employees are not determined by technological processes, but are caused only by their maintenance and management. Therefore, the former are classified as basic expenses and the latter as overhead.

The division of costs into basic and overhead is based on the fact that Only production costs should be included in the cost of production.

Classification by economic content

Costs are grouped according to economic content by economic elements(what and how much was spent on production) and by costing items(what costs are incurred).

Elemental grouping of costs shows how much of certain types of costs (material, monetary) were incurred by the enterprise as a whole for a certain period of time without distributing them into individual types of products and other general production needs regardless of where they originated and for the production of which specific product they were used.

There are only five elements: material costs; labor costs; contributions for social events; depreciation; other expenses. The composition of each of the above expense elements can be seen in pp. 22 - 26 P(S)BU 16 and in Instructions No. 291 regarding the use of class 8 accounts.

Grouping by economic elements is necessary to develop a production cost estimate, which determines: the enterprise’s total need for material resources, the amount of depreciation of fixed assets, labor costs, and others. cash expenses enterprises. But based on economic elements, as a rule, it is impossible to determine the cost of individual types and units of products, or to establish the volume of costs of specific structural divisions of the enterprise. Therefore, to solve these problems, along with grouping costs by economic elements, production costs are planned and taken into account according to cost items (costing items).

Classification of costs by calculation cost items reveals the purpose of costs and their connection with the technological process. Calculation item in this case, a certain type of cost is called, which forms the cost of both individual types and all products as a whole. Based on this grouping, analytical accounting of production costs is constructed, and planned (standard) and actual cost estimates of individual types of products are compiled.

Costs associated with the production of products can be grouped into the following costing items: raw materials and materials; purchased components, semi-finished products, works and services of a production nature from third-party enterprises and organizations; fuel and energy for technological purposes; TZR; returnable waste (subtracted); basic salary for production workers; additional wages for production workers; social insurance contributions; costs of maintaining and operating equipment; general production expenses; losses due to technically inevitable defects; related products (subtracted); other production costs. Depending on the characteristics of the technology and organization of production, as well as the share of certain types of enterprise costs in the cost of production can combine some of the given costing items into one or, conversely, distinguish several costing items from one standard item.

Establishing the list and composition of items for calculating the production cost of products is within the competence of the enterprise and must be regulated by its accounting policies.

According to economic content, they are grouped into the following economic elements: material costs, labor costs, deductions for social needs, depreciation of fixed assets, other costs. Their structure is formed under the influence of various factors: the nature of the products produced and the raw material resources consumed, the technical level of production, forms of its organization and placement, conditions of supply and sales of products, etc.

According to the functions of the enterprise in the production management system, costs are divided into:

supply and procurement;
production;
commercial sales;
organizational and managerial.

Dividing costs by activity function allows planning and accounting to determine the amount of costs broken down by divisions of each area, which is one of the important conditions organization of on-farm accounting.

According to their economic role in the production process, costs are divided into basic and overhead.

Main These are the costs directly related to the technological production process: raw materials, fuel and energy for technological purposes, labor costs for production workers, etc.

Overheads are formed in connection with the organization, maintenance and management of production. They consist of complex general production and administrative expenses. The amount of these expenses depends on the management structure of departments, workshops and enterprises.

By way of inclusion In the cost of production, costs are divided into direct and indirect.

Direct costs
are associated with the production of a certain type of product and can be, based on data from primary documents, directly and directly attributed to its cost.

Indirect costs are associated with the production of several types of products, for example, costs of management and maintenance of production.

The choice of distribution base is determined by the characteristics of the organization and production technology and is established by industry instructions for planning, accounting and calculating product costs.

In practice, enterprise costs are traditionally grouped and accounted for by composition and type, place of origin and carrier.

By composition costs are divided into single-element and complex.

Single element are called costs consisting of one element - materials, wages, depreciation, etc. These costs, regardless of their place of origin and intended purpose are not divided into different components.

Comprehensive are called costs consisting of several elements, for example, shop and general plant expenses, which include wages of the relevant personnel, depreciation of buildings and other single-element costs.

Accounting by type of cost classifies and evaluates resources used in the process of production and sales of products. Based on this criterion, costs are classified according to costing items and economic elements.

The composition of costs included in the cost of production is regulated by relevant regulations.

A uniform list of economically homogeneous enterprises has been established for all enterprises. cost elements:

material costs;
labor costs;
contributions for social needs;
depreciation of fixed assets;
other costs.

The economic element of costs is usually understood as an economically homogeneous type of costs for the sale of products (works, services), which at the enterprise level cannot be decomposed into individual components.

Grouping costs by economic elements is an object financial accounting and shows what exactly was spent on production, what is the ratio individual elements in the total cost. It allows you to determine and analyze the structure of current production and distribution costs. To carry out this type of analysis, it is necessary to calculate the share of one or another element in the total cost.

The grouping of costs by economic elements represents the value of current production or distribution costs incurred by the organization for a given reporting period, regardless of whether the production of the product is completed or the work is completed. The significance of this classification increases as the prerequisites are created for dividing the accounting system of enterprises into financial (accounting) and internal (production, management) subsystems.

To calculate the cost of individual types of products manufacturing enterprises use cost grouping by costing items.

Calculating the cost of products (works, services) is the calculation of the amount of costs per unit (output) of production. The statement in which calculations are made per unit of production is called costing.

Calculation expenses are maintained on special forms that reflect data on planned and actual expenses according to cost items for the entire output of marketable products for the reporting period. The document in which these costs are entered is called costing, and the calculation system for determining the cost of production is called costing. Unlike grouping by economic elements, costing allows you to take into account costs directly related to the production of a specific type of product. These costs include both material costs and the costs of creating, maintaining and managing the production of this type of product. Based on cost calculations, its workshop, production and total cost is determined.

Each organization sets the nomenclature of articles for itself, taking into account its specific needs. Their sample list established by industry instructions for accounting and calculating product costs.

In the most general view The nomenclature of costing items is as follows:

"Raw materials and basic materials."
"Semi-finished products of our own production."
“Returnable waste” (subtracted).
"Supporting Materials".
"Fuel and energy for technological purposes."
“Labor costs for production workers.”
“Deductions for social needs.”
“Costs for preparation and development of production.”
“Operation costs of production machines and equipment.”
"Workshop expenses."
"General business expenses."
"Losses from Marriage."
"Other production costs."
"Business expenses."

The total of the first ten articles allows us to obtain the workshop cost, the total of the first thirteen articles forms the production cost, and the total of all fourteen articles forms the total cost of production.

List of cost items, their composition and methods of distribution by type of product (work, service), as well as the procedure for assessing work in progress balances and finished products determined by industry methodological recommendations. In principle, each industry has its own costing items. In some industries, for example, transportation and procurement costs are highlighted (due to their large share), depreciation charges (due to the high capital intensity of production), etc.

By place of origin costs are grouped and accounted for by production, workshop, site, department and other structural divisions of the enterprise, i.e. by responsibility centers.

Cost grouping is important in relation to production volume. Based on this criterion, costs are divided into fixed and variable.

Fixed costs do not depend on the dynamics of production volume and sales of products, that is, they do not change when production volume changes.

Variable costs depend on volume and change in direct proportion to changes in the volume of production (or business activity) of the company. As it increases, so do variable costs, and vice versa (for example, wages of production workers producing a certain type of product, costs of raw materials and materials).

Variable costs calculated per unit of production are a constant value.

In addition, there are mixed costs.

The division of costs into production and periodic is based on the fact that the cost of production should include only production costs. They, as necessary, form the production cost of products and are used to calculate the cost of a unit of production.

Production costs include:

direct material costs;
direct labor costs with deductions for social needs;
losses from marriage;
production overhead.

Manufacturing overhead costs consist of the costs of operating production machinery and equipment and shop floor costs.

Recurring expenses are divided into:

commercial;
general;
administrative.

These include a significant part of the total cost of management, production maintenance, and product sales, which depends not on the volume of production and sales, but on the organization of production and commercial activities, the business policy of the administration, the duration of the reporting period, the structure of the enterprise and other factors.

According to technical and economic purpose distinguish between basic (technological) and overhead costs.

Basic (technological) costs are directly related to production and provision of services, these include the first six cost items: labor costs, the cost of materials, fuel, electricity, and other costs associated with a specific calculation object.

Invoices are associated with the maintenance and management of individual departments (shops, sections) or the organization as a whole.

When calculating costs and evaluating finished products, grouping costs depending on time of their occurrence and attribution to cost products. Based on this criterion, costs are divided into:

current;
future reporting period;
upcoming.

Current expenses include the costs of production and sales of products for a given period. They have generated income in the present and have lost the ability to generate income in the future.

Future expenses are expenses incurred in the current reporting period, but to be included in the cost of products that will be produced in subsequent reporting periods.

Forthcoming includes costs that have not yet been incurred in a given reporting period, but in order to correctly reflect the actual cost, they are subject to inclusion in the production costs for a given reporting period in a planned amount (expenses for paying workers' vacations, paying a one-time remuneration for long service and other costs that have periodic nature).

In the process of making management decisions, he must have sufficient information that would promise benefits to the enterprise from the production of one or another type of product. In these conditions, the division of costs into the following types:

alternative (imputed);
differential;
irrevocable;
incremental;
marginal;
relevant.

According to the degree of adjustability costs are divided into fully, partially and weakly regulated.

The degree of cost control depends on the specifics of a particular enterprise: the technology used; organizational structure; corporate culture and other factors. Therefore, there is no universal methodology for classifying costs according to the degree of adjustability; it can only be developed in relation to a specific enterprise. The degree of cost control will vary depending on the following conditions:

the duration of the period of time (with a long period, it becomes possible to influence those costs that are considered given in a short period);
powers of the decision maker (costs that are specified at the level

Depending on the predominant share of individual cost elements, the following types of industries and productions are distinguished: material-intensive, labor-intensive, capital-intensive, fuel- and energy-intensive and mixed. The cost structure does not remain constant, it is dynamic.

Cost grouping is used when drawing up cost estimates for the production of all manufactured products. Estimates are necessary not only to reduce costs for their elements, but also for drawing up material balances and standardization working capital , development of financial plans.

Cost estimate for the production and sale of products is a document in which running costs, attributed to the cost of production, are grouped by economic elements of the same name without dividing costs by type of product and service. Costs of the same name assume that this element takes into account all the costs of consuming a given type of resource.

According to the cost estimate, the cost of gross, marketable and sold products, changes in the balance of work in progress are calculated, costs are written off to non-production accounts, profit (or loss) of sold products and costs per ruble of marketable products are established. The estimated cost breakdown allows you to determine the total volume of consumed types of resources and determines the need for working capital.

The production cost estimate is a summary calculation summing up the costs of production and sales of products. The estimate is compiled according to economic elements, the list and composition of which is uniform. This ensures cost reduction across elements as a whole and allows you to monitor changes in the cost structure.

Estimation begins with determining the cost estimate for auxiliary workshops, i.e. auxiliary workshops are consumed by the main workshops, the costs are included in the cost of the main workshops. The cost estimate for auxiliary shops includes: the auxiliary shop's own costs, the cost of work and services performed or provided to it by other shops, the cost of work and services for other shops. Then they draw up cost estimates for maintenance and production management (general production, general business, non-production expenses), as well as estimates for certain species special costs (estimates of commissioning work for product development, transportation and procurement costs). The presence of these estimates allows us to proceed to the preparation of production cost estimates for the main workshops, which allows us to determine the cost estimate for the business entity as a whole.

For certain resources. All costs that the implementation of a business project involves can be divided into direct and indirect. You must try to predict all these expenses as accurately as possible in order to draw up a business plan.

What is included in direct costs

Direct costs are directly related to the products or services provided by an enterprise. They are included in the cost using the direct method. When calculating income tax, direct costs are taken into account as products are sold.

Most often, the structure of direct costs includes the following groups:
- material costs;
- labor costs and salary deductions;
- depreciation charges;
- other types of costs.

Material costs include all materials used, with the exception of self-produced products. These are, in particular, raw materials, semi-finished products, building materials, components, fuel, spare parts, containers, etc. Their list and specific weight differs depending on the industry. For example, for metallurgy, an important share will be occupied by energy costs, and for the food industry, the largest share will be accounted for by raw materials. The criterion for classifying material costs as direct costs is that the materials included here, during their further processing, become part of the finished product, i.e. transfer their value to it.

Labor costs include the costs of salaries of employees directly involved in production process. This is, for example, the salary of programmers in a website development company, or craftsmen in construction organization. But the salaries of accountants and administrative personnel can be attributed to indirect expenses. It is worth considering that this group of costs includes not only wages, but also various incentives, bonuses, vacation pay, as well as various deductions for off-budget funds.

Depreciation expenses are carried out using standards depreciation charges. They represent the process of partially transferring the cost of fixed assets as they wear out to cost.

Expenses often include the cost of services from auxiliary production facilities and external contractors. Direct costs include other types of costs that are directly related to production.

What are indirect costs?

Indirect costs cannot be directly transferred to the cost of production or provision of services, because they are distributed between different types of products. They are not directly related to the products produced and are often also called overhead costs.

These are, for example, rental costs, administrative and management costs, costs for advanced training of workers, office supplies, communication services, etc. When starting a business, it is quite problematic to predict all indirect costs; unforeseen expenses can always arise.

It is worth noting that the specified list and division of costs into direct and indirect is very arbitrary; each organization determines it independently based on the specifics of the organization of production. For example, the salary of accountants in medical institution will be indirect costs, and in a company engaged in external accounting services - direct.

Depending on what costs are included in the cost of production, Russian practice and theories are usually distinguished:

workshop cost– includes direct costs and overhead costs; characterize the workshop costs for manufacturing products;

production cost– consists of shop cost and general business expenses; indicates the costs of the enterprise associated with the production of products;

full cost– production cost increased by the amount of commercial and sales expenses. This indicator integrates the total costs of the enterprise associated with both production and sales of products.

According to International standards accounting:

V production the cost price should include only production costs: direct labor costs, direct material costs and general production costs;

full the cost consists of production costs, sales and administrative (general business expenses).

There are individual and industry average production costs.

Individual cost - indicates the costs of a particular enterprise for the production of products.

Industry average cost - characterizes the industry average costs for the production of a given product. This is the weighted average of the individual costs of enterprises in the industry.

Depending on the time of compilation, we can distinguish preliminary calculation of product costs and subsequent calculation. Preliminary ones include planned, estimated, normative and project calculations, and subsequent ones include reporting and self-supporting calculations, compiled after the production of products and characterizing the actual cost of the product.

Planned Costing is the maximum allowable cost of a given enterprise for the manufacture of products, as provided for in the plan for the coming period. It is based on progressive average annual consumption rates for all types of costs.

Estimated Costing is a type of planned costing and is developed for one-time work and products performed according to orders. It forms the basis of the negotiated price when settling with the customer.

Regulatory Costing, in contrast to planned costing, expresses the level of cost achieved by the enterprise on a certain date and is compiled according to the consumption rates of material, labor and other costs in force at a given time.

Design calculation is intended to justify economic efficiency designed production facilities and technological processes. It is developed on the basis of indicative, aggregated expenditure standards, which are subsequently clarified.

Actual (reported) cost - characterizes the amount of funds actually spent on manufactured products. It is compiled according to the same items as the planned one. In addition, it reflects losses and expenses not included in the planned calculation.

Self-supporting calculation is a type of reporting, but unlike it, it is not developed on individual products, and for all products the corresponding structural unit, as a rule, according to articles depending on it. Costs independent of this structural unit are reflected in cost accounting at the prices of the planned target.