Calculation of the cost price

There are a number of reasons that causethe need to use such a calculation of enterprise costs, as the calculation of the cost of goods and services provided. It allows you to clearly monitor the data on the costs of the company by types and cost objects. Such cost accounting and costing are necessary for the formation of accounting and financial reporting, performance evaluation and further planning. According to the data on costs, the enterprise forms its assortment and pricing policy.

Calculation of cost is carried out by several methods.

Processor method

It is used mainly in enterprises with continuous operation. It is indispensable for accounting for costs for enterprises that produce goods of mass demand and meet the following criteria:

• a unified product description;
• short duration of the production cycle;
• limited range of goods;
• insignificant volumes of semi-finished products, work in progress or their complete absence.

This method is excellent for businessestransport, energy and extractive industries. The main criterion for its application is the final product. At such enterprises the simple method of calculating is most often used - one-step calculation. The cost price of each unit of production is calculated by dividing the total cost of production for a certain period by the total number of units of production.

The Peripheral Method

Such costing is appliedwhere, during the technological cycle, the production passes several stages of production. For such enterprises, a large volume of semi-finished products is characteristic, therefore the determination of the cost price is made at each stage of the technological cycle. The object of accounting, in this case, is a separate redistribution of production costs.

Custom method

Used to record costs for a single orserial production. Most often it is used at enterprises where they produce unique products on special orders. It is typical for accounting in large aircraft, shipbuilding, machine building concerns, and in small amounts - in the production of furniture, piece goods or in the provision of a certain type of services.

When calculating direct costs are attributed to articlescertain types of goods (orders), and indirect costs are allocated to orders at the established distribution rates. A variant of the ordering type of calculation is the operational (partion) method. It is used to record the cost of products, which is issued as an order and in the production process passes several operations (production stages).

Functional method

Used in enterprises that producea wide range of goods. Its essence lies in the fact that in the calculation, the cost ratio with specific functions carried out by the enterprise is realized.

The cost is recorded in a document of the established form, called a costing. The process of calculating this document is called calculating the cost price.

In this calculation, all incurred by the enterprisecosts are divided into separate components, called costing articles. He always has a calculating unit, which is an object by which the cost is calculated. The object of calculation can be a product, work in progress or services.

The calculation items in all enterprises are almost of the same type:

1. Raw materials and materials spent on production.
2. Purchased from third-party organizations components or semi-finished products.
3. Energy and fuel.
4. Recyclable waste.
5. Wage.
6. Deductions to funds.
7. Operating costs.
8. Preparatory expenses.
9. Technological losses.
10. General production costs (fixed and variable).
11. Other production costs.
    All listed articles (1-11) can be direct, complex or variable.
12. Administrative expenses.
13. Expenses for sales.
14. Financial expenses.
    The listed articles (12-14) are indirect, complex and constant.

Calculation of all the above listed items is a calculation of the full cost price.