A competently calculated prime cost is a guarantee of future profit
The cost price is a monetary expressionnecessary for the implementation of commercial or industrial activities of the costs of the production and sale of manufactured goods, the provision of services or the performance of work. The composition of these costs is regulated at the legislative level. This is due to the peculiarities of taxation and the need to classify the costs of entrepreneurs on the sources of their reimbursement. In Russia, this process is regulated by Chapter 25 of the Tax Code. The methods of its calculation of an enterprise may be set at its own discretion, based on the characteristics of its activities.
In terms of costs, such types of prime cost as workshop, production (finished products) and full (already shipped products or goods) are allotted.
Shop-floor cost is the cost ofproduction within the workshop. These include direct materials costs, depreciation of workshop equipment, workers' salaries, UST deductions, general workshop costs, equipment maintenance costs.
Production - is the costs at the level of the shop plus plant costs (costs for general and administrative and management needs), as well as the costs of auxiliary production.
The total cost price is the sum of all elements: the production cost of the products produced and the costs that accompany the process of its implementation.
The cost price is also classified by periodscosts. In this aspect, it can be planned and actual. Planned - determined at the beginning of the period, based on the norms of costs and other targets. Actual - is calculated at the end of the production period according to the accounting data on actually incurred costs for the processes of product creation and sale. The cost of production is the largest value in the price structure. Its change directly leads to an increase or decrease in the value of profit.
Elementary classification of costs in costmay include elements such as material costs, funds for wages, depreciation, other expenses. But such a grouping of costs does not always allow you to form a price for the goods and does not make it possible to divide expenses into conditionally-constant ones (they practically do not change when the production volumes fluctuate: heating, depreciation, wages, etc.) and conditionally variable (change directly in proportion to the volumes production: materials, energy, fuel consumption).
Therefore, for certain types of goods costsare determined by the calculation. In this case, the cost price is the sum of many elements. At the same time, the composition of expenditures is determined by their focus (on the production of products or servicing this process) and the place of origin (production of the main and auxiliary). Typical is the nomenclature of articles: raw materials; purchased materials (semi-finished products), fuel and energy; accessories; recyclable waste; the basic salary of workers; additional wages of workers; deductions to UST; costs for the preparation of production; equipment maintenance costs; loss from marriage; workshop and general factory expenses; wear of tools; out-of-production expenses; other production costs.
Costs for calculating items are divided intobasic and waybills. The first group includes all the costs associated with the process of creating products: materials, raw materials, wages of workers, etc. The second - the cost of management, organization, training of production.
The most important indicators of the cost of production are the costs incurred per 1 ruble of products, the cost of all the products created in the production, one unit of production.