Process cost. The formula for calculating the cost of goods sold

Hello! Many people ask the question: what is the cost of goods or products? For the production of any goods, a number of various resources are spent: natural, energy, land, financial, labor, etc. The sum of all costs incurred will be the cost of production. We will consider this issue in more detail in this article!

What is the cost of goods

First, let's look at the definition of the cost of goods.

Product cost - this is a monetary assessment of the current costs of the enterprise for the manufacture and sale of goods, as well as the actual cost of labor and financial resources.

In fact, the cost price is an indicator of production and economic activity firm, reflecting the financial costs of the organization for the production of products. The price of the goods directly depends on the cost price. The lower the cost finished products the higher the profitability of the enterprise.

How to determine the cost of goods

Depending on the method of keeping records of expenses, several methods for calculating the cost of goods have been formed: normative, process-by-process, per-order, per-order. In turn, the cost is also divided into several types: gross, commodity and realized.

What is included in the cost of goods

Surely every novice entrepreneur at least once wondered: why do we need a cost price? And it is needed in order to objectively assess the profitability of the enterprise, determine the wholesale and retail price of the goods, and give an objective assessment of the efficiency of spending and using resources.

The cost of goods takes into account many indicators, depending on what exactly needs to be controlled.

The cost of a unit of goods directly depends on the quantity of goods produced or purchased. To understand this, it is enough to consider a simple example:

Let's say you went to the store to buy a pack of tea worth 100 rubles. Then the cost calculation will take the following form:

• Suppose you spent 1 hour on a trip (with an estimated cost of a working hour of 100 rubles);
• Estimated depreciation of the car was 15 rubles.

Therefore, the cost of goods includes: The cost of a consignment of goods (in this case, packs of tea) + Costs) / Quantity = 215 rubles.

The picture will change significantly if you purchase not one pack of tea, but, let's say, five:

Cost price \u003d ((5 * 100) + 100 + 15) / 5 \u003d 123 rubles.

The example clearly shows that it directly depends on the purchased quantity of products - the more you purchase (or produce), the cheaper each unit costs you. No company is interested in increasing the cost of goods.

Types of production costs

In fact, the cost price is the sum of all costs attributed to the production and release of goods. The cost price can be calculated both for the entire manufactured product, and for a separate commodity unit.

Strictly speaking, there are several types of cost, and, depending on which area of ​​activity the entrepreneur wants to control, the following indicators can be calculated:

• Workshop, containing the costs of all departments of the organization aimed at manufacturing products;
• Production, including the shop cost, as well as general and target costs;
• Full, consisting of production costs and expenses for the sale of products;
• General business, which includes expenses that are not directly related to production process but aimed at doing business.

Production cost contains all the resources spent at the production stage, namely:

• The cost of purchasing raw materials and basic materials for the manufacture of products;
• Costs for fuel and energy supply of production;
• Remuneration of employees of the enterprise;
• Costs for internal movement of raw materials and supplies;
• Maintenance, current repair and maintenance of fixed assets of the enterprise;
• Depreciation of equipment and fixed assets.

Realized cost implies the costs of the enterprise at the stage of the sale of goods, namely:

• The cost of packing / packaging / preservation of products;
• The cost of transporting goods to the distributor's warehouse or to the direct buyer;
• Product advertising costs.

The total cost of a product is the sum of the cost of production and the cost of sales. Also, this indicator takes into account the cost of purchasing equipment.

Maintenance costs entrepreneurial activity and it is customary to divide it into certain periods during which these costs should pay for themselves. Such costs are added in equal shares to the total costs of production and sales of products and are included in the concept of total cost.

There is also a planned cost, this is the average estimated cost of products manufactured in planning period(e.g. per year). Such prime cost is calculated in the presence of consumption rates for the use of materials, energy resources, equipment, etc.

To determine the cost of one unit of finished products, a concept such as marginal cost is used. This indicator directly depends on the amount of products produced and reflects the efficiency of further expansion of production.

In addition to the cost of production, there is also

The cost structure is classified by cost items and cost elements.

According to the calculation items:

• Raw materials, materials, components, semi-finished products, aggregates, etc. necessary for the production of goods;
• Fuel and energy resources spent on production;
• Depreciation of fixed assets of the enterprise or fixed assets (equipment, tooling, machinery, etc.), the cost of their maintenance and maintenance;
• Remuneration of labor to key personnel (salary or tariff);
• Additional remuneration to personnel (bonuses, additional payments, allowances paid in accordance with the law);
• Contributions to various non-budgetary funds (for example, Pension Fund, social insurance fund, etc.);
• Production costs in general (sales costs, transportation costs, payroll for employees of the enterprise, etc.);
• Travel expenses (tickets, hotel fees, daily allowances);
• Payment for the work of third parties;
• The cost of maintaining the administrative apparatus.

By cost elements:

• Costs for materials (raw materials, parts, components, fuel and energy resources, overhead costs, etc.);
• Employee wage costs (wages of workers, auxiliary workers, for example, maintenance of equipment, wages of engineers, employees, i.e. managers, managers, accountants, etc., junior service personnel);
• Contributions to social institutions;
• Depreciation of fixed assets of the enterprise;
• Other expenses related to advertising, sales, marketing, etc.).

Under general production costs, it is customary to understand the expenses of the organization for payments wages management staff, payment of security, travel expenses, as well as remuneration of the management department. This item also includes depreciation and maintenance of buildings and structures, labor protection, training and education of specialists.

The figure shows the approximate expense items of the enterprise for the production of products.

Theory of Constraints

According to this theory, there are certain significant costs that do not depend on the quantity of output. Such costs include loan payments, rent payments and payroll for permanent employees. In the presence of such fixed costs, the use of production costs as an indicator becomes a constraint on the economic policy of the enterprise, which can lead to illogical decisions. For example, a product that sells below cost is withdrawn from production, which in turn raises the cost of other manufactured goods.

Methods for calculating the cost of goods

There is no single method for calculating the cost price as such. This indicator can be calculated in completely different ways, depending on the type of product, the method and technology of its production, and many other factors.

As a rule, in order to calculate the cost of production, you need to consider the following factors:

• The sum of all expenses for the production and sale of products;
• Producer costs to operate as an entrepreneur;
• Costs associated with the preparation of product documentation.

It is necessary to keep records of the cost of goods directly for a certain production cycle of products. In order to determine the price of the goods, you need to make a cost estimate. It is compiled based on the number of products produced (in pieces, meters, tons, etc.). The calculation should reflect absolutely all costs associated with production. (Which articles are included in the calculation is described in the paragraph “Cost structure”).

Method #1

Full addition of expenses to the cost price. The cost price is full and truncated. At full cost, all expenses of the enterprise are taken into account. When truncated - the cost of a unit of production at variable costs. A constant share of overhead costs is attributed to the reduction of profit at the end of the specified period and is not distributed to the goods produced.

With this method of determining the cost, this indicator is influenced by both variable and fixed costs. When adding the necessary profitability to the cost price, the price of the product is determined.

Method #2

In this method, actual and standard costs are calculated based on the costs incurred by the enterprise. The standard cost allows you to control the cost of raw materials and materials, and, in case of deviation from the norms, take appropriate measures. This method is very labor intensive.

Method #3

The forward method. It is convenient for use in enterprises with serial or mass production, while the products go through several stages of processing.

Method #4

The processor method is mainly used in mining enterprises.

So, to calculate the total cost of production, we use the following algorithm:

1. Calculate variable costs for the production of one unit of output, taking into account costs;
2. From general factory costs, we single out exactly those that relate to this species products.
3. We summarize all costs that are not directly related to the production process.

The resulting value will be the cost of the finished product.

Since there are several types of cost, then one calculation formula is not enough here.

Production costs:

C \u003d MZ + A + Tr + other expenses

Where C is the cost of expenses;

MZ - material costs of the organization;

A - depreciation deductions;

Tr - waste on wages to employees of the company.

To get the total cost of the finished product, you need to add together all the costs of its production:

Where PS - full cost;

PRS - the production cost of the goods, which is calculated on the basis of production costs (costs for materials and raw materials, depreciation of production assets, social and other deductions);

PP - the cost of selling goods (packaging, storage, transportation, advertising).

Cost price products sold calculated by the formula:

Where PS is the total cost,

KR - costs associated with commercial activities enterprises,

OP - the remains of unsold products.

Gross cost is defined as:

C \u003d Production costs - non-manufacturing costs - future costs

If an enterprise produces only one type of product, then its cost and price can be determined using the costing method. In this case, the price of a unit of goods is obtained by dividing the sum of all costs spent on production by the quantity of goods produced. It is worth remembering that all calculations are made for a certain set period.

Calculation and analysis of the cost of goods manufactured by a large enterprise is a very complex and time-consuming process that requires certain knowledge, so an accountant solves such problems. It is customary to divide costs into direct and indirect.

The most common way to determine the price of a product is to calculate the cost of production, since this method allows you to calculate the costs of producing a single unit of production.

Cost classification

Depending on what task you want to implement, the costs are classified as follows:

1. There are two types of costs that are usually added to the cost of the finished product. These are direct costs (these costs are added to the cost of finished products in an exact or single way) and indirect costs (costs added to the subject of calculation according to the methodology established by the enterprise). Indirect include general business, general production and commercial costs;
2. Depending on the quantity or volume of products produced, the costs are:

• Constant (not dependent on the volume of goods produced), indicated per unit of output;
• Variables (depending on the volume of production or sales);

1. There are also costs that are significant for a particular case. Such as relevant (depending on the decisions made) and irrelevant (not related to the decisions made).

All of the above indicators of costs and expenses to a large extent affect the formation of the price of goods. But there is another important indicator - tax deductions.

In this article, we will analyze what the cost of production is, what types of it exist and how it is calculated. Let's give a formula for the calculation and give an example of the calculation.

What is cost?

In economics, there is no single interpretation of the term "cost", and different authors offer different interpretations. The most common one says that the cost price (CCT) of any product is the sum of all costs incurred by the enterprise during the creation and sale of the product. The nature of costs can be different - the cost of creating a product, designing, storing, transporting, selling, advertising.

Also, the cost price necessarily includes tax deductions and expenses for the payment of wages to employees. It should be taken into account the fact that the profit of any production may vary depending on market conditions and climatic conditions. For example, a cheap way to extract minerals has been developed - in this case, costs can also be reduced.

Cost types

Economists distinguish between several varieties of FTA products, depending on the type and amount of costs for the manufacture of a unit of goods. Main types:

1. Limiting. Only production costs are taken into account (purchase of raw materials and components, wages to workers, depreciation, and taxes).
2. Workshop. The costs of all workshops and production structures that took part in the creation of the product are taken into account.
3. Production. The costs of all workshops and production structures, as well as target costs and delivery costs are taken into account.
4. Complete. Both the costs of production and the costs of sale, transportation and storage are taken into account.
5. There is also the concept individual and industry average SST. In the first case, the price of a product produced by specific factories is implied; in the second case, the average cost of products (that is, when calculating this parameter, all factories that are involved in the creation of the same product are taken into account).

Methods for calculating the cost of production

There are several methods for calculating the cost of production. For the calculation, it is necessary to take the real costs incurred by the enterprise for the production of a particular product. In some cases, it is rather difficult to perform a calculation, and the situation is further complicated by the fact that a businessman needs to know the cost of production even before the factory is launched. After all, the profitability of the business depends on this parameter. In case too high price it is pointless to produce certain products because of the impossibility of subsequent sale. The main calculation methods are presented below.

Normative

This method is used to calculate the total cost of products that were produced in the accounting period. To apply this method, it is necessary to keep records and know the price of the raw materials that are used to create goods. Also, special norms should be developed and introduced into production, which are used to control the activities of the enterprise. In case of deviation of SST from the average values, it is necessary to make adjustments, as well as to determine the cause of the deviations. Also, adjustments are made in case of changes in market and labor conditions (changes in prices for materials, introduction innovative technologies affecting labor productivity, improving the skills of workers). When applying this method, it is not necessary to perform the calculation every time - it is enough to calculate the cost once, and in case of any changes, the accountant simply makes adjustments appropriate to this situation.

per-process

The essence of this method is to take into account the direct and indirect costs of production for a certain accounting period. To determine the average cost of goods, all costs are added up, and the resulting number is then divided by the number of finished products. This method is usually applied to large enterprises, which produce a large number of the same type of product.

Transverse

In this case, redistributions are used for calculations (repartitions in accounting are intermediate goods-semi-finished products that are produced by an accounting enterprise). The number of redistributions is determined depending on the capacity. In the case of using the per-perepartial method, expenses are reflected in accounting not by finished products, but by stages of production.

custom

The essence of this method is to take into account the final cost of the finished product, taking into account indirect costs (depreciation, wages, taxes). In this case, the object is subject to accounting only if it is fully produced and ready for sale. Unfinished goods are not taken into account when calculating the cost.

Formula and calculation example

There are many different formulas for calculating the FCT of products, but the most commonly used formula is: S1T \u003d (MT + ZP + A + LR + RnR) / CT. It is decoded like this:

• C1T - the cost of 1 unit of goods;
• MT - material costs (purchase of raw materials and components that are needed to create a product);
• ZP - wages to workers;
• A - depreciation (purchase of new machines, expansion of the workshop, and so on);
• LR - logistics costs (transportation and delivery of products, as well as calculation of the delivery route);
• РНР - spending on sales (advertising, renting stores, and so on);
• CT - the number of products created per unit of time.

Let's now look at an example calculation.

Suppose there is a certain factory X, which is engaged in the production of the same type of product. In the previous accounting period, the company spent 30,000 rubles on wages for workers, 100,000 rubles on the purchase of raw materials, 20,000 rubles on transportation and storage, 15,000 rubles on replacing machines, 10,000 rubles on advertising and renting a store. A total of 100 pieces were made.

Let's now use the formula: (MT + WP + A + LR + RnR) / CT \u003d (100,000 + 30,000 + 15,000 + 20,000 + 10,000) / 100 = 1,750.

This means that the FTA for 1 unit of goods will be 1,750 rubles.

Conclusion

Let's summarize. The cost of a product is the sum of all costs for the production and sale of products (purchase of raw materials, wages, logistics, advertising, rental of premises, replacement of equipment, taxes). Many methods are used to calculate this parameter. The main ones are normative, process-by-process, by-order and order-by-order. In the most general case, for the calculation, you need to add up all costs (both direct and indirect), and then divide this indicator by the number of goods that were produced per unit of time.

Good day! I often get a question from newcomers to the business in your own words. That is, they are asked to explain this concept in simple human language.

As always, I went through the Internet and looked at the TOP 10 articles that explain what cost is. All articles answer this rather simple question, but these answers, as I understand it, are given by economists.

To be honest, on three sites I did not understand at all what the authors were trying to explain when talking about the cost.

I will not use smart words and tell you what the cost is, how to calculate it and what it is.

Consider what is cost in business:

1. Cost for services;
2. Cost for trade;
3. cost for production.

Now let's look at each type of cost separately.

Service cost

The cost of services is all the costs incurred by you for the provision of the service itself.. For example: the purchase of materials in order to complete the work.

I don’t see any point in taking into account the depreciation of equipment that provided services.

That is, the cost of services is equal to the costs incurred by the organization or individual entrepreneur in the provision of services.

For example, if you provide, bake cakes or sew clothes, etc.

In theory, both electricity and water must be included in the costs, as well as, of course, everything necessary material or a product to provide a service. BUT the costs for this are so small (electricity and water) that it makes no sense to count them! (now docents of economic sciences will spit at me).

Yes, my dears - this is exactly the case, in business, the cost of services lies in the costs that you incurred in providing the service. Everything else is profit!

That is precisely why when providing services to organizations, 6% are most often chosen, since expendable materials either acquired by the customer himself, or by the contractor, but separately for the customer.

That is, the customer pays the contractor for the purchased material by check (there is no sale and the contractor does not earn anything from this) and a 6% tax is paid already on the net profit.

The release of any kind of goods or the provision of services is associated with preliminary material investments in production. As the modern economic theory, the sum of all costs of the corresponding types and is called the cost.

Cost in theory

Under the term "cost" economists mean the total costs of the enterprise in material terms. Such costs are directly related not only to the production of products, but also to its sale. Each enterprise or company in the total cost, which can be called the total cost of production, includes the cost of raw materials, fuel, electricity, payment work force, payments on social obligations, reimbursement of depreciation and so on.

Cost and profit

The profitability of the organization is directly affected by the decrease in the corresponding material costs for the production and sale of products. the main task The enterprise is to maintain the level of quality of the goods produced or services provided at the proper high level. If a this rule will be ignored, the product will no longer meet the needs of customers and potential consumers, therefore, demand will decrease, which will cause problems with revenue.

That is, the most important criterion for the effectiveness of any business is the choice of methods by which the company will calculate the cost.

Components of the cost

If we consider the cost in detail, it is necessary to know what types of costs modern economists include in it:

• expenses for the preparation of production facilities, as well as their launch;
• expenses, which mean investments in the production of goods, the introduction of various management decisions, the use of technologies different in content;
• expenses for the development of the scientific and technical base, as well as research and development of experimental design projects;
• the cost of improving working conditions;
• expenses for materials and raw materials;
• the cost of paying vacation pay, salaries, social contributions;
• spending on the purchase of fixed assets, deductions for depreciation;
• insurance costs.

According to experts, the largest share within the traditional structure of production is occupied by production costs associated with the purchase of materials and raw materials for further processing. For a number of industries, this cost item is more than 80 percent of the total cost. In some cases, the cost of goods may include "downtime" of production or other moments when the factory is idle, for example, the release of defective products.

Cost items not included in the cost

The main component of the cost price does not include such components as lost profits or costs that arose in connection with the implementation of projects that were suspended for objective reasons beyond the control of the production management. The cost also does not include material resources, which are spent on servicing capacities that, for one reason or another, were “mothballed”.

The costs of fines, lawsuits and other sanctions that are prescribed by law are also not included in the number of costs for the production of goods. According to some economists, uncollectible or written-off receivables should not be included in the cost of production.

Cost classification

There are two types of classification of costs that form the cost of goods. In the first case, one can consider homogeneous components of the cost, for example, wages to workers, or complex components, which may include the cost of purchasing equipment.

The second classification divides costs into fixed and variable costs. The value of fixed costs does not directly depend on the volume of production (for example, rent of production space), while variable costs are directly proportional to the increasing or decreasing rate of production (for example, the cost of raw materials, wages, and so on).

Main items of expenditure

In the formation of the total cost, a huge number of typical cost items are taken into account. To calculate the production cost, it is necessary to adhere to the following typical cost items:

• spending on raw materials and consumables;
• workers' wages;
• purchase additional materials, payment for the services of contractors;
• depreciation and maintenance costs;
• expenses for marketing and development of new distribution channels;
• logistics, packaging and shipping costs.

Each of the criteria listed in the list can become the basis for recalculating the cost in relation to a specific indicator that can reflect the analyzed volume of goods produced - meters, tons, and so on. Thus, it is possible to calculate the required number of personnel for the production of a certain number of products or the cost of raw materials, which will be enough to produce thousands of meters of metal pipes.

How to reduce the cost

To make the business more profitable, each production periodically analyzes the cost of each category of products. This is done in order to further reduce costs, which can help increase business efficiency. Modern economic theory highlights following methods cost reduction:

• implementation of resource saving programs, which imply a more economical consumption of raw materials;
• optimization labor processes, minimizing downtime;
• implementation and development modern technologies in production;
• taking measures that help reduce costs at the stage of product sales;
• reduction in the number of management personnel.

In most cases, enterprises and organizations adopt all of the above methods in a complex manner. However, one direction always becomes a priority, which in individually selected for each production.

Cost and raw materials

The costs of the material plan reflect the price of materials, raw materials, semi-finished products, components, outsourcing services purchased from suppliers, as well as services related to the delivery of materials and raw materials. In some cases, the cost also includes search costs optimal suppliers, for example, paying commissions to purchasing managers.

The amount of costs in this context may vary depending on the policy of building production processes. For example, some enterprises can independently provide themselves with all the necessary raw materials, without resorting to the services of third-party suppliers. In such situations, the cost is calculated taking into account the material costs of extracting the necessary resources.

The cost of materials and raw materials is calculated on the basis of market prices set by suppliers, commissions and all other associated costs, for example, compensation for brokers, customs duties, and so on.

Cost and wages

The staff is the backbone of any business. That is why personnel costs are always one of the most voluminous cost segments. To date, there are two ways to calculate the costs that are associated with the remuneration of employees of the organization.

If you follow the first method, labor costs must be divided into 2 types - the first type is directly related to material compensation for the labor of people doing work, the second type reflects material obligations to various social funds. Admirers of the second method use outsourcing services when labor functions enterprises are transferred to another organization, as well as outstaffing, which means hiring specialists who are actually officially registered in third party company. The second method does not imply the need to pay contributions to social funds.

The main cost items in terms of wages include bonuses, salaries, incentive payments, as well as expenses associated with the indexation of various labor compensations. Maternity payments and other social compensations are carried out by state funds.

Cost and other expenses

Some economists in the calculation of the cost define another economic category called "other expenses". This category of costs implies payment of insurance and tax deductions, compensation of credit interest, fulfillment of obligations in the field of ecology, compensation for services related to settlement and cash support, repairs, and communications.

Read more: What working capital enterprises

In the article we will understand what the cost of production is, how it is formed and what costs it consists of. Also consider the classification of production costs. What are the costs?

Today we are starting a new big topic, in which we will consider how the main production is accounted for at the enterprise. In order to make all further material clear, here I want to give some basic concepts related to production.

The calculation of the cost itself will be dealt with in the following articles. Don't forget to subscribe to our newsletter so you don't miss new articles.

The concept of production cost

The cost of production is, in fact, the sum of all costs (in cash) associated with the production and sale of these products.

Each individual product, semi-finished product, work, service, the cost of which can be determined, is an object of calculation, that is, an object whose cost we can break down into the costs that make up this cost.

For each object, you need to correctly select the cost unit, that is, the unit of production for which the production cost is determined. These can be either natural units, such as a kilogram, a ton or a meter, or conditionally natural units, which are determined by a calculation method using special coefficients. Moreover, the calculation units may not coincide with the accounting natural unit. For example, the accounting unit is 1 kg of products, and the calculation unit is 1 ton or 1 centner.

Production costs are made up of the following elements:

1. deductions for social needs (account 69).

Thus, in order to determine the cost of production, it is necessary to determine all the costs that are somehow associated with the production and sale of this product. For convenience, all costs are grouped and taken into account according to the so-called costing items.

These costing items look like this:

1. raw materials
2. returnable waste (deductible)
3. purchased products, semi-finished products and services of an industrial nature of third parties
4. fuel and energy for technological purposes
5. production worker wages
6. contributions for social needs
7. expenses for the preparation and development of production
8. overhead costs
9. general running costs
10. other operating expenses
11. business expenses.

The first 11 items are the production cost of the product, and all 12 items are the total cost.

Video lesson: “Cost, methods of determination and calculation in accounting”

Video lesson from the expert of the site "Accounting for dummies" Natalia Vasilievna Gandeva on methods for calculating the cost in accounting. Are being considered practical examples and standard wiring.

Classification of production costs

1. By economic role in the production process: main(directly related to production: raw materials, materials and other costs, except for general production and general business) and invoices(associated with the management and maintenance of production: general production and general business costs).
2. In composition: single element(consist of one element: salary, depreciation) and complex(consist of several elements: workshop, general factory).
3. By way of inclusion in the cost of production: straight(associated with the production of one type of product and directly related to its cost: raw materials, materials, losses from marriage) and indirect(do not relate directly to the cost and are distributed indirectly, that is, conditionally: general production, general economic)
4. In relation to production volume: variables(change in proportion to the change in the volume of production: raw materials, materials, wages), conditional variables(depend on the volume of production, but not directly proportional: general production), conditionally permanent(almost do not depend on changes in production volumes: general production, general business expenses).
5. According to the frequency of occurrence: current(have a certain frequency: the consumption of raw materials, material) and lump sum(for the preparation and development of the release of new types of products, the launch of new production).
6. Participation in the production process: production(associated with the manufacture of commercial products) and non-manufacturing, commercial(associated with the sale of products).
7. By efficiency: productive(for the production of products of established quality with rational technology and organization of the economy) and unproductive(they are the result of shortcomings in technology and organization of production: losses from downtime, marriage).

Now you know what the cost of production is, what it consists of and what classification of production costs exists. Next, we will deal directly with account 20 Main production.