Production and sales costs represent a set of expenses of enterprises expressed in monetary form for the production and sale of products (works, services). They ensure the continuity of production and create conditions for the sale of products.
In terms of economic content, they express the costs of society, since production is carried out in the interests of society, and products are produced as a directly social product. The costs are different in composition and structure, depending on the sectoral affiliation of enterprises. They are also classified according to the method of attribution to the cost, connection with the volume of production, degree of homogeneity.
depending from the method of attribution to the cost of production they are divided into:
- straight, production related certain types products that can be directly and directly included in the cost price (raw materials, basic materials, wage production workers, etc.);
- indirect, associated with the production of various products that cannot be attributed to the cost of a certain type of product (expenses for the maintenance and operation of equipment, repair of buildings, wages of engineering and technical workers, etc.).
They are included in the cost using special methods defined by industry guidelines on planning, accounting and costing.
depending from the relationship of costs with the volume of production allocate:
- semi-fixed costs- these are expenses, the value of which does not change significantly with an increase or decrease in the volume of output, as a result of which their relative value per unit of output changes (costs for heating, lighting, salaries of management personnel, depreciation, expenses for administrative and economic needs, etc.). );
- conditionally variable costs the value of which depends on the volume of production, they grow or decrease in accordance with the change in the volume of output (costs of raw materials, basic materials, fuel, basic wages production staff and etc.).
According to the degree of uniformity of costs subdivided into:
- elementary;
Complex.
The elements have a single economic content, regardless of their purpose. The purpose of grouping by elements is to identify the costs of manufacturing products by their types (material costs, depreciation, etc.). The ratio between the individual cost elements is the cost structure for the production of products.
Complex costs include several elements, and therefore, are heterogeneous in composition. They are united for a certain economic purpose. Such costs are general factory expenses, losses from marriage, expenses for the maintenance and operation of equipment, etc.
All costs for the production and sale of products are full cost. The composition of the costs included in the cost of products (works, services) is currently determined by a government decree.
Cost of products (works, services) is a valuation of products (works, services) used in the production process natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production and sale.
According to the economic content, the costs included in the cost of products (works, services) are grouped into the following elements: material costs; labor costs; deductions for social needs; depreciation of fixed assets; other costs.
1.Material costs include : the cost of purchased raw materials and materials, fuel; basic auxiliary materials; components and semi-finished products; container; repair parts; MBP and other costs. Price material resources is made up of their purchase prices.
2.3 Labor costs include: payment of wages; payment of premiums; remuneration based on the results of work for the year; compensatory and incentive payments; the cost of free meals; lump-sum remuneration for years of service; payment study holidays; remuneration of non-staff employees and other payments included in the wage fund.
Labor costs do not include: labor costs in the form of bonuses paid out of special means; target receipts; material aid; interest-free loans to improve housing conditions; payment additional holidays women raising children; pension supplements; share dividends; subscriptions and purchases of goods for the personal needs of employees; payment for travel to the place of work; payment for vouchers, excursions, travel; other costs incurred at the expense of the profit remaining at the disposal of the enterprise.
3.0 social contributions include contributions to the mandatory social insurance fund, the Pension Fund, State fund employment of the population (currently abolished), Compulsory Medical Insurance Fund.
4. Depreciation of fixed assets includes depreciation allowances for the full restoration of fixed assets production assets, the amount of which is determined on the basis of their book value and applicable depreciation rates. If the enterprise operates on a lease basis, then this section provides depreciation charges for full restoration of its own and leased fixed assets.
Other costs include: certain types of taxes; contributions to insurance funds (reserves); rewards for inventions and rationalization proposals; travel expenses; payment for communication services; rental fee; depreciation on intangible assets, deductions to the repair fund, etc.
7. Planning costs for production and sales of products
The volume of costs for the products sold do not coincide with the volume of costs for the production of products:
Cost of products sold = Production costs + Distribution costs
Selling costs are attributed only to that part of the product that is sold, and not in warehouses.
The main task of cost planning is to ensure the most efficient use of resources, as well as to achieve financial results.
Products are considered finished if they have passed all stages of production and have the appropriate mark (QC) or certificate. Products may not leave the workshop, but having the appropriate quality mark, they can be considered finished.
When calculating the stock rate, the following time periods must be taken into account:
- products must be prepared for sale; for this you need:
a) time for packaging;
b) marking;
c) products must be prepared in the directions of shipment (routing).
- a simplified method of rationing - to calculate the terms, you can use shipping contracts, you can calculate the total number of shipments and, thus, find the interval with which products will be shipped (standard in days).
The calculation of the norm is carried out in the context of the established assortment. To calculate the standard, all the norms calculated for individual types of products are summarized.
When organizing accounting, production costs enterprises use the regulation on the composition of costs included in the cost of products (works or services), approved by the Government of the Russian Federation. The cost of production includes the costs associated with the use of natural resources, raw materials, materials, fuel, energy, labor resources and other costs for its production and sale in the production process.
The cost of production does not include costs and losses attributable to the Profit and Loss account: costs for canceled orders, for the maintenance of mothballed production facilities, legal costs, fines and losses from writing off bad debts.
8 . The concept of revenue from product sales
Proceeds from the sale of products - funds received by the enterprise for products, works and services shipped to counterparties. Timely and complete receipt of revenue is the most important condition for successful financial economic activity any enterprise, since it is the main and regular source of Money. On the other hand, the process of circulation of funds at the enterprise ends with the sale of products and the receipt of revenue, which in itself means the reimbursement of the costs spent on production. financial resources and serves as a prerequisite for the resumption of the production process by advancing funds to the next circuit.
The proceeds received on the settlement account of the enterprise are immediately used to pay the bills of suppliers of raw materials, materials, components, semi-finished products, spare parts, fuel, and energy. From the proceeds, taxes are deducted to the budget, wages are paid, depreciation of fixed assets is reimbursed, expenses provided for by the financial plan and not included in the cost are financed. At the same time, revenue in the strict sense is not income, since it is necessary to reimburse costs from it.
9. Planning revenue from product sales. Revenue Growth Factors
Revenue planning is necessary to determine the profit plan from sales, calculate the amounts of planned payments to the budget (profit tax, VAT, excise, and other payments). The reality of the main source of cash receipts and planned profit largely depends on the validity of its calculation.
Direct Profit Planning Method
Method of direct calculation of the planned profit from sales marketable products also called the method of assortment calculation. To do this, you need to know the planned product range, the planned unit cost and the selling price. Most often, this method is used when calculating profits in associations (enterprises) and industries with a small assortment of products and subject to planning the cost of production for each type (timber, coal, etc.).
Analytical method of profit planning
Stage 1. Determining the percentage of basic profitability for reporting year. It is necessary to determine the expected profit for the reporting period.
Stage 2. Determination of profit from the sale of comparable marketable products for the coming period, based on the percentage of basic profitability.
However, this profit takes into account only the change in one factor - the volume of sales.
Stage 3. Impact calculation individual factors on profit from the sale of comparable marketable products in the coming period.
Main factors:
- price changes in the coming period;
- changes in tax rates;
- shifts in the structure of products;
- change in the cost of goods sold.
The methodology for determining the impact on profit of this factor is generally similar to the methodology for determining the impact on profit of changes in prices of the current year, however, the difference is that an adjustment to profit is made for the period of new prices in the coming year.
In order to determine the effect of shifts in the structure of production, it is necessary to determine the average profitability ratios of products for the expiring year and for the coming year.
Stage 4. Determination of profit for an incomparable part of marketable products.
This profit can be determined in two ways and is calculated only on the products that will be produced from the coming year:
- direct count method - in cases where the range of products is limited;
- simplified method.
10. Use of proceeds from product sales
The proceeds are primarily used to pay the bills of suppliers of raw materials, materials, purchased semi-finished products, components, etc. The balance of proceeds after reimbursement of the cost of expended material resources and reimbursement of depreciation of non-current assets forms gross income, from which funds spent on wages are primarily reimbursed. The remaining funds after this constitute the net income of the enterprise, directed to the payment of taxes attributable to the financial result of activities and the formation of profit.
11. Economic essence and profit functions
In terms of its economic content, profit expresses in monetary terms a part of the value of the surplus product. It performs a number of functions.
1. Evaluation function- lies in the fact that it most fully reflects the level of production and evaluates the efficiency of the economic activity of the entire enterprise.
2. Stimulating function- lies in the fact that the stimulating effect on the growth of the efficiency of the organization.
- fiscal function- concludes that profit is a source of deductions in the state budget and off-budget funds.
The main role of profit is to show the final financial results, which characterizes the efficiency of production, as well as the quality and demand for products. It reflects the level of income of the enterprise. Every entrepreneur makes sure that the level of profit of his company does not decrease. However, the level of profit and its change is influenced by a lot of factors that are not always directly dependent on the company itself.
12. Profit planning. her growth factors.
An important place in financial planning is the stage of profit planning. This part of planning uses all the parameters of the business plan and is decisive in determining the financial result from all the activities of the organization (enterprise). Profit planning approaches depend on the parameters of production, economic and financial activities organizations (enterprises). It is necessary to study the most significant relationships in the economy of the enterprise and understand their impact on profit margins. This will help to better understand the factors influencing its growth.
Profit planning is carried out separately for all types of activities of the organization (enterprise). Separate planning is due to differences in the methodology for calculating and taxing profits from various types of activities. On development stage financial plans all factors influencing the amount of profit are taken into account, and financial results from the adoption of various management decisions are modeled.
Profit planning uses the following methods:
Direct account;
Analytical;
Based on the effect of production (operational) leverage;
Based on budgeting.
1. Method of direct counting. AT It is based on assortment-wise calculation of profit from the production and sale of products. A simpler version of this method is an aggregated calculation by plan items.
2. Analytical method. This method is used for minor changes in the range of products. It is used in the absence of inflationary growth in prices and costs. When using the analytical method, the calculation is carried out separately for comparable and incomparable commercial products. Comparable products is produced in the base year that precedes the planned one, so its actual full cost and output are known.
3. Method based on the effect of the production (non-split) leverage (CVP-analye). This profit planning method is based on the principle of dividing costs into fixed and variable costs. These data are used to calculate contribution margin.
Profit planning methods should be studied in detail. For commercial organizations (enterprises) it is very important to determine the cost recovery threshold, after which they will begin to make a profit. Here you need to use the method of operational (production) leverage. Using this method, one can establish a break-even point, i.e. the amount of revenue at which the organization (enterprise) will fully cover its costs without receiving any profit or loss.
4. Method based on budgeting. On the basis of budgeting, computer-oriented models of financial profit planning are being developed. The profit planning algorithm is based on the phased preparation of initial data for financial planning. Here the interrelation of organizational, production and financial planning is carried out.
The main factors in the growth of profits of firms, organizations in the modern market economy:
- Product quality improvement factor and consumer orientation. In terms of production efficiency, it is more important to focus on improving the quality of products than to fight only for a simple reduction in production costs.
The increase in sales turnover is associated with a constant increase in customer-consumers (strengthening positions in existing markets, conquering new markets). - Factor of the company's position in the market, preservation and development competitive advantage. For example, Toyota is constantly striving to maintain its leadership among other companies in such an indicator of cars as reliability.
- R&D rate factor. The implementation of R&D results allows to reduce costs, improve product quality, promote the emergence of new science-intensive products and, ultimately, strengthen competitive positions.
- Factor of the level of organization of production and management.
- The factor of creating conditions for the most complete implementation and continuous development of the "human factor", "human capital", increasing the interest of employees in the affairs of the company.
13. Profitability of the enterprise
The profitability of an enterprise is an indicator of the efficiency with which fixed assets are used, calculated as the ratio of profit to the average cost of fixed and current assets.
Profit and profitability of the enterprise are directly interconnected.
Profit is an economic category that expresses production and economic relations arising from the formation and subsequent use of the product being produced. In the real sector, profit takes a material form in the form of cash, resources, funds and benefits.
If the company makes any profit, then it is profitable. The profitability indicators used in the calculations reflect the relative profitability. Analysis financial stability enterprise is based on the analysis of these indicators. To assess the effectiveness and economic feasibility of the functioning of the enterprise, absolute and relative indicators are taken.
Absolute indicators make it possible to analyze the dynamics of profit indicators for certain years. At the same time, to obtain more reliable results, the indicators are calculated taking into account inflation.
Relative indicators are options for the ratio of profit and capital invested in production (profit and production costs). Therefore, they are not so affected by inflation.
The absolute amount of profit does not always give a correct idea of the level of profitability of a particular enterprise, since it is influenced by both the quality of work and the scale of activity. In this regard, for a more accurate description of the work of the enterprise, not only the absolute amount of profit is used, but also relative indicator called the rate of return.
These indicators should be considered in comparison with other time periods, since this allows us to judge the dynamics of the enterprise's development.
The profitability of the enterprise characterizes the level of profitability or unprofitability of production. The profitability indicators themselves are relative characteristics of the results of financial growth and the effectiveness of the organization. They reflect the relative profitability of a firm or enterprise, which is measured as a percentage of the cost of capital from different positions.
The most important characteristics of the actual environment in which the profit and income of the enterprise are formed are profitability indicators. They are used in comparative analysis and evaluation financial condition enterprises.
The main indicators of profitability are: profitability of the company's products, return on capital and overall profitability.
Product profitability is a reflection of the ratio of profit per unit of products sold. This indicator increases with an increase in product prices with unchanged production costs or a decrease in production costs while maintaining constant cents for products sold.
Return on capital shows the effectiveness of the use of all property at the disposal of the enterprise.
The overall profitability (profitability of the enterprise) expresses the ratio of balance sheet profit to the average value of fixed production assets, as well as normalized working capital. This ratio of funds to costs shows the profitability of the enterprise. In other words, the level of overall profitability, reflecting the increase in invested capital, equals the profit generated before interest, multiplied by 100% and divided by assets.
Overall profitability is a key metric used for profitability analysis. To more accurately determine the development of the organization, two more indicators are calculated: the profitability of production turnover and the number of asset turnovers.
The profitability of turnover is equal to the dependence of gross revenue on costs. The number of turnovers of capital is equal to the ratio of gross proceeds to the amount of capital.
14. Economic content of working capital
Working capital can be identified with working capital.
In the balance sheet, working capital is the assets of the balance sheet, and working capital is the liabilities of the balance sheet (how much capital is invested in economic activity).
Working capital is the amount financial sources necessary for the formation of current assets of the enterprise.
Working capital serves the process of the current household. activities and simultaneously participate in the production process and in the process of selling products.
The main purpose is to ensure the continuity and rhythm of the production process.
Working capital is fully involved in manufacturing process, changing its shape and value
By functional purpose, working capital is divided into:
1. Working and production assets:
Objects of labor
· Means of labor
· Productive reserves
· Unfinished production
· Future expenses
2. The circulation funds consist of:
Finished products
· Money
Working capital, as an element of financing, is not spent, not consumed, but is advanced in different kinds running costs enterprises. The purpose of advance payment is the creation of the necessary inventories entering production -> production and sales of products -> cash -> accession to the capital of the enterprise, i.e. return of the advanced capital.
Working capital is a set of funds advanced for the creation and use of working capital and circulation funds.
In the process of circulation, working capital goes through three stages and there is the following formula for the movement of working capital:
D-T…T-P-T’…T’-D’
Where D - money, T - goods, P - production, T'-finished products, D' - sales.
The difference between D and D' shows the efficiency of the enterprise, as a result, profit.
15. Fundamentals of the organization of working capital, their composition and structure
The organization of working capital at the enterprise includes determining the need for working capital, their composition, structure, sources of formation, as well as the regulation and management of the use of working capital.
One of the basic principles of the organization of working capital is rationing The implementation of this principle makes it possible to economically justify the required amount of working capital and thereby ensure the conditions for the successful implementation of their functions. The erroneous practice of refusing to ration working capital is one of the reasons for the crisis in the economy, the decline in production and violations of payment and settlement discipline.
Thus, the process of developing economically justified amounts of working capital necessary for organizing the normal operation of an enterprise is called working capital rationing.
Stocks of inventory, values of the enterprise are calculated in days of stock in physical and monetary terms.
The working capital ratio is the following amount:
N ob.s \u003d N pr.z + N NP + N GP + N rbp,
where N PR.Z - the standard of production reserves;
N NP - the standard of work in progress;
N GP - standard stocks of finished products;
N rbp - the standard for deferred expenses.
The most important principle proper organization working capital is use them strictly for their intended purpose. Violation of this principle by diverting advanced working capital from the production turnover to cover losses, all kinds of losses due to mismanagement, to pay inflated bank interest on loans, to make tax payments to the budget, etc., had a very negative effect on production activities many enterprises, led, as already noted, to a crisis of payment and settlement discipline, an increase in huge debts to suppliers for supplied raw materials and finished products, workers and employees - in wages, and the budget - in tax payments.
important principle organization of working capital is ensuring their safety, rational use and acceleration of turnover.
In practice, a significant part of our enterprises do not comply with this principle, which has an extremely negative impact on their economic activities.
16. Indicators of the effectiveness of the use of working capital
Each company has in its assets current assets. To finance them, the company uses certain sources, which in total are called working capital. The enterprise should strive to improve the efficiency of the use of working capital. This is necessary in order to maximize the efficiency of the economic activity of the enterprise as a whole. The use of working capital is characterized by three coefficients: turnover, turnover in days and loading.
Working capital turnover ratio shows how many turnovers make working capital for the analyzed period (quarter, half year, year). It is determined by the formula Kob = = VP / Osr, where Vfi- sales volume for the reporting period; Osr - the average balance of working capital for the reporting period.
Duration of one turn in days shows the period for which the enterprise returns its working capital in the form of proceeds from the sale of products: D \u003d T / Kob or D \u003d T x Osr / VP, where T- number of days in reporting period.
Load factor in circulation characterizes the amount of working capital advanced for 1 rub. proceeds from the sale of products. Thus, this indicator represents the working capital intensity, or the cost of working capital to obtain 1 ruble. of sold products: Kz = Osp / VP x 100, where Kz is the utilization factor of funds in circulation (i.e., the reciprocal of the turnover ratio), kop.; 100 is the coefficient for converting rubles into kopecks.
The smaller Kz, the more efficiently working capital is used at the enterprise, the better its financial position.
Release of working capital as a result of the acceleration of their turnover, it is determined by the formula DO \u003d Oo - Opl, where DO is the amount of released working capital, Oo is the need for working capital in the planning period (provided there is no acceleration in their turnover), rub.; Opl - the need for working capital in the planning period, taking into account the acceleration of their turnover, rub.
The release of working capital can be absolute and relative.
Absolute Release takes place if the actual balances of working capital are less than the standard or the balances of the previous period while maintaining or converting the volume of sales for the period under review.
Relative release working capital takes place in cases where the acceleration of their turnover occurs simultaneously with the growth of output, and the growth rate of production outpaces the growth rate of working capital balances.
As indicators of the efficiency of the use of working capital, indicators of the efficiency of the use of material resources can be considered. This is due to the fact that the production stocks of the enterprise, as a rule, constitute a significant share of working capital.
17. Financial services of the enterprise
The financial service of an enterprise is understood as an independent structural unit that performs certain functions in the enterprise management system. Typically, this unit is the finance department. Its structure and number depend on the organizational and legal form of the enterprise, the nature of economic activity, the volume of production and the total number of employees at the enterprise.
The nature of economic activity and the volume of production determine the amount of money turnover, the number of payment documents associated with settlements with other enterprises - suppliers and buyers (customers), with commercial banks, other creditors, the budget. The number of employees affects the volume cash transactions and settlements with workers and employees.
The main directions of financial work at the enterprise are financial planning, operational and control and analytical work.
In small enterprises, financial work may be performed by the financial sector as part of the financial and sales department or accounting department. On the large enterprises the financial department consists of several groups (bureaus), which are assigned certain functions. The head of the department reports directly to the management of the enterprise (see diagram 1.1).
The given structure of the financial department as a whole corresponds to the content of the financial work that must be performed at the enterprise to finance all the costs of the enterprise and make payments. But she's in to a large extent preserves the shortcomings inherent in enterprise management in the previous pre-market business conditions.
18. financial planning at the enterprise
Planning is one of the most important processes on which the efficiency of a company depends.
Planning is a management function. The essence of this process lies in the logical definition of the development of the enterprise, setting goals for any sector of activity and the work of each structural unit, which is necessary in modern conditions. When planning, tasks are set, material, labor and financial means are determined to achieve them and deadlines, as well as the sequence of their implementation.
In addition, factors that have an impact on the development of the enterprise's activities are analyzed and identified in order to prevent them in a timely manner at the stage of occurrence in case of their negative impact.
Thus, we can say that planning as a management function means the desire to take into account in advance all external and internal factors, which provide suitable conditions for the normal functioning and development of the enterprise. It also determines the development of a set of measures that establish the sequence of achieving specific goals, taking into account the possibilities for the most efficient use of resources by each production unit and all enterprises. Therefore, planning is designed to ensure the relationship between individual structural divisions enterprises that contain the entire technological chain. Such activities are based on the discovery and forecasting of consumer demand, analysis and assessment of available resources and prospects for the development of the market. This implies the necessary linkage of planning with marketing and control in order to constantly adjust production and sales figures in connection with changes in market demand. Planning covers both the current and prospective time period and is carried out in the form of forecasting and programming.
The planning process involves the setting of certain goals, the development of measures to achieve these goals, as well as the company's policy for the long term.
For management, planning is a stage on which development largely depends.
The literacy of the management, the qualifications of the specialists involved in this process, the adequacy of the resources necessary for the implementation of the process ( computer technology etc.), informative base.
Of course, sometimes the factors influencing the planning process at an enterprise depend on the specifics of the activity, on regional affiliation, but with qualified personnel and competent management, all shortcomings can be eliminated in a short time.
19. Fixed capital of the enterprise
The fixed capital of an enterprise is a part of the productive capital, which fully and repeatedly takes part in the production of goods, transfers its value to New Product piecemeal, over a series of periods. Fixed capital includes that part of the advanced capital that is spent on the construction of buildings, structures, on the purchase of machinery, equipment, and tools.
After the sale of the goods, the fixed capital is returned in installments in cash to the entrepreneur. Fixed capital is subject to physical and moral deterioration.
Physical depreciation is the gradual loss of use value by fixed capital, which is gradually transferred to the product, returned in parts in the form of depreciation. Obsolescence occurs due to the growth of labor productivity and technological progress and leads to the renewal of fixed capital before it physically wears out.
Fixed capital is money invested in fixed assets. It changes its material form and goes through the following stages:
investment(monetary form - fixed assets) - into real assets - buildings, structures, machinery and equipment, etc., and not into financial assets - shares, bonds.
production(material - material form), consumption in the form of depreciation. The process of gradually transferring the value of the means of labor, as they wear out physically and morally, to the product produced with their help; the use of special funds - depreciation included in the costs of production and circulation, for simple and expanded reproduction of fixed assets;
reimbursement: accrued depreciation is converted into cash (cost, revenue). This money is used to purchase new equipment.
The main capital includes:
fixed assets- part of the property used as means of labor in the production of products, performance of work or provision of services, or for the management of the organization for a period exceeding 12 months or the usual operating cycle if it exceeds 12 months. Fixed assets include those owned by the organization land, objects of nature management (this is the monetary value of fixed assets and material assets that have a long service life);
pending long-term investments- the cost of creating, increasing the size, as well as the acquisition of non-current non-current assets of long-term use (over one year), not intended for sale, with the exception of long-term financial investments to state securities, securities and authorized capital of other enterprises;
long-term financial investment- investments of the organization in government securities, bonds and other securities of other organizations, in the authorized (share) capital of other organizations, as well as loans granted to other organizations;
Intangible assets. Objects can be assigned intellectual property(exclusive right to the results of intellectual activity):
Intangible assets also include business reputation organizations and organizational expenses (expenses associated with the formation of a legal entity recognized in accordance with founding documents part of the contribution of participants (founders) to the authorized (share) capital of the organization).
Fixed assets include: buildings - a type of fixed assets, including architectural and construction objects, the purpose of which is to create conditions for work, housing, social and cultural services for the population and storage of material values; structures - objects of engineering infrastructure; working and power machines and equipment - small parts of capital that are used in the production of goods; measuring and regulating instruments and devices, computer technology.
20. Depreciation and methods of its calculation
Depreciation(from the middle - century. lat. amortisatio- redemption) -1) gradual depreciation of funds (equipment, buildings, structures) and the transfer of their value in parts to manufactured products; 2) decrease in the value of taxable property (by the amount of capitalized tax). Depreciation deductions- accruals with subsequent deductions, reflecting the process of gradual transfer of the cost of labor instruments as they wear out and obsolescence to the cost of products, works and services produced with their help in order to accumulate funds for subsequent full recovery.
Production costs are expenses for ordinary activities that are associated with the production of products, the performance of work, the provision of services. Together with the costs of selling, they form the costs of production and sale of products. We will tell you more about the accounts used for their accounting, as well as the issues of cost analysis in our consultation.
Production and sales cost accounts
The chart of accounts and the Instructions for its application provide that the costs of the enterprise for the production and sale of products are taken into account on the following active synthetic accounts (Order of the Ministry of Finance dated October 31, 2000 No. 94n):
The occurrence of such costs is reflected in the debit of these accounts and credit, in particular, the following:
- 02 "Depreciation of fixed assets";
- 10 "Materials";
- 60 "Settlements with suppliers and contractors";
- 70 "Settlements with personnel for wages";
- 69 "Calculations for social insurance and provision”, etc.
So, for example, payroll for employees of the main production is reflected as follows: Debit account 20 - Credit account 70.
And rendered transport organization services for the delivery of goods to customers: Debit account 44 - Credit account 60.
Planning costs for production and sales of products
Considering that the costs of ordinary activities usually have the highest specific gravity in the total amount of expenses of any organization, the issues of their analysis and planning, as a rule, are given increased attention.
An analysis of the costs of production and sales of products can be carried out both in terms of composition, structure, dynamics within one organization, and by comparing them with industry average indicators or, if relevant information is available, with competitor data.
In matters of cost management of the organization, an important place is occupied by the preparation of cost estimates for the production and sale of products.
The cost estimate for the production of products allows the organization to plan its costs by items and elements of costs. This, in turn, will simplify the process of analyzing actual costs, help identify specific reasons for exceeding standard costs, and also find ways to reduce production costs.
At the same time, both the total costs for the entire output and the costs per unit of output are analyzed. The cost of producing a unit of output is the result of the ratio of the total cost to the quantity of output produced.
To analyze production costs, a general cost index can be calculated. For the total production cost index, the formula looks like this:
where i is the desired overall production cost index;
k 1 N - the number of the N-th type of product in the reporting period;
c 1 N - the cost of the N-th type of product in the reporting period;
k 0 N is the quantity of the N-th type of product in the base period;
with 0 N - the cost of the N-th type of product in the base period.
The base period can be any previous period, with the costs of which the total production costs of the reporting period are compared.
At the same time, not only general, but also expenses for individual items and elements, as well as both cost and physical indicators can be analyzed. So, for example, the costs of working time for the production of a unit of output can be investigated.
Send your good work in the knowledge base is simple. Use the form below
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
Similar Documents
Planning for the sale of products at enterprises. Information about the assortment of the produced production. Reserves for increasing the volume of production. Basic technical and economic indicators. Improving the efficiency of product sales and development strategy.
thesis, added 07/05/2009
Planning of production activity of the enterprise. Mechanisms for the sale of products. Analysis of the range and structure of products at LLC "Agrotechservice". Analysis of the rhythm of work. Analysis of factors and reserves for increasing output and sales.
thesis, added 03/28/2013
Dynamics of the volume of production and sales of marketable products on the example of Zainsky Kreker LLC. Factors affecting the break-even production. The main directions of expansion of the sales market. Calculation of reserves for increasing output and sales.
thesis, added 11/17/2010
Analysis of the dynamics of the implementation of the plan and the actual sale of products of OJSC "Nizhnekamskshina", the uniformity of its shipment by the export department. Priority directions on disclosure of reserves for growth in sales of tire products to the market of the Republic of Belarus.
thesis, added 12/01/2010
Organizational-legal and technical-economic characteristics of the enterprise. Analysis of the dynamics and degree of implementation of the plan for the production and sale of products, its range and structure. Assessment of factors and reserves for increasing output and sales.
test, added 06/30/2014
Organization of sales of products at the enterprise and ways to improve it. Analysis of the security of the enterprise with its own working capital and the effectiveness of their use. Competitiveness assessment, product range planning.
thesis, added 05/05/2011
Carrying out exhibition work of JSC "Gomeldrev". Characteristics of buyers of products. Market segmentation by consumers of furniture products. Economic relations for the supply of products to JSC "Gomeldrev". Sales of products through intermediaries.
term paper, added 02/17/2016
The costs of production and sale of products are classified according to different criteria. In the analysis and planning of costs and production costs, two classification features are most widely used: the economic element and the costing item.
The economic element is understood as an economic homogeneous type of costs for the production and sale of products, which at the level of a given enterprise does not seem appropriate for more detailed specification. Decree of the Government of the Russian Federation of August 5, 1992 No. 552 “On Approval of the Regulations on the Composition of Costs for the Production and Sale of Products (Works, Services)” provides a unified nomenclature of economic cost elements for enterprises, regardless of ownership and organizational and legal forms:
- material costs (minus the cost of returnable waste);
- labor costs;
- deductions for social needs;
- depreciation of fixed assets;
- other costs.
Typical nomenclature of articles for industrial enterprise:
- Raw materials.
- Returnable waste (subtracted).
- Purchased products, semi-finished products and services of an industrial nature of third-party enterprises and organizations.
- Fuel and energy for technological purposes.
- Wages of production workers.
- Deductions for social needs.
- Costs for development and preparation of production.
- General production expenses.
- General running costs.
- Marriage loss.
- Other production expenses.
- Business expenses.
In the cost management system, an important role is played by the division of costs into direct and indirect. Direct costs are costs that, at the time of their occurrence, can be directly attributed to the costing object on the basis of primary documents. Indirect costs include costs that at the time of occurrence cannot be attributed to a specific object of calculation and, in order to be included in the cost price, they must be “collected” on a specific account and subsequently distributed among all objects in proportion to a certain base. Examples of direct costs are the costs of raw materials and materials, semi-finished products, wages of workers involved in the production of this type of product, etc. Indirect costs include the costs of development and preparation of production, general production costs, general business expenses, etc. The basis for distribution can be: direct costs , wages of production workers, the volume of output, etc.
In relation to the volume of production, costs are divided into fixed and variable. fixed costs- costs, the total amount of which in short term does not change with a change in the size of the volume of production. Per unit of output, fixed costs change with changes in output. Fixed Costs - Depreciation technological equipment, payment for utilities, rent, salaries of management personnel, part of the cost of selling products.
Variable costs are total costs that change with the volume of production. Variable costs per unit of output are relatively unchanged when the volume of production changes. Variable costs are the cost of basic materials, the wages of production workers, the cost of electricity for technological purposes, etc.
- Economic essence and profit indicators
Profit is one of key indicators success of financial and economic activity. Since there are many factors of its formation (certain types of income and expenses), it is necessary to talk about various indicators of profit. Therefore, characterizing the work of the company, it is necessary to clarify what kind of profit we are talking about. The interconnection of income and expenses in the course of the enterprise's activities, as a result of which various profit indicators are visible, is shown in Figure 7.5.
Revenue (net) wholesale sale of goods, products, works, services
¦ ~
Gross (marginal) profit
subtract
Figure 7.5 - Scheme of formation of profit of the enterprise
130
As follows from the scheme, the aggregated algorithm for distributing the total current income is as follows: the proceeds received by a commercial organization are successively
"consumed" in the following sequence:
- payment of labor and material costs (material costs);
- payment of interest for the use of credits and loans (financial expenses);
- payment of taxes and obligatory payments;
- distribution of the balance between the enterprise itself (reinvestment of profits) and its owners.
Most full details about profit and its components are given in the Profit and Loss Statement (Appendix D).
Profit management implies the impact on the factors of financial and economic activity, which would contribute, firstly, to increasing income and, secondly, to reducing costs.
As part of the solution of the first task - increasing income - assessment, analysis and planning should be carried out: implementation planned assignments and dynamics of sales in various sections; rhythm of production and sales; sufficiency and efficiency of diversification of production activities; efficiency pricing policy; the influence of various factors (capacity-to-labor ratio, workload of production capacities, shifts, pricing policy, personnel composition, etc.) on the change in the value of sales; seasonality of production and sales; the critical volume of production (sales) by type of product and division, etc. Mobilization and search for factors to increase income is the responsibility of senior management company, as well as its marketing service; the role of the financial service is reduced mainly to the justification of the pricing policy, the assessment of the feasibility and economic efficiency a new source of income, control over compliance with internal benchmarks in terms of profitability in relation to existing and new industries.
The second task - reducing costs - involves the assessment, analysis, planning and control over the execution of planned targets for costs (costs), as well as the search for reserves for a reasonable reduction in production costs.
More on the topic Costs for the production and sale of the company's products:
- 1.7.2.1 Composition of costs for production and sale of products
- 2. Analysis of the dynamics and implementation of the plan for production and sales of products
- 4.1. Cost analysis for production and sales of products
- 8.1. General approach to determining the volume indicators of production and sales of products
- 33. Planning costs for production and sales of products
- Costs for the production and sale of the company's products
- 4. Costs of the enterprise (firm) and their types. The cost of production and ways to reduce it
- Methodology for assessing the economic activity of an enterprise
- 1.2 Classification and composition of costs included in the cost of production
- Lectures 13–14. Financial results of the enterprise
- Costs of production and sales of products, their classification
- 6. 6. Profit and profitability as performance indicators of the enterprise
- Copyright - Advocacy - Administrative law - Administrative process - Antimonopoly and competition law - Arbitration (economic) process - Audit - Banking system - Banking law - Business - Accounting - Property law - State law and management - Civil law and process - Monetary circulation, finance and credit - Money - Diplomatic and consular law - Contract law - Housing law - Land law -
products (works, services), their classification
The costs of the enterprise, carried out in the course of economic activity, based on the economic content and purpose, can be combined into several independent groups:
Costs for the reproduction of production assets;
Expenses for social and cultural events;
Operating expenses;
The cost of production and sale of products "(works, services).
Costs for the reproduction of production assets ensure the continuity of production and create conditions for the sale of products. The costs of the formation and reproduction of fixed assets (creation, reconstruction, expansion and restoration of fixed assets for industrial purposes) are carried out at the expense of the enterprise's own funds, bank loans, and budget allocations. Working capital advanced for the formation of stocks of inventory items, backlogs of work in progress, finished products in stock and settlements are restored after receipt of proceeds to the settlement account of the enterprise. The increase in working capital is carried out at the expense of profit remaining at the disposal of the enterprise, and a bank loan.
Spending on social and cultural events include expenses for the advanced training of employees, training of personnel, improvement of the socio-cultural and living conditions of employees. This also includes the costs of the creation and reconstruction of fixed assets for non-production purposes, the maintenance of clubs, preschool children's institutions, recreation camps for children, and the functioning of medical institutions. These expenses. important for the social development of teams, are not included in the cost of production are carried out at the expense of profits, budgetary and earmarked revenues, funds of trade union organizations. income from clubs, income from parents in the form of fees for the maintenance of children in preschool institutions, etc.
Operating expenses These are special purpose costs. in particular - for scientific research work (R&D). invention, rationalization, revaluation of fixed assets, certification of equipment, forest management and geological exploration, etc.
The peculiarity of this group of costs is that they are long-term, unstable, not stable in value, pay off over a long period of time, and therefore are not included in the cost of production. Their purpose is to improve the quality and efficiency of production. The sources of financing of such expenses are the profit of the enterprise, budget appropriations, funds received from customers for research. performed under contracts, funds included in the cost of research.
Costs of production and sale of products (works, services) occupy the largest share in all expenses of the enterprise. They consist of the costs associated with the use of products (works, services), fixed assets, raw materials, materials, components, fuel and energy, labor and other costs in the production process. The amount of profit of the enterprise depends on the formation of this group of expenses. The costs of production and sale of products (works, services) are reimbursed after the completion of the circulation of funds at the expense of proceeds from the sale (works, services).
Production costs are diverse and classified according to certain criteria, the main of which are: the method of attribution to the cost price, the relationship with the volume of production, the degree of uniformity of costs.
Depending on the methods of attribution to the cost of production, costs are divided into direct and indirect. Under direct costs refers to the costs associated with the production of certain types of products, which can be directly and directly included in the cost. These are the costs of raw materials, basic materials, purchased products and semi-finished products. the basic wages of production workers, etc.
To indirect include the costs associated with the production of different products, and therefore they cannot be directly attributed to the cost of a particular type of product. These are the costs of maintaining and operating equipment, maintaining and repairing buildings, wages of auxiliary workers, engineering and technical workers, etc. Such costs are included in the cost of production using special methods determined by industry guidelines on planning accounting and calculating the cost of production ( works, services).
Depending on the connection of costs with the volume of production, conditionally constant and semi-variable costs. To conditionally constant include expenses, the total value of which does not change significantly with a decrease or increase in the volume of output, as a result of which their relative value per unit of output changes. These are expenses for heating and lighting of premises, salaries of management personnel, depreciation deductions, cash expenses for administrative and economic needs, etc. Operating expenses depend on the volume of production. They rise or fall in line with changes in output. These include the cost of raw materials and basic materials, process fuel and energy, the basic wages of production workers, etc.
According to the degree of homogeneity, costs are divided into elemental and complex . Cost elements have a single economic content for a given link, regardless of their purpose. The purpose of grouping costs by elements is to identify the costs of producing products (works, services) by their types. For example, such elements as material costs, wages, depreciation of fixed production assets and other costs are highlighted. The ratio between the individual cost elements is the cost structure for the production of products (works, services).
Complex costs include several cost elements, and therefore, are heterogeneous in composition. They are united for a certain economic purpose. Such costs, for example, are general factory expenses, losses from marriage, expenses for the maintenance and operation of equipment, etc.
All costs for the production and sale of products (works, services) are their full cost. Costs are included in the prime cost in accordance with the Regulations on the composition of costs for the production and sale of products (works, services) included in the cost of products (works, services), and on the procedure for the formation of financial results taken into account when taxing profits, approved by a decree of the Government of the Republic of Belarus.
The need to regulate the costs incurred by enterprises in the course of their economic activities, a special normative act due to the fact that based on the cost is determined by the price and profit, and hence the income tax. All enterprises, regardless of their organizational and legal form and form of ownership, should be in the same position when determining their financial results.
Financial Manager must know well the composition of the costs included in a particular cost element, monitor changes in legislation in order to competently manage the level of cost and profit, track tax implications decisions on accounting, the choice of ways to perform individual work.