All costs of the organization are divided into fixed and variable. The first company always bears, even if in some period it does not produce goods, does not provide services and does not sell anything. The latter depend on the number of products released, orders completed and goods sold.
Instructions
Step 1
Variable costs include raw materials, materials and components used to manufacture the final product. For example, for sewing clothes, such costs will include the costs of fabric, threads, buttons, etc. If the company does not produce anything, but is engaged in trade, the variable costs will include the cost of goods purchased for resale.
Step 2
Any commercial organization bears the cost of wages and related contributions to the Pension Fund and the Social Insurance Fund. Some of them can be attributed to variable costs. For example, the salary of workers employed in production, or the salary of sales managers, if they receive a percentage of the amount of products sold. Many employees receive fixed salaries, regardless of the company's success and profitability in certain months. For example, the accounting service maintains tax and accounting records, even if the organization incurs losses. Therefore, the accounting salary is a fixed cost.
Step 3
For the production of products, special equipment is required. If its cost exceeds 40 thousand rubles, it is included in the company's costs not as a one-time purchase, but through monthly depreciation charges throughout the entire useful life. Depreciation of production equipment is a variable cost to the company. The costs of other fixed assets not directly related to the production and sale of goods are included in fixed costs.
Step 4
The machine tools in the production workshop require electricity or some other power source. Such costs are also variable.
Step 5
Some costs may increase in proportion to the volume of production. For example, if it takes 1 m of fabric to sew 1 dress, then the production of 10 products will require, respectively, 10 m of material. Also, variable costs can be regressive and progressive. In the first case, costs grow more slowly than the volume of production, in the second - faster.
Step 6
An example of regressive variable costs is workers' wages. Suppose an employee receives a fixed salary. Then, with an increase in the production plan for output from 10 units to 11 units, the volume of production will increase by 10%, and the variable labor costs will remain the same.
