The cost of goods, services or goods is the sum of the costs in monetary terms arising in the process of their production and sale. This is the cost of the product without taking into account the profit of the enterprise, which cannot be more than the wholesale and retail prices, since this will lead to losses for the organization. To calculate the cost of production, it is necessary to study the basic methods, and the existing cost items that are taken into account.
Classification of cost items that form the cost of production
For the manufacture of any product, raw materials, labor resources, energy, equipment and tools are required. To calculate the cost of production, you should take into account all cost items that arise in the production process. For this, according to the manufacturing technology of the product, all the costs associated with the production are brought together into a single document - the cost estimate.
The main costs that are taken into account when calculating the cost are:
- materials, raw materials and semi-finished products used in the production process of a certain amount of products (piece, thousand, ton, liter);
- wages of workers who are directly involved in the manufacture of the product;
- social and insurance deductions from the wages of workers involved in the manufacture of products;
- depreciation of fixed assets involved in production;
- costs of sales, advertising of goods.
Cost types and their calculation
There are several ways to calculate the cost of production:
1. Full planned cost. This indicator is calculated by adding variable and fixed costs. Variable costs include materials, energy, wages used to make a product. Fixed costs include the costs of maintaining the administration, repairing buildings, structures, that is, those costs that must be taken into account regardless of the volume of production. Fixed costs are determined by adding them and dividing them by the total number of products.
2. Full actual cost. In this case, to calculate the cost, take into account the costs that were actually incurred by the enterprise for the production of products in previous periods. But in order to calculate the cost of production correctly, it is necessary to take into account price fluctuations for materials and energy, as well as a possible increase in wages.
3. Unit cost of production. The indicator can be calculated according to the standards that are provided for the manufacture of a specific product by multiplying them by the cost of the resource and then adding up all costs. The second method of calculation involves the summing up of all costs for the manufacture of a specific type of product and dividing the resulting indicator by the amount of goods released.
Depending on the type of activity and accounting, each company independently chooses how to calculate the cost of production in order to accurately take into account all the resources expended and display them in the price.
