How To Calculate The Actual Cost

Table of contents:

How To Calculate The Actual Cost
How To Calculate The Actual Cost

Video: How To Calculate The Actual Cost

Video: How To Calculate The Actual Cost
Video: Actual Costing and Normal Costing 2024, December
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One of the main indicators of the company's financial costs is the cost. It is a collection of costs. Making a profit directly depends on how the cost will be calculated and what measures the company will take to reduce it.

How to calculate the actual cost
How to calculate the actual cost

It is necessary

  • - estimate of production costs;
  • - calculator.

Instructions

Step 1

Calculate the actual cost - this means summing up all production and non-production costs spent on manufacturing products, as well as finding out their structure. To do this, take an estimate of production costs, which includes all types of costs for the period of release of a unit of production.

Step 2

Start the calculation of costs by summing up the costs of basic materials and raw materials, components and purchased semi-finished products, energy expended during the production process, containers, spare parts needed for repairs, and fuel. Calculate these material costs based on purchase prices, taking into account insurance premiums and customs payments.

Step 3

Sum up all labor costs for production personnel. These costs consist of the number of salaries paid in the course of production, wage increments, additional payments for processing, bonuses, social contributions to pension, medical and social insurance funds.

Step 4

Add up all the costs of mastering new technologies or improving them during the production process.

Step 5

Add up all the costs of operating and replacing parts of equipment involved in production, maintaining the main activities of the enterprise, ensuring safety and environmental standards.

Step 6

Add up all other costs, which are the sum of the costs of waste, general and general costs.

Step 7

Add up all of the above costs to calculate the actual cost of production.

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