Product costs are funds that an enterprise spends in the production of goods. These include: materials, payments to suppliers and customers, employee salaries, etc. Thus, the price of goods consists of profit and costs (cost) of products.
In practice, there are several types of production costs: accounting, alternative and operational, which are also subdivided into fixed and variable. The costs differ in essence and structure.
Accounting costs (gross production costs) are the costs of paying suppliers, salaries to employees, purchasing raw materials and supplies, etc. That is, these are all external costs that are recorded in accounting on different accounts - 60 "Settlements with suppliers", 70 "Settlements with personnel", 91 "Other costs", etc. To determine the accounting profit, you just need to deduct the cost of the goods from the accounting costs.
Opportunity cost of production is the lost income, which was formed as a result of choosing one of the alternative options. For example, you decide to sew clothes, but you have a choice: to sew for children or for adults. You settled on the second option, abandoning the first. That is precisely why the costs are of an alternative nature, that is, you need to give up something in order to succeed in the other direction.
Fixed costs are those costs that are not directly related to production. For example, rent, communication services, land tax, etc. Production does not affect the amount of these costs, that is, the rent will not increase if the volume of production increases. The situation is the same with the tax.
Variable delays are those costs that depend on the volume of production. For example, purchasing materials, paying wages.
The total of these costs forms the total costs (gross). In the event that production is temporarily suspended, then the sum of all costs is constant.
Operating costs are those costs that are associated with various transactions, agreements, that is, in the field of exchange.
