The organization's production costs imply certain costs that are associated with the production and sale of manufactured goods. In statistical and accounting reports, they are reflected as cost.
Instructions
Step 1
Calculate the total cost. It can be calculated as the sum of the company's fixed and variable costs. In this case, these costs represent the value of the organization's funds, which was spent on the production of products.
Step 2
Determine the average cost. To do this, you need to divide the total costs by the amount of products produced. These costs are called gross, and the resulting value shows how many of them were "spent" on one manufactured product.
Step 3
Calculate the economic (imputed) costs of the enterprise. They represent certain economic costs incurred by the organization in the course of its own activities. The composition of these costs includes: resources that were purchased by the company, internal resources of the company and normal profit, considered by the entrepreneur in the form of a certain amount of compensation for risks in business.
Step 4
Find the value of accounting costs. Such costs mean the amount of cash costs incurred by the company in order to obtain the necessary factors for the normal operation of production on the outside. In turn, the value of accounting costs is always less than the value of economic ones. After all, they can only take into account the real costs of purchasing the necessary resources from external counterparties.
In addition, accounting costs are comprised of direct and indirect costs. Direct costs consist of costs that are required for production. But indirect costs consist of all the costs without which the organization itself simply cannot function successfully: depreciation charges, overhead costs, the cost of paying interest to banks.
Step 5
Determine the opportunity cost. These are all the funds spent on the production of a product that the company will not produce, since it uses these resources in the production of such a product. Thus, the value of opportunity cost is the sum of all costs of lost opportunities. Therefore, in order to find the amount of opportunity costs, it is necessary to subtract the accounting costs from the economic costs.
