According to the Tax Code, all production costs are divided into direct and indirect. Direct costs include those costs that are directly related to the production of products, for example, the purchase of raw materials, staff salaries, etc. Indirect costs are those costs that cannot be directly attributed to the manufacture of a particular type of product, for example, the cost of communication services, office rent, etc.
Typically, each employer incurs costs for subsequent profits. In tax accounting, such costs are divided into two groups: direct and indirect. Direct costs are taken into account when calculating income tax in direct proportion to the products sold, and indirect costs are taken into account in the period in which they were incurred. For example, the lease of premises is immediately accounted for in the tax period in which it was made. In 2002, Russian legislation amended the Tax Code. Earlier, wage costs were related to indirect costs, but now they are part of direct costs. However, the adopted amendments to the normative act in 2005 leave the manager with the right to assign costs to a particular group. That is, the manager himself chooses which costs will be related to direct and which to indirect. This aspect is spelled out in the accounting policy. But you should not abuse this, you should still adhere to the conditions of the law, and he interprets that direct costs include material costs, labor costs (Article 318 of the Tax Code of the Russian Federation). In accounting, direct and indirect costs are also taken into account and separated. Direct costs are associated with the release of products, and indirect costs are associated with the management and maintenance of production. If we consider these costs from an economic point of view, then costs can be divided into fixed and variable production costs. Variable costs are those that change depending on the production output, for example, the larger the volumes, the more raw materials will be needed to manufacture the goods. Constant ones do not change, for example, office rent will not increase or decrease if output increases or decreases.
