To find the initial cost of production, you need to sum up the amount of resources expended in monetary terms. These include raw materials and semi-finished products, energy and fuel, wages and other costs of production and sale.
Instructions
Step 1
The purpose of calculating the initial cost of products is to analyze the efficiency of resource use in production. Based on this data, plans are developed to optimize costs and savings. A fairly extensive assessment of all areas of production is used: the organization of labor, the level of capacities and technologies, the expediency of spending fixed assets, etc.
Step 2
To find the initial cost, you need to calculate the total cost estimate of the following categories of work, services and materials:
• Start-up work, ie preparatory measures for the development of the release of new types of products, the formation of a production plan, the development of technologies, etc.;
• Marketing research;
• Staff recruitment and training;
• Expenses for personnel management;
• Direct production;
• Improving technologies, improving quality;
• Sales. This category includes the costs of creating or purchasing packaging, containers, transportation of products to the place of sale, storage, promotional activities, etc.;
• Legal services;
• Other costs associated with the release of products and their turnover.
Step 3
As a rule, in any company there is some structure of the initial cost, which reflects certain types of costs. Such a classification according to various calculation items allows you to identify the ratio of costs by areas and analyze the degree of their influence on the initial price (without extra charge) of the product. The purpose of this analysis is to minimize costs and increase profits.
Step 4
Most industrial enterprises calculate two values: the shop floor initial cost and the full acquisition cost. The first consists of the following seven calculation items:
• Raw materials and basic materials;
• Electricity for equipment operation;
• Salary of the main production staff (workers);
• Supplements to the main staff for overtime, night shifts or holidays;
• Social Security contributions;
• Depreciation and additional materials for equipment operation (oil, cooling fluid, lubricants, etc.);
• Other production costs for the workshop.
Step 5
To find the full initial cost of products, you need to add three more to these articles:
• General operating expenses: maintenance of support personnel, rent of premises, consultants' services, etc.;
• Mastering the production of new product names;
• Other costs: marketing, advertising, etc.
