The cost of production, its importance as the main economic indicator, the structure and ways of its optimization. Cost and ways to optimize it

The development of domestic production accounting and analysis, bringing it closer to international standards, suggests studying and analyzing the experience of organizing costing and cost analysis in countries with developed market economies.

In this paper, the following systems are proposed for consideration:

– Absorption costing;

– ABC system (Activity-based Costing);

– Direct-costing System.

– Controlling

Absorption costing. The absorption costing system is designed to calculate total costs. It involves the distribution of all costs between sold products and product balances. At the same time, expenses are divided depending on their functional role into production, realized and administrative.

including fixed production costs

The absorption costing method has several variants, the comparative characteristics of which are presented in Table 10.

Table 10 - Comparison of absorption costing options

Expenditures	Actual absorption costing	Normal absorption costing	Standard absorption costing
Basic materials		Actual consumption Actual price	Expenses at the rate actual output standard price
Wage		Actual Spent Actual Quote	Consumption at rate Actual output Normal rate
ODA variables
Permanent ODA	Actual consumption Actual ODA ratio	Actual consumption Planned ODA ratio	Consumption at the rate actual output planned coefficient of ODA

Under the standard variant of the absorption costing, the main production includes the costs that should be attributed to the product, and not those that actually occurred.

In normal costing, the ODA allocation factor is multiplied by the actual volume. With standard costing, the ODA budget coefficient is multiplied by the standard, calculated as the product of the actual volume and the norm, for example, labor costs. Normal costing only collects data on actual labor costs. Standard costing generates both actual and normative data.

The costing standard is similar to the domestic system of regulatory accounting and allows you to take into account costs with the allocation of relations from the norms, indicating their causes.

ABC system (Activity-Based Costing). In the overall cost management system, an important place is occupied by the system of cost accounting, based on activity, or activity-based costing.

The essence of this approach is as follows:

An effective way to reduce costs is to manage resource-consuming activities with the help of its stimuli (reasons). Cost management must provide real cost savings by reducing non-value-adding activities and improving value-adding activities, i.e. adding value to the product.

Briefly, the methodology of the ABC system can be defined as follows:

– determination of the main activities of the enterprise: main (fund-intensive, labor-intensive) and auxiliary (orders of materials, their receipt, processing, administrative expenses, etc.);

- determination of cost factors for specific types of activities (for example, if planned production costs are collected by series of constituent elements of any installation, then the main factor influencing will be the number of these series);

- creation of responsibility centers for each type of activity;

- transferring costs from activities to creating products. Demand for products is taken as the distribution base. As a measure of the process, cost factors that influence a particular type of activity act here.

The costing method for operations is usually analyzed in terms of such parameters as: inventory valuation, decision making, control.

The main feature of the ABC system is the allocation of costs attributable to the production of a unit of production, batches of products, general production costs and general business expenses.

This method has a number of advantages:

- it allows you to analyze in detail overhead costs, which is of great importance for management;

- makes it possible to more accurately determine the cost of unused capacity for their periodic write-off to the profit and loss account; the cost of a unit of output, estimated using this method, is the best financial estimate of the consumed resources, as it takes into account complex alternative ways of determining the relationship between production and resource use;

- allows you to indirectly assess the level of labor productivity - the deviation from the amount of resources consumed, and therefore, from the release or comparison of the actual level of cost distribution with the volume that could be possible with real resource provision;

- not only delivers new information about costs, but also generates a number of indicators of a non-financial nature, mainly measuring the volume of production and determining the production capacity of the enterprise;

– the costs of individual operations and the number of cost allocation objects represent individual performance measures; taken together, they can provide cost sharing ratios that can serve as a measure of the performance of each activity, control by management;

The introduction of the ABC system into the domestic practice of economic analysis of work would provide a reliable calculation of the cost of specific products, which would significantly increase the objectivity of assessing the profitability of products.

Direct costing system. In foreign theory and practice of accounting and analysis, the most accurate is currently considered to be the calculation, which includes only the costs directly related to the release of this product, and not the calculation, which, after numerous calculations and distributions, includes all types of expenses of the enterprise.

Therefore, in order to improve the methodology for making managerial decisions, accounting for variable costs (direct costing) was developed.

Under the direct costing system, a limited cost is determined, which includes only the sum of variable costs. To assess and analyze the effectiveness of the enterprise, this indicator is compared with the revenue for the period and the marginal profit for the reporting period is determined (gross profit, coverage amount). The net profit of the enterprise is the difference between the amount received and the amount of fixed costs that are not distributed among the products, but are written off as a total amount to the financial results of the reporting period (single-stage accounting for coverage amounts).

Revenues from sales

Variable manufacturing costs

Variable management and marketing costs

Marginal profit by cost carriers

fixed costs

Net result for the reporting period (profit)

Distributed by cost carriers.

The block of fixed costs can be divided into a number of segments:

- the place of origin of costs;

- the total number of manufactured products of a particular type;

- a group of products;

- responsibility center;

- the company as a whole.

An important advantage of the direct costing system is the possibility of a detailed and qualitative analysis of the relationship between production volume, cost, marginal income and profit.

In a market economy, direct costing provides information about the possibility of using dumping in the competition - selling goods at deliberately low prices, which is associated with the establishment of a lower price limit. This technique is used during periods of temporary reduction in demand for products to conquer markets.

Thanks to direct costing, the analytical capabilities of accounting are expanding, and there is a process of close integration of accounting and analysis.

Despite all the advantages that the described system gives to the "creators" and users of information, the organization of production accounting and analysis according to the "direct costing" system is associated with a number of problems that arise from the features inherent in this system, in particular:

- there are difficulties in dividing costs into fixed and variable, since there are not so many purely fixed or purely variable costs;

- "direct costing" does not answer the questions, what is the total cost of the product, therefore, additional distribution of semi-fixed costs is required when it is necessary to know the total cost of the finished product.

These problems require an additional solution, which, in principle, leads to the complication and cost of accounting and analytical procedures.

Thus, this system allows you to analyze the costs and results of activities, makes it possible to manage the amount of profit, which is the most important indicator of the activities of enterprises in a market economy, requires a deliberate and balanced approach to use.

Controlling. Further development of the theory and practice of cost management and ensuring the profitable activities of enterprises led to the formation in the 1970s. controlling as a holistic concept of economic management of an enterprise, guiding managers to identify all the chances and risks that are associated with making a profit.

Controlling is based on the principles of direct costing, but may also include elements of the "standard-cost" system and similar ones. It is wider than the two named systems, more diverse in purpose, functions, methods of planning, accounting and analysis, the degree of use of information.

Controlling is not limited to cost control (the main function of the "standard-cost" system) and the profitability of production and sale of products ("direct costing") - it also ensures the achievement of the company's goal (as a rule, maximizing profit, although in certain periods they may be elected and other benchmarks, for example, the conquest of the market, the elimination of a competitor).

Controlling often performs the functions of internal control in an enterprise, maintaining the efficiency of departments and the organization as a whole. Unlike an audit, it is focused on the current results of activities and is not associated with documentary verification, the need to go to the places where business acts and operations were performed.

A specific instrument of controlling is the amount of coverage, which shows what part of the proceeds from the sale of products (works, services) at market prices remains with the enterprise after subtracting direct variable costs for the production of products, performance of work and provision of services from it.

The amount of coverage includes fixed costs of the enterprise and profit. Fixed (conditionally fixed) costs are generally known. They include general production, general business and selling expenses. They can be easily determined by products (works, services) and production units, since they are most often calculated as a percentage of the basic wages of production workers.

By subtracting fixed (overhead) costs from the amount of coverage calculated for a specific product, we quickly receive profit from the production and sale of this product. Thus, without performing time-consuming accounting operations and calculations, we are able to evaluate the contribution that each product or production unit makes to cover fixed costs and generate profits for the enterprise.

Different products, product groups, or business units of an enterprise make a retail contribution to the enterprise's coverage. In view of the foregoing, this ideal indicator, expressed as a percentage, is an important criterion in planning the production and marketing of products in order to achieve the maximum economic result of the enterprise - profit.

There are two levels of controlling - strategic and operational.

Strategic controlling is aimed at creating the potential for success, i.e. ensuring the long-term existence of the enterprise. Its main task is to monitor the degree of adaptation of the enterprise to the environment, i.e. identification of the expediency of continuing the planned strategic activities during the period of implementation of the strategic plan.

Operational controlling is aimed at achieving the planned level of income (profit). Its main task is to assess the economic efficiency of production processes, identify bottlenecks that cause the expected (actual) profit to deviate from the planned one.

Controlling has specific tools, i.e. an interconnected set of methods for obtaining, processing, aggregating, analyzing, presenting and using various economic information.

The controller combines many functions of economic and production services, links and coordinates them in terms of obtaining the planned income. The controller is an internal consultant to the leaders of the enterprise. He can act effectively only at the highest level of management, because the mistakes made by the highest level, in most cases, cannot be compensated for by subsequent levels.

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Federal Agency for Education

State educational institution of higher professional education

Kuzbass State Technical University

Branch of KuzGTU in Novokuznetsk

TEST

By discipline

Organization finances

Option number 11

Completed by: student gr.FKt-51

Shamshurina L.S.

Checked by: teacher

Kirilova M.A.

1. Production cost. Enterprise cost classification
1.1 Production cost: concept
1.2 Classification of enterprise costs
2. Indicators and procedure for calculating the cost
3. Ways to optimize the cost
3.1 Increasing the technical level of production
3.2 Improving the organization of production and labor
3.3 Change in the volume and structure of products
3.4 Improve the use of natural resources
3.5 Industry and other factors
Conclusion
Bibliography
1. Product cost. Classification of enterprise costs. Grouping costs by economic elements and costing items
1.1 Production cost: concept
In the Regulation on the composition of costs for the production and sale of products (works, services) included in the cost of products (works, services), and on the procedure for the formation of financial results taken into account when taxing profits, approved by Decree of the Government of the Russian Federation dated August 5, 1992 No. 552, it is indicated: “The cost of products (works, services) is a valuation of natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production used in the production process (works, services) and implementation".
The above definition of cost relates to production costs and in the accepted classification is production (factory), and taking into account the costs of selling products - the full cost of industrial products. The latter consists of the costs associated with the use of fixed assets, raw materials, materials, fuel and energy, labor, as well as other costs for its production and sale in the production process of industrial products.
1.2 Enterprise cost classification
cost price economic cost calculation
The quantity of a product that an enterprise can offer on the market depends on the level of costs (costs) for its production and the price at which the product will be sold on the market.
From this it follows that knowledge of the costs of production and sale of goods is one of the most important conditions for the effective management of the enterprise.
Costs are the monetary expression of the costs of production factors necessary for the enterprise to carry out its production and commercial activities.
They can be presented in terms of the cost of production, which characterizes in monetary terms all the material costs and labor costs that are necessary for the production and sale of products.
Taking into account the changes and additions to the above Regulation on the composition of costs in recent years, the cost of production includes:
- costs associated with the production of products (works, services) due to production technology;
- costs associated with the use of natural raw materials, land, timber, water, etc.;
- the cost of preparation and development of production;
- non-capital costs associated with the improvement of technology and organization of production;
- the cost of carrying out experimental work, inventive and rationalization work;
- maintenance costs of the production process. This includes expenses for providing production with raw materials, materials, fuel, energy, tools for maintaining fixed production assets in working order (technical inspection, repair), for ensuring sanitary and hygienic requirements, regulatory working conditions and safety measures;
- current costs associated with the operation of funds for environmental purposes: treatment facilities, filters, ash collectors, costs for wastewater treatment, storage and destruction of environmentally hazardous waste, other types of current environmental costs. Payments for maximum allowable emissions are made at the expense of the cost of production, and for their excess - at the expense of profit remaining after taxes;
- costs associated with production management. This includes the maintenance of the control apparatus, the maintenance and maintenance of technical controls, computer centers, communication centers, signaling facilities, etc., travel expenses, payment for information, consulting and audit services, as well as third-party production management organizations, if the staffing table no functional services, representation expenses are provided;
- costs associated with the training and retraining of personnel;
- payments stipulated by labor legislation;
- deductions for state social insurance and pension provision;
- payments on bank loans within the rate established by law. Loan payments in excess of these rates are charged to income statement;
- payment for the services of credit institutions for the issuance of wages to employees, the implementation of trade and commercial (factoring) operations;
- costs associated with the sale of products;
- expenses for the reproduction of fixed production assets, included in the cost of production in the form of depreciation deductions for full restoration;
- depreciation on intangible assets;
- taxes and fees referred here by the tax legislation.
The amount of these costs depends on the prices of the resources necessary for the production of goods, as well as on the technology of their use.
The price at which production resources are acquired does not depend on the activity of the enterprise. It is determined by the emerging demand and supply for resources. Hence, the technological aspect of the formation of production costs is extremely important for the enterprise, which determines, on the one hand, the amount of attracted production resources, and on the other hand, the quality of their use.
Moreover, the enterprise should use such production methods that would be efficient both from a technological and economic point of view and would provide the lowest production costs.
A production method is technologically efficient only if it achieves the maximum possible output of a product with a minimum amount of involvement of production resources. The economic efficiency of this method is achieved when the opportunity cost of the types of costs used in the production process is minimized.
As a result, economic costs are the payment to the supplier made by the enterprise, or the income of the resource supplier provided by the enterprise, as well as the internal costs of ensuring that the resources are applied by this particular enterprise and for a certain production option.
There are external and internal costs. External costs include remuneration of employees, fuel, components, i.e. what the company does not produce to create this product. Depending on the specialization, the amount of external costs for the production of the same product varies. So, at assembly plants, the share of external costs is greater than internal ones.
Different types of resources transfer their value to finished products in different ways. In accordance with this, in theory and in practice, fixed and variable production costs are distinguished.
Fixed production costs are those costs that do not change with changes in production volumes. They must be paid even if the enterprise does not produce products (deductions for depreciation, rental of buildings and equipment, insurance premiums, payment of top management personnel, etc.).
Under the variables understand the costs, the total value of which is directly dependent on the volume of production and sales, as well as their structure in the production and sale of several types of products. These are the costs of raw materials, fuel, energy, transport services, most of the labor resources, etc.

2. Indicators and procedure for calculating the cost

The cost of production is interconnected with indicators of production efficiency. It reflects a large part of the cost of production and depends on changes in the conditions of production and sale of products. Technical and economic factors of production have a significant impact on the level of costs. This influence manifests itself depending on changes in technology, technology, organization of production, in the structure and quality of products, and on the amount of costs for its production. Cost analysis, as a rule, is carried out systematically during the year in order to identify intra-production reserves for their reduction.

A number of indicators are used to analyze the level and dynamics of changes in the cost of production. These include: an estimate of production costs, the cost of marketable and marketable products, a reduction in the cost of comparable marketable products and the cost of one ruble of marketable (sold) products.

The cost estimate for production is the most general indicator that reflects the entire amount of the enterprise's expenses for its production activities in the context of economic elements. It reflects, firstly, all the costs of the main and auxiliary production associated with the release of marketable and gross output; secondly, the costs of works and services of a non-industrial nature (construction and installation, transport, research and design, etc.); thirdly, the costs of mastering the production of new products, regardless of the source of their reimbursement. These costs are calculated, as a rule, without taking into account intra-factory turnover.

The cost of marketable products includes all the costs of the enterprise for the production and marketing of marketable products in the context of cost items. The cost of goods sold is equal to the cost of goods sold minus the increased costs of the first year of mass production of new products, reimbursed from the fund for the development of new equipment, plus the production cost of products sold from the last year's leftovers. The costs reimbursed from the fund for the development of new equipment are included in the cost of commercial products, but are not included in the cost of products sold. They are defined as the difference between the planned cost of the first year of mass production of products and the cost adopted when approving prices:

C R \u003d C T - Z H + (C P2 - C P1),

where C P is the cost of sold products C T is the cost of commercial products Z N the increased costs of the first year of mass production of new products, reimbursed from the fund for the development of new equipment C P1, C P2 - the production cost of the remains of unsold (in warehouses and shipped) products, respectively, for beginning and end of the year.

To analyze the level of cost at various enterprises or its dynamics over different periods of time, production costs should be reduced to the same volume. The unit cost of production (calculation) shows the costs of the enterprise for the production and sale of a particular type of product per one physical unit. Costing is widely used in pricing, cost accounting, planning, and benchmarking.

The indicator of cost reduction of comparable marketable products is used to analyze the change in cost over time with a comparable volume and structure of marketable products at those enterprises that have a stable assortment of products over time. Comparable is understood as such products that were mass-produced or mass-produced in the previous year. It also includes partially modernized products, if these changes have not led to the introduction of new models, standards and specifications.

The cost of one ruble of marketable (sold) products is the most well-known generalizing indicator in practice, which reflects the cost of a unit of production in value terms impersonally, without distinguishing it by specific types. It is widely used in the analysis of cost reduction and allows, in particular, to characterize the level and dynamics of production costs in the industry as a whole.

The remaining cost indicators encountered in practice can be subdivided according to the following criteria: - according to the composition of the costs taken into account, workshop, production, full cost; - by the duration of the billing period - monthly, quarterly, annual, for a number of years; - by the nature of the data reflecting the billing period, actual (reporting), planned, normative, project (estimated), predicted; - according to the scope of the covered object - a shop, an enterprise, a group of enterprises, an industry, an industry, etc.

The costs of enterprises included in the cost of production are divided into direct and indirect. Direct costs include costs directly related to the manufacture of products and accounted for in a direct way for its individual types: the cost of basic materials, fuel and energy for technological needs, wages for basic production costs, etc. Indirect costs include costs that are impossible or impractical to directly attributable to the cost of opportunistic types of products: shop expenses, general factory (general factory), for the maintenance and operation of equipment.

Workshop and general factory costs in most industries are included in the cost of certain types of products by distributing them in proportion to the amount of wages for production costs (without additional payments under the progressive bonus system) and the costs of maintaining and operating equipment.

For example, the amount of workshop expenses for the month amounted to 75 million rubles, and the basic wages of production workers - 100 million rubles. This means that the cost of certain types of products will include shop expenses in the amount of 75% of the sum of the basic wages of production workers, accrued for certain types of products.

The article “Non-production costs” mainly takes into account the costs of marketing finished products (costs for containers, packaging of products, etc.) and the costs of standardization and research work, centralized costs of training, etc. As a rule, non-manufacturing costs are included in the cost of certain types of products in proportion to their factory cost.

The cost of individual types of products is determined by compiling estimates that show the amount of costs for the production and sale of a unit of production. Calculations are compiled according to the items of expenditure adopted in the given industry. There are three types of costing: planned, standard and reporting. In the planned cost estimate, the cost is determined by calculating the costs for individual items, and in the normative one, according to the standards in force at this enterprise, and therefore, unlike the planned cost estimate, due to the reduction in standards as a result of organizational and technical measures, it is reviewed, as a rule, monthly. Reporting costing is compiled on the basis of accounting data and shows the actual cost of the product, which makes it possible to check the implementation of the plan for the cost of products and identify deviations from the plan in individual areas of production.

The correct calculation of the cost of production is important: the better the accounting is organized, the more perfect the calculation methods, the easier it is to identify through analysis the reserves to reduce the cost of production. At industrial enterprises, three main methods of costing and accounting for production costs are used: order-by-order, per-order and normative.

The custom method is most often used in individual and small-scale production, as well as for calculating the cost of repair and experimental work. This method consists in the fact that production costs are taken into account by orders for a product or a group of products. The actual cost of an order is determined at the end of the manufacture of products or works related to this order, by summing up all the costs for this order. To calculate the cost of a unit of production, the total cost of the order is divided by the number of products produced.

The line-by-line method of costing is used in mass production with a short but complete technological cycle, when the products manufactured by the enterprise are homogeneous in terms of the source material and the nature of processing. Cost accounting with this method is carried out by stages (phases) of the production process.

For example, at textile mills - in three stages: spinning, weaving, finishing production.

The normative method of accounting and calculation is the most progressive, because it allows you to conduct daily control over the course of the production process, over the fulfillment of tasks to reduce the cost of production.

In this case, production costs are divided into two parts: costs within the norms and deviations from the norms of consumption. All costs within the norms are taken into account without grouping, for separate orders. Deviations from the established norms are taken into account by their causes and perpetrators, which makes it possible to quickly analyze the causes of deviations and prevent them in the course of work. At the same time, the actual cost of products under the standard accounting method is determined by summing up the costs according to the norms and the costs as a result of deviations and changes in the current standards.

3. Cost optimization ways

Currently, in the analysis of the actual cost of manufactured products, the identification of reserves and the economic effect of its reduction, the calculation of economic factors is used. Economic factors most fully cover all elements of the production process - means, objects of labor and labor itself. They reflect the main directions of the work of the teams of enterprises to reduce costs: increasing labor productivity, introducing advanced equipment and technology, better use of equipment, cheaper procurement and better use of

objects of labor, reduction of administrative and managerial and other overhead costs, reduction of marriage and the elimination of unproductive costs and losses.

The savings that cause the actual cost reduction are calculated according to the following composition (typical list) of factors:

3 .1 Raisetechnicallevelproduction

This is the introduction of a new, progressive technology, mechanization and automation of production processes; improving the use and application of new types of raw materials and materials; change in the design and technical characteristics of products; other factors that increase the technical level of production.

For this group, the impact on the cost of scientific and

technical advances and excellence. For each event, the economic effect is calculated, which is expressed in the reduction of production costs.

The savings from the implementation of measures is determined by comparing the cost per unit of output before and after the implementation of measures and multiplying the resulting difference by the volume of production in the planned year:

E \u003d (SS - CH) * AN

where E - savings in direct current costs,

CC - direct current costs per unit of output before the implementation of the measure,

SN - direct current costs after the implementation of the measure,

AN - the volume of production in natural units from the beginning of the implementation of the event until the end of the planned year.

At the same time, carry-over savings from those measures that were implemented in the previous year should also be taken into account. It can be defined as the difference between the annual estimated savings and its part taken into account in the previous year's planned calculations. For activities planned over a number of years, savings are calculated based on the volume of work performed with the help of new equipment, only in the reporting year, without taking into account the scale of implementation before the beginning of this year.

Cost reduction can occur when creating automated control systems, using computers, improving and modernizing existing equipment and technology. Costs are also reduced as a result of the integrated use of raw materials, the use of economical substitutes, and the full use of waste in production. A large reserve is fraught with the improvement of products, reducing their material consumption and labor intensity, reducing the weight of machinery and equipment, reducing overall dimensions, etc.

3 . 2 Improving the organization of productionAndlabor

Cost reduction can occur as a result of changes in the organization of production, forms and methods of labor with the development of production specialization; improvement of production management and cost reduction; improving the use of fixed assets; improvement of material and technical supply; reduction of transport costs; other factors that increase the level of organization of production.

With the simultaneous improvement of technology and the organization of production, it is necessary to establish the savings for each factor separately and include them in the appropriate groups. If it is difficult to make such a division, then the savings can be calculated based on the targeted nature of the activities or by groups of factors.

Reducing current costs occurs as a result of improving the maintenance of the main production (for example, the development of in-line production, increasing the shift ratio, streamlining ancillary and technological work, improving tool management, improving the organization of control over the quality of work and products).

A significant reduction in the cost of living labor can occur with an increase in norms and service areas, a reduction in the loss of working time, and a decrease in the number of workers who do not fulfill production standards. These savings can be calculated by multiplying the number of redundant workers by the average wage in the previous year (including social security contributions and taking into account the cost of clothing, food, etc.). Additional savings arise from the improvement of the management structure of the enterprise as a whole. It is expressed in the reduction of management costs and in the savings in wages and accruals on it in connection with the release of managerial personnel.

With the improvement of the use of fixed assets, the cost reduction occurs as a result of an increase in the reliability and durability of equipment; improving the system of preventive maintenance; centralization and introduction of industrial methods of repair, maintenance and operation of fixed assets. Savings are calculated as the product of the absolute cost reduction (except depreciation) per unit of equipment (or other fixed assets) by the average operating amount of equipment (or other fixed assets).

The improvement of material and technical supply and the use of material resources is reflected in a reduction in the consumption rates of raw materials and materials, a reduction in their cost by reducing procurement and storage costs. Transportation costs are reduced as a result of a decrease in the cost of delivering raw materials and materials from the supplier to the enterprise's warehouses, from factory warehouses to places of consumption; reducing the cost of transporting finished products.

Certain reserves for cost reduction are laid down in the elimination or reduction of costs that are not necessary in the normal organization of the production process (excessive consumption of raw materials, materials, fuel, energy, additional payments to workers for deviation from normal working conditions and overtime, payments on regressive claims, etc.). P.).

Identification of these unnecessary costs requires special methods and attention of the enterprise team. They can be identified by conducting special surveys and one-time accounting, when analyzing data from standard accounting for production costs, and a thorough analysis of planned and actual production costs.

3 . 3 changee volume and structure of products

Changes in the volume and structure of products that can lead to

to a relative decrease in fixed costs (except for depreciation), a relative decrease in depreciation, a change in the range and range of products, and an increase in its quality.

Semi-fixed costs do not directly depend on the quantity of output. With an increase in production volume, their number per unit of production decreases, which leads to a decrease in its cost.

Relative savings on semi-fixed costs is determined by the formula:

EP \u003d (T * PS) / 100,

where EP - savings of semi-fixed costs,

PS - the amount of conditionally fixed costs in the base year,

T is the growth rate of marketable output compared to the base year.

The relative change in depreciation charges is calculated separately. Part of the depreciation (as well as other production costs) is not included in the cost, but is reimbursed from other sources (special funds, payment for services to the side, not included in the composition of marketable products, etc.), so the total amount of depreciation may decrease . The decrease is determined by the actual data for the reporting period. The total savings on depreciation deductions are calculated using the formula:

EA \u003d (AOK / DO - A1K / D1) * D1,

where EA - savings due to the relative decrease in depreciation,

A0, A1 - the amount of depreciation in the base and reporting year,

K - coefficient taking into account the amount of depreciation charged to the cost of production in the base year,

In order to avoid a repeated account, the total amount of savings is reduced (increased) by the part that is taken into account by other factors.

Changing the range and range of products is one of the important factors affecting the level of production costs. With different profitability of individual products (in relation to the cost), shifts in the composition of products associated with improving its structure and increasing production efficiency can lead to both a decrease and an increase in production costs. The impact of changes in the structure of products on the cost is analyzed in terms of variable costs according to the costing items of the standard nomenclature. The calculation of the impact of the structure of manufactured products on the cost price must be linked to indicators of increasing labor productivity.

3 .4 Improvementuse of natural resources

This takes into account: changes in the composition and quality of raw materials; change in the productivity of deposits, the volume of preparatory work during extraction, methods of extraction of natural raw materials; change in other natural conditions. These factors reflect the influence of natural (natural) conditions on the amount of variable costs. The analysis of their impact on reducing the cost of production is carried out on the basis of sectoral methods of the extractive industries.

3 .5 Industry and other factors

These include: the commissioning and development of new shops, production units and industries, the preparation and development of production in existing associations and enterprises; other factors. It is necessary to analyze the reserves for reducing costs as a result of the elimination of outdated and the commissioning of new shops and industries on a higher technical basis, with better economic indicators. Significant reserves are laid down in the reduction of costs for the preparation and development of new types of products and new technological processes, in the reduction of the costs of the start-up period for newly commissioned shops and facilities. The calculation of the amount of change in expenses is carried out according to the formula:

EP \u003d (C1 / D1 - C0 / D0) * D1,

where EP is the change in the costs of preparing and mastering production,

C0, C1 - the sum of the costs of the base and reporting year,

D0, D1 - the volume of marketable products of the base and reporting year.

The impact on the cost of commercial products of changes in the location of production is analyzed when the same type of product is produced at several enterprises that have unequal costs as a result of the use of various technological processes. At the same time, it is advisable to calculate the optimal distribution of certain types of products among the enterprises of the association, taking into account the use of existing capacities, reducing production costs and, based on a comparison of the optimal variant with the actual one, identify reserves.

If changes in the value of costs in the analyzed period are not reflected in the above factors, then they are referred to others. These include, for example, a change in the size or termination of various kinds of mandatory payments, a change in the amount of costs included in the cost of production, etc.

The cost reduction factors and reserves identified as a result of the analysis must be summarized in the final conclusions, the total influence of all factors on reducing the total cost per unit of output should be determined.

Conclusion

The cost of production is a qualitative indicator that characterizes the production and economic activities of a production association, enterprise. The cost of production is the cost of the enterprise in monetary terms for its production and marketing. The cost price as a generalizing economic indicator reflects all aspects of the enterprise's activities: the degree of technological equipment of production and the development of technological processes; the level of organization of production and labor, the degree of use of production capacities; profitability of the use of material and labor resources and other conditions and factors that characterize production and economic activity.

Depending on the volume of included costs, there are shop, production and full costs. The shop cost includes the costs of individual shops for the manufacture of products. It is the initial basis for determining intermediate intra-factory planned and estimated prices when organizing intra-factory economic accounting. The production cost covers the costs of the enterprise for the production of products. In addition to the shop cost, it includes overhead costs. The total cost of production includes all costs associated with its production and sale. It differs from the production cost by the amount of non-production costs and is calculated only for marketable products.

Cost reduction is planned according to two indicators: for comparable marketable products; at the cost of 1 rub. marketable products, if the share of products comparable with the previous year in the total volume of output is small. Comparable marketable products include all its types produced at a given enterprise in the previous period in mass or serial order.

Bibliography

1. Gribov V.D., Gruzinov V.P. Enterprise Economics: Textbook. Workshop. - 3rd ed., revised. and additional - M.: Finance and statistics, 2006. - 336s.

2. Safronov N. Economics of the organization (enterprise): Textbook. - 2nd ed., revised. and additional - M.: Economist, 2006 - 251s.

3. Sergeev I.V. Enterprise Economics: 2nd ed. - M.: Finance and statistics, 2004. - 304 p.

4. Tatarnikov E.A. Enterprise Management: Lecture Notes. -- Rostov n/a: Phoenix, 2005. -- 224p.

5. Chuev I.N., Chechevitsyna L.N. Enterprise economy. - M.: Dashkov i K, 2004. - 416s.

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One of the most important conditions for the implementation of market relations is the improvement of management and improvement of the economic nature of the formation of production costs.

The term "costs" is a narrower concept than "costs", it includes only production costs, while the concept of "costs" includes all consumed resources.

The application of this technique will allow to establish possible reserves for cost reduction and to formulate specific tasks in the field of cost management.

Effective cost management at different levels is ensured by the use of methodological unity, which implies uniform requirements for information support, planning, accounting, and cost analysis at the enterprise. This is provided by the management accounting system, which combines all these elements in a single methodological and methodological space and acts as a comprehensive, systematic study of production costs.

In management accounting, much attention is paid to cost control, their optimization and savings.

When calculating the costs of an enterprise, a certain degree of inaccuracy is possible, which can decrease if, when choosing a method of calculation, keep in mind its ultimate goal. Such costs can be residual, start-up and opportunity costs.

Thus, costs can arise without costs. This is the first difference between costs and costs. However, costs differ from expenses if the goods, material resources received in one period are fully or partially spent in another period. The second difference between the concepts of "costs" and "expenses" is that while the costs cover all the material values \u200b\u200bused at the enterprise, the costs relate only directly to the production of products or when taxes are paid, wages are paid.

The definition of costs should be based on their accurate recording, since their incomplete accounting reflects the waste of production factors, and too wide inclusion of costs creates the wrong impression in comparison with the costs of competitors, which is a necessary condition for the economic management of an enterprise due to the fact that costs are one of the most important in-house analysis indicators.

Therefore, costs are a decisive indicator for representing an enterprise in the external environment, since costs are the expenditure of material, labor and financial resources in value terms to ensure the process of expanded reproduction.

Therefore, the concept of "costs" is wider than the concept of "cost", which is a cost estimate of the resources used in the production and sale process, i.e. the costs of simple reproduction, the current costs of a particular enterprise.

To determine the cost, it is important to consider costs as a function of production volume. Costs that do not change with a change in production volume are presented as fixed, and those that depend on a change in production volume are variable.

Schematically, the formation of the costs of the enterprise is shown in Figure 1.

Rice. 1. Scheme of formation of enterprise costs

From the scheme shown in Figure 1, the costs can be written as

(1)

There are contradictions regarding the “costs” - this is presented in a number of regulatory documents, such as the letter of the Ministry of Taxes of the Russian Federation dated February 15, 2001 No. VG-6-02 / 139 “On clarification of certain issues on the application of tax legislation on taxation of profits of legal entities” , Order of the Ministry of Finance of the Russian Federation and the Ministry of Taxes of the Russian Federation dated March 10, 1999 No. 20n, GB-3-04 / 39 "On approval of the regulation on the procedure for conducting an inventory of taxpayers' property during a tax audit" (clause 3.33) contains the term "costs", while while the order of the Ministry of Taxes and Taxes “On Approval of the Methodological Recommendations for the Application of Chapter 21 of the VAT of the Tax Code of the Russian Federation” specifically notes the replacement of the concept of “production and distribution costs” with the concept of “expenses”.

In the normative documents regulating financial accounting, the terms "expenses", "expenses", "costs" are also used as synonyms. For example, in PBU 2/94 and PBU 4/99 all three terms are used, in PBU 5/01, 6/01, 10/99, 15/01 - the terms "costs" and "expenses".

The uncertainty of terminology acquires significant significance due to the fact that there is no strict division of costs (expenses, costs) depending on the principle of compliance, according to which costs reduce income of the same reporting period. This not only violates the frequency of accounting (in the theoretical sense), but also interferes with its computer formalization and leads to tax violations. We are talking about the application of the accrual or cash method to reflect in the accounting operations related to the calculation of profits.

Similar problems have been solved in a number of countries as follows. For example, in the United Kingdom and the United States, the term "expenses" refers to expenses used in calculating profits or calculating inventory balances, i.e. This figure is calculated on an accrual basis. The term expenditures means an expense that is not related to the costing process (used, for example, for cash flow projections). Thus, in the book of F. Wood “Accounting for Entrepreneurs”, when defining the accrual principle, it is emphasized that “net profit is understood to be the difference between sales and expenses (expenses), and not between cash received and spent (expenditures)”.

There is also the term cost, which has a broader application and, according to the Oxford Dictionary of Accounting, means "the cost of goods and services necessary for the implementation of the entire process of the organization's functioning" (A dictionary of accounting).

An attempt to separate the terms "costs" and "costs" in accordance with the accrual principle is made by M.A. Vakhrushin. She writes that according to the income-expense matching approach, “in accounting, all income should be related to the costs of obtaining them, called expenses.” On the one hand, the author recognizes the concept of "expenses" as a term analogous to the English expenses; on the other hand, in the same phrase and further in the text, she identifies it with the term "costs".

A comparison of financial and management accounting from the angle of clarifying cost terms in Russia shows that in financial accounting, the accrual principle is used to determine costs, i.e. costs are charged to cost at the time of their occurrence, regardless of the fact of payment - subsequent or previous. In tax accounting, both the accrual principle (Article 271, Chapter 25 of the Tax Code of the Russian Federation) and the cash principle (Article 273, Chapter 25 of the Tax Code of the Russian Federation) are applicable.

In management accounting, the preparation of information for various purposes can be based on both the accrual and cash principles. In addition, for the convenience of making a group of decisions, conditional (opportunity) costs are used.

From the standpoint of the labor theory of value, K. Marx in "Capital" considered costs as the costs of wages, materials, fuel, depreciation of labor instruments associated with the production of goods. He added to them the costs of wages of trade workers (wholesale and retail), maintenance of commercial premises, transport, etc. K. Marx called the first costs production costs, the second - distribution costs. At the same time, he did not take into account the market situation and a number of other circumstances. K. Marx proceeded from the fact that the cost of a commodity forms the costs of production and those distribution costs that are a continuation of the production process in the sphere of circulation, for example, packaging, packaging, etc.

Modern economic theory approaches the interpretation of costs in a completely different way. It comes from the rarity of the resources used and the possibilities of their alternative use. Thus, the cost of using a resource, measured in terms of the benefit that is lost due to not using this resource in the best, alternative way, represents the opportunity or economic cost of a certain resource (opportunity cost or opportunity cost). Therefore, in order to calculate the costs of the enterprise, it is necessary for each input factor of production to evaluate in monetary terms the benefit that the enterprise missed by using the resource given, and not the best, alternative way.

From this we conclude that the economic or opportunity costs of a certain resource used in a given production are equal to its cost (value) with the most optimal way of using it for production.

Thus, economic costs are the payment to the supplier made by the enterprise, or the income of the resource supplier provided by the enterprise, as well as the internal costs of ensuring that the resources are applied by this particular enterprise and for a certain production option.

Costs are the monetary expression of the costs of production factors necessary for the enterprise to carry out its production and sales activities.

The costs of living and materialized labor in the process of production constitute the costs of production.

The main purpose of production cost accounting is to control production activities and manage the costs of its implementation.

In management accounting, the objectives of cost classification are determined based on the goals and objectives of management.

Therefore, due to the variety of goals, decisions, methods for achieving them, the degree of novelty, the period of validity and other classification features of management decisions, you can specify different goals for classifying costs.

Accounting systems must serve a set of management goals, there are various ways to measure and group costs.

A classification characteristic of foreign accounting is given in the works of S. Rayborn, who recommends using the following classification features shown in Figure 2.

Rice. 2. Foreign classification of production costs

This classification fully covers all types of cost categories used in the Anglo-Saxon and American accounting systems. As a disadvantage of the proposed classification, one can single out the fact that the classification features and types of costs, respectively, are not strictly defined for enterprises. Each enterprise in this matter has complete independence and uses such a cost classification system, which is the most convenient.

The allocation in the domestic accounting system of such types of costs as past non-refundable costs, past real costs, accepted in foreign classification, can have a positive impact on the further development and improvement of cost management.

The use of these groupings in domestic cost accounting will allow evaluating various contracts for the production of products using previously acquired resources at real current prices, which makes it possible to determine the real profitability or unprofitability of individual orders.

In the Russian educational and scientific literature, up to ten grouping signs of costs are named, but they have not found practical distribution. In domestic accounting, the calculation approach prevails in practice, i.e. groupings of costs necessary for calculating the cost of products (works, services) are used.

Western management accounting offers a targeted, functional approach, etc. In Russia, the functional approach is promoted by T.P. Karpov.

An analysis of approaches to cost classifications showed that it is advisable to combine cost groups in three areas:

The founder of the target approach is K. Drury. His domestic followers include M.A. Vakhrushin.

Ch.T. Horngren classifies costs as follows:

1)	in relation to the volume of production (variables, constants)<1>;
	by time certainty (actual, planned or forecast, others);
	by the degree of averaging (general, average (costs per unit - per student, per hour), others);
	by management function (production, commercial, administrative);
	by the method of attributing to the cost of objects (direct, indirect);
	by the period of allocating costs to reduce profits (per product, per period);
	by value for management decisions (relevant, irrelevant, alternative, costs of past periods).

<1>In practice, this division of costs is carried out conditionally, since a large share of them is occupied by conditionally fixed and conditionally variable costs.

A number of economists propose to differentiate variable costs. For example, S. A. Stukov divides variable costs into proportional, progressive, degressive, regressive, spasmodic, remanent, flexible.

The division of costs into proportional, progressive, degressive, stepwise is also suggested by M.A. Vakhrushin; N.G. Chumachenko divides fixed costs into two parts:

Considering variable costs, it is important to note the problem of conditional classification of costs for fixed costs and such a classification in general. This problem leads to the need to find an answer to the question: are there criteria to clearly separate the total costs into fixed and variable? The behavior of costs primarily depends on two factors: the length of the period considered for making a decision, as well as the divisibility of production factors. In the theory of Western management accounting, in terms of classifying costs into fixed variables, it is said that the nature of the behavior of costs (variable or constant) depends on the corresponding production situation in which decisions are made.

Spasmodic costs are typical for those cases when wholesale prices for raw materials and materials, components, tariffs for outside production services and tariff rates for wages are revised upward or downward. These changes are one-time and cause an abrupt increase or decrease in costs, especially noticeable when it comes to raw materials and materials, which on average occupy two-thirds of production costs.

Remanent costs are those costs that increase rapidly with an increase in production, but decrease much more slowly when it is reduced.

Flexible costs behave differently for different volumes of production, in some cases acting as proportional, progressive or degressive. These are, for example, losses from marriage, from downtime caused by equipment breakdowns.

The term "costs" is a narrower concept than "costs", it includes only production costs, while the concept of "costs" includes all consumed resources.

The concept of "cost" of products is based on the foundations of the law of value, which lies in the fact that the cost of goods is determined not only by production capabilities, but also by the needs of society.

The concept of "expenses" is used in several semantic meanings: expenses from ordinary activities (PBU 10/99); expenses of the reporting period; expenses for taxation purposes (Chapter 25 of the Tax Code of the Russian Federation). According to chapter 25 of the Tax Code of the Russian Federation, expenses are recognized as any expenses for the implementation of activities aimed at generating income.

In making managerial decisions, significant emphasis is placed on planning and optimizing the cost of products manufactured by the enterprise. The definition of ways to reduce costs and increase efficiency occurs at all stages of the production process - from the purchase of materials and their processing to control at the stage of production of the finished product and its delivery to the consumer. Changes may relate to production, processing, assembly, packaging.

The identified reserves for optimizing the cost of production of an industrial enterprise should be divided into strategic and tactical ones. The increase in the difference between the selling price and production costs is attributed to tactical ones - the growth in the price of products should outstrip the growth in the costs of its manufacture. This reserve is realized by improving the quality, as well as the production of products with new commercial properties, which leads to an increase in the profitability of its sale.

The strategic directions include analysis of changes in the price level, more economical use of direct costs and flexible manipulation of fixed costs as part of the total cost of production, optimization of the product range.

The main concepts of reducing the cost of products are based on different approaches.

The first concept is based on direct costs that form the cost. Conditions: calculated prices and costs based on accurate information about the volume of production, the type of raw materials and materials, the effectiveness of procurement methods; labor force standards calculated on the basis of the applied technology, processing methods, available equipment, incentive system; production overheads based on predetermined or planned standards.

The second concept is based on indirect costs that form the cost of production. Conditions: labor of auxiliary workers, work on maintenance and repair of equipment, secondary raw materials, supplies must be assessed as living labor; using flexible scheduling methods when goals change or the basis for calculating overheads is revised; application of incentive control plans for their reduction, developed for all production and non-production departments; regulation of material and technical services based on the revision of time standards due to advanced training, the acquisition of labor skills, etc.; calculation of regulatory coefficients, allowing to establish cost control procedures.

Consistent consideration of the cost of various products allows you to develop a program to reduce the overall cost and choose the policy of the enterprise regarding the volume of production and increase efficiency at all stages of the production process.

Industrial enterprises belong to the group of material-intensive industries. Here, the cost of raw materials and materials in the cost of production is 80-85% or more. Therefore, the most important sources of optimization include reducing material costs (improving the technological process, reducing losses, waste, improving product quality) and increasing labor productivity.

Rational and efficient use of raw materials and materials helps to increase the financial stability of the organization and its solvency. Under these conditions, the organization timely and fully fulfills its settlement and payment obligations, which allows it to successfully carry out commercial activities.

The decrease in the cost of raw materials, which is the result of the growing productivity of labor used to manufacture this raw material itself, contributes to lowering the cost of output and creating savings, the value of which can be calculated by the following formula:

En \u003d (N0Ts0 / KM0 - N1Ts1 / KM1) Q1
(2)

			saving current production costs for raw materials, materials, fuel;
			material consumption rates for the manufacture of products, respectively, in the base and reporting periods;
			unit price of raw materials, material, fuel in the base and reporting periods;
			coefficient of use of material resources in the base and reporting periods;
			annual production volume.

The reduction of material costs per unit of output is subject to the action and requirements of the law of value. This law provides for ensuring an appropriate level of efficiency of the means of production that process material resources.

The cost of consumed material is reduced as a result of a reduction in the specific consumption of materials per unit of output, which is directly related to a decrease in the working capital ratio.

The value of the material consumption of products has a direct impact on the size of inventories and the cost of normalized working capital, which is of great importance for the financial condition of the enterprise.

The development of the regulatory framework is the most important direction in the planning of material resources. The basis of planning is the system of norms.

The economic substantiation of calculations for determining the norms is based on the norms. In order to ensure the unity and scientific validity of the norms, the unification of the calculation standards is carried out. This takes into account the classification of conditions that determine the consumption of material, as well as the achievement of scientific and technological progress. Normative indicators of material costs are calculated by the ratio of their specific consumption per unit of the technical parameter of the product. Such a characteristic can be power, labor productivity. These indicators serve to assess the material consumption of products.

The use of progressive consumption rates allows the commodity producer to determine the reduction in the consumption rates of material resources. At the same time, the percentage of reduction assumes taking into account the most complete implementation of all internal production resources.

When developing long-term plans to reduce the cost of production, the index method is the most preferable. Then the cost reduction due to the use of internal production sources can be defined as the sum of the shares of the reduction in the cost of production or costs per 1 rub. commodity output provided by each source, that is

(3)

Based on the ratio of the indices of the relevant factors and their share in the cost of production (or costs per 1 ruble of marketable products), it is possible to determine the reserve for reducing the cost of production due to the factor under study (cost item, cost element).

Thus, the reduction in prime cost (or costs per 1 ruble of marketable output) as a result of an increase in labor productivity can be calculated using the formula

(4)

Cost savings in absolute terms is determined by:

costs for 1 rub. commodity products.

The cost reduction as a percentage of the fixed and variable parts of overhead and general business expenses will be:

The results of calculations based on the above methodology are presented in Table 1.

Table 1

Analysis of the cost reduction of the compared products of OAO MK Orlovsky

Expenditures	The cost of production at the prices of the t-th year, thousand rubles.	Cost structure in the t-th year,%	Comparable products in t + 3rd year according to norms and prices, thousand rubles	Savings, million rubles	Cost reduction of comparable products, %

Basic materials
Auxiliary materials
Process fuel
Technological energy
Basic and additional wages of production workers
overhead costs
General running costs
Loss from marriage

An integral part of the management analysis of costs in order to optimize the cost of production is the study of conditionally variable and conditionally fixed costs. In this area, it can be very useful to use the economic-mathematical model of factor analysis, the parameters of which are estimated by means of mathematical statistics.

The factorial linear regression model of the dependence of production costs has the form

y = b0 + b1 X x1 + b2 X x2 +...+bn X xn
(7)


			conditionally fixed (indirect) costs;
			conditionally variable (direct) costs per unit of output, which is designated by number 1;
			the volume of output of products designated by number 1, in natural units of measurement;
			conditionally variable costs per unit of output, which is designated by number 2;
			the volume of output, indicated by number 2, in natural units of measurement;
			conditionally variable costs per unit of output, which is designated by the number n;
			the volume of output, indicated by the number n, in physical units.

Let us consider the application of this technique on the example of several types of products of OAO MK Orlovsky. Let's denote each type of product with the corresponding letters: W, R, G. The output of the enterprise is shown in Figure 3.

Rice. 3. Data on the output of the enterprise for the reporting year

The proposed methodology allows you to extract direct and indirect costs from the total amount. Production costs of OAO MK Orlovsky for the analyzed period are presented in Table 2.

table 2

Data on the cost items of the enterprise for the year, million rubles.

Months	Direct costs					Indirect costs
	Raw material	Wages of the main production workers with deductions	Equipment depreciation	Shop staff salary with deductions	Other shop expenses		Salary of management personnel with deductions	Other general business expenses	Total

The results of calculations using the regression analysis technique have the form

y = 6.44 + 0.008x1 + 0.007x2 + 0.01x3,

			total cost in any month;
			indirect costs;
			indirect costs per unit of output, which is indicated by the number 1 (W);
			the volume of output, indicated by the number 1 (W), in natural units of measurement;
			direct costs per unit of output, which is indicated by the number 2 (R);
			the volume of output, indicated by the number 2 (R), in natural units of measurement;
			direct costs per unit of output, which is indicated by the number 3 (G);
			the volume of output, indicated by the number 3 (G), in natural units of measurement.

Thus, a cost estimate is obtained without carrying out the process of accounting calculation.

The monthly cost is 6,437,000 rubles (does not depend on changes in production volumes). Also, the costs directly related to the production of different types of products were determined (8,000 rubles, 7,000 rubles, 10,000 rubles per unit).

The proposed methodology allows you to evaluate the work of an accountant in cost accounting. To do this, it is necessary to compare the calculation data with the results obtained by the method.

In order to study the structure of costs that make up the amount of 6,437,000 rubles, it is necessary to determine the relationship between costs that are significantly determined by production volumes and costs that are not determined by production volumes.

This relationship can be determined by resorting to the correlation coefficient. Its value equal to one corresponds to the maximum closeness of the relationship between factors of production and production volumes, a value equal to zero means that there is no relationship.

The values of the correlation coefficient for the items of the cost of production of JSC "MK" Orlovsky "" are presented in table 3.

The high value of the correlation coefficient does not deny the presence of a constant component in the cost price due to this factor. This follows from the properties of the correlation coefficient, namely: from an increase or decrease in the share of the cost due to a certain factor by the same number, the general trend of change in time of this part of the cost does not change, and therefore the value of the correlation coefficient does not change.

Table 3

The value of the correlation coefficient of cost items with the total output

Based on the analysis carried out, it can be concluded that the cost of raw materials and / or the cost of wages for the main production workers has a significant share of fixed costs.

This may be due to the imperfection of the wage system, when the wages of the main production workers are not adequately linked to the results of work.

With regard to the cost of raw materials, it should be noted that there is a high probability of significant sustainable non-production losses caused, among other things, by the peculiarities of the technological process or the “human factor”.

The application of this methodology will allow to establish possible reserves for cost reduction and formulate specific tasks in the field of cost management; as practice shows, quite often when analyzing costs, one has to deal with errors or a complete lack of proper costing of products.

The main directions for reducing the cost of production is the rationalization of the value of the main (direct) and indirect costs. Management in this regard is based on the analysis of information provided by the system of differentiated management accounting of costs and receipts.

From the foregoing, it follows that in making decisions on financial and economic activities, emphasis should be placed on optimizing the cost of production, taking into account the analysis of its qualitative characteristics.

LITERATURE

1. Kozina T.A. Calculation of the cost of industrial products at the processing enterprises of the agro-industrial complex and the basics of cost management. - M.: MTIIP, 1991. - S. 151.
2. Rosenblat G.I. Service for operational management of the main production. - L .: Lenizdat, 1989. - S. 123.
3.Satubaldin S.S. Accounting for production costs in the US industry. - M: Finance, 1980. - S. 67.
4. Urakov D.U. Accounting for costs by areas of activity. - M.: Finance and statistics, 1991. - S. 176.

Also on this topic.

Cost reduction at the enterprise is a logical process in the conditions of economic instability. How to do it correctly? Step by step on effective methods to reduce the company's costs - later in the article.

You will learn:

What are the types and options for reducing costs
How to plan and implement cost reduction activities
What are the most effective ways to reduce costs in practice?
How material costs are reduced
What are the benefits of reducing transport costs
How Cost Reduction Strategies Are Chosen
What are the basic cost principles to consider

Classification of costs in the enterprise

Effective and ineffective. Efficient costs are possible (refer to obtaining income through the sale of products for the manufacture of which they were allocated) or inefficient (refer to tasks that are not related to generating income, involve losses). Among inefficient expenses, any types of losses are noted - due to marriage, theft, downtime, shortages, damage, etc. Therefore, you need to focus on reducing the size of inefficient expenses. Therefore, it is necessary to establish permissible technological costs, determining liability in case of violation of permissible norms.

Another way to reduce costs is to analyze the effectiveness of auxiliary work with the involvement of outsourcing companies in some areas. Hiring third-party contractors on a competitive basis is a real and effective option to reduce the costs of medium and large organizations. Although sometimes it is more profitable to maintain your own units compared to attracting third-party organizations, this situation is no longer considered the rule, but the exception.

Relevant and irrelevant. Any leader needs to control whether control and planning depend on his managerial decisions. If they depend, then such among the expenses are relevant, otherwise they will be irrelevant. In particular, expenses during past periods are irrelevant, since the CEO can no longer influence them with his decisions. And opportunity costs are among the relevant ones, so management should pay special attention to them.

Constants and variables. Possible variable, fixed or mixed costs - depends on the level of production. Variable costs are directly proportional to the level of production, without affecting the constant production volumes, mixed costs contain both constant and variable parts. Due to this division, cost optimization is ensured - a particularly important condition for controlling fixed costs.

Direct and indirect. Possible direct or indirect costs, depending on the method of attribution to the cost of production. You can attribute direct costs to a particular type of product or service. In this category, the costs for the purchase of raw materials, materials, wages of production workers are noted.

Indirect costs are not directly related to a specific type of product. Indirect costs include the costs of managing and maintaining departments to manage and maintain the enterprise as a whole. If the enterprise is engaged in the production of only one product, then all the costs of its manufacture and sale will be direct.

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A smart checklist and 18 instructions prepared by the editors of the Commercial Director magazine will help you figure out how to urgently change the work of the sales department so that the results at the end of the year will please you, not disappoint you.

How to start reducing costs in the enterprise

The first step is to classify expenditures into clearly defined categories.

The second step is to determine which costs are subject to adjustments.

The third step is to plan and cut costs.

6 Ways to Reduce Costs

1. Reducing labor costs

The provisions of the current domestic legislation allow companies to reduce both the number of employees and wages.

2. Reducing the cost of materials and raw materials. To reduce the cost of purchasing materials and raw materials, the following enterprise steps can be taken.

– revision of the terms of contracts with existing suppliers;

– search for new suppliers;

– use of less expensive components whenever possible;

– helping suppliers reduce their costs;

- procurement of materials together with another buyer from one supplier;

– independent production of necessary materials;

- introduction of resource-saving technological processes that contribute to saving on the cost of raw materials;

– giving priority to the process of procurement of materials and raw materials;

3. Reducing production costs. Consider the questions that can be applied in evaluating the effectiveness of efforts to reduce costs:

1) Rental payments:

– is it possible for the company to renegotiate the terms of the current lease agreement?

Is it possible to move to another room or building?

– Is it possible to sublease part of the company's occupied space?

– can it be more profitable for a company to buy out a leased premises?

2) Utility payments:

– Is it possible for the company to have tighter control over the consumption of energy resources?

- Is there an opportunity for the company to implement more cost-effective processes?

– is it possible to switch to new conditions for payment of utility tariffs?

3) Equipment repair and maintenance:

– is it possible to postpone for a long or short time certain works within the framework of the current maintenance of the equipment?

– can it be more profitable for the company to refuse the services of contractors and repair the equipment on its own. Or will it be cheaper to attract a specialized organization if the company itself is engaged in ongoing maintenance?

– can the company come to an agreement with current contractors to improve the terms of the equipment maintenance contract in its favor?

– is it possible to search for new service providers for the company?

4) Integration and disintegration

– Is it possible to reduce the company's costs through vertical integration with suppliers or customers, or through horizontal integration with other manufacturers?

- Is it possible to reduce the company's costs by expanding the scope of its business to other parts of the production cycle, with the refusal to work with subcontractors? Or will it be more profitable to narrow the production area, part of the production cycle, or to carry out auxiliary work by giving way to another manufacturer?

5) Transport:

Is it possible to limit the number of company vehicles?

- can the option of transferring the functions of the trucking department to the outsourcing of the trucking company be considered?

- wouldn't it be easier to involve a logistics company (or a professional logistician) in order to consult on reducing transport costs?

How to optimize business expenses: instructions for the manager

- Are there any data that confirm - the compatibility of growth in advertising spending with an increase in sales.

5. Additional measures to reduce costs. Is it possible to reduce the company's costs in the following areas:

– conducting experimental design and research work;

- maintaining a wide product range;

– maintaining a certain quality of services provided;

- maintaining a wide range of its customers;

– mechanization of the production process;

– increasing the level of personnel qualification;

– careful selection of components and raw materials that meet certain technical parameters;

- the speed of order fulfillment;

- organization of production;

– maintaining the flexibility of the production process;

– maintaining the existing policy for the maintenance of machinery and equipment;

– support of distribution channels for manufactured products.

6. State support. Is it possible for a company to benefit from a certain government program to support entrepreneurship through the following actions:

– lobbying for the adoption of relevant federal and local legislation;

- receiving subsidies and benefits.

Attracting borrowed funds: how to accelerate the formation of financial funds of the company

What other ways are there to cut costs?

1. Reduced tax costs:

- to conclude an agreement with the IP.

- conclude contracts with legal entities. persons.

– to organize a holding structure operating under a simplified taxation system.

- Transfer management functions to a separate legal entity. face.

2. Reducing the cost of maintaining unused property:

- to sell the materials that were formed during the dismantling process;

- do not write off, but sell depreciated fixed assets.

3. Innovative cost reduction:

– introduction of more economical equipment and technologies.

- to develop low-cost production.

4. Reducing the costs associated with depreciation:

– transfer the property for repeated application of premium depreciation. The company has the right to write off up to 10% of the initial price of the fixed asset at a time as expenses of the current reporting period.

- reduce the period of use of the object by the time during which it was used by the previous owner for the purpose of depreciation.

– proof of the repair nature of the work instead of modernization and reconstruction;

– recognition of the redemption value of the leased property as an expense, if the object is accounted for by the lessor.

5. Dealing with debt:

– implementation in any cases of measures for the collection of debts.

4 methods to reduce logistics costs

Revision of the work of the logistics service. The logistics of the enterprise is built on the principle of "it happened", and not according to a pre-established plan. But even when organizing this work on the basis of a plan, according to experts, a quarterly review of the main functions in the department is necessary to determine whether any of them have lost their relevance.

Practice confirms that thanks to this review, many points of loss of time and money for the company can be identified.

Logistics audit succeeds critically. In particular, in the staff of one company there were several specialists who translated the same type of invoices for customs and banks. As a result of consultations with the broker and the bank, a glossary of frequently used words was handed over to customs, with the compilation of certain templates for translation, which made it possible to part with translators.

If you organize a logistics system in the company with a clear structure, understandable KPIs and control, these measures will allow you to get an immediate noticeable effect. Further, it is necessary to deal with the optimization of individual functions of the enterprise.

Inventory Management. It is necessary to calculate the required stock of warehouse stocks, the minimum safety stock, the volume of products that are in transit, with the development of delivery schedules and payment of invoices. This will result in a significant reduction in associated costs.

Transport planning. First of all, in order to reduce logistics costs, it is necessary to ensure the reliability of transportation in terms of time and safety of the cargo. Thanks to this, the vehicle can be used as a warehouse on wheels, with a significant reduction in overall storage costs.

In order to reduce transportation costs, it is important not so much to demand discounts from carriers, but to competently plan to reduce costs. It is noteworthy that the most effective option for reducing transport costs is loading in 2 years. Ranked 2nd in Efficiency – Keep downloads stable on schedule.

The right choice of logistics service provider. In that matter, you need to critically approach the "old attachments", conducting a constant study of available services and prices.

When summing up, it can be noted that in order to optimize logistics and reduce the corresponding costs, a systematic approach becomes the main condition. In a company in which a holistic system can be established, accustoming employees to constantly draw up plans, make decisions based on calculations, and not traditions, there is daily improvement in processes, and periodic audits involve only minor adjustments, contributing to the success of the company. Experts from the School of the General Director at will tell you more about accounting and cost sharing.

First of all, you need to start with the optimization of the logistics department

Maria Isakova,

logistics expert, Moscow

In most cases, companies strive to optimize the part of logistics that is under the control of contractors. Often, at the same time, they begin such optimization with the transport component, negotiating with carriers and forwarders to reduce prices. But it can be clearly stated that it is impossible to achieve lower prices from carriers every time, and the effect of such a decrease is reduced. To ensure maximum results, the beginning of a policy to reduce logistics costs should be the optimization of the logistics department.

Sample Cost Reduction Plan

Cost reduction planning involves a set of measures divided by time:

Compliance with financial discipline. Measures aimed at maintaining financial discipline are being formed. In particular, a plan is being developed, with strict adherence to the approved data. Decisions made by the head and recorded in the budget can be violated only in exceptional cases.
Organization of accounting. To systematically reduce the costs of the enterprise, it is necessary to introduce a system of financial accounting and control. Not only costs are subject to accounting, but also the income of the enterprise. It is necessary to carry out operational measures aimed at recovering the debt. Also, the enterprise itself needs to promptly make budgetary payments, and payments for personnel and counterparties, which avoids penalties.
Development and implementation of a cost reduction plan. The goals of the cost reduction program are the maximum detailed target values of the cost items to be reduced. As part of these activities, it is planned to develop a plan for the entire enterprise with the identification of weaknesses where cost reduction is possible, and for each structural unit - to strengthen financial discipline in the field.
Carrying out inspections. In order to evaluate the effectiveness of cost reduction, it is constantly necessary to carry out independent monitoring, which will allow an assessment of natural loss, possible shortages, technological losses, with the necessary adjustments to be made to the plan to reduce the corresponding costs.
Loss analysis. Any result, including a negative one, should be carefully rechecked to reduce further costs. It is necessary to analyze production losses that force the sale of products (services) at reduced prices. Defects, alteration and marriage also deserve special attention. This not only leads to a reduction in the cost of production, but also to additional costs. Breaks in production, waiting for products can also cause an increase in costs.

What problems can arise during cost reduction

It is difficult to identify the most important cost items that require reduction. These errors are typical for medium and small enterprises, because usually their management is well informed about the most significant expenses. But as companies expand and become more complex, they may face a situation where management may not notice the increase in spending in certain areas.
Incorrectly identified the source of the company's costs.
Along with extra costs, they lost their individuality, as a result of which the competitiveness of products, especially if its distinguishing feature was quality.
Seriously spoiled relations with parties involved in the business
Reduced costs in important areas below the allowable limit.
Misunderstanding of the cost mechanism of the enterprise.

Lack of motivation

Konstantin Fedorov,

Development Director, PACC, Moscow

When implementing cost optimization, enterprises usually use administrative leverage according to the principle “if you don’t cut costs, we’ll fire you.” Because of this, a situation arises when ordinary employees and managers of the company begin to sabotage changes explicitly or openly. Moreover, many see optimization as a sign of weakness in their leadership.

Advice. It should be agreed in advance how the company will thank all participants in the cost reduction program after its implementation. However, this gratitude does not have to be financial. In particular, you can think about career promotion or other options.

Keep track of costs and they will be less. Sometimes you can achieve cost reductions simply by taking them into account and understanding them.
Your employees are your associates. Educate your employees on the importance of cutting costs. They need to explain that you appreciate their proposals aimed at reducing costs.
Sort your costs according to the degree of dependence on production. Accounting systems are mostly divided into variable and fixed. Variable costs (direct labor costs, raw materials, etc.) depend directly on the volume of output. Fixed costs (travel expenses, wages for management personnel, bills for water, heat and energy, etc.) usually do not depend on production volumes. Some companies have adopted a classification of variable costs, depending on the ease of their adjustment when changing production activity.
Divide costs according to how easily they can be adjusted using alternative solutions.
Keep track of not only the cost structure, but also the causes. This makes it possible to take the necessary measures aimed at eliminating the causes of undesirable cost increases.

Planning and cost control - from prices to energy consumption

Walter Bory Almo,

General Director of the Ufa Meat-Packing Plant

Our planning and finance department processes all available information to plan and control costs - from ingredient prices to equipment performance and energy consumption. Continuous analysis is the basis for further cost reduction. We divide the costs in our work into 2 categories - for some, significant investments are required, in the case of others, simple procedures will be enough. Do not give up on simple solutions, thanks to which you can achieve tangible results with minimal spending.

To analyze the results, we use the KPI system of key performance indicators. The data is compared with the results of five companies in our holding. It is not always possible to achieve results thanks to this information, because we are in the lead in many indicators. Therefore, a collection of our competitors is also being conducted.

We also involve employees in our work to reduce costs. For any employee, thanks to whose idea it was possible to provide a tangible economic effect, a bonus of 3 thousand rubles is allocated.

Information about the author and company

Maria Isakova, logistics expert, Moscow. She started her career as a logistics manager for Bayer. In 2001-2008, he was the head of the logistics department, since 2009 he was the head of the logistics and order management department at Lanxess.

Walter Bory Almo, General Director of the Ufa Meat-Packing Plant. JSC "Ufimsky Meat-Packing Plant" is one of the leading enterprises in the meat-processing industry of the Republic of Bashkortostan. It produces more than 150 types of food and technical products, as well as raw materials for the leather and medical industries.

Zoya Strelkova, Leading Financial Analyst, Head of the "Economics of the Company" direction of the "Training Institute - ARB Pro" group of companies, Moscow. He specializes in the study of the economic condition of companies, the development of economic business models, strategic planning and other issues. Participated in the implementation of more than 20 strategic planning projects for enterprises in various industries. Conducts seminars “Strategy of everyday life. PIL Approach” and “Finance for Managers”. “Training Institute – ARB Pro”. Field of activity: business training, HR consulting, strategic management, business information support. Form of organization: group of companies. Territory: head office - in St. Petersburg; representative offices - in Moscow, Nizhny Novgorod, Chelyabinsk. Number of personnel: 70. Main clients: Moscow Financial and Industrial Academy, Sberbank of Russia, Gazprom, Irkutskenergo, Svyaznoy, Ecookna, Coca-Cola, Danone, Nestle2.

Konstantin Fedorov, Development Director, PACC, Moscow. CJSC "PAKK" Field of activity: consulting services, professional assistance to business development. Number of employees: 64. Average annual turnover: about 110 million rubles. Completed projects: more than 1000.

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For any business, the main goal is to maximize profits, increase the market value of the enterprise in the interests of their owners. The adaptation of an enterprise to market conditions requires both a change in the functions performed and an internal organizational restructuring, first of all, supplementing the organizational structure with new links, revising the entire system of distribution of rights, powers and responsibilities.

An assessment of the real needs of the market and one's own (current and potential) capabilities, orientation to market demand is the cornerstone of developing an enterprise strategy and creating organizational mechanisms that ensure it. Company managers must constantly look for ways to reduce production costs without reducing the utility of the product. Utility is a generally accepted economic term that expresses the expected satisfaction of needs as a result of the use or possession of goods. It is often referred to as "quality" in the management literature. Some strategy theorists argue that there are always two possibilities open to the firm: cost-based competition and differentiation-based competition. However, this choice is artificial. Today, the firm needs both low cost and differentiation aimed at increasing utility. Low costs help a firm create a differentiating advantage, either by lowering the price to consumers or by investing in products, services, people, or image enhancement.

At the first stage, the analysis of the structure of production costs of a particular product or the costs of a division of the company is carried out. Most systems of costing and costing are inefficient in terms of their distribution between specific divisions of the firm, goods or consumers. Conventional accounting rules often misrepresent the true profitability of different departments, so many firms have moved to activity-based costing to get a real picture of the state of affairs.

The value of the company's costs, in comparison with competitors, is determined by the following financial factors. Economies of scale. As production grows, firms are able to achieve lower cost levels and spread fixed costs, such as research and development or advertising, over more products. Experience. As the company acquires new knowledge that allows it to increase efficiency, production costs are reduced. Efficient use of capacities. A firm that uses production capacity to its full potential has lower costs. Connections. The level of costs of one kind is sometimes determined by the value of others. For example, a company, in comparison with competitors, uses better and more expensive materials, but such costs are more than offset by low production and maintenance costs. High costs in one area do not necessarily mean low efficiency. Relationships. When costs are shared across multiple products or departments (such as research and development and order processing), the cost can be reduced. Integration. Vertical integration, where a firm takes over a function normally performed by outside contractors (such as transportation), is likely to result in lower costs. Timeliness. If a company enters the market first, it usually gains a cost advantage. Typically, brand image building is low cost initially, and early market penetration ensures low costs later on. Location. Territorial disunity of functional units negatively affects labor, administrative costs, as well as costs associated with the purchase of materials. External factors. Taxation rates, standards stipulated by trade union organizations, federal and regional regulation affect the relative advantage of the enterprise in terms of costs. Marketing strategy. Factors aimed at increasing the usefulness of goods also affect costs. By endowing the product with various features and providing additional services, the firm incurs large costs, which it reimburses by selling it at high prices or in larger quantities.

There are two alternative ways to increase the profitability of goods - increasing sales volumes and increasing the efficiency of their implementation (ie, getting more profit while maintaining sales volumes). Sales volume can be increased in two ways: by expanding the market or by penetrating deeper into it. Implementation efficiency increases with cost reduction, price increase or sales mix optimization (i.e. elimination of low-margin activities).

Ways to increase the profitability of goods are considered by us as alternative to each other. Thus, efforts to increase sales require investment, and efforts to increase efficiency just contribute to obtaining cash.

Similarly, increasing sales requires marketing strategies (aggressive pricing, investment in distribution channels, market expansion) that are fundamentally different from efficiency-oriented operations. The choice of strategic efforts depends mainly on the strategic objectives associated with a particular product. If the manager sees prospects for growth in his attractiveness, efforts should be concentrated on increasing sales; if future product distribution is expected to be limited, focus on efficiency issues. Over a certain period of time, the focus on increasing the volume of sales of goods gradually turns into a strategy for increasing the efficiency of its production and sale, i.e. the product will turn from a consumer of financial resources into their creator. As the prospects for growth in product sales decline, the challenge for management becomes to find new products and new markets to keep the business moving forward.

In the implementation of modern methods of cost management, the Russian practice of the market period has lagged significantly behind the Western one. To make informed management decisions, it is necessary to have information about the cost of production per unit of output.

There are various methods of accounting for production costs and calculating the cost of production. Their use is determined by the characteristics of the production process, the nature of the products (services provided), its composition, and the method of processing.

A generally accepted classification of cost accounting and costing methods does not yet exist. However, they can be grouped according to three criteria: by objects of cost accounting, by the completeness of the costs taken into account, and by the efficiency of accounting and cost control.

According to the objects of cost accounting, process-by-process, per-order and order-by-order methods are distinguished. From the point of view of the completeness of the costs taken into account, it is possible to calculate the full and incomplete ("truncated") cost. Depending on the efficiency of accounting and cost control, the method of accounting for the actual (historical) cost and accounting for standard costs are distinguished. The method of cost accounting and calculation is chosen by the enterprise independently, as it depends on a number of private factors: industry affiliation, size, technology used, product range, etc., in other words, on the individual characteristics of the enterprise.

The process-by-process method is most often used in the extractive industries (coal, mining, gas, oil, etc.) and energy. These industries are characterized by a mass type of production, a short production cycle, a limited range of manufactured products, a single unit of measurement and calculation, a complete absence or small size of work in progress. As a result, manufactured products are both an object of cost accounting and an object of calculation.

To calculate the cost of production, one-, two- and multi-stage simple costing can be used. The cost per unit of output is determined by dividing the total production costs allocated to a particular unit over a given period of time by the number of units produced over that same period of time.

Linear cost accounting and costing are used in industries with serial and mass production, when the same products pass in a certain sequence through all stages of production (processing). The object of calculation is the product of each completed redistribution, and the object of cost accounting is the redistribution, i.e. part of the technological process, ending with the receipt of a finished semi-finished product, which can be sent to the next processing stage or sold to the side.

The essence of this method lies in the fact that direct costs are reflected in the current accounting not by type of product, but by production stages (stages), even if products of different types can be obtained in one stage.

Features perepredelnogo method of accounting are: generalization of costs for redistribution regardless of individual orders, which allows you to calculate the cost of production of each redistribution; write-off of expenses for the calendar period; reduction of analytical accounting to the synthetic account "Main production" for each redistribution; simplicity and cost-effectiveness of cost accounting (no order accounting cards, there is no need to allocate indirect costs between individual orders).

In conditions of mass production of homogeneous products, it is possible to use simple costing. In serial production, a cost estimate is compiled with the recalculation of manufactured semi-finished products into conditionally finished products using the averaging method. At the same time, the costs accumulated on the account "Main production" are divided into conditional units of the finished product produced in the reporting period. A conventional unit is a set of costs required to produce one finished physical unit of output. The use of conventional units assumes that the production of a unit of finished product requires one conventional unit of basic materials and one conventional unit of added costs.

This method allows you to recalculate incompletely processed products into conditionally finished products, which consists of two elements: the total amount of products that were put into production and processed in the reporting period, and an element that reflects the costs that were incurred on work in progress for the same period.

The custom costing and costing method is used when producing a unique or custom-made product. It is used, as a rule, at enterprises with a single type of production organization, as well as at small-scale enterprises, in construction and the service sector.

The essence of the method is that all direct costs are taken into account in the established costing items for individual orders. All other costs are taken into account at the places of occurrence and are included in the cost of orders in accordance with the established distribution base.

The object of cost accounting and calculation is a separate order. The order method of accounting has the following features: generalization of costs for orders; writing them off during the time the order was made; maintaining order records, as well as the need to allocate indirect costs between individual orders.The process-by-process, per-order and order-by-order methods of costing can be used both in accounting for full and in accounting for variable costs, as well as in the standard method of cost accounting. Depending on the completeness of the inclusion of costs, there are methods for accounting for full and variable (direct) costs.

A feature of accounting for full costs is that direct costs are directly related to a unit or other measure of production in accordance with the developed and used standards. In this case, indirect costs are charged per unit of output in proportion to any base using overhead coefficients.

As a rule, cost accounting when calculating products is carried out in several stages: accumulation of all costs at their places of occurrence and distribution of indirect costs between departments; reallocation of costs of units that do not produce the final product to units that produce the final product, in proportion to any base; redistribution of overhead costs of units that produce the final product (own and redistributed) to manufactured products in proportion to some base.

Disadvantages of the presented method: when using several distribution bases, the probability of mathematical errors increases; it is impossible to efficiently determine the price for an additional order, since with this method all indirect costs are variable; it is impossible to determine at what point in the activity the enterprise begins to make a profit; it is impossible to obtain the necessary information about the behavior of costs when considering various alternatives for making a management decision.

The organization's profit is calculated as the difference between revenue without indirect taxes and the full cost of the product produced and sold.
Another option for accounting for production costs and costing products is the calculation of partial costs. There is no single approach to exactly what costs to include in the cost price. Only direct costs, or variables, or production costs can be included in the cost price. But, despite the different completeness of inclusion in the cost of various types of costs, the common thing is that part of the current costs is not taken into account and not calculated, but is covered by marginal profit, which includes fixed costs until the break-even point is reached, and after reaching the breakeven point - profit before tax (operating profit). It is this kind of cost accounting that underlies the direct costing system. The essence of this system is that variable costs are summarized by type of finished products, while fixed costs are collected on a separate account and written off to the general financial results of the reporting period in which they arose.

The reliability of the results of cost analysis in this accounting system is largely determined by the clarity of the division of costs into fixed and variable. A typical situation that requires the allocation of fixed and variable costs is the limited market with strong competition, when you need to constantly monitor costs and plan the sales volumes necessary to make a profit, i.e. calculate the breakeven point. The problem is that even for two similar enterprises, the same expense items can be allocated differently. This happens for a number of reasons: in particular, there are conditionally fixed costs that may depend on production volumes, but grow in steps and conditional variables - depending on the volume of production, but having a constant part - accordingly, an individual approach is required. Incorrect information may also appear in case of errors (inaccuracies) in the distribution of indirect variable costs by products. Such information may erroneously represent a line of business as unprofitable. The closure itself is associated with additional costs - but in order to resume work in this direction, you will have to bear even greater additional costs, i.e. the accuracy of classification and allocation of costs can in some cases influence the adoption of strategic decisions.

However, even after a thorough analysis, it is necessary to monitor the quantitative indicators of individual items - they may change over time, - accordingly, the value of the break-even point will also change. In the traditional calculation of the break-even point, some assumptions have to be made: there will be no changes in prices for raw materials and products for the period for which planning is carried out; fixed costs remain constant over a limited range of sales; variable costs per unit of output do not change with changes in sales volume; sales are even.
In fact, the value of this or that technique for us, as a consulting agency, is not to find “the only right solution”, but, on the contrary, to have more freedom of action. In this sense, the calculation of the break-even point is a very useful technique, it leaves a wide field for managerial maneuver. Logic dictates, and historically it so happened that manipulations with the break-even point are started only after the stage of accounting and cost reduction has been passed. But the opposite option is also possible - to change the position of the break-even point to a more acceptable one for the enterprise, without increasing production volumes, but only by reducing costs.

Of independent interest is the analysis of the ratio of fixed and variable costs as part of the cost of the product (limited cost accounting systems - "direct costing"). On the one hand, there is a recognized margin of safety for the possible implementation of a flexible pricing policy in a competitive environment of 60% of the threshold level of variable costs. On the other hand, a larger proportion of fixed costs reduces the manageability of costs for the product as a whole. The upward trend in the share of fixed costs in Russian conditions is caused by a decrease in production volumes and, accordingly, the utilization of production capacities. The emphasis should be placed, first of all, on the analysis of the amounts of coverage, based on the real market price of the sale. If the margin of safety is absent or small, then, most likely, we have to talk about disproportions in the volumes produced and the infrastructure of the enterprise.
Using the limited cost accounting system, you can quickly study the relationships and dependencies between production volume, costs (cost) and revenue (profit, marginal income).

It draws the attention of the management of the enterprise to the change in marginal income (coverage amount) for the enterprise as a whole and for products. It allows you to better take into account products with high profitability in order to switch mainly to their production, since the difference between the selling price and the amount of variable costs is not obscured as a result of writing off fixed indirect costs to the cost of specific products.

By reducing cost items, its rationing, accounting, control is simplified, and in addition, accounting and control of semi-fixed, overhead costs is improved, since their amount for a given specific period is shown in a separate line in the income statement, which clearly demonstrates their impact on profit enterprises.

The main advantage of the coverage accounting system is that on the basis of the information received in it, operational management decisions can be made. First of all, it concerns the ability to pursue an effective pricing policy. At present, pricing approaches are more popular in the West, which, first of all, take into account factors related to demand, rather than supply, i.e. an estimate of how much a buyer is willing and able to pay for a product offered to him. After the equilibrium price is set, the company must analyze all its costs and try to minimize them.

In addition to information about the amount of costs associated directly with the production of products, managers of the enterprise need to have information about the possible limits of price reduction, depending on the influence of market factors. Therefore, in Western management accounting, there are concepts of long-term and short-term lower price limits. The long-term price floor shows what price can be set to minimally cover the full costs of producing and distributing a product; it is equal to the total cost of the product. The short-term price floor focuses on a price that covers only direct (variable) costs; it is equal to the cost in terms of direct (variable or production) costs only.

Taking into account the limited cost system, the possibility of conducting a dumping policy, calculating and choosing various combinations of the price of a product and the volume of its sale is also associated.

Often for enterprises operating in market conditions, situations associated with underloading of production capacities. There are idle costs - part of the fixed costs attributable to the share of unused production capacity. In such cases, only the information obtained in the coverage accounting system can lead to correct decisions.

Having accounting data on limited cost and coverage amounts (marginal income) for products, it is possible to solve such management tasks as optimizing the range of products in the presence of bottlenecks, the advisability of accepting an additional order at prices lower than usual, producing components ourselves or purchasing on the side, determining optimal batch size or series of parts (products), selection and replacement of equipment, etc.

The normative method of accounting involves the preliminary determination of standard costs for operations, processes, objects with the identification of deviations from standard costs during production. Actual costs are determined by algebraic addition of costs according to norms and deviations from them. At an enterprise that has chosen this system, accounting is organized in such a way that all current costs are divided into consumption according to norms and deviations from norms. The variance is the difference between standard and actual costs. The prototype of the domestic system of regulatory accounting is the "standard-cost" system, which is a system for determining the cost based on estimates of costs that must be incurred in accordance with the norms, and not on the costs actually incurred. One of the consequences of applying the standard-cost is the introduction of manufacturing cost variances related to direct material costs, direct labor costs and general business expenses. The direct material cost variance can be broken down into usage and price components. Deviation by labor costs - into components by productivity and by the rate of payment. Deviation for general business expenses - into components in terms of production volumes and actual costs. The purpose of decomposing deviations into components is to increase the level of analysis of actual results carried out by managers of different ranks. Responsibility for a specific component of any type of cost rests with a specific responsibility center. However, the deviation components can be interrelated. When deviations from the standards are detected, the reason for this is clarified and eliminated. If necessary, the standards are revised. The basis for the implementation of the system is the regulatory framework, which at most engineering enterprises is almost destroyed or, at least, has become formal and poorly connected with real activities. The “standard-cost” system is well developed, its implementation is simplified by the experience of maintaining a normative type of accounting in the Soviet period and is complicated by sharp fluctuations in prices, tariffs, business conditions, which can reduce the grandiose work to zero.

The development of standards should be carried out by the departments of the organization responsible for the relevant items of expenditure. Typically, the technology department sets the standards for the use of materials, the supply department sets the price standards for materials, the production department sets the performance standards for operations, and the personnel department sets the hourly wage rates for occupations. In production accounting, a summary of these standards is carried out and overhead standards are established. To establish overhead standards, based on product output standards, all costs are divided by item into fixed and variable, and a rolling estimate is drawn up.

The accepted standards are summarized in the accounting department into standard cost cards. The content of the cards depends on the nature of production, the number of products and their complexity. Coordination of work, generalization and presentation of data of the "standard-cost" system of the company as a whole is usually carried out by the controller. He is responsible for preparing deviation reports and for proposing revisions to the standards. Often, companies create standards committees, which include representatives of all interested services related to the "standard-cost" system. The Committee considers the system implementation plan, determines its main prerequisites (the nature of the standards, the methodology for identifying deviations from the standards, etc.), makes recommendations for improving the system, revising existing standards.

Having established the necessary standards, we begin to monitor deviations from them, which allows us to identify failures in the work. This managerial aspect of using the information contained in variances is part of the responsibility center costing process.

Any standards may require revision. Their nature determines the timing of the revision. The different content of the standards naturally leads to different timing of changes. Therefore, we can talk about the principles of changes to current and basic standards. The current standard cost is usually revised when prices, processes, product specifications change in such a way that it becomes difficult to control current activities without changing the standards. Another reason for changing current standards is that they were later discovered to be incorrect. Once a year, usually before the next year's cost estimate, a complete review of the standards is carried out. The basic standard cost changes only in the event of a radical change in production technology, enterprise capacity, or when the basic standards are too far removed from the actual performance and lose their meaning.

A characteristic feature of estimates, where standards are developed, is the application of the principle of rolling (flexible) estimates. The essence of this principle lies in the fact that the so-called normal volume of production is established. Its level depends on company policy and environmental conditions: it can correspond to 100% capacity, it can be set according to the volume of existing orders or the forecast of expected sales. After determining the normal volume of production, the cost of it is calculated for each article of overhead costs. The costs are then calculated for a number of levels of production below and above normal output.

Rolling estimates are used in several ways. First of all, it allows you to make sure that the estimate is correct. Subsequently, it is used in a number of management decisions related to changes in production volumes. So, for example, if there is a change in conditions affecting the volume of production, a rolling estimate allows you to establish the economic effect of this change and the final impact on the company's profit. The rolling estimate is also used for control purposes for the periodic evaluation of the work of the heads of workshops and sections: a comparison of actual costs with estimates, depending on the volume of production achieved, allows you to establish savings or overruns.

The "standard-cost" system can be considered in conjunction with cost planning. When planning the cost price, the actual indicators of the previous year can be "cleared" in the process of analysis from various kinds of losses. In order to meet the specific conditions of the planning period, when planning the cost estimate for the future period, it is recommended to take into account various changes in conditions: changes in the composition of equipment, changes in the range of products, production methods and materials used, changes in the organization, personnel, budget for working hours and productivity, changes in prices , changes in management policy, changes in the duration of the production cycle, random fluctuations.

The cost planning system and the "standard-cost" system is aimed at organizing cost control in order to achieve the ultimate goal - maximizing profit. If a company does not use the standard-cost system, then budgeting and cost planning is the main leverage for cost control. The opposite option is also possible, when the "standard-cost" is an effective means of controlling the company's costs. If a company applies ideal standards that are practically unattainable, then planned estimates are used for current control. If the current standards are used in the "standard-cost", then cost planning and "standard-cost" are practically the same.

If expected actual standards are developed for use in the standard-cost system, the same standards should be used for cost planning in the annual profit plan and for cost control purposes. Then it is obvious that the expected actual standards and the planned cost are identical, the deviations from the plan and from the standards must be identical.

On the other hand, if the standard-cost system uses standards that differ from the expected actual costs, there is a difference between the standard cost and the planned cost. As a rule, standards that differ from actual expected ones will be “tougher” than planned. But even in this case, the calculation of the standard cost can still be used for planning (although the estimate in this case should include the sum of the planned deviations between the expected actual and standard cost). Thus, the cost planning system and the standard-cost system complement each other; when using current standards, they essentially merge into one system, i.e. the process of integration takes place. The main difference between the functional method of cost accounting and traditional methods of cost allocation is the use of several bases for the distribution of overhead costs for a separate product group, depending on the reasons that determine the occurrence of costs in the process of movement of goods of this product group through the company. Due to this technique, the accuracy of accounting increases.

The functional cost accounting method uses a two-stage allocation process. At the first stage, overhead costs are systematized in detail, then grouped, and not according to economic content and places of origin, as in traditional accounting, but according to individual business transactions. Costs can either be directly attributed to a particular operation or allocated between operations depending on the distribution base chosen.

At the second stage, the costs are distributed among the products, depending on the number of business operations performed on the goods, in proportion to certain bases. The search for distribution bases that would most reasonably attribute overheads to specific products is the most time-consuming step in implementing a functional cost accounting method. A business transaction is an event or transaction, the consequence of which is the appearance of costs in the organization, for example, the development of plans for the purchase and sale of products; acceptance of goods received from the manufacturer; quality and quantity control of goods; release of goods from the warehouse for sale; movement of inventories within the company, etc. The number of types of business transactions depends on the complexity of the functioning of the organization. However, not all types of products are equally related to the costs of performing certain business operations. So, one type of product can be purchased and sold in small quantities, but require a special mode of storage and transportation, have packaging that is difficult to handle, etc. Another product may have a large volume of purchase and sale, but much less processing requirements during movement within the enterprise. If the accounting department of the enterprise does not pay attention to the difference between these two types of products in the process of cost allocation and allocates overhead costs for both goods in proportion to some volume indicator, for example, the purchase price, then the product characterized by a high value of the volume indicator will take on the lion's share of the total overhead.

The result will be a serious distortion of the cost of both types of products. The use of the functional cost accounting method solves the problem of cost distortion by combining costs into items in accordance with the type of business transaction, which can be defined as the primary cost carrier, and further distributing overhead costs between types of products depending on the number of individual business operations necessary for their implementation. .

Where appropriate, companies prefer to transfer costs directly to the centers of operations in order to avoid any distortion of product costs as a result of cost misallocation.

The second step in the costing process is the transfer of costs from activity centers to the cost of goods. It is carried out by selecting and using secondary distribution bases. When choosing databases, two factors must be taken into account: the availability of data regarding the distribution base; the accuracy with which the distribution base measures the level of a product's real contribution to costs.

Detailed information characterizing an individual distribution base is rather difficult to collect. The lack of sufficient financial resources for the implementation of information collection systems is the main barrier to the application of the functional cost accounting method, and this factor is most often taken into account by company leaders who refuse to use this method. Therefore, initially it is better to choose such a distribution base, information about which is already available. The interchangeability of some distribution bases should also be taken into account. With this approach, the cost of obtaining information about distribution bases is minimized.

High-tech companies have sophisticated systems for collecting information related to distribution bases. This becomes feasible thanks to the introduction of networked computer systems, which, in accordance with established algorithms, collect a large amount of data about each step of the process of goods movement in the company.

When choosing a distribution base for each activity center, managers must be sure that the “degree of consumption” of activity by a particular product is accurately determined. If there is no correlation between the distribution base and product costs, then the calculation will lead to an erroneous result.

The rationalization of the distribution of overheads by goods requires a lot of preparatory work and financial investments, including the purchase of computer equipment and the installation of networks. But still, managers should think about putting accounting in the service of management now.

In Western accounting, more and more attention is paid to the distribution of general business, marketing and supply costs, since recently their share in the cost of production has begun to grow rapidly. The main goal of implementing functional cost accounting is cost management through business process management. Costs arise in the implementation of any functions, and improving the performance of various functions leads to optimization of the cost structure in the enterprise.

The combination of functional cost allocation, direct costing and coverage calculation gives companies the opportunity to truly get a complete and realistic cost picture for planning and making strategic decisions and implementing them.

An analysis of the existing ones once again shows us certain problems in their use at modern Russian enterprises, individual methods do not solve the problem of effective enterprise management in a market economy, a systematic approach to cost management is needed. As a rule, it is not possible to make this enterprise on its own - and here the point is not in costs, and not in efforts, on the contrary, personnel who do not have experience in the field of cost optimization using the technologies that are accepted throughout the civilized world can spend years and fail to successfully implement. Our consulting company is able to solve most of these problems in months.

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