Income tax fixed or variable costs. Fixed and variable costs

Almost every person dreams of quitting his "uncle's job" and starting his own business, which will bring pleasure and a stable income. However, in order to become an aspiring entrepreneur, you will need to create a business plan containing a financial model of the future enterprise. Only this approach to business development will allow you to find out whether the investment in starting your own business can pay off. In this article, we propose to learn about what fixed and variable costs are and how they affect the profit of an enterprise.

Variable and fixed costs are the two main types of costs.

The importance of drawing up a financial model

Have you ever wondered why you need to write a business plan containing a financial model before starting your own business. Creating a business plan allows a novice entrepreneur to obtain information about the expected revenue of the enterprise, as well as determine fixed and variable costs. All these measures are aimed at choosing a development strategy financial policy future business.

The commercial component is one of the basic foundations successful enterprise. Economic theory says that finances are a blessing, which should bring a new blessing. It is this theory that should be guided in the early stages of entrepreneurial activity. At the heart of every enterprise is the rule that profit is the value of paramount importance. Otherwise, your entire business model will turn into patronage.

After we have taken as a rule the theory that working at a loss is unacceptable, we should move on to the financial model itself. The profit of the enterprise is the difference between income and production costs. The latter are divided into two groups: variables and fixed costs organizations. In a situation where the level of expenses exceeds current income, the company is considered unprofitable.

The main task of entrepreneurial activity is to extract the maximum benefit, subject to the minimum use of financial resources.

Based on this, we can conclude that in order to increase income, it is necessary to sell as many finished products as possible. However, there is another method of profit, which is to reduce production costs. It is quite difficult to understand this scheme, since the cost optimization process has many different nuances. It is important to mention that such economic terms as "cost level", "cost item" and "production cost" are synonymous. Let's look at all types of existing production costs.

Varieties of expenses

All expenses of the organization are divided into two groups: variable and fixed costs. This division helps to systematize the budgeting process, and also helps in planning a business development strategy.

Fixed costs are expenses that are not related to the production capacity of the enterprise.. This means that this amount does not depend on how much product will be manufactured.

Variable costs are costs that change in proportion to changes in the volume of production.

Variable costs include conditionally fixed costs associated with entrepreneurial activity. Such expenses can change their properties and value, depending on the impact of internal and external economic factors.

What are the different types of expenses?

The salary of members of the administration of the enterprise can be considered among the fixed costs, but only in the situation when these employees receive payments regardless of financial condition organizations. It is important to note that in foreign countries managers earn income from their organizational skills by expanding their customer base and exploring new market areas. On the territory of Russia, the situation is completely different. Most department heads receive high salaries that are not tied to their performance.

This approach to the organization of the production process leads to a loss of incentive to achieve better results. This may explain the low productivity labor indicators many commercial establishments because the desire to learn new technological processes at the top of the company is simply missing.

Speaking about what fixed costs are, it should be mentioned that this article includes rent.. Let's imagine private company, which does not have its own real estate and is forced to rent a small room. In this situation, the administration of the company must monthly transfer a certain amount to the landlord. This situation is considered standard, since it is quite difficult to recoup the purchase of real estate. Some small and middle class entities will need at least five years to return the invested capital.

It is this factor that explains the fact that many entrepreneurs prefer to conclude an agreement on the lease of the necessary square meters. As mentioned above, rent costs are fixed because the owner of the premises is not interested in the financial condition of your company. For this person, only the timely receipt of payment fixed in the contract is important.

Fixed costs include depreciation costs. Any funds must be amortized monthly until their initial value is equal to zero. There are many different ways of depreciation, which are regulated by current legislation. According to experts, there are more than a dozen various examples fixed costs. These include communal payments, payment for the removal and processing of garbage and spending on providing the conditions necessary for the implementation labor activity. A key feature of such expenses is the ease of calculating both present and future costs.

Fixed costs - costs, the value of which almost does not depend on changes in the volume of production

The concept of "variable costs" includes those types of costs that depend on the proportional volume of manufactured goods. For example, consider a balance sheet item, where there is an item related to raw materials and materials. In this paragraph, you should indicate the amount of funds that the company will need for production purposes. As an example, consider the activities of a company engaged in the manufacture wooden pallets. For the manufacture of one unit of goods, it is required to spend two squares of processed wood. This means that it takes two hundred square meters of material to make one hundred pallets. It is these costs that are classified as variables.

It should be noted that the remuneration of the labor activity of employees can be included in both fixed and variable expenses. Similar cases are observed in the following situations:

With an increase production capacity enterprises, it is required to attract additional workers that will be employed in the manufacturing process of products.
The salary of employees is a percentage that depends on various deviations in the production process.

Under these conditions, it is very difficult to make a forecast about the necessary expenses in order to pay salaries to employees, since its volume will depend on many different factors. The division of expenses into fixed and variable is carried out in order to analyze the profitability of the enterprise, as well as to determine the degree of unprofitability of the production process. It should be noted that for any production activities companies consume various energy resources. These resources include fuel, electricity, water and gas. Since their use is integral part production, an increase in output, leads to an increase in the cost of these resources.

What are fixed and variable costs used for?

One of the goals of this classification of costs is the optimization of production costs. Taking into account such details during the creation of the financial model of the enterprise allows you to identify those positions that can be reduced to replenish income. Also, such data will help to find out how the cost reduction will affect the production capacity of the enterprise.

Below we propose to consider the constants and variable costs examples based on an organization that manufactures kitchen furniture. To carry out production activities, the management of such a company needs to invest in the payment of a lease agreement, utility costs, depreciation costs, purchase Supplies and raw materials, as well as the salaries of employees. After the list of total costs is compiled, all items on this list should be divided into variable and fixed costs.

Knowing and understanding the essence of fixed and variable costs is very important for competent business management.

The category of fixed costs includes depreciation costs, as well as the salary of the administration of the enterprise, including the accountant and director of the company. In addition, this item includes the cost of paying electrical energy used to illuminate the room. Variable costs include the purchase of raw materials and consumables needed to manufacture an incoming order. In addition, this article includes spending on utility bills, since some energy resources are used only in the production process itself. This category may include wages employees involved in the furniture manufacturing process, since the rate directly depends on the volume of products produced. Fare are also included in the category of variable financial costs of the organization.

How do manufacturing costs affect the cost of a product?

After it was created financial model future enterprise, it is necessary to analyze the impact of variable and fixed costs on the cost of manufactured goods. This allows you to reorganize the company's activities in order to optimize the production process. Such an analysis will help to understand how many personnel will be required to perform a particular task.

The division of costs into fixed and variable is one of the critical tasks financial departments of companies

Such a plan allows you to determine the required level of investment in the development of the organization. It is possible to reduce the cost of energy resources by using alternative sources, as well as by purchasing more modernized equipment with a high efficiency. Further, it is recommended to analyze variable costs in order to determine their dependence on external factors.

Still have questions about accounting and taxes? Ask them on the accounting forum.

Fixed Costs: Accountant Details

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which it was created. Variable and fixed costs If you break the formula for financial support ... per unit of service; Z post - fixed costs. This formula is based on the assumption... salaries of key personnel). The value of semi-fixed costs with a change in the volume of services remains ... quantity. Therefore, the coverage by the founder of a part of the fixed costs of the BU can be qualified as non-market ... property. How reasonable is this allocation of fixed costs? From the standpoint of the state - it is fair ...

and contributions to funds). Semi-fixed costs include overhead and general business expenses ... examples. At the same time, variable and fixed costs in relation to the taxation of profits resemble ...

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Variable indirect costs and part of the fixed costs depending on the utilization rate ... the level of recovery of fixed costs and profit generation. With equality of fixed costs and the amount ... between the volume of production, variable and fixed costs. The break-even point can be ... simple direct costing fixed (conditionally fixed) costs are collected on complex accounts (... it is variable and fixed costs. There are the following options for allocating fixed costs to a specific ...
Dynamic (temporary) profitability threshold model
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sales of products); fixed and semi-fixed costs for the production and sale of products ... products; Zpos - fixed and semi-fixed costs of the enterprise for the production of products. If ... conditionally variable, fixed and conditionally fixed costs for the production of a unit of output or ..., as well as fixed and conditionally fixed costs for the production and sale of products ...
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In large and medium-sized organizations, the following accounting accounts are used to group costs by items, types of production, places of origin and other features, as well as calculate the cost of production:

20 "Main production";
21 "Semi-finished products own production»;
23 "Auxiliary production";
25 "General production costs";
26 "General business expenses";
28 "Marriage in production";
44 "Costs of sale";
96 "Reserves for future expenses";
97 "Deferred expenses".

Accounting for the costs of the main production is carried out on the active account 20 "Main production". This account is a calculation and makes it possible to calculate the actual cost of production. The debit of account 20 reflects the direct costs associated directly with the manufacture of products, as well as the costs of auxiliary production, indirect costs associated with the management and maintenance of the main production, and losses from marriage. Direct costs directly related to the manufacture of products are accounted for in the debit of account 20 "Main production" in correspondence with the credit of accounts for accounting for production stocks, settlements with employees for wages, etc. The costs of auxiliary production are debited to account 20 "Main production" from the credit of the account 23 "Auxiliary production" in the order of distribution. Indirect costs associated with the management and maintenance of production are written off to account 20 "Main production" from accounts 25 "General production expenses" and 26 "General expenses". Losses from marriage are written off to account 20 "Main production" from the credit of account 28 "Marriage in production". During the reporting month, direct (single-element) costs are taken into account directly on account 20. Indirect (complex) costs are charged to account 20 and are included in the cost of production at the end of the month by distributing them among the calculation objects (individual types of products). The credit of account 20 "Main production" reflects the amount of the actual cost of completed production. The balance of account 20 "Main production" at the end of the month shows the value of work in progress. Analytical accounting on account 20 "Main production" is carried out by types of costs and types of products. In the mass production of products, organizations can keep separate records of semi-finished products of their own production. When using the semi-finished cost accounting method, information on the availability and movement of semi-finished products is summarized on the active account 21 "Semi-finished products of own production". A semi-finished product is an object of labor to be processed in a consumer organization. In particular, the following semi-finished products manufactured by the organization (with a full production cycle) can be reflected on this account: pig iron in the ferrous metallurgy; crude rubber and glue in the rubber industry; sulfuric acid at nitrogen fertilizer plants chemical industry ; yarn and raw materials in the textile industry, etc. In organizations that do not keep separate records of semi-finished products of their own production, these values \u200b\u200bare reflected on account 20 “Main production”. In the debit of account 21 “Semi-finished products of own production”, as a rule, in correspondence with account 20 “Main production”, the costs associated with the manufacture of semi-finished products are reflected. The credit of account 21 "Semi-finished products of own production" reflects the cost of semi-finished products transferred for further processing (in correspondence with account 20 "Main production", etc.). Analytical accounting on account 21 "Semi-finished products of own production" is carried out according to the places of storage of semi-finished products and individual items (types, varieties, sizes, etc.). Accounting for the costs of auxiliary production is carried out on the active account 23 "Auxiliary production". This account is a calculation account and makes it possible to calculate the actual cost of products (works, services) of auxiliary industries. The debit of account 23 "Auxiliary production" reflects direct costs associated directly with the release of products, as well as indirect costs associated with the management and maintenance of auxiliary production, and losses from marriage. Direct costs directly related to the production of products are recorded in the debit of account 23 "Auxiliary production" in correspondence with the credit of the accounts of accounting for production stocks, settlements with employees for wages, etc. At the end of the month, these expenses are debited from the credit of account 23 "Auxiliary production" to the debit of account 20 "Main production". Indirect costs associated with the management and maintenance of auxiliary production are written off to account 23 "Auxiliary production" from accounts 25 "General production expenses" and 26 "General expenses". Write-off of indirect expenses to account 23 is carried out in the order of their distribution. Losses from marriage are written off to account 23 "Auxiliary production" from the credit of account 28 "Marriage in production". The credit of account 23 "Auxiliary production" reflects the amount of the actual cost of completed production (works, services) of auxiliary production. The balance of account 23 "Auxiliary production" at the end of the month shows the value of work in progress. Analytical accounting on account 23 "Auxiliary production" is carried out by type of production. General production expenses of the organization are recorded on the active account 25 "General production expenses". This account is collective and administrative and serves to summarize information on the costs of servicing the main and auxiliary production of the organization. In particular, the following expenses can be reflected on account 25:

maintenance and operation of machinery and equipment;
depreciation deductions and expenses for the repair of fixed assets and other property used in production;
property insurance costs;
expenses for heating, lighting and maintenance of premises;
rent for premises, machinery and equipment used in production;
salary service personnel and other similar expenses.

Specified expenses are reflected in the debit of account 25 in correspondence with the credit of accounts for accounting for production inventories, settlements with employees for wages, settlements with suppliers, etc. Expenses collected during the month on account 25 are written off at the end of the month in the order of distribution to the debit of accounts 20. Main production” and 23 “Auxiliary production”. Analytical accounting on account 25 "General production costs" is carried out for individual divisions of the organization and expense items. Indirect general business expenses of the organization are recorded on the active account 26 "General business expenses". This account is collective and administrative and serves to summarize information on costs for the needs of the organization's management, not directly related to the production process. In particular, the following expenses can be reflected on account 26: administrative and management expenses; maintenance of general economic personnel not related to the production process; depreciation deductions and expenses for the repair of fixed assets for management and general business purposes; rent for general purpose premises; expenses for payment of information, audit and consulting services; other similar administrative expenses. General business expenses are reflected in the debit of account 26 in correspondence with the credit of accounts for accounting for inventories, settlements with employees for wages, settlements with suppliers, etc. Depending on the adopted accounting policy organizations, expenses collected during the month on account 26 are written off at the end of the month in the order of distribution to the debit of accounts 20 “Main production”, 23 “Auxiliary production” or written off directly to the debit of account 90 “Sales”. Analytical accounting on account 26 "General business expenses" is carried out for each item of the corresponding estimates, the place of occurrence of costs, etc. Accounting for losses from marriage in production is kept on the active account 28 "Marriage in production". According to the debit of account 28 "Marriage in production", the costs of identified internal and external marriage are collected (the cost of an irreparable, i.e. final, marriage, the cost of correcting a marriage, etc.). The credit of account 28 "Rejection in production" reflects the amounts attributable to the reduction of losses from rejects (the cost of rejected products at the price of possible use; amounts to be withheld from the perpetrators of the marriage; amounts to be recovered from suppliers for the supply of substandard materials or semi-finished products, the use of which marriage was allowed, etc.), as well as the amounts written off to production costs as losses from marriage. Analytical accounting on account 28 "Marriage in production" is carried out for individual divisions of the organization, types of products, items of expenditure, reasons and perpetrators of the marriage. IN production organizations to account for the costs associated with the sale of products, an active account 44 "Sales costs" is used. In these organizations, account 44 reflects, in particular, the following expenses;

for packaging and packaging of products in warehouses for finished products;
for the delivery of products to the station (pier) of departure, loading into wagons, ships, cars and other vehicles;
commission fees (deductions) paid to sales and other intermediary organizations;
on the maintenance of premises for the storage of products in the places of its sale and the remuneration of sellers in organizations engaged in agricultural production;
for advertising;
for entertainment expenses and other similar expenses.

The amounts of expenses incurred by the organization related to the sale of products are accumulated within a month in the debit of account 44 “Expenses for sale”. The expenses accumulated during the month associated with the sale of products are debited in whole or in part to the debit of account 90 “Sales” at the end of the month (sub-account 90–2 “Cost of sales”). In production organizations, in case of partial write-off, the costs of packaging and transportation of products are subject to distribution (between certain types of shipped products on a monthly basis based on their weight, volume, production cost or other relevant indicators). All other costs associated with the sale of products are monthly charged to the cost of products sold. Analytical accounting on account 44 “Sale expenses” is carried out by types and items of expenses. To account for expenses incurred in the reporting month, but subject to inclusion in the cost of production in subsequent periods of the organization's activities, account 97 "Deferred expenses" is used. Only services or works already consumed can be recognized as deferred expenses. Expenses recorded on account 97 are debited monthly in the share related to the reporting month to the debit of accounts 20 “Main production”, 23 “Auxiliary production”, 25 “General production expenses”, 26 “General expenses” and 44 “Sales expenses” . Analytical accounting on account 97 "Expenses of future periods" is carried out by types of expenses. In order to evenly include expenses in production costs and sales expenses, an organization can create reserves for future expenses. Information on the status and movement of the reserved amounts of expenses is recorded on the passive account 96 "Reserves for future expenses". In particular, the following amounts may be reflected on this account:

forthcoming vacation pay (including payments for social insurance and security) to employees of the organization;
for the payment of annual remuneration for the length of service;
production costs for preparatory work due to the seasonal nature of production;
for the repair of fixed assets;
forthcoming costs for land reclamation and implementation of other environmental measures;
for warranty repairs and warranty service.

The creation of reserves for future expenses is reflected in the credit of account 96 "Reserves for future expenses", and the actual use of the amounts of the reserve - in the debit of the same account. The correctness of the formation and use of amounts for a particular reserve is periodically (and at the end of the year mandatory) checked according to estimates, calculations, etc. and adjusted if necessary. Analytical accounting for account 96 "Reserves for future expenses" is carried out for individual reserves. For the correct attribution of production costs to one or another account for accounting for production costs and the formation of the cost of production, it is necessary to have a clear knowledge of the composition of the costs (expenses) taken into account in the cost of production, including for tax purposes. The correct determination of the composition of production costs is one of the main conditions for obtaining reliable information about the actual cost of production. 5. Methods for calculating the cost of production The cost of production is the production costs for manufactured, but not sold products, i.е. like materialized costs, so they can be inventoried. They include three elements of manufacturing costs: basic materials, direct labor costs, and general factory overheads. They are represented by stocks of materials, the volume of work in progress and the balance of finished products. At the same time, resource costs relate to the same reporting period in which these resources arise. The costs of their formation are considered unexpended costs, since they are assets of the firm that will bring benefits in future periods. Under costing refers to the calculation of the cost of manufactured products, work performed and services rendered. In planning, accounting and analysis of the cost of individual types of products, the planned, normative, actual and self-supporting costs are decisive. Calculation object - it is a product of production of a given enterprise, its divisions, technological phases, stages, i.e. products of varying degrees of readiness. The measurement object of the calculation is the calculation unit, which for finished products usually coincides with the unit of measure adopted in the standards or specifications for the respective type of product. For intermediate products, products of divisions and technological stages, conditional calculation units are used. To calculate the cost of certain types of products, the costs of the enterprise are grouped and accounted for by costing items. The main provisions for planning, accounting and calculating the cost of production for industrial enterprises a standard grouping of costs has been established, which can be represented as follows: 1. Raw materials. 2. Returnable waste (deducted). 3. Purchased products, semi-finished products and industrial services of third-party enterprises and organizations. 4. Fuel and energy for technological purposes. 5.Salary of production workers.6.Deductions for social needs.7.Expenses for the preparation and development of production.8.General production expenses.9.General business expenses.10.Losses from marriage.11.Other production expenses.12.Commercial expenses. Normative method Accounting and calculation of the cost of production is usually characterized by the fact that the enterprise for each product, on the basis of current standards and cost estimates, draws up a preliminary calculation of the standard cost of the product. If during the month all costs at the enterprise corresponded to the current norms and standards, and the volume of production corresponded to the planned one, the actual cost of the product would be equal to the standard one. Process method accounting for costs and calculating the cost of production is characterized by the fact that the company produces products of a limited range, there is no work in progress. In this regard, the object of cost accounting is a separate process as an integral part of the entire production process. Transverse method cost accounting and product costing is typical for mass production, in which the feedstock or materials are sequentially converted into finished products. Manufacturing processes or their groups form redistributions, each of which ends with the release of an intermediate semi-finished product, which, moreover, can be sold to the side in this form. These redistributions are the objects of cost accounting. Custom Method cost accounting and product costing is characterized by the fact that the object of cost accounting is a production order opened for an individually or small-scale manufactured product, a series of products or part of a product (in shipbuilding, heavy engineering). The cost of each order is determined after completion of work. Inventory-index method accounting for costs and calculating the cost of production differs from the normative one in that accounting for past costs is organized within a month without subdivision according to norms and deviations from norms for groups of products and for production as a whole. The cost of manufactured products is determined on the basis of inventory data and an assessment of the balance of work in progress at the end of the month. After that, for each calculation item, an index is calculated - the ratio of actual costs to planned ones, which is used to calculate the actual cost of individual types of products. With the inventory-index method, the labor intensity of the work is somewhat reduced, but the costs are not controlled during the production process, the reasons for deviations from the norms are not identified, the actual cost is determined in proportion to the planned cost. Therefore, enterprises are recommended to move from the inventory-index method to the normative one. Next, it is necessary to dwell on the methods for calculating the cost of production, as well as the cases in which it is advisable to use each method. Regulatory way- an integral part of the normative method of cost accounting and calculation of the cost of production. The prerequisites for the application of this method are the calculation of the standard cost of a unit of production, documentation and accounting for deviations from existing norms and standards. Cost summation method lies in the fact that the cost of the object of calculation or unit of production is determined by summing up the costs of individual parts of the product or the processes of its manufacture. This method is used primarily in industries where cost accounting is carried out by the process method (in coal mines, processing plants, in shipbuilding, etc.), Way to eliminate cost of by-products consists in the fact that the products obtained in complex production are divided into main and by-products. To determine the cost of the main product, by-products are not costed, and the costs of these products are excluded from the costs at predetermined prices. For example, in the coke production, to calculate the cost of the main fractions of coke, the cost of by-products (coke oven gas, coke nuts and coke breeze) is excluded from production costs. This method is widely used in non-ferrous metallurgy, oil refining, chemical and some other industries. Its content is relatively simple. The difficulty lies in determining a firm estimate of by-products and waste. That's why this method it is advisable to apply in cases where it is possible to accurately determine the main and by-products and when the cost of by-products in relation to the total cost is negligible. Cost apportionment method used to calculate the cost of production in conditions of simultaneous production of several types or when accounting for costs by groups of homogeneous products in cases where direct attribution of costs to a specific product is impossible. The essence of the method lies in the fact that the costs of certain types products are distributed in proportion to an economically justified basis. For example, the calculation of the cost of metal in the enrichment of polymetallic ores is calculated in proportion to the prices of metals in raw materials, taking into account the prescribed percentage of metal extraction. Direct settlement method the most simple and reliable and consists in dividing all the costs for the product and costing items by the number of units of manufactured products. It is used in industries where products of the same type or several products are produced, if it is technically possible to keep records of costs for each product separately. Combined method is used when calculating the cost of a costing object or a unit of production in cases where one of the listed methods of costing is impossible to implement. The combined method is thus a combination of several methods.

The sum of variable and fixed costs forms the cost of products (works, services).

The dependence of variable and fixed costs on the volume of production per output and per unit of output is shown in fig. 10.2.

Fig.10.2. Dependence of production costs on the quantity of output

The figure below clearly shows that fixed costs per unit output decreases as output increases. This indicates that one of the most effective ways to reduce the cost of products is to use production capacities as fully as possible.

http://sumdu.telesweet.net/doc/lections/Ekonomika-predpriyatiya/12572/index.html#p1

fixed costs do not depend on the dynamics of the volume of production and sales of products, that is, they do not change when the volume of production changes.

One part of them is related to the production capacity of the enterprise (depreciation, rent, wages of management personnel for time payment and general business expenses), the other - with the management and organization of production and marketing of products (expenses for research work, advertising, to improve the skills of employees, etc.). It is also possible to allocate individual fixed costs for each type of product and common for the enterprise as a whole.

However, fixed costs calculated per unit of output change with changes in the volume of production.

variable costs depend on the volume and change in direct proportion to the change in the volume of production (or business activity) companies. As it increases, so do variable costs, and vice versa, they decrease when it decreases (for example, the wages of production workers who manufacture certain kind production, costs of raw materials and materials). In turn, as part of variable costs allocate costs proportional and disproportionate . proportional costs vary in direct proportion to the volume of production. These include mainly the cost of raw materials, basic materials, components, as well as piecework wages of workers. disproportionate costs are not directly proportional to the volume of production. They are divided into progressive and degressive.

Progressive costs increase more than output. They arise when an increase in the volume of production requires high costs per unit of output (costs for piecework-progressive wages, additional advertising and sales costs). The growth of degressing costs lags behind the increase in output. Degressive costs are usually the costs of operating machinery and equipment, a variety of tools (accessories), etc.

On fig. 16.3. graphically shows the dynamics of the total fixed and variable costs.

Dynamics of unit costs looks different. It is easy to build on the basis of certain patterns. In particular, variable proportional costs per unit of output remain the same regardless of the volume of production. On the graph, the line of these costs will be parallel to the x-axis. Fixed costs per unit of production with the growth of its total volume decrease along a parabolic curve. For regressing and progressive costs, the same dynamics remains, only more pronounced.

Variable costs, calculated per unit of output, are a constant value under given production conditions.

More accurately named permanent and variable costs conditionally fixed and conditionally variable. The addition of the word conditionally conditionally means that variable costs per unit of output may decrease with changes in technology at large output volumes.

Fixed costs can change abruptly with a significant increase in output. At the same time, with a significant increase in output, the technology of its manufacture changes, which leads to a change in the proportional relationship between the change in the quantity of production and the value of variable costs (the slope on the graph decreases).

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Figure Total costs of the enterprise

The cost of all products calculated as follows:

C - total cost, rub.; a - variable costs per unit of output, rub; N - output volume, pcs; b - fixed costs for the entire volume of production.

Cost calculation units of production:

C ed \u003d a + b / N

With a more complete use of production capacity, the unit cost of production decreases. The same happens with a significant increase in the scale of output, when variable and fixed costs per unit of output are simultaneously reduced.

Analyzing the composition of constants and variable costs, derived the following relationship: an increase in revenue will lead to a significantly larger increase in profit if fixed costs remain unchanged.

Besides, there are mixed costs, which contain both constant and variable components. Some of these costs change when the volume of production changes, while the other part does not depend on the volume of production and remains fixed during the reporting period. For example, a monthly telephone fee includes a fixed amount of the subscription fee and a variable part that depends on the number and duration of long-distance telephone calls.

Sometimes mixed costs are also called semi-variable and semi-fixed costs. For example, if economic activity business is expanding, at some point it may need additional storage space to store its products, which, in turn, will cause an increase in rental costs. Thus, fixed costs (rent) will change with activity levels.

Therefore, when accounting for costs, they must be clearly distinguished between fixed and variable.

The division of costs into fixed and variable is important in choosing an accounting and costing system. In addition, this grouping of costs is used in the analysis and forecasting of the break-even production and, ultimately, for the selection economic policy enterprises.

In paragraph 10 of IFRS 2"Reserves" defined three groups of costs included in the cost of production, namely: (1) production variables direct costs, (2) production variables indirect costs, (3) production fixed indirect costs, which will be referred to as production overheads.

Table Production costs in cost according to IFRS 2

Cost type	Composition of costs
variable direct	raw materials and basic materials, wages of production workers with accruals on it, etc. These are the costs that can be attributed directly to the cost of specific products based on primary accounting data.
indirect variables	such expenses that are directly dependent or almost directly dependent on changes in the volume of activities, but due to technological features production, they cannot be or economically impractical to be directly attributed to the manufactured products. Representatives of such costs are the costs of raw materials in complex industries. For example, when processing raw materials - hard coal– coke, gas, benzene, coal tar, ammonia are produced. Divide the costs of raw materials by types of products in these examples can only indirectly.
permanent indirect	overhead costs that do not change or hardly change as a result of changes in the volume of production. For example, depreciation of industrial buildings, structures, equipment; the cost of their repair and operation; expenses for the maintenance of the shop management apparatus and other shop personnel. This group of costs in accounting is traditionally distributed by type of product indirectly in proportion to any distribution base.

Similar information.

Pricing

To carry out the above process, as well as to manage it, cost sharing plays a rather large role. The dynamics of their change with fluctuations in output volumes allows us to distinguish two categories: variable and fixed costs.

variable costs

This concept is a cost item, the volume of which directly depends on the number of products produced. From an economic point of view, this category can be considered as the total cost of real activity enterprises. This allows you to most fully highlight the goals that contributed to the creation of the enterprise and determined the direction of its development. Therefore, the larger the volume of production, the more significant part must be devoted to variable costs. This category traditionally includes expenses for the purchase of materials and raw materials, components and spare parts, electricity and fuel resources, as well as contributions to funds social insurance and salaries of employees.

These are expenses, the volume of which does not depend on the number of products produced. Nevertheless, we can talk about the invariability of this value only when considering a certain scale of production activity. From an economic point of view, this type of cost is responsible for the most optimal conditions for the enterprise. Fixed costs are objectively existing even during those periods of time when the organization does not produce any products. Changing this category of costs is possible only if there are any changes in the production process itself. Such a condition may be the purchase of new equipment, the construction of new and additional buildings and structures, as well as price changes. Fixed costs traditionally include salaries of the administration and management staff, as well as contributions to social insurance funds, expenses for the operation and maintenance of the proper condition of buildings, structures and facilities, maintenance and repair of equipment, etc.

Mixed costs

This category is not one of the main ones, but it is quite often found both on small and on large enterprises. This, as the name suggests, includes both fixed and variable costs. The simplest and clearest example of this kind of cost is paying bills for telephone conversations. In this case, elements of both the first and second categories may be present. Thus, the subscription fee belongs to the group "fixed costs", but the bills for long distance communication- already to the group "variable costs".

What is this for?

The division of an enterprise's expenses into the two classes described above is important and necessary, since in the conditions of market relations there is a frequent change in the situation, which may lead to an expansion or, conversely, a reduction in the volume of products. Fluctuations in the scale of production directly affect variable and fixed costs, which in turn affect the pricing process, and hence profits.