Product costing - definition and methods. Calculation and calculation of the cost price of products Calculation of the cost price by allocating costs
Analysis of the cost of production is extremely important. It allows you to identify trends in this indicator, the implementation of the plan according to its level, determine the influence of various factors on its growth and, on this basis, evaluate the work of the organization and establish reserves for reducing the cost of production. In this article, Ph.D., Art. Lecturer, Department of Accounting, Analysis and Audit, Faculty of Economics, Lomonosov Moscow State University M.V. Lomonosov, accounting expert consultant V.Yu. Savin (Infotex LLC) is considering the possibilities of the 1C: Accounting 8 program for calculating the cost of finished products.
The calculation of the cost of finished products is performed by the program automatically at the time of the document . The list of regulatory documents of the system is available through the menu Operation - Scheduled Operations.
When using processing Closing the month creating and modifying a document Scheduled operation: Closing of accounts 20, 23, 25, 26 made through the , the third group of scheduled operations (Fig. 1).
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Consider the program settings that affect the cost calculation. First of all, these are installed Accounting Settings and accounting policy.
Accounting parameters can be set through the menu Enterprise - Setting Accounting Options. Bookmark Production the type of planned prices is set, which will then be automatically used by documents reflecting the output. By the type of prices, the cost of products manufactured during the month will be determined.
At the end of the month, routine operation Closing accounts 20, 23, 25, 26 will determine the actual cost of manufactured products and will adjust the cost of finished products, which were produced during the month at the planned cost.
Let's look at the parameters Accounting policies of organizations* affecting costing (menu Enterprise - Accounting policy - Accounting policy of the organization).
Note:
* In "1C: Accounting 8" in one information base, you can keep records of the activities of several organizations and individual entrepreneurs. In this case, common directories of counterparties, employees and nomenclature are used, and reporting is generated separately.
To go to the settings that affect the calculation of the cost of production, select the tab Production.
The settings for closing expense accounts, on the tab, in particular, include the setting Inclusion of general expenses in the cost of real. products. If the checkbox Direct costing method cocked, then all costs from account 26 will be debited to account 90.08.1 “Administrative expenses for activities with the main taxation system”.
Consider also setting Establish methods for allocating overhead and general business expenses. Clicking on this button opens the information register Methods of distribution of overhead and general business expenses. The rules for closing account 25 and account 26 are entered into the register if the direct costing method is not used (for example, setting the closure of account 25 to account 20 in proportion to the wage fund of workers in the main production).
It is important to note that the program provides only one way to distribute the costs accumulated by an item group between the item items of finished products released in a month. The amount of costs accumulated for an item group is distributed among individual item items in proportion to the planned cost of their release.
Example
The planned cost of a unit of production is fixed by a document Setting item prices(menu Company - Goods - Set item prices).
To reflect the business transaction for the release of products, a document is used Production report per shift(menu Production - Production report per shift).
When filling out a document Production report per shift the program automatically determines the current planned price set by the document Setting item prices, and enters it in the column Price (planned).
When conducting a document Production report per shift generates postings that reflect in accounting the release of finished products at the planned cost. As a result of the document Production report per shift dated 06/12/2012 on account 43 "Finished products" in the planned estimate (1,000 rubles), the release of 100 pieces of finished products "Armchair" Delight "white" was reflected (the amount is 100,000 rubles).
At the same time, from account 20.01 "Main production", the costs accounted for according to the cost analytics "nomenclature group" Armchairs "Rapture"" were written off.
One nomenclature group (in our example, “Vostorg Armchairs”) can correspond to several types of finished products (“Vostorg Armchair white”, “Vostorg Armchair red”, “Vostorg Armchair black”).
In the context of the nomenclature group "Armchairs" Delight "" in the debit of account 20 (Fig. 2), during the month, the actual costs are accumulated related to the release of three types of finished products: "Armchair" Delight "white", "Armchair" Delight "red" and "Armchair "Rapture" black."
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At the end of the month, it is necessary to calculate the actual cost of manufactured products for the item group "Armchairs "Vostorg"" and adjust the postings for the output of products, which were formed during the month at the planned cost.
scheduled operation Closing accounts 20, 23, 25, 26 this problem is solved as follows (in the above algorithm, we will pay special attention to the formation of the cost price of the manufactured products “Armchair “Vostorg” white”).
Document Scheduled operation: Closing of accounts 20, 23, 25, 26 performs three groups of operations related to closing cost accounts and calculating the cost of manufactured products:
Write-off of general business expenses using the "direct costing" method to the account of the financial result - without distribution;
Distribution of overhead costs between item groups of the main production (the distribution base is set in the settings Accounting policy of the organization);
The distribution of the amount of actual costs (minus the balance of work in progress), taken into account in the context of specific subdivisions and nomenclature groups, between the finished products released during the month is the distribution base of the planned cost (Fig. 3).
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As mentioned, the closure of account 26 “General business expenses” to account 90.08.1 “Administrative expenses for activities with the main taxation system” is carried out in our example using the “direct costing” method. All expenses of the directorate, accounting, etc. (equipment depreciation, advertising expenses, other expenses, etc.) are debited from account 26 “General business expenses” to the financial result account 90.08.1.
To decipher information about writing off costs from account 26, you can use a specialized report Help-calculation "Write-off of indirect costs"(menu Reports - Help calculations, (Fig. 4)
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All costs from account 25 "General production costs" are debited to the account for accounting for the costs of the main production - Account 20. At the same time, the amount of costs accumulated for each unit on account 25 "General production costs" is automatically distributed between the item groups issued by the corresponding unit from account 20 "Primary production".
The amount of expenses on account 25 "General production expenses" for distribution by the subdivision "Wooden furniture production workshop" is 30,063.58 rubles. (Fig. 5)
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The distribution base between item groups of account 20.01 "Main production" is stored in the register Methods of distribution of overhead and general business expenses. In our example, for all divisions of account 25 "General production costs", a single distribution base is established - according to the wage fund.
To decipher information on writing off costs from account 25 "General production costs", you can use a specialized report Help-calculation "Distribution of indirect costs"(menu Reports - Help calculations, rice. 6).
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Within the nomenclature group “Vostorg Armchairs”, two nomenclature positions were issued within a month: “Vostorg Armchair white” and “Vostorg Armchair red”.
The amount of actual expenses for the item group "Armchairs "Rapture"" can be obtained using a standard report Account balance sheet as the balance at the beginning of the month plus the debit turnover for the month. The amount of expenses for "Armchairs" Delight "was 482,405.37 rubles.
To allocate the amount of costs for the item group "Armchairs "Vostorg"", the program uses as a distribution base the planned cost of products released during the month, related to this item group.
This stage of distribution can be checked using a specialized report Reference-calculation "Cost of manufactured products and rendered services of an industrial nature"(menu Reports - Help calculations, rice. 7).
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You can use a specialized report to obtain a printable cost estimate for manufactured products. Reference-calculation "Calculation of the cost of products and services"(menu Reports - Help calculations).
The report provides detailed information on the costs that formed the actual cost of products manufactured during the month. At the same time, information on the amounts of direct and indirect costs is presented in the report in separate groups of lines. At the end of the table, information is displayed on the balance of costs in work in progress at the beginning and at the end of the selected month.
The definition of "calculation" means a kind of the process of calculating the amount of financial costs, which, first of all, are directly related directly to the production and the fact of the sale of a single specific unit of production, moreover, for a separate cost item.
In fact, the cost estimate is a document that displays the costs that are directly related to the production and sale of a unit of goods. In the considered calculation all costs without exception are necessarily grouped by cost items, depending on where they are formed, as well as their purpose.
In parallel with this, the direct object of the calculation under consideration is rightfully considered to be a specific product or a service provided, or work performed.
To be able to achieve a certain goal, normative, planned and reporting types of costing are formed.
Normative costing can be calculated on the basis of existing technical standards and financial costs.
In its turn standard cost estimate is formed solely for the purpose of determining the planned cost per unit of goods.
Reporting type of costing is formed at the end of the reporting period and reflects all available costs for the manufacture and sale of a unit of goods solely upon the fact. This is necessary, first of all, for the purpose of conducting an analysis, as well as comparing forecasted and actual costs, including identifying reserves for the possibility of reducing costs (including planning various measures to reduce costs).
The name and directly the composition of cost items in the calculation is calculated by recommendations for each specific industry.
Calculation scheme with formula
For a detailed explanation, let's take, for example, costing and determining selling costs.
Data | Item A | Item B | Item C |
---|---|---|---|
Raw materials, thousand rubles | 1640 | 9636 | 1536 |
Components, thousand rubles | 295 | 136 | 148 |
Return waste, % | 12,54% | 20,50% | 20,30% |
Fuel and energy, thousand rubles | 238 | 247 | 310 |
Basic salary, thousand rubles | 648 | 138 | 587 |
Profit, % | 3,45% | 3,87% | 7,85% |
VAT, % | 20,00% | 20,00% | 20,00% |
Calculus scheme The considered costing is as follows:
- Returnable waste must necessarily be calculated from the cost of raw materials and related materials (a certain percentage must be taken).
- To calculate the additional salary, it is necessary to take into account such information as: if the basic salary is more than 200 thousand rubles, then the additional salary is 10% of the base salary, if less - 15%.
- The fact of payroll is 30% of the base amount and additionally.
- The cost of maintaining the performance of various equipment is only 5% of the value of the base wage.
- General business costs amount to 9% of the average value of wages.
- As for general production, the indicator is 18% of (25% BZP + 75% D). Moreover, OZP is the basic wage for employees, and D is the additional provided.
- The production price is equal to the sum of the costs of maintaining the process, providing the necessary raw materials and other materials, fuel, auxiliary components, and so on, minus age-related waste.
- Non-manufacturing costs (meaning costs) are 3% of the production price.
- Total cost = production + production costs.
- The producer's income is necessarily considered as a percentage of the total cost.
- Wholesale cost = total + manufacturer's income.
- VAT must be calculated solely on the wholesale cost.
Moreover, selling wholesale cost = wholesale cost + indirectly assessed taxes.
Explanations
Explanations for the definition of some costing items are next:
The cost of goods B and C is calculated according to a similar principle.
It is worth noting what can be done in such a way that Excel takes the initial information for determination at the same time in the corresponding tables.
For example, raw materials and materials - from the generated production report, and wages - from the corresponding statement.
The list of costing items displays production feature.
Directly for domestic modern practice, the most characteristic, in fact, can be considered such main list of costing articles, how:
- raw materials and supplies;
- fuel and energy for the necessary technological purposes;
- salaries of hired staff;
- overhead financial costs;
- general business expenses;
- other production costs;
- various others .
Articles 1 to 7 It is customary to call production costs, since they are mostly directly related to the maintenance of the direct production process. The amount of production costs forms the production cost.
Article 8(meaning commercial costs) costs directly related to the sale of goods, namely: financial costs for packaging, advertising purposes, preservation and, in part, even transport financial costs.
Additionally, it is worth paying attention to the fact that indirect costs in coefficients or as a percentage are directly related to the manufacture of all products without exception, or their individual varieties.
Directly the specifics of the company kind of "dictates" a list of direct and indirect costs. For example, in the field of shipbuilding, almost without exception, financial costs are direct costs. As far as the chemical industry is concerned, practically everything is related to indirect costs.
Application
The main tasks of calculating the cost of goods are determined solely by the intended purpose of the calculation, and can be formulated as follows:
In fact, the calculation of the cost of goods, works or the services themselves can be conditionally divided into several stages.
At the first stage, all necessary cost calculations are carried out for all goods without exception. At the next stage, the actual cost is calculated for each individual product. At the final stage, the cost of a unit of goods performed according to the work contract or the service rendered is determined.
However, in reality, the process itself is a little more complicated, which is largely due to the process of so-called zeta spending.
In addition, I would like to note that until recently, costing systems pursued only one goal - the assessment of available stocks of finished goods and various semi-finished products of their own manufacture, which is extremely important for internal production purposes, as well as the formation of external required reporting and income level calculation.
Examples
To be able to understand in more detail the essence of determining the costing of goods, it is recommended to refer to the available examples.
These examples of calculation will significantly minimize the risks of obtaining false information as a result of the calculations.
A detailed calculation of the cost of production is presented in this manual.
- the cost price is calculated by item groups;
- costs are distributed in proportion to the planned cost.
Therefore, before the calculation, it is necessary to determine for the manufactured products.
The calculation and calculation itself is performed by processing "".
There can be any number of nomenclature groups (Fig. 1). You can create an item group not only for each type of product, but also for each unit of product (Directories - Income and expenses - Item groups).
Planned prices for costing are set in the document 1C "" (Warehouse - Prices - setting prices).
There is another important feature - in the 1C 8.3 program, not only the cost of production is calculated, but also the cost of materials. What does it mean? The cost of components can be increased by the amount of additional costs (Fig. 3).
For example, if the price of a material equal to 10 rubles is indicated on the receipt invoice, the same item can be written off to production at a much higher price (the costs of delivery, insurance, customs clearance, etc. will be taken into account).
Figure 4 shows the postings, for which the cost of timber and lumber in the warehouse is increased by 1111.11 and 388.89 rubles, respectively.
In the processing of the closing of the month in 1C Accounting 8.3, there is a special item for calculating the cost of materials - “Adjusting the cost of the item”, this operation is performed before calculating the cost of production.
Cost check
What else needs to be done before calculating the cost price?
In the accounting policy, we look at the sections "", "Stocks" and "Costs" (Fig. 4).
Here it is important to correctly set the distribution methods for direct and , as well as check the boxes for the output of products and services of an industrial nature.
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In the section "Accounting parameters" we check the items "Production" and "Stocks" (Fig. 5).
The price type must be selected according to which the planned prices are set in the “ ” document.
Registration of production operations
What documents reflect the release of products and services:
Both documents are located in the "Production" section (Fig. 6). The sale of services can also be reflected in the document "" from the "Sales" section, but the cost of services is not calculated using this document.
Figure 7 shows the release document. It indicates what was released, when, where, in what quantity, as well as accounting accounts, invoices and cost analytics (item group, cost item).
In addition, direct costs can be specified in the document (the “Materials” tab), which are filled either manually or automatically according to the specification data (if a specification reference is maintained).
It is important to comply with the analytics of manufactured products and costs. For example, if products are manufactured under the "Chairs" item group, then the costs should be attributed to this item group. You can check according to the balance sheet for account 20 (Fig. 8).
And one more note - item groups for manufacturing services should not be used for output.
Our video about the design of the document Production report for a shift in 1C 8.3:
Indirect costs in costing
Documents used to account for indirect costs:
The analysis of indirect costs is also carried out according to the balance sheet of accounts 25 and 26 (Fig. 9).
Closing the month in 1C 8.3 to calculate the cost
So, all settings are checked, release documents are issued, costs are reflected. You can start calculating the cost. We call the processing "Closing the month" (Fig. 10).
As you can see, the program itself suggests a sequence of actions. Each operation from the list can be checked and re-executed manually. When performing each item, the program analyzes the correctness of the input, reports errors and issues recommendations for their elimination (Fig. 11).
procedures. How to correctly reflect the costs, what documents reflect the fact of the release of products (works or services), how is the cost calculated and where can this result be seen? Let's talk about the nuances of cost accounting and the subsequent calculation of the cost of production in "1C: Accounting 8", ed. 3.0.
Initially, "1C: Accounting 8" is not designed to calculate the actual cost of large enterprises with a complex methodology for accounting and cost allocation. For these purposes, 1C recommends using specialized solutions, such as 1C: Manufacturing Enterprise Management, 1C: Integrated Automation, 1C: ERP. "1C: Accounting 8", ed. 3, allows users to organize and maintain accounting and distribution of costs for small and medium-sized organizations. For the correct and correct calculation of algorithms, it is necessary to take care to reflect the real picture of cost accounting as accurately as possible (by their places of occurrence) and to think over all aspects of the correct distribution of costs by type of activity.
The sequence of calculating the cost of finished products
What in general is the algorithm for calculating the cost of production in "1C: Accounting 8", ed. 3? The mechanism provides the user with the ability to accurately account for materials and semi-finished products previously transferred to production. This feature has been included in the program since release 3.0.53.
A planned, well-coordinated system of accounting for costs associated with the release of products, the provision of services, the performance of work is a prerequisite for a reliable and transparent reflection of information about the activities of the organization in the future. At the same time, when compiling cost accounting methods, you need to rely on the principles and provisions previously developed and enshrined in accounting regulations and instructions for calculating the cost of products (works and services) of your organization.
In Figure 1, you can see how the cost of finished products is calculated in the software product "1C: Accounting 8", ed. 3.
Scheme for calculating the actual cost of production in "1C: Accounting 8", ed. 3.
Correct cost accounting
Let's start with the fact that one of the most common mistakes in calculating the cost is the initially incorrect organization of cost accounting in the context of cost items, places of their occurrence and types of activities. Let's take a look at expense accounts, detailing how they will be distributed.
The costs of the main and auxiliary production (account 20, 23) will be distributed at the end of the month between the manufactured products and work in progress.
General business and general production expenses are distributed at the end of the month to account 20 (general business expenses can also be distributed to account 90.08 if you select “ By direct costing method”) to a specific site, depending on the distribution base. Variants of all possible bases for the distribution of costs available in "1C: Accounting 8", ed. 3, with explanations are given in table 1.
Table 1. Variants of bases for cost allocation
Distribution base |
Description |
Planned production cost |
In proportion to the planned cost of manufactured products, services rendered. |
Issue volume |
According to the number of products released in the current month or services rendered. |
Material costs |
According to the material costs reflected in the items with the type of NU "Material costs". |
Selected direct cost items |
In proportion to direct costs, according to cost items indicated in a separate list. |
Salary |
According to the cost of wages of the main production workers. |
Direct costs |
In proportion to direct costs: for accounting - the costs of the main and auxiliary production, for tax accounting - the direct costs of the main and auxiliary production, direct general production costs. |
Distribution occurs in proportion to the proceeds from the sale. |
Cost allocation methods in the program are made in the accounting policy settings (“ The main thing» – « Accounting policy»).
Indication of methods for allocating indirect costs.
Commercial expenses (account 44) at the end of the month will be debited to account 90.7 “Sales expenses” in proportion to the sales proceeds.
During the reporting period, expenses are recorded in the program by the following documents:
« Invoice claim»;
« Receipt of goods and services» (tab « Services»);
« Advance report» (tab « Other»).
« Reflection of salary in regulated accounting».
The cost at which the inventory is written off to production is calculated in accordance with which option we indicated in the accounting policy:
according to the FIFO method;
according to the average method.
Services rendered by a third party and other non-material costs are included in production costs in the estimate indicated by the user in the document.
Setting up cost calculation in 1C
Now that we have indicated how the correct distribution of costs will occur, we will proceed directly to the calculation of the cost. There are two important things to consider at this step:
the cost is calculated based on item groups;
cost costs are allocated according to the planned cost.
That is, before the calculation, you need to determine the list of item groups and set the planned prices for manufactured products.
Why do we need to specify planned prices? Since the program accounts for manufactured products and services rendered during the month exactly at planned prices, it is only at the end of the month that all costs for item groups are summed up and the real (actual) cost of manufactured products and services is calculated. As you can see, before the closing of the month, we do not have information about the actual cost. However, when generating the document " Production report per shift" and " » setting a price is mandatory. This price is called the planned price. Planned prices are set in the document "1C" " Setting item prices" (Chapter " Stock» – « Prices» – « Price setting»).
Let us now dwell on the nomenclature groups. The 1C:Accounting 8 program calculates the cost exactly by item groups: you can create them yourself, including any item positions in the corresponding item groups. The main purpose of nomenclature groups is to summarize information about products, works, services for homogeneous groups (for example, by type of product, by type of activity).
Documents reflecting production operations
All operations for the release and further sale of products and services are reflected in the following documents:
« Production report per shift» is intended to reflect the output of products and services;
« Provision of production services» is used to reflect the output and sale of production services.
When calculating the actual cost of production (operation " Closing the month”), the planned cost is adjusted to the actual cost with the write-off of deviations. The costs of the main production, not distributed at the end of the period, form the balance of work in progress.
Calculation of the actual cost of products and semi-finished products
And finally, the final step, directly calculating the actual cost. Calculations are performed in several stages:
Direct costs for each product and division are calculated depending on the sequence in which the divisions are closed.
Indirect costs are distributed according to the rules set in the " Methods of allocation of indirect costs of the organization", which was described above.
The calculation of direct costs for each product and each division is carried out according to the sequence of closing divisions, taking into account indirect costs.
Adjustment of the cost of products and semi-finished products from the planned cost to the actual cost.
The absence of errors at the end of the month will indicate the fact that the calculation of the actual cost was carried out according to the rules. You can check the correctness of the calculations using the following reports:
reference-calculation " Costing»;
reference-calculation " Distribution of indirect costs»;
reference-calculation " Production cost».
Standard report "Reference-calculation" Cost of production "
As you can see, the data in the report is reflected in the context of item groups, as described earlier.
If you still notice some inaccuracies, you need to correct the original data and re-calculate the cost.
cost of 1C cost accounting
The calculation of the cost of individual types of products is the calculation of the costs of production and sale of a unit of production. On the basis of costing, you can manage the cost of production, control its level, identify reserves for reducing material, labor and financial resources, and set prices for products.
Product costing consists of the following steps:
- determination of the costs of the main and auxiliary productions;
- distribution of expenses of auxiliary productions and indirect expenses of the main production;
- determination of the total amount of production costs.
When calculating product costing, it is necessary to comply with a number of requirements that allow costing according to unified methodological approaches and use information to analyze and evaluate the activities of both individual intra-production links, cost centers and responsibility centers, and the entire enterprise as a whole.
The main requirements for calculating the cost of production are:
- scientifically substantiated classification of expenses that form the cost of production;
- definition of calculation objects and calculation units;
- choice of methods for allocating indirect costs;
- choice of methods for calculating the cost of a costing unit.
Product costing is designed to solve the following tasks:
- reliable calculation of the actual unit cost of certain types of products, works, services;
- monitoring the level of cost of certain types of products, compliance with applicable norms and standards of expenditure;
- determination of product profitability;
- identification and use of reserves to reduce the cost of production, etc.
In the system of production cost management at enterprises, various types of costing of production are used.
Forecast costing is developed on the basis of prospective (forecast) norms and norms of estimated costs for the production of products in several versions. Forecast cost estimates serve as a guideline for the preparation of standard cost estimates.
Standard cost estimate is compiled on the basis of progressive norms and economic standards for the year and quarters and is a task for the enterprise and its divisions in terms of the maximum cost for the production of the corresponding types of products, works and services. It takes into account the production conditions of a specific planning period (year, quarter, month) on the basis of the current planning norms and standards in the corresponding period.
Reporting (actual) costing- this is the calculation of the actual cost of manufactured products according to the cost items provided for by the plan, taking into account costs and losses not provided for in the planned cost estimate. Reporting costing reflects the current level of cost for certain types of expenses, serves as a means of controlling the cost of production, allows you to assess the progressiveness of the forecast and current consumption rates of enterprise resources and the efficiency of the use of the resources themselves, and is also the most important source of information for planning and economic analysis.
When calculating a product cost estimate, it is very important to define the object of costing and select the costing unit.
Calculation object- this is an object for which it is necessary to calculate the cost: types of products manufactured at the enterprise, in its divisions, types of work, services, etc. As an object of calculation at enterprises of mass and large-scale production with detailed specialization of in-house divisions, individual units of products can act or details. At enterprises whose products differ in quality characteristics, the product grade can be the object of calculation. At the enterprises of mechanical engineering and metalworking, and some other industries, in the manufacture of products, cost estimates are developed to order. In industries where there is a homogeneous technological process and successive stages of processing (metallurgical industry), technological phases, redistributions, processes can act as costing objects.
Properedelnye (per phase), as well as itemized costing needed to reliably determine the cost of finished products, to identify reserves to reduce it.
Calculation unit is the measuring object of the calculation object. The units used are:
- natural units - pieces, tons, meters, etc.;
- conditionally natural units - 100 pairs of shoes of a certain type, a cubic meter of reinforced concrete products, a machine tool kit, etc.;
- conventional (reduced) units - 1 kg of conventional bread, mineral fertilizers in terms of 100% of the active substance, cotton fabrics in terms of a width of 150 cm, etc.;
- cost units - 1000 rubles. consulting services, etc.;
- units of work - ton-kilometer of transported cargo, etc.;
- units of time - machine-hour, man-hour, norm-hour, etc.;
- operational units - power, productivity, etc.
The calculation unit, as a rule, coincides with the unit of measurement of the volume of production (work). If several meters are used for a certain type of product (for example, tons and square meters), then the main meter is used to calculate the cost and it is he who is chosen as the calculation unit.
When calculating the cost of production, various methods of calculation are used, which depend on the technology for creating products, the presence of by-products and by-products, and the possibility of localizing costs by costing objects.
Direct settlement method consists in calculating the total costs for the costing object. The cost of a unit of production when using this method is calculated by dividing the total amount of expenses accumulated over the period by the volume of manufactured products in physical terms.
Regulatory way involves the use of norms and norms for the expenditure of resources. It is based on the application of technically justified calculated values of the costs of working time, material and monetary resources per unit of production, work, and services. The norms of production costs reflect the technical and organizational level of development of the enterprise, affect its economy and the final result of the activity.
Mandatory conditions for the use of the normative method of calculating the cost of production are:
- drawing up a normative calculation according to the current norms and regulations;
- identification of deviations of actual costs from existing norms and standards at the time of their occurrence;
- accounting for changes in existing norms and standards;
- reflection of changes in existing norms and standards for calculation objects.
Expenses Exclusion Method It is used when, as a result of processing, one type of product is considered the main one, and the rest are secondary. The cost of by-products is subtracted from the total cost of processing raw materials, the remaining part is the cost of the main product.
How to allocate costs used when calculating the cost of production, when several products are obtained in the process of processing (for example, oil refining). All costs are allocated to the cost of the relevant product in proportion to a certain attribute (for example, in proportion to the labor intensity of the product or other economically justified attribute).
Summation method involves the summation of costs for the production of individual parts of the product or for the process of its manufacture. For example, the summation of the costs of fulfilling an order.
In practice, there is a combination of several of the above methods, if the use of each of them separately is impossible.
In modern conditions, the direct costing system, based on separate accounting for fixed and variable costs, is becoming more widespread. In this case, the cost of production is taken into account only for variable costs. Fixed costs are collected on a separate account and, with a given frequency, are written off directly to the financial result. The use of this system leads to the fact that for certain types of products a “reduced” or “truncated” cost price is planned.
If the order for the production of products, a separate work or service acts as objects for costing, then the order-by-order method of calculation is used.
At custom method Product costing is calculated after the completion of the work on the order. Until the completion of the order, the cost of its release is the cost of work in progress. The unit cost of a product is determined as the result of dividing the amount of costs accumulated for an individual order by the number of units of the product manufactured for this order. Therefore, the principal feature of the order-by-order method is the formation of the volume of expenses for each completed order. This method is used in single and small-scale production.
If the object of calculation is a redistribution, then it is used crosswise method cost calculation.
redistribution- this is a finished part of the technological process, completed by the release of an intermediate product, a semi-finished product that can be implemented independently. This method is used in mass production, in which the necessary raw materials and materials are gradually, sequentially converted into finished products.
In parallel with the production process (from repartition to repartition), there is also a process of accumulating costs by summing them up for each redistribution that the product has visited. Therefore, the fundamental feature of the per-partition method is the formation of the volume of expenses for each completed redistribution or for a period of time (time for the redistribution). The cost of a unit of production of a repartition is determined as the result of dividing the amount of expenses accumulated over a period of time or during the execution of a repartition by the number of units of production manufactured during the period under consideration or at the considered repartition. The unit cost of a finished product is the sum of the cost of units of production of all those stages in which this finished product was processed.
If the costing object is a process, then the process method cost calculation.
This method is used by those enterprises whose technology provides for the implementation by each production unit of a separate part of the production process and the movement of the product from one operation to another as it is processed. The last division finishes production and delivers products to the finished goods warehouse. That is, the production of products is a continuous process, when the stage of output from one process is the stage of input into another, for example, oil refining.
The process-by-process method provides for the calculation of costs for each technological process. The cost of a unit of production is determined as the result of dividing the amount of expenses accumulated for all technological processes by the number of units of production, i.e., the cost of a unit of finished products can be represented as the sum of the unit costs of production of all technological processes that make up the production of this product.
The main difference between the process-by-process and the sequential methods is the absence of semi-finished products of work in progress in the process-by-process method.
test questions
- 1. What is the difference between the concepts of "costs" and "expenses"?
- 2. What is meant by expenses for ordinary activities?
- 3. What is the production cost of products?
- 4. What is the composition of the costs included in the cost of production?
- 5. On what basis are the costs included in the cost of production classified?
- 6. What is the difference between direct and indirect costs?
- 7. What are the ways to allocate indirect costs to the cost of certain types of products?
- 8. What is the point of subdividing expenses into conditionally fixed and conditionally variable?
- 9. What factors affect the cost of production?
- 10. What is meant by cost management?
- 11. Give the characteristic to main elements of process of management of expenses of the enterprise.
- 12. How is the cost of commercial products determined?
- 13. How is the cost of goods sold determined?
- 14. What are the stages of production cost planning?
- 15. What are the main sections of the plan for the cost of production?
- 16. Describe the main methods of planning the cost of production.
- 17. What technical and economic factors are taken into account when planning the cost of production? What is the method of their calculation?
- 18. What cost estimates are developed in the process of cost planning and what is their content?
- 19. What is the difference between the concepts of "cost estimate for production" and "calculation of the cost of production"?
- 20. What are the stages of product cost calculation?
- 21. Describe the principles of costing products.
- 22. What is the difference between project and planned costing?
- 23. What is the difference between planned and cost estimates?
- 24. What is the difference between planned and actual costing?
- 25. What is meant by the object of calculation?
- 26. What is meant by a calculation unit?
- 27. What methods of calculation are used when calculating the cost of production? What is their essence?
- 28. What determines the choice of calculation method when calculating the cost of production?
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