The result is a reduction in production costs. Calculation of the cost per unit of production and ways to reduce costs in order to ensure the competitiveness of an industrial organization

1. Absolute savings from reducing the cost of ES products.

a) savings from reducing the cost of comparable commercial products in the reporting period compared to the base period are calculated as the difference: Es=С1q1-Спq1

b) the amount of the planned target to reduce the cost of production compared to the baseline level is calculated using the formula: Es = Spqp-Coqp,

where Co and C1 are the cost of a unit of a certain type of product in the base and reporting periods, Cn is the planned cost of a unit of a certain type of product, q1 and qп are the number of units of a certain type of product produced actually in the reporting period and according to plan.

The main reserve for reducing production costs is increasing social productivity. An increase in the productivity of social labor causes a decrease in the number of workers and the wage fund. At enterprises that ensure labor productivity growth at a rate exceeding the growth of average wages, costs per unit of production are reduced.

C=(Iз/Iп)*Dзп, where C is the relative reduction in cost as a percentage, Dзп is the share of wages and social insurance contributions in total costs, Iз is the index of the average monthly salary per employee, Iп is the labor productivity index.

The most important sources of reducing production costs include the rational use of raw materials, materials, fuel and energy; improving equipment use; reduction in maintenance costs; production and sales management. These sources are constant and their importance increases under the influence, first of all, of the intensification of production based on the acceleration of scientific and technical progress, improvement of the organization of production and labor, growth in production volumes, etc.

2. Relative savings on depreciation due to improved use of fixed assets Ea. Improving the use of fixed production assets, achieved by increasing the operating time of equipment, increasing the shift ratio, reducing the amount of uninstalled and unused equipment, intensifying production processes, and more fully utilizing production capacity ensures an increase in production volume and a relative reduction in depreciation charges, the amount of which is determined by formula: Ea=(Ao/To – A1/T1)*T1, where Ao is the amount of depreciation charges in the base period without taking into account the commissioning of new production facilities, A1 is the amount of depreciation charges in the planning period taking into account the commissioning of new production facilities, To is the actual volume of gross products in the base period without taking into account the commissioning of new production facilities, premiums for improving quality, changes in prices for finished products, T1 - the volume of marketable products in the reporting period, taking into account the commissioning of new production facilities, premiums for improving quality, changes in prices for finished products.

3. Relative savings on conditionally constant (independent) expenses Epp, with an increase in production volume, is determined by the formula: Epp = (It*Co*Dpp)/100, where It is the growth rate of marketable products in the planned year compared to the base year, Co – the cost of commercial products or individual cost elements, Epp – the sum of the given conditionally fixed costs (without depreciation) in the base year, Dpp – the share of the given conditionally fixed costs in the cost of the commodity product or individual cost elements in the base year. Dpp=(Dup*(It-Iup))/It, where Dup is the share of the given conditionally fixed costs in the cost of marketable products in the base year compared to the year preceding the base year, It is the growth rate of marketable products in the planned year compared to base, Iуп – growth rate of semi-fixed expenses in the base year compared to the previous one.

4. Transitional savings from organizational and technical measures Eq. Due to the fact that certain organizational and technical measures are not implemented from the beginning of the year, it is not possible to fully realize the effect of implementation during the first year. However, this effect must be taken into account when calculating reserves for reducing production costs by factors in the next year. For this purpose, data on the average annual cost of production in the base year is used, and the calculation of the amount of expenses in the planned year due to the full use of the results of the measures is carried out according to the formula: Eq = (Cxo*No+Cx1N1)/(No+N1)-Cx1Nп, where Схо and Сх1 – variable costs per unit of product before and after this organizational and technical event, No and N1 – volume of output of this type of product in the base year, respectively, before and after the organizational and technical event, in physical terms, Nп – volume of output of this type products planned for the planned year.

5. Reduction in production costs (in percent) with an increase in production volume Cdn. Due to an increase in production volume, production costs decrease due to a relative change in variable costs. The percentage of cost reduction due to this factor is calculated using the formula: Cdn=100*Dnn/(100+Yb)-Dnn, where Dnn is the share of variable costs in the cost of production in the base period, Yb is the increase in production volume in the planned year as a percentage of basic level.

6. Decrease (increase) in production costs when prices for materials (fuel, raw materials, etc.) change. Savings due to the influence of this factor are calculated by the formula: Ets = (No*Ts1 – NoTso)*N or as a percentage Ets=No*Ts1/No*Tso*100%, where No is the rate of expenditure of this type of material per unit of production, Tso and T1 – unit prices of materials in the base and reporting periods, N – quantity of products produced in the reporting period.

7. Percentage of reduction in production costs C. The influence of this factor on the reduction in production costs can be determined by the formula: C = (Ji*Di)/100%, or the average reduction in cost by the sum of all factors C = Ji*Di/100% or C =E/Co*100%, where Ji is the change in costs for the i-th item of production cost in a given period, Di is the share of the i-th item of cost in the cost of the base period, E is the total amount of conditional annual savings obtained due to implementation of all organizational and technical measures for the planned period, Co – cost of the annual production volume in the base period before the implementation of the measures.

8. Savings on wages and social insurance contributions Ez. It can be achieved in terms of workers' wages through the implementation of various organizational and technical measures that ensure a reduction in the labor intensity of production. Ez=(to*Zo-t1*Z1)*(1+Zn/100) 2 *N, where to and t1 are the labor intensity of a unit of production before and after the events, Zo and Z1 are the average hourly wages of workers before and after the events , Zn is the established coefficient for social insurance, N is the number of products for which labor intensity is reduced due to activities in the reporting year. Similarly, labor savings are calculated for all products, and then the total savings for the year are determined. If this organizational and technical measure is not implemented from the beginning of the year, when calculating the reduction in production costs, part of the amount of savings that should be obtained in this period is taken into account. When carrying out organizational and technical measures that ensure the release of workers with time-based wages, savings are determined by the formula: Ez=(Ep*Zs(1+Zn/100))*n, where Ep is the number of workers planned for release, Zs is the average monthly wage for this category of workers, Zn is the established coefficient of contributions to social insurance, n is the number of months from the date of the event until the end of the year.

Conclusion

After reading the above text, you can come to a number of conclusions. Firstly, accounting for production costs is not possible without knowledge of the classification of costs both by economic elements and by costing items. However, knowledge of only these two classifications will not be able to ensure perfect accounting of production costs; for this purpose, other types of classifications of production costs are given here, as well as a specific list of costs included in one or another classification. Secondly, accounting for production costs is possible in accordance with the Accounting Regulations, and is carried out according to the chart of accounts, without the ability to handle which this accounting is also not feasible. Thirdly, accounting for production costs can be carried out by several methods, the choice of which depends on the industry in which a given enterprise operates, the organization of production at a given enterprise, the opinion of the administration, market conditions and a number of other factors. Moreover, as it turned out, their joint use is also possible if circumstances require it or the use of a mixed accounting method is an option for more profitable conduct of business activities of the enterprise. Fourthly, keeping records of production costs is part of accounting, the maintenance of which is mandatory for all legal entities engaged in any type of activity in accordance with the laws of the Russian Federation, which means that the development of industrial relations will push enterprises to keep records more carefully, because it will all more and more controlled by the state. Fifthly, the production capacity of an enterprise is not always limited by the demand for finished products or any other external factors, but, as a rule, is established by the administration of the enterprise, in accordance with its opinions about the operation of a given production unit. Sixth, enterprises are constantly forced to look for factors and reserves for reducing the cost of production in order to receive maximum profit from their activities. All these factors and reserves, as a rule, form the basis for planning the future activities of the enterprise and their calculations are necessary for constructing diagrams that clearly demonstrate the prospects for the development of the enterprise.

It is obvious that accounting for production costs has the most unlimited prospects for development, since the modern market economy, with its ever-increasing degree of competition, obliges enterprises to think about their production costs, as well as about the methods of accounting for these costs in order to more freely maneuver of their products on the market.

The powerful influx of new firms and, as a consequence, increased competition is forcing existing enterprises to seriously think about how not to lose part of their market share and reduce their profits. This leads them to consider the costs of production and sales of products, without analysis of which the existence of a company in modern market conditions becomes not only problematic, but, in my opinion, even impossible (especially since the laws of the Russian Federation oblige the enterprise to maintain accounting records). This is obvious, because any analysis of the results of an enterprise’s economic activity is based on data on the costs of production and sales of products.

Today, the topic proposed for consideration is not completely new, although most textbooks do not provide complete and detailed information about it, but contain only parts of it. In my work I relied mainly on such scientists as: Nikolaeva S.A., Shim J.K. and Abashina A.M. Nevertheless, in my opinion, it is one of the most relevant topics for consideration related to the activities enterprises, for today, and for tomorrow too.

The main goal of this course work is to gain knowledge about: production costs, principles of accounting and control of production costs, methodology for accounting for production costs and calculating the cost of manufactured products, as well as drawing up a support base for further research of the proposed problem in subsequent training courses. The basis of the research was mainly textbooks and workshops on cost accounting at the present stage of market development, a set of regulatory documents and recommendations, as well as a number of journal articles from the main economic periodicals on accounting.

In this work, an attempt is made to systematize production costs and provides a detailed list of costs included in the cost of manufactured products. This work also presents all the main methods of accounting for production costs and calculating production costs. A set of formulas for analyzing economic results and calculating production costs is given.

After reading the text of the coursework itself, you can come to a number of conclusions. Firstly, accounting for production costs is not possible without knowledge of the classification of costs both by economic elements and by costing items. However, knowledge of only these two classifications will not be able to ensure perfect accounting of production costs; for this purpose, other types of classifications of production costs are given here, as well as a specific list of costs included in one or another classification. Secondly, accounting for production costs is possible in accordance with the Accounting Regulations, and is carried out according to the chart of accounts, without the ability to handle which this accounting is also not feasible. Thirdly, accounting for production costs can be carried out by several methods, the choice of which depends on the industry in which a given enterprise operates, the organization of production at a given enterprise, the opinion of the administration, market conditions and a number of other factors. Moreover, as it turned out, their joint use is also possible, if circumstances so require, i.e., the use of a mixed method of accounting is an option for more profitable conduct of business activities of an enterprise. Fourthly, keeping records of production costs is part of accounting, the maintenance of which is mandatory for all legal entities engaged in any type of activity in accordance with the laws of the Russian Federation, which means that the development of industrial relations will push enterprises to keep records more carefully, because it will all more and more controlled by the state. Fifthly, the production capacity of an enterprise is not always limited by the demand for finished products or any other external factors, but, as a rule, is established by the administration of the enterprise, in accordance with its opinions about the operation of a given production unit. Sixth, enterprises are constantly forced to look for factors and reserves for reducing the cost of production in order to receive maximum profit from their activities. All these factors and reserves, as a rule, form the basis for planning the future activities of the enterprise and their calculations are necessary for constructing diagrams that clearly demonstrate the prospects for the development of the enterprise. And finally, it was found that accounting for production costs can only be done based on the basic principles of its organization.

List of used literature

1. Androsov A.M. Accounting and reporting in Russia: Practical. management. - M.: JSC "MENATEP-INFORM", 1994.-576 p.

2. Aksenenko A.F. Cost in the industry management system: Accounting and analysis. – M.: Economics, 1984.-167 p.

3. Balabanov I. T. Analysis and planning of finances of an economic entity. – M.: Finance and Statistics, 1998.-112 p.

4. Barunina E. V. Cost accounting in market conditions // Bukh. Accounting. – 1992. - No. 4. - With. 24-26

5. Accounting: Textbook. / Ed. A. D. Larionova. –M.: “Prospekt”, 1999.-392 p.

6. Accounting in production, A. M. Abashina, A. A. Makovsky, M. N. Simonova, I. K. Talier. – 2nd ed., revised. – M.: Filin, 1998.-374 p.

7. Glushkov I. E. Accounting at a modern enterprise. – Novosibirsk: EKOR, 1993.-202 p.

8. Zhideleva V.V., Kaptein Yu.N. Enterprise Economics: Textbook / ed. S. B. Svigzova; Syktyvkar State univ. – Syktyvkar: Syktyvkar University, 1996.-132 p.

9. Kozlova E. P. Accounting in small businesses: Workshop of an accountant / E. P. Kozlova, T. N. Babchenko, E. N. Galanina. – M.: Finance and Statistics, 1997.-208 p.

10. Kondrakov N.P. Accounting: Textbook. – M.: INFRA-M, 1997.-558 p.

11. Kotaev A. N. On the grouping of costs in production accounting // Bukh. Accounting. – 1994.-№9.-p.15-20

12. Makarieva V.I. Accounting in market conditions: Consultation. – Ed. 2nd, revised – M.: Finance and Statistics, 1993.-80 p.

13. Nikolaeva S. A. Features of cost accounting in market conditions: Theory and practice. – M.: Finance and Statistics, 1993.-123 p.

14. Nikolaeva S. A. Principles of formation and cost calculation. – M.: Analytics-Press, 1997.-144 p.

15. Savitskaya G.V. Analysis of the economic activity of the enterprise. – 3rd ed. – Minsk: Ecoperspective, 1999.-498 p.

16. Shim D.K. Siegel D.G. Methods of cost management and cost analysis: translation from English. – M.: Filin, 1996.-344 p.

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Cost is amount of costs, spent on the production of any product, product, service. Depending on the volume, there are shop, full, unit and production costs, which include different types of costs.

By reducing costs, you can reduce the price of products, becoming a more competitive and attractive enterprise in the market, without reducing your profits, raise salaries for key personnel, and also significantly improve the financial stability of the company.

Cost includes the following elements:

Labor costs (worker wages).
(expenses for the purchase of materials, raw materials, tools, third-party services and everything that is used in the creation of the product).
Contributions to extra-budgetary funds.
Depreciation costs (depreciation of fixed assets).
Other.

The “other” element includes: fees for the use of housing and communal services, loan payments, rent, repairs, and so on.

Naturally, the management of each enterprise thinks about how to reduce production costs and get the greatest profit in order to increase its profitability.

To reduce product costs, it is required look for ways to reduce them.

In the cost structure, the largest share is traditionally occupied by material and labor resources, therefore, the primary direction of cost minimization will be the reduction of these costs.

Ways to minimize costs:

Increased production output. Fixed costs, such as rent, are spread over more products.
Search for analogues of materials.
Increased efficiency of equipment use, development of low-budget production.
Reduced use of third party services. If a company uses external services to a minimum, and, on the contrary, performs all functions in-house, then costs can be reduced. For example, reducing delivery or assembly costs.
Reduction of personnel, combination of positions. Not the most pleasant, but one of the most effective methods of reducing costs.
Decrease in inventories.
Relations with suppliers. By providing, for example, a discount on the purchase of your goods to suppliers, it is possible to establish commercial relations with them and buy materials and components at a lower price. Also, you should choose those suppliers who provide free delivery and free repairs under warranty.
Cost intensification. The introduction of new technologies into production and an increase in its volume has a positive effect on revenue; production activities are carried out faster, therefore, more products are produced per unit of time. It is possible to introduce a system of fines for downtime and defects in production, but this in turn can cause negativity on the part of the staff.
Saving energy and fuel.
Reducing telecommunications costs.
Sale or rental of unused premises, equipment, as well as sale of goods with an expiring shelf life.
Reducing tax costs (concluding agreements with individual entrepreneurs and legal entities, etc.).
Exercising control over receivables and payables.
Optimization of procurement, holding tenders.

Using several or one of these methods will help enterprise management reduce costs and reduce production costs. But, in addition to the ways to reduce costs, it is also necessary to know the factors influencing this reduction. Let's look at them in more detail.

The likelihood of a drop in the cost of products can be detected in 2 areas - sources and factors.

Sources are assumed to be those whose savings reduce the initial cost of the product. These are the costs of living and materialized labor, administrative and management expenses. Let's look at the factors below.

Technological

This type of factors is associated with production technology, operation and quality of equipment and includes:

use of new, energy-saving and high-performance equipment;
improving the quality of manufactured products and labor;
modification of the nature and manufacturing technology;
the use of high-quality materials, due to which you can increase the price of products.

Economic

raising the level of work of production and management structures;
improving the work of human resources and economic services;
improvement of organizational structure;
reduction of costs for unreasonable investments.

Organizational

This type of factor involves the organization of labor and production, namely:

reduction in the number of downtime and product defects;
improving the use of funds, material and technical base;
reduction of transportation costs;
stimulating employees for greater labor productivity;
liquidation of obsolete and unnecessary inventories;
increasing the turnover of funds, as well as reducing the production cycle;
ensuring the rhythm of production;
improving the skills of workers.

In addition, factors influencing cost reduction can also be divided into production (inside production) and non-production (external environment, for example, tariffs for housing and communal services, rent).

Now let’s look in detail at what measures exist to reduce the cost of a product, product or service.

The main, most realistic reserve for reducing product costs is considered to be a change in two main parameters characterizing products - depreciation intensity and material intensity.

S/N = M/N + A/N, where

M/N- material consumption, A/N— depreciation.

Savings from reducing depreciation of products can be determined in accordance with the data in the article “Depreciation of fixed assets” for formula:

Savings = ((If * Ia) / In - 1) * da * 100, where

If— index of growth in the value of fixed assets, Ia— growth index of the average depreciation rate, In— index of growth of marketable products for comparable purposes, da— the share of depreciation in the cost of production.

It must be remembered that cost reduction must be based on a systematic and pre-planned approach.

The systematic approach includes a number of activities that can be divided by time frame:

Maintaining financial discipline. The head of the organization must draw up a financial plan and implement measures to reduce costs only by strictly following this plan. Also, it is necessary to create a financial accounting system that includes accounting not only for income, but also for expenses.
Drawing up a cost reduction plan. By analyzing the activities of an enterprise, you can identify weaknesses in it and reduce costs where required. Systematic cost reduction in general should be associated with improved management in three areas: investments, procurement, production processes (improvements due to organizational and technological changes).
Controlling. To reduce costs, monitoring defects, downtime, property damage, and low employee productivity is also effective. Many modern enterprises have a controlling department that deals with these studies.

So, main measures to reduce costs are:

increasing the technical level of production (use of electronic computers, improvement of existing equipment, use of waste, etc.);
increased production management efficiency;
expansion of specialization and cooperation;
reduction of current costs (improved maintenance of main production)
reduction of living labor costs (reduction of lost working time, reduction of the number of workers who do not meet production standards);
reduction in management costs and savings in wages and salaries due to the release of management personnel
elimination of losses, incl. from defects and downtime.
the growth of labor productivity should outpace the growth of wages, thereby ensuring a reduction in production costs.
reduction of workshop and general plant expenses.
increasing product output or changing its structure, assortment and nomenclature
improving the use of natural resources
development of new types of products.

Thus, cost is the most important factor in making a profit for an enterprise. Using a systematic approach, clearly planning areas for cost reduction and controlling this process, you can raise the enterprise to a new level of profitability and competitiveness in the market.

Cost reduction in 1C is lower.

In practice, two methods for determining product costs are most widely used: standard and planning based on technical and economic factors. As a rule, they are used in close interrelation.

In the case of the predominant use of the normative method when determining the cost of products, the norms and standards of the used material, labor and financial resources are applied, i.e. the regulatory framework of the organization.

When determining the cost of manufactured products, organizations, as a rule, draw up an appropriate plan, which includes:

· production cost estimates compiled by economic elements;
· the cost of all manufactured, marketed and sold products;
· planned costing of individual products;
· calculation of cost reduction of manufactured or commercial products based on technical and economic factors.

The most important qualitative indicators of the product cost plan are:

· cost of manufactured, marketed and sold products;
· unit cost of the most important types of products;
· costs per 1 rub. Released, marketed or sold products;
· percentage of cost reduction based on technical and economic factors;
· percentage reduction in cost of comparable products.

The cost estimate for production includes costs, the value of which is determined on the basis of calculations for each element. The costs of raw materials, main and auxiliary materials, fuel and energy in the cost estimate are established based on the production program based on the planned volume, standards and prices. The total amount of depreciation charges is calculated on the basis of current standards for groups of fixed assets. Based on the cost estimate, the costs of all manufactured or commercial products are determined.

The generalized results of the organization's production activities are indirectly reflected in terms of production costs. Its functional purpose is to form leading criteria for assessing production efficiency.

The consolidated cost estimate for the production and sale of products includes the costs of all structural divisions of the organization involved in the production of products; expenses associated with the performance by production personnel of organizing work that is not included in the output of products (construction and installation work for capital construction, work for major repairs of buildings and structures), as well as costs for production and development of production of new types of products, reimbursed at cost and other targeted sources.

The following settlement documents serve as the basis for developing cost estimates for production and sales of products:

· calculation of costs for raw materials, materials, process fuel and energy in the main production;
· calculation of labor costs for production workers of the main production;
· cost estimates (product cost calculations) for auxiliary production shops;
· cost estimates for the preparation and development of production of new types of products, materials, technological processes;
· cost estimates associated with the development of new production facilities and unit workshops;
· cost estimate for special technological equipment;
· estimate of other special expenses;
· estimate of general production costs for the main workshops (except for the costs of maintaining and operating equipment);
· cost estimate for the maintenance and operation of machinery and equipment of production workshops;
· estimate of general business expenses;
· estimate of transportation and procurement costs;
· commercial expenses.

In practice, the greatest difficulty in drawing up estimates is the work on the estimate of general business expenses. Calculation of costs for budget items is carried out by drawing up separate calculations or separate comprehensive estimates with disclosure of costs by element, with the exception of the services of auxiliary workshops, which are included separately. Labor costs for employees of the organization's management apparatus are determined on the basis of the staffing table, official salaries, taking into account the system of additional payments and allowances adopted in the organization, as well as bonuses for production results.

The estimate of general business expenses may include such items as entertainment expenses, business trips, expenses for the maintenance and repair of buildings, structures, equipment, as well as office, printing and telephone expenses.

The estimate of commercial expenses is drawn up for the relevant expense items based on the conditions for the sale of products determined by market conditions and supply contracts.

The initial data for drawing up the estimate are:

· plans for the supply of industrial products to the domestic and foreign markets and the conditions for their implementation;
· standards of material, labor and monetary costs for the production (purchase) of containers and packaging in the warehouses of sales departments;
· norms and standards of costs for delivery of products in cases provided for in supply contracts;
· the amount of commission fees and remunerations established by contracts with supply, sales and trade intermediary organizations;
· cost estimates associated with participation in exhibitions, fairs, etc.

Payment for the services of third-party marketing organizations is included in the estimate in accordance with the cost of these works under contracts.

The basis for drawing up estimates of general production and general expenses are:

· the established management structure of the workshop and the organization as a whole, their staffing schedules;
· fuel and energy consumption standards for heating, lighting and other household needs;
· norms for the consumption of auxiliary materials for the maintenance and repair of buildings and structures;
· norms of depreciation charges;
· cost estimates for repairs of fixed assets, labor protection, testing, rationalization and inventions, etc.

Commercial expenses associated with work performed by the organization’s personnel are included in the cost estimate for work and services that are not included in the volume of products (work, services).

The data determined in the consolidated cost estimate for production and sales of products allows for a comprehensive analysis of the costs that form the cost of production.

Accounting for the costs of production of products (works, services) is carried out in accordance with the Law of the Republic of Belarus “On Accounting and Reporting”, the Basic Provisions on the composition of costs included in the cost of products (works, services), as well as taking into account other current legislative and regulatory acts relating to the formation of cost accounting.

The main task of cost accounting is the timely, complete and reliable determination of the actual costs of production, the calculation of the actual cost of all finished products and their individual types, as well as control over the correct and rational use of material, labor and financial resources in the production process.

Accounting for production costs is designed to ensure timely, complete and reliable reflection of actual costs associated with the production and sale of products, performance of work, provision of services; operational analysis and control over the use of material, labor and monetary resources in the process of manufacturing products, compliance with cost estimates for production maintenance and management; determining the performance results of structural units and the enterprise as a whole; identification of unused reserves, unproductive expenses and losses. At the same time, methodological consistency of planning and accounting must be observed in relation to the composition, groupings and methods of distribution of costs, objects and costing units.

Accounting for production costs is organized according to the places where they arise, depending on the type of product, the type and nature of the organization of production and management of the normative, order-by-order or distribution method.

The normative method of accounting for production costs provides for the creation of a system of existing progressive norms and standards and calculation on its basis of the standard cost of products (works, services); identification and accounting of costs associated with deviations from current norms and standards; calculation of the actual cost of products (works, services) based on pre-compiled calculations of standard costs using data from accounting for deviations from standards and changes in standards.

The custom method of cost accounting is used in individual and small-scale production of complex products, as well as in the production of experimental, experimental, repair and other work. The object of accounting and calculation is a separate production order issued for a predetermined quantity of products (products), volume of work and services.

The cross-cutting method of cost accounting is used in procurement production with mass products that are homogeneous in terms of the source material and the nature of processing. The costs of production are taken into account by workshop (processing processes, phases, stages) and expense items. The objects of accounting and calculation can be individual types, groups of products, united on the basis of the homogeneity of raw materials. The actual cost of production is determined by dividing the amount of costs by the number of products produced in the process.

The use of order-by-order and incremental cost accounting methods involves the use of the basic elements of standard accounting (timely identification of deviations of actual costs from current standards and accounting for changes in standards).

When organizing production cost accounting, an organization can use a non-semi-finished accounting option without reflecting the cost of semi-finished products of its production in system accounting, or a semi-finished option with reflection of the cost in the accounting system when transferring semi-finished products of its production from one division to another.

Planning of production costs is carried out with the aim of determining the total amount of material, labor and financial resources necessary for the manufacture and sale of products and making a profit, ensuring the satisfaction of the social needs of the team and the further development of the organization.

Indicators of planned cost are used in the formation of a profit plan, set prices, determining the economic efficiency of individual organizational and technical measures and production as a whole, during internal production planning. The product cost plan is an integral part of plans (programs) for socio-economic development and business plans of the organization.

Planning of product costs should be preceded by an analysis of the current level of costs, during which costs caused by deviations from the normal organization of the production process are identified (excessive consumption of material resources, additional payments for deviations from normal working conditions and overtime work, losses from equipment downtime, due to defects, expenses caused by irrational economic relations, violations of technological and labor discipline, etc.).

The content of cost planning is to determine the amount of costs necessary for the production and sale of products with the most rational and efficient use of resources of all types. The problem solved is finding the minimum of such costs. However, minimum costs should not be understood as a certain value that is ideally achievable at a given level of production development. Planning is based on real conditions and takes into account restrictions associated with the need to comply with the rules for the use of natural resources and the protection of the natural environment from pollution, and the rules for the technical operation of organizations. Providing safe working conditions, etc. Planned costs are determined taking into account the ways, methods and consequences of their minimization, not from the position of individual organizations, but in the interests of the national economy as a whole.

The initial data for developing a cost plan are:

· planned production volumes in physical and value terms;
· norms of consumption of material resources for production;
· contracts for the supply of material resources and sales of manufactured products, production services and the establishment of other economic relations, containing the conditions for their implementation and payment;
· norms of labor costs, calculations of the number, professional composition of workers, wage conditions determined by collective agreements and contracts;
· economic standards (tax and fee rates, fees for natural resources, depreciation rates for compulsory insurance against accidents and occupational diseases, compulsory insurance payments, etc.);
· plans for technical re-equipment, scientific and technical development, improvement of the organization of production, labor and management of calculations of the resulting economic effect;
· measures developed based on the results of a technical and economic analysis of production, aimed at eliminating unnecessary costs and losses.

Cost planning can be current and long-term. Current planning (for the year) provides for clarification of long-term plans based on data from planned estimates and calculation of production costs. Long-term planning is developed for a number of years.

The second method for determining the planned cost of production in long-term planning is to calculate the influence of the most important technical and economic factors on the cost level. This calculation is based on a quantitative and qualitative analysis of the dependence of production costs on various changes in the structure of products, the level of technology, technology, etc.

The list of factors used in planned calculations is determined on the basis of a selection of permanent causes that influence changes in the cost of production and are associated with the normal production process and the improvement of its organization, equipment and technology.

Let's consider the methodology for calculating cost savings for individual main factors.

Savings due to changes in the level of technology and organization of production (E p) are determined by the formula

Ep=[(Z 0 K 0 +Z 1 K 1)/(K 0 + K 1 -Z 1 ]*Kp,

where Z 0 and Z 1 are variable costs per unit of production before and after the event, rub.;

K 0 and K 1 - the number of units of products produced from the beginning of the base year before and after the event, pcs.;

(Z 0 K 0 +Z 1 K 1)/(K 0 +K 1) - average annual costs per unit of production in the base year, rub.;

K p - number of units of products produced in the planned year, pcs.

Savings from reducing material costs (E m, s) are found using the formula

E m,z = (N m0 *C-N m1 *C)*n,

where N m0, N m1 - the rate of consumption of materials (raw materials, fuel, energy) per unit of production, respectively, before and after the event, kg;

C - price per unit of materials (raw materials, fuel, energy), rub.;

n - number of units of products produced from the moment of the event until the end of the planned year, pcs.

Saving wage costs with taxes and deductions as a result of reducing labor intensity 1 unit. products (E t) is determined by the formula

E t =[(T 0 H 0 -T 1 H 1)*(1+v/100)*(1+g/100)]*K 1,

where T 0 and T 1 are the labor intensity per unit of production in standard hours, respectively, before and after the event, n.-hour;

H 0 and H 1 are the average annual wage rate of the worker before and after the event, respectively, rub.;

c-average percentage of additional wages for this category of workers,%;

g-established percentage of taxes and deductions, %;

K 1 - number of products produced from the moment of the event until the end of the planned year, pcs.

Savings when releasing time-wage workers (E op.t) are determined by the formula

E op.t =(K slave *ZP*(1+g/100))*M,

where K slave is the number of released workers, people;

ZP - average monthly salary of this category of workers, rubles;

r - established percentage of taxes and deductions,%;

M is the number of months from the date of the event until the end of the year, months.

As part of changes in the structure of raw materials, the influence of production specialization can be highlighted. In this case, only that part of the changes in the share of purchased semi-finished products that is not associated with changes in the structure of manufactured products is taken into account. Savings due to production specialization (E s) can be determined by the formula

E s = (C-(C+P))*K 1,

where C is the production cost of individual products, rub.;

C-wholesale price at which products will be supplied from specialized enterprises, rubles;

P-transportation and procurement costs per unit of relevant products, rub.;

K-number of products received from the moment of specialization until the end of the planned year, pcs.

Calculations of the impact of quality changes on costs per 1000 rubles. Commercial products should take into account not only changes in cost, but also the volume of commercial and sold products associated with an increase in wholesale prices or the application of premiums and surcharges to previously existing wholesale prices. Savings or additional costs from improving quality (E k) are determined by the formula

E k = (Z 1 -Z 0)*K,

where Z 0 and Z 1 are the costs per unit of production before and after quality improvement, rub.;

K is the number of units of high-quality products manufactured in the planned year, pcs. The increase in the volume of marketable products as a result of the application of a price premium for increased product quality (V pr) is determined by the formula

V pr = (C 1 - C 0)*K 1,

where C 0 and C 1 are the wholesale price valid before and after quality improvement (or the average price of a unit of production with the average grade of products of the base and planned year), rub.;

K 1 - number of units of improved quality products (higher grade) produced in the planning period, pcs.

Relative savings on semi-fixed costs (E r) with an increase in production volume are determined by the formula

E r = (T*SS*U n)/(100*100),

where T is the growth rate of marketable products in the planned year compared to the base year,%;

CC-cost of commercial products or individual cost elements (expense items) in the base year, rub.;

U n is the share of the given fixed costs in the cost of marketable products or individual cost elements (expense items) of the base year,%.

Savings on fixed costs are calculated based on the growth rate of commercial products without taking into account the increase (decrease) in its volume due to an increase in the quality of the product (average grade), etc. Relative savings on depreciation as a result of deductions as a result of improved use of production assets (E a) is calculated using the formula

E a = (A 0 /VP 0 -A 1 /VP 1)*VP 1,

where A 0 is the total amount of depreciation charges in the base year, rubles;

A 1 is the total amount of depreciation charges in the planned year, rubles;

VP 0 and VP 1 - volume of marketable products in the base and planned year, rub.

The impact (savings) of introducing new (elimination of obsolete and ineffective) workshops, production facilities and units (E) is determined using the following formula:

E=VP*((Z 1 -Z 0)/100),

where VP is the volume of commercial products of the new workshop, production or unit in the planned year, pcs.;

Z 1 - costs per 1000 rubles. Commodity output of the organization in the base year, rubles;

Z 0 - costs per 1000 rubles. marketable products of a new workshop, production or unit in the planned year, r.

In plans and reports of industrial organizations, the cost of production is characterized mainly by two indicators: changes in the cost of comparable products and costs per 1r. products. Comparable products include all types of products produced by the organization in the base year. Costs per 1 rub. products are determined (both in the plan and in the report) by dividing the planned (reported) cost of manufactured products by its planned (actual) volume in value terms.

The dynamics of the cost of all products is characterized by a comparison of cost indicators per 1 ruble. products in the base and planned periods. It is advisable to carry out such a comparison in prices of the planned year.

Opportunities for reducing product costs can be identified and analyzed in two directions - by sources and factors.

By source, costs are understood, due to the savings of which the cost of production is reduced. These include the costs of living and material labor, administrative and management costs.

Factors are considered to be activities that cause changes in the cost of production. All factors are usually divided into national economic, intra-industry and intra-production factors.

National economic factors - changes in prices for materials, structures, electricity tariffs, tariff rates.

Intra-industry factors include improving material and technical supplies, increasing the level of concentration of production and consolidation of organizations, specialization, improving the management structure, and developing cooperation.

Intra-production factors involve saving material resources, increasing the volume of work performed, improving the use of machines, mechanisms, equipment, etc.

The following areas are identified in which reserves for reducing costs can be identified: raw materials, wages, maintenance and operating costs. Equipment, general and general production expenses, increased labor productivity.

The organization needs a well-functioning system for allocating costs to those types of products for the production of which they were used. It is necessary to have accounting and control systems everywhere and at all stages of production (from the receipt of raw materials and supplies to the delivery of finished products to the sales department and their sale). Only with such control is it possible to reduce the costs of production and sales of products.

Table 7. Values and ways to reduce costs

Expenditure	Measures to reduce costs
Raw materials	Search for raw materials and materials at lower prices from different suppliers. Use of cheaper substitutes for raw materials and materials in technology. Reducing losses (defects, theft).
Purchased products, semi-finished products and production services of third-party enterprises and organizations	The measures are similar to those indicated above. Additionally, it is necessary to reduce the organization’s dependence on third-party suppliers by organizing its own production (if economically feasible) of these products.
Fuel and energy for technological purposes	Installation of accurate metering devices for these energy resources. Creation of a system of material incentives (bonuses for savings, penalties for overspending). Reducing heat loss at all stages of the production process through the use of new heat-saving materials in construction, insulating old buildings.
Basic salary for production workers	Increasing labor productivity while maintaining wages through the introduction of progressive machines and mechanisms, the use of an effective standardization system that promotes production growth.
Additional wages for workers	Introduction of an effective system of material incentives, minimizing “equalization” in promotion, maximum use of piece-rate wage systems.
Expenses for maintenance and operation of equipment	Careful attitude towards equipment, strict adherence to its operating modes, timely implementation of scheduled repairs, replacement of outdated models with more progressive and reliable ones.
Shop expenses	The introduction of more advanced technological production schemes, the use of technical means of monitoring the work of personnel, machines and mechanisms, leading, among other things, to a reduction in the number of administrative and managerial personnel in workshops.
Factory overhead	The activities are similar to the item “Shop expenses”.

Note. The text of the problem was taken from the forum.

Task. Determine cost reduction

In the reporting year, ore production at the mine amounted to 1,850 thousand tons. For the planned year it is planned to increase production to 1980 thousand tons. The cost of 1 ton of ore in the reporting year is 98 UAH 30 kopecks, including conditionally fixed costs of 44 UAH 50 kopecks.
Define:
1. Reducing the cost of ore due to increased production volume (in%)
2. Cost of 1 ton of ore in the planning year

A comment.
Thanks to the teachers for replacing “rubles” with hryvnias, but... this was the cost of ore mining around the 80s of the 20th century. That is, the task has been preserved “since the times of Soviet power.” It was worth at least taking an interest in the real figures in the mining industry.

The task, again, is simply on the student’s ability to count in a column. Requires knowledge within the 6th grade of secondary school and a general understanding of the principle of "variable costs / fixed costs." So, approximately 9th grade. In extreme cases, it will be suitable for a technical school.

It should be noted that the author of the problem understands the term “cost” as the full cost of marketable products. Because under other assumptions, the problem simply cannot be solved, since we are talking exclusively about ore production, but not a word about sales. And in “real life” semi-fixed costs will be written off not on extracted, but on sold products! For some reason, university teachers forget about such “little things.”

An economist should at least think about the level of growth of semi-fixed costs based on inflation data and expectations of wage growth, etc.

Solution.
We define conditionally variable expenses.
98.30 - 44.50 = 53.80 hryvnia per ton

We determine the level of semi-fixed expenses.
44.50 * 1,850 = 82,325 thousand hryvnia

Determining the level of semi-variable expenses
53.80 * 1,980 = 106,524 thousand hryvnia

Total production costs will be
82,325 + 106,524 = 188,849 thousand hryvnia

Planned cost per ton of marketable products (see comment)
188,849 / 1,980 = 95.38 hryvnia per ton

The reduction in the planned cost of marketable products due to an increase in production volumes will be:
(98,30 - 95,38) / 98,30 * 100% = 2,97%

Answer: 1) 2,97% 2) 95,38

Task. Determine material cost reduction

In the planning period, material cost rates and planned prices for its purchase change. These changes are characterized by the following data:

Determine the overall reduction in material costs in the planning period in absolute and percentage terms.

Solution.

To produce one item for each of the products in the base year.

Costs for one product A in the base year = 0.9*184=165.6 UAH.

Costs for one product B in the base year = 0.15*198=29.7 UAH.

Costs for one product B in the base year = 1.5*172=258 UAH.

Let's find production costs all products in the base year.

Costs for products A = 400 * 165.6 = 66240 UAH.

Costs for products B = 1200 * 29.7 = 35640 UAH.

Costs for products B = 800*258=206400 UAH.

Let's find the costs of material resources to produce one item for each product in the plan year.

Costs for one product A in the planning year = 0.8 * 191 = 152.8 UAH.

Costs for one product B in the planning year = 0.10 * 202 = 20.2 UAH.

Costs for one product B in the planning year = 1.4 * 175 = 245 UAH.

Let's find production costs about all products in the planning year.

Costs for products A = 400*152.8=61120 UAH.

Costs for product B = 1200 * 20.2 = 24240 UAH.

Costs for product B = 800*245 = 196,000 UAH.

In the planning period in value terms for each product.

Reducing costs for products A = 66240-61120 = 5120 UAH.

Reducing costs for products B = 35640-24240 = 11400 UAH.

Reducing costs for products B = 206400-196000 = 10400 UAH.

Find a reduction in material costs in the planning period in relative terms for each product.

Cost reduction for products A = 61120/66240 = 0.9227

1-0,9227= 0,0773

Resource costs decreased by 7.73%

Reduced costs for products B = 24240/35640 = 0.6801

1-0,6801= 0,3199

Resource costs decreased by 31.99%

Reduced costs for products B = 196000/206400 = 0.9496

1-0,9496= 0,0504

Resource costs decreased by 5.04%

Find the cost reduction for all products in the planning period in value terms.

Cost reduction for all products = (66240+35640+206400)-(61120+24240+196000)=308280-281360=26920 UAH.

Let's find the cost reduction in relative terms and for all products in the planning period.

Cost reduction in relative terms = 281360/308280 = 0.9127

Resource costs decreased by 8.7%

Answer: total costs for production of products decreased by 26,920 UAH. in the planning period. In relative terms, the decrease was 8.7%. The most effective was the reduction in costs for product B. The savings amounted to 11,400 UAH.

Task. Selecting a cost reduction project

The Interval enterprise produces products B and D. In the planning year, the company's managers are tasked with reducing the cost of production for one of the products in such a way that the greatest cost savings are achieved. Product output in the planned year remains unchanged.

Determine and justify for which product the cost should be reduced. Set prices for products that the enterprise produces and determine the profit of the enterprise in the planning year. Data for calculations are given in the table.

15. Factors of reduction (increase) of cost are understood as such changes in the conditions of production activity of an enterprise that affect the absolute value of production costs and the level of costs per ruble of marketable products.

16. It is recommended to calculate cost based on technical and economic factors according to the following scheme:

the costs of the base period are determined per 1 ruble of marketable products. The base level of costs is the costs of the previous period.

By multiplying the costs of the base period by the volume of marketable products of the planned period, its cost is calculated while maintaining the conditions of production and sales of products in the base period, i.e. the volume of marketable products of the planned period is taken at the prices and conditions of the base year (without taking into account the impact on individual and average (group) prices of improved product quality, changes in production location and other conditions);

a decrease (increase) in costs included in the cost of production is determined, due to the influence of individual technical, economic and other factors.

17. When determining savings due to the action of all technical and economic factors (except for changes in the volume of production and the use of fixed assets), only the reduction of variables directly proportional to the volume of production and costs is taken into account. Relative (per 1 ruble of marketable products) savings in semi-fixed costs and depreciation charges are considered as a result of an increase (decrease) in the volume of production and improved use of fixed assets. The influence of each technical and economic factor on the level of production costs is determined by calculations using the methodology given below.

18. Savings due to an increase in the level of technology and organization of production are determined taking into account the time of carrying out the relevant activities. If the event planned in the plan is not carried out from the beginning of the year, then the calculation reflects only part of the effect obtained during the period from the beginning of the implementation of the event to the end of the year. If an activity is implemented in the base period, then the carryover savings from implementation in the base period must be taken into account in the planning period.

This saving is equal to the difference between the value of conditionally variable costs per unit of production in the base period and their value after carrying out organizational and technical measures, multiplied by the volume of production of the corresponding types of products in the planning period.

Formula:

Eg = (Zb - Z1) x Pp,

At the same time, it is necessary to ensure that the impact of changes in the structure and quality of the supplied material resources on their cost is not taken into account again, for example, by the factor “Increasing the technical level of production.”

27. The impact on the cost of production of reducing defects is calculated as a whole, regardless of what measures result in the reduction of defects.

For the products of factories processing non-ferrous metals, carbide and carbon industries, where defects are planned, the impact on the cost of reducing losses from defects in the planned year is equal to the amount of savings from eliminating excess defects and from reducing the rate of planned defects.

28. In calculating the impact of changes in the volume and structure of manufactured products, the following main factors are highlighted:

Relative change in semi-fixed expenses (except for depreciation), caused by a change in the volume of production;

The degree of use of fixed assets and the associated relative change in depreciation charges;

Changing the structure (nomenclature and assortment) of products.

A change in the volume of products produced leads to a relative (per 1 ruble or unit of marketable product) change in semi-fixed costs.

Depreciation and repair fund (where it is created) are classified as semi-fixed expenses, but the relative change in these costs is determined by calculating individual factors.

The magnitude of the relative reduction in semi-fixed costs is determined based on the share of these costs in the cost of marketable products of the base period.

Considering that an increase in the volume of manufactured products causes a slight increase in semi-fixed expenses, for calculations of the planning period the share of semi-fixed expenses of the base period is clarified. To do this, conditionally fixed costs are reduced to completely constant using the following formula:

У x (Тп - Тз) Уп = -----------------, Тп

Where:

UP - the share of the given conditionally fixed costs in the cost of marketable products of the base period or in individual cost elements (expense items) in%;

Y - the share of semi-fixed costs in the cost of commercial products or in individual cost elements (expense items) in the base period in %;

Тп - growth rate of the volume of marketable products in the planned period in comparison with the base period in %;

Tz is the growth rate of this type of cost due to an increase in production volume in %.

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