How to determine the cost of commercial products

The creation of any product requires the expenditure of various resources: monetary, labor, natural, land, etc. To determine the cost of marketable products, you need to summarize all the financial costs aimed at its production and sale.

Instruction manual

1

To calculate the cost of production, several methods are used, depending on how expenses are kept: normative, process, variable and custom. In addition, there are several types of cost depending on various factors, for example, on the degree of product readiness: gross, marketable and sold.

2

To determine the cost of marketable products, you need to add the value of production costs and overhead costs, such as packaging of goods, their transportation, storage at the warehouse, various fees, etc.: Stp = PS + HP.

3

Production costs are formed from the total costs of production minus non-production costs and deferred income. The first value is the sum of the following components: - material costs (procurement of materials, semi-finished products, raw materials, equipment, energy and fuel consumed); - depreciation expenses (restoration of worn fixed assets); - remuneration of employees; - deductions to social funds (pensions, insurance), etc.

4

Non-production costs: - expenses for capital construction or repair work at the enterprise; - payment of third-party transport; - costs of economic activity not related to the main production.

5

According to the regulatory method for each product, the standard cost is calculated in advance, and during the reporting period, adjustments are made in accordance with current standards. In the event of a deviation from the norm, its cause is established, and at the end of the period, the total cost of the commodity products is formed as the normative value, taking into account deviations and changes in norms.

6

To determine the cost of commercial products by the process method, you need to divide the production cycle into processes and keep an actual record for each of them. In the successive method, the cycle is divided into stages, each of which ends with the creation of an intermediate or finished product.

7

The custom method involves accounting for the cost of each individual order. Orders can be for a different quantity of products and at different prices, the totality of all expenses is formed at the execution stage. The unit cost in this case is obtained by dividing the total value by the volume of the consignment.