How to calculate the total cost

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One of the main economic indicators of production is the cost of production. The concept of cost allows you to analyze and plan the production activities of any enterprise. The full cost takes into account all existing costs for the production of products and their implementation.

Instruction manual

There are two methods of calculating cost: costing and cost estimates for production. Using the latter method, you can calculate the cost of the total volume of products produced during the year. Also, this method is called budget.

In this method, there are nine articles of the same name, summing which you will receive the cost of total production for a period of one year.

Calculate the cost of the basic materials that make up the manufactured products. Determine the cost of additional materials used in the intermediate stages of manufacture, but not included in the final composition of the product.

Consider the cost of semi-finished products, as well as finished products purchased from other enterprises and included in the final composition of the product. Include fuel and energy costs.

Calculate the salary costs of all employees of the enterprise for one year, as well as an additional salary equal to 12% of the salary. Consider deductions for compulsory social insurance in the amount of 38% of the amount of the additional and basic salary.

Include depreciation, as well as the cost of maintaining production equipment and tools.

Using the calculation method, you can calculate the cost of each individual product. This method includes thirteen articles, by summing which you will get the cost of the calculated products.

Here, in addition to the above calculations, add also the costs of product sales, workshop, factory and non-production costs.

Calculate the full cost of production by the formula:

Pst = MO + MV + PF + TR + A + E + ZO + ZD + OSS + TsR + ZR + NR, where MO is the cost of basic materials; MV - the cost of additional materials; PF - the cost of the purchase of semi-finished products; TR - transportation costs; E - the cost of technological energy; A - depreciation; DA - the main salary; ZD - additional salary; OSS - deductions for social insurance; ЗР - factory expenses; ЦР - shop expenses; HP - non-manufacturing expenses. Costs of sales are accounted for separately.