How to calculate the cost
Video: How to Calculate Total Cost, Marginal Cost, Average Variable Cost, and ATC 2024, July
One of the main indicators of the economy of production is the cost of production. Understanding of which components the cost is made up is necessary for the analysis and planning of the activities of any manufacturing enterprise.
Instruction manual
1
To calculate the cost of production means to determine the amount and find out the structure of its production and non-production costs per unit (volume unit) of the product in question.
2
The calculation of production costs begins with semi-finished products, materials, raw materials and energy directly used in the technological process.
3
The next type of expense is the wages of production workers, taking into account the norms of social contributions.
4
In the development of new types or production of non-serial products, it is impossible to exclude the costs of the preparation of production, the development of new technologies.
5
Closely related to the content of the article are non-capital expenditures related to the improvement of technology in order to improve the quality of the product.
6
Next, the costs are determined for the supply of raw materials and materials, for the maintenance of production and maintenance of the basic functions of the enterprise.
7
The next type of cost is the cost of providing working conditions, the implementation of safety measures, environmental equipment and environmental measures.
8
The cost includes maintenance, maintenance and operation of equipment and depreciation charges, taking into account depreciation and the need to replace tools and equipment in the production process.
9
Actual cost may include other types of direct and indirect (hidden) costs, which can be classified in various ways. The most important types of classification are classification by cost elements and its complementary classification by costing items.
10
You can calculate the cost as "on average, that is, using the average cost indicators for a certain period, referred to the total number of products of the same type released during this time, and the cost calculation with an article-by-line determination of all types of production costs per unit of output.
