How to calculate the cost of the enterprise

A market valuation of an enterprise is nothing more than an analysis of key indicators that testifies to the effectiveness of its work. However, the formation of the market value of a business is influenced by many factors, including prime cost.

You will need

• - financial statements of the enterprise;

• - accounting documentation;

• - calculator.

Instruction manual

1

In accordance with the "Regulation on the composition of costs", the cost can be calculated in two ways: according to costing items (in this case, all costs are distributed by place of occurrence, purpose and other indicators), as well as by cost elements (grouping of costs based on their economic content) Pay attention to the fact that depreciation deductions, material costs, labor costs and social charges, as well as other expenses are distinguished among the cost elements.

2

Calculate the production cost, which is a set of costs that relate directly to production.

3

Calculate the cost of gross output. To do this, adjust the production cost by the amount of changes in the balances of future periods, for example, rent for the use of production space in the coming year. If the balances of future periods increase, then this value is subtracted from the production cost and vice versa.

4

Calculate the cost of commercial products: adjust the previously calculated cost of gross production by the amount characterizing the balances of the incomplete period and non-production costs.

5

Calculate the cost of sales. To this end, adjust the cost price of marketable products by the amount that characterizes the change in the balances of finished products.

note

Carefully calculate each indicator: incorrectly performed intermediate calculations affect the final result!

Useful advice

The cost of the enterprise is used to determine the financial result of the company - profit or loss.

Cost, cost and performance