What is the cost and what is included in its composition?

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Any enterprise producing any goods or performs any services, a business plan.This amounts to an annual program containing a description of the activities of the company, the planned volume of production, revenue, profit and costs.In turn, the cost is given a person about that a production cost.

introducing new technology, using the work of machines and equipment, burning fuel and wasting materials, the company spends a lot of money on output.They are the basis of cost - the main indicator, which is based on the economic efficiency of the company.

analysis of the indicator allows you to find the volume of production, in which the output will be profitable.The base cost is constant (does not depend on the volume of production) and variable (may vary depending on the volume measures of output of goods) costs.So what is the cost and what is included in its composition?

This figure is considered in the context of articles costing and cost used for the production.The basis for calculating the total cost based on the following costs:

- material costs, including the cost of components such as raw materials, parts, components, etc .;

- Depreciation of property, equipment and fixed assets;

- wages of workers involved in the production process;

- deductions from gross wages and salaries: the so-called retirement, and social insurance contributions;

- other costs.

more complete picture, explaining that such cost representing the industry department of the enterprise.Each department or workshop, participating in production, has highly specialized costs.For example, they include the costs of administrative and general need for defective products and recyclable waste, labor workers and deductions from it in the purchased components and third-party services and other expenses.All these components are included in the structure of such a thing as a shop cost.

Each department, each department and each subsidiary production, either directly or indirectly involved in the production of products, affects the underlying price of the commodity costs.Therefore, the performance of each member of the production process to minimize the cost of sales, increase revenue, and as a result, the net income.It depends on these factors, the company's profitable work.

What is the cost of sales?All costs incurred by the company for the sale of products, including third-party services, transport, and others, are part of this index.Of sales gives another such figure as the cost of goods sold.The basis of this indicator is the cost of production of the goods on sale and management.

Thus, the cost - a cost value of the sum of all costs incurred by the company in the production, storage and marketing of products.A net profit is the main and the main indicator of the organization to which it affects.