Cost of the formula for calculating the total cost

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As of today, a large number of citizens have the opportunity to engage in some kind of business.But it is not always possible to correctly calculate the final cost of a specific product.Yes, and calculate profits - too many not an easy task.This requires a cost of production formula.After knowing it, you can make all the necessary calculations.

To make this calculation, need to understand what exactly is calculated, and in general, what is the cost of the formula which is necessary for the correct calculation.Some of the concept of nothing says, though it has seen the value in the title.Simply put, the cost, the formula of which is extremely necessary for the calculation of both profits and the final price of a product is presented as a total monetary value of all funds that have been spent on the production and sale of a particular product.

In order to carry out its payment should understand what the individual elements of it may consist.A logical statement is that every manufacturing process for the production of a unit of production will include the use of components such as raw materials, electricity, fuel, labor and natural resources, and so on.

Economists are several ways in which can be calculated from the total costs.The formula of this process is displayed by means of the elements of the economic costs of calculation using the (individual types of costs) articles.

So, the first method is used in calculating the cost of high-volume, mass production.It costs will be made up of separate components such as:

- the cost of materials,

- raw, which is intended for production;

- funds intended for the payment of workers;

- depreciation or amortization funds are used directly in the manufacturing process;

- systematic payments, which are intended to be transferred to state funds for various social needs;

- other costs that are not directly related to the production process (overhead costs in the manufacturing process, the cost of implementation, the cost of advertising campaigns, etc.).

After summing these cost items, the overall cost of the party get a particular product as a whole.

used to calculate the cost of a single formula for calculating the unit cost of manufacturing the product taken concrete products will be expressed by the sum of the following articles of the calculation:

- the amount of raw materials needed to carry out the production of a unit of production;

- fuel and electricity necessary for the industrial needs;

- semi-finished products, components, parts and other things that are available to other industries;

- basic and additional funds of compensation of employees;

- social benefits;

- depreciation of buildings and equipment;

- wear low-grade tools and accessories;

- the total amount of other expenses in the shop, where the production process.

resulting amount above cost will be known as "cost": its formula is derived specifically for each individual type of production or perform any services.

Once the products are sent to sell and the service becomes available to the consumer, to the said amount should be added more and the following costs:

- total costs for the enterprise as a whole;

- advertising;

- Other Non-manufacturing costs, which are necessary for the transport and sale of established products.