As is known, no production can not exist without the cost of purchasing production assets.They are called costs.Count them in various ways.Cost analysis carried out today in relation to the volume of production and the method of evaluation of costs.
Considering the process of buying and selling from the perspective of the seller, the main purpose of generating income from the transaction will be done by the reimbursement of costs associated with the manufacture of products.
In this connection, allocate alternative, accounting and economic costs.
Imputed (economic) expenses are business expenses, which, according to the businessman, he had incurred during the production process.These include, in particular, include:
- acquired company resources;
- not included in the turnover of the domestic assets;
- normal profit that the entrepreneur sees as compensation for the risk in the business.
Thus, it is the economic cost of the entrepreneur is committed, first and foremost, with the help of the price to compensate.If for any reason it had not, then it goes away from the market.
To obtain the necessary inputs for the enterprise requires certain tools.Payments cash costs related to the acquisition of resources, called the accounting costs.They are always less than the economic.This is mainly due to the fact that accounting costs are taken into account only the actual costs for the acquisition of production assets from third-party suppliers.These costs are decorated legally exist in real form, which is the basis for accounting.
Increased production inevitably leads to an increase in costs.Since the development of production can not be infinite, the costs are considered to be one of the key parameters in determining the optimal size of the enterprise.
There are costs that organization is, regardless of the volume of industrial activity.Such costs are called permanent.This category of expenses include rent for premises, expenses for depreciation of equipment, loans, taxes, payroll employees.There
costs, the size of which depends on the production volume.Such costs are called variables.This category includes advertising costs, transportation, raw materials, staff salaries and other third-party.Expansion of production provokes an increase and reduction - reduction of variable costs.
Separation costs into variables and constants is considered conditional.This classification is used for a short period of time in which a series of factors of production is constant.
variable and fixed costs in the amount form the total costs.This total cash costs for the production of a certain amount of goods.
interdependence and connection of fixed and variable costs is expressed mathematically as follows:
TC- VC = FC;
FC + VC = TC;
TC- FC = VC.
This FC - permanent and VC - variable costs, and TC - total costs.
The calculations and graphing costs should be borne in mind that FC are equal to some constant.Therefore, total costs will change according to the behavior of the VC.In other words, the total cost of the enterprise in the short term are determined by the law of diminishing marginal productivity.
Average total costs are total costs, which fall on the unit price.These costs are compared with the price of the products, and as a result formed an idea of the profitability of the organization.This average total costs are reduced due to lower variable and fixed costs of average.
