main activity of the enterprise in the modern sector of the economy is the production of products, services and works.The aim of all these measures is to make a profit.To get the maximum profit, you need to optimize the ratio of the volume and cost of production.Under the cost of production refers to the social labor costs associated with the production and sale of products.In some countries, the concept of "costs" and "costs" are treated differently, but in the domestic practice to characterize the costs of using the term "production costs."
important to control costs is their classification.For the planning, analysis, accounting and cost calculation there is the following classification of expenses on elements:
· Singleton and complex (composition);
· Article costing and cost-homogeneous elements (by type);
· Basic and overheads (by appointment);
· Permanent and temporary (like the relationship to the volume of production);
· Manufacturing and Non-manufacturing (by nature of expenses);
· Direct and indirect (by the method of classification of individual products to the cost);
· Planned not planned (for the coverage plan);
For most convenient calculation of costs and profits, costs allocated following classification:
· Inbox - here have acquired the resources that are currently available.It is expected that these resources in the future should bring a good income.The balance of such resources are shown as assets work in progress, inventory, goods, finished products.
· Expired - it spent resources from which the income has been received, and that most of it will not be able to bring.In the balance sheet, they are recognized as a cost of production of sales, in other words, the incoming costs are transferred to the past.
It should be noted that the classification of the costs of incoming and past is essential to assess the company's assets, calculating gains and losses.
For easy cost calculation is also used in the classification of costs:
· Straight (total cost is directly dependent on the volume of production) and indirect (costs that do not depend on the volume of production);
· Non-manufacturing (not included in stock valuation) and included in the cost of finished goods (manufacturing costs of unfinished production and finished product before its implementation).
· Singleton (allocate material expenses, deductions for special needs, labor costs, depreciation costs, other expenses) and complex (consisting of several economic elements).
· Overhead (costs associated with the management and servicing of production) and overhead (costs associated with the maintenance of equipment, machine production units, etc.).
Optional equipment, product mix and prices in the justification of the decision to use the following classification of costs:
· Fixed and variable;
· Planned or planned;
· costs recognized and taken into account in the calculation of decision-making.
There is even the so-called classification of quality costs.According to one of the most famous are the following costs:
· Preventive costs (costs incurred to produce products that will meet quality standards).
· Costs for quality assessment (costs incurred in order to ensure that the manufactured products meet the requirements of consumers).
· costs resulting from the detection of internal inconsistencies as (expenses incurred in identifying the defective part or product of the production process until the moment when it goes on sale).
· costs resulting from the external condition is detected as (expenses emerged in the case when the defect was discovered by the buyer).