The concept of management accounting costs play an important role, as in the normal course of business analysis is required.Semi-fixed costs - a general business expenses, advertising costs, as well as those that do not depend on the volume of production.This part of the costs have each organization, so its study and optimization allow to increase profit.
Why should I split the cost of the classes?
To analyze the costs of the enterprise was easier and more efficient, they are usually classified according to certain criteria.This separation allows to reveal their relationship and to calculate how much each individual item costs affect the cost of production and profitability of the business as a whole.
to the cost structure of the company had order, need to effectively wage bills and expenses tied to objects.For this purpose, the costs are classified according to similar characteristics.Selecting differentiation defines an object, if it changes, it can cause changes cost categories.
types of classifications:
- subjective.Costs are grouped in accordance with the specific characteristics: direct or indirect, fixed or variable.
- objective.In this case, the subjective classification is tied to a specific object.
Each plant costs can be differentiated in various ways to the cost structure was clear and understandable.Management accounting allows you to choose the most appropriate method.It should be noted that all the costs are grouped by type of expenditure, cost and place where they occur.
By type of costs can be divided according to economic factors and uniform accounting articles.
a cost - a product, work or services.This category of expenditure is needed in order to determine the unit cost of production.
costs and their classification depend on the place of origin: it may be production facilities or other units.It is advisable to group costs into account, so that information was accessible as possible to analyze the costs and determine the strategy of saving.
costs and their classification
The enterprises distinguish the main types of costs:
- fixed costs;
- semi-variable costs.
semi-fixed costs - those which do not depend on the time period and the volume of production.These costs are increased with an increase in the scale of economic activity, but at a slower pace.In some cases, the growth tends to spikes.
Simply put, semi-fixed costs - are those that arise in the sharply increased volume of production, such as the cost of additional equipment.
semi-variable costs include costs that relate to the purchase and sale of products.Their value depends on many factors: the prices of suppliers, inflation and others.
Total costs are calculated as the sum of the semi-variable and fixed costs.
To calculate in co-operative building semi-fixed costs, the formula should be: You need to add the cost of all enterprises and institutions that are cooperating building.
Internal and external costs
With respect to environmental costs are categorized into internal and external.Internal costs of the enterprise on its own finances, and caring for external instructs other organizations or society as a whole.
Grouping costs in the areas and items used for the calculation of the cost of production and sale of goods or services.To make it easier to calculate the losses and gains, to analyze costs and set prices, prepared calculation sheet.As cost items are divided depending on the role they play in the company and what needs are used.
Indirect and direct costs
on indirect or direct costs are divided according to the method of allocation of costs to the cost.
Indirect costs are those that are not charged per unit of production, and accumulated in the accounts.Thereafter, they are included in the calculation process costs.As a rule, the indirect costs are taken into account in the places of their origin, and then distributed between types of products.These include the salaries of temporary workers, or the cost of purchasing additional materials.
Direct costs are accrued on the basis of primary documents for each unit of production.All costs relating to a particular product, called direct: purchase of raw materials, the basic salary of the workers, as well as any other material costs.By the calculation of the object, it should be understood that the greater the proportion of direct costs, the more accurate we can calculate the cost per unit of product.
costs of technical and economic
According to the feasibility purposes, the costs can be divided as:
- Main.
- overhead.
The main expenses made are those that are directly related to the production process or the provision of services.It costs required to implement the production and release specific product: value of materials, the cost of electricity, fuel, labor and so on.
overhead and administrative expenses are considered to be indirect.They are connected with maintenance of the structural divisions of the enterprise.
costs, characterizing the activities of the enterprise
To analyze the activity of the enterprise as a whole and to assess the finished products, the cost structure of the company is as follows: the costs are divided into incoming and past.By entering the acquired funds are used for profit.If, over time they have lost relevance or consumed, they are transferred to the past costs.
in assets included costs may be reflected in the quality of goods, finished goods, stocks or work in progress.
costs that relate to the social or management development programs, called discretionary.To get the average unit costs, it is necessary to lay down specific fixed and variable costs.
Types of variable costs
Depending on changes in production volumes, fickle costs can be divided into types:
- proportionality.These costs are changed at the same pace as the scale of production.
- Progressive.Such costs are increasing much faster than the growth rate of activity of the enterprise.This may be due to outages or downtime.
- degressive.In order to increase profits and reduce costs, the rate of these expenses must exceed the rate of progressive and proportional costs.
semi-variable and semi-fixed costs - these are important indicators of any business, so you need to clearly understand the mechanism of their formation.
