costs of the company - a collection of all the costs of products or services, expressed in monetary terms.In the Russian practice often referred to as cost.Every organization, no matter what kind of activity it is involved, has certain costs.The costs of the company are the amounts that it pays for advertising materials, rent, labor, workers, etc.Many leaders try at the lowest possible cost to ensure the effective operation of the enterprise.
Consider the basic classification of the costs of the company.They are divided into fixed and variable.The costs can be seen in the short and long term.Long in the end makes all the variable costs, since during this time can result in some large projects and the beginning of another.
costs the company in the short term can be clearly grouped into fixed and variable.The first type includes the costs that do not depend on the volume of production.For example, deductions for depreciation of facilities, buildings, insurance premiums, rent, salaries of managers and other employees belonging to senior management, etc.The fixed costs of the company - it is mandatory costs that the organization pays even when no production.Variable costs, in contrast, are directly dependent on the enterprise.If production volumes are growing, and the costs increase.These include the costs of fuel, raw materials, energy, transportation, wages most of the employees, etc.Why
businessman divide costs into fixed and variable?This point has an impact on the functioning of the enterprise in general.Since variable costs can be controlled by changing the head of production can reduce costs.And as a result reduces the overall costs of the company, the increased profitability of the entire organization.
In economics, there is such a thing as the opportunity cost.They are connected with the fact that all the resources are limited, and the company has to choose one or the other way of using them.Opportunity cost - a loss of profit.Management of the company to get one income, deliberately refuses to accept other profits.
opportunity costs of the company are divided into explicit and implicit.The first are those payments, which the company paid to suppliers for raw materials, an additional rent, etc.That is, their organization can assume in advance.For obvious costs include cash expenses for the rental or purchase of machines, buildings, machinery, utilities, hourly wages of workers, payment of transportation costs, raw materials, components, semi-finished products, etc.
implicit costs of the company belong to the organization.These items are the costs not paid by third parties.They also include income that could be obtained on more favorable terms.For example, income that can get employed if you work elsewhere.By the implicit costs include rental payments for land, interest on capital invested in securities, etc.This kind of cost every person.Consider normal working of the plant.This man sells his time, for a fee, but it could be another organization to receive a higher wage.
So, in a market economy is necessary to closely monitor the expenses of the Organization is required to create new technologies, train staff.This will help to improve production and more effectively plan costs.So, will increase the company's income.
