concept allows to characterize the magnitude of the cost of funds and resources that are used for business enterprise during the interim period.The presence of such information makes it possible to perform many functions.For example, one of them may include the establishment of the value of goods and services;Definition of rational distribution of resources between departments and divisions;judgmental, which characterize the efficiency and effectiveness of production processes.In addition, similar measures make it possible to consider the importance of artists and customers during the certification of their participation in the profits of the organization.
Classification
all expenses of the enterprise can be divided into several areas, which differ depending upon the intent of using the information received.According to the first results of the economic activities of the organization can be identified by the effect on the established cost of production.There are direct and indirect costs.This allows you to analyze the impact of investment on the production process, as well as its return.
Indirect costs
They are considered to be related to the direct operation of the organization as a whole or one of the units.An important distinction of this category is that they can not be attributed to any one type of product.These are traditionally ascribed to labor costs, depreciation costs, cost of heating.The above feature allows to conclude that the method of distribution of this type of expenditure should be specified in the accounting policies.
Direct costs are costs that are linked to the holding of a particular type of work or the production of certain types of products.Their value is necessarily taken into account in the cost of goods.These rightly include the costs of raw materials;the costs of energy and fuel resources;purchase of semi-finished and finished products;depreciation on equipment;wages and salaries with all the necessary insurance deductions.Direct costs - an important part of accounting for investments.Consequently, the allocation of a given quantity of output is between the irreplaceable character.The most important in the formation of the size of such funds can be considered timely to find correspondences between the goods and costs, in which role and act in direct costs.This distribution must be carried out according to established standards, which must be pre-razrabotyny employees of relevant departments of the organization.However, in some cases, there may be situations in which the same materials are used or a few pieces of equipment or in two or more production cycles.Then the distribution of the volume of production costs should be made in proportion to the costs.
