deciding the feasibility of opening a new production, any entrepreneur produces not only costing the purchase of equipment, but also makes the document as estimates of production costs.In a general sense is a set of items of expenditure, broken down by several names.
estimates of production costs is a set of planned costs, expressed in terms of value and related mainly to the performance of works and the production of products corresponding to the production program of the company.As a rule, the estimate is developed based on the uniform nomenclature of economic elements.Drafting these documents is of great importance in the process of production planning.In preparation for such an important document as the estimates of production costs, it is necessary to consider not only the principle of minimum cost.This point is significant because the majority of enterprises in order to succeed, we need coordinated work of production and marketing structures.Specialists involved in implementation need to know more than what the consumer wants at a particular time in a particular market segment, which is preferred, price or quality.Based on these data should be formed and the production program.The cost of implementing such a program, it is advisable to include an estimate of the cost of production.Such close co-operation in the work of the individual structures of the enterprise allows to significantly reduce production costs on a per unit of production.
When planning production should be based not only on the cost of production, but also on the need for it, because if there is adequate demand, you can increase sales volumes, thus over time reducing production costs, which without a doubt will be reflectedin the estimate.
In most cases, estimates of production costs is a general summary document type.This lie negative aspects of budgeting, as often these summary calculations are rather conventional and not always accurate.At best, the real price of the costs will be slightly different with their estimated cost.Based on the estimates set the level of production costs, as well as the sale of goods from the nomenclature of the list of companies.
Using cost estimates calculated cost of sales and gross marketable production, also recorded the movement of goods in process residues.In addition, in view of this document is debited the cost of non-production bills and set the size of the profit from the sale.To analyze the estimated production costs makes it possible to see the section of the total volume of consumption for each type of resource, and to determine the level of need in current assets.Basically, the estimate is based on economic elements, the composition of the list and which are uniform.The system records the cost of production had not exhausted its relevance over time, as it can help you easily keep track of changes in the cost structure.
In compiling estimates initially taken into account auxiliary production sites, as their products are included in the cost of production.Due to the presence of this type of budgeting, moving to production estimates in relation to the major production departments.As a result, it can be noted that the preparation of cost estimates in the production process affects the final cost per unit.
