cost of production of the enterprise, in fact, is the full amount of direct costs that are directly associated with the production, as well as all the costs of the creation and sale of products.
Cost of products enterprise includes direct costs of materials, wages and variable costs in the form of material costs, depreciation, staff salaries the main and auxiliary, as well as overhead costs arising from the necessities of production and sales.
There are such types as the total cost and manufacturing.
Cost of products the company is one of the most significant and important indicators of the company.It is used in financial planning in order to calculate the profit and the profitability of different types of products and total sales.
The total cost of all production, which is scheduled for release, is reflected in the estimate of the costs of manufacturing costs and sales.This total cost is different from the cost of products sold.That difference which exists between these two indicators is due to the fact of the presence of residues of unsold goods, which is at the beginning (end) of the scheduled period.
If the proceeds from the sale appears on the receipt of funds by the producer (or the cashier of the enterprise), the remains of the production, which was not implemented at the beginning of the year, include funds in the calculations, the goods in storage and finished goods, are onwarehouses.
To determine the total cost of these balances are recorded at cost of production for the period in the amount of their actual availability.
cost of production of the enterprise in the form of money expresses the company's costs for production.Therefore distinguish between planned and actual production cost.
When calculating the planned cost it included the maximum possible cost that provides a plan. actual production costs corresponds to the amount of funds actually spent on the production.
profits of an enterprise depends not only on the quality of technologies and industrial processes, perfect products and efficient management of production processes, but also on the management level of expenses.Therefore account the cost of production is the focus of the representatives of all schools of accounting.
development of the economy as a whole is determined by the development of its individual units - industrial enterprises.Their work and efficiency is determined by management activities, through which the company receives the economic independence and competitive position among other market entities.
Efficiency cost management is especially important in the need to adapt quickly enough to changing environmental conditions.
very concept of "cost management" today is not yet very widespread, as more attention is paid to the calculation and accounting aspects.
under control production costs to understand the process of continuous accounting, planning, analysis and control, which are produced as a result of management decisions, aimed at optimization and cost reduction.
cost management includes a system of measures to impact on certain aspects of the enterprise in order to improve its efficiency and to increase profits.Management process consists of the functions of planning, motivation, organization and control.These control functions are combined communication processes, as well as the adoption of common solutions.
