budding entrepreneurs must calculate whether his business is profitable.One of the main aspects of the issue - production costs .
economic costs of production otherwise known as enterprise expenses for production and distribution of goods or services.They are expressed in terms of money and include an assessment of the services of labor and capital investment required for production activities.Production costs directly affect the calculation of the cost of production.
The economic literature describes the various types of production costs in several classifications.Consider some of them.
Recent - those costs that have a direct impact on economic decisions.They are opposed costs of the "pellet» - money spent on insurance cases, debt relief and others that never come back into circulation.
Explicit costs (cost accounting) are expressed in accounting calculations.They are defined in accordance with the established by the RF Government Regulation on the part of the cost of production and sales of products (from 05.08.1992 g).These include material costs;social contributions;labor costs, depreciation of fixed assets, other costs.
Entrepreneurial costs include, in addition to accounting, financing investments in fixed assets and working capital, various payments (taxes, excise taxes, dividends on shares, customs duties).This can be attributed opportunity costs, which are called imputed .
costs associated with the release of a certain volume of product called cumulative .Of these emit average - they fall in output per unit. Limit costs are calculated per unit of volume changes.
Production costs can be fixed and variable. Permanent independent of changes in the factors of production, production volume, etc.These costs include maintenance of territory, buildings, management personnel. Variable costs, in contrast, are subject to change depending on the volume of production.It may be the cost of purchasing raw materials, labor and other employees, etc.In this regard, stand still complete or total production costs , include both fixed and variable.
Experts note that the allocation of costs on the basis of fixed and variable has a real economic sense.This approach allows us to determine the competitiveness of enterprises, to plan the growth of profit and loss reduction and more.
stand out as n ryamye costs, which are calculated directly in the cost of production.In addition, it is necessary to take into account e ksplutatsionnye costs associated with equipment, machines, vehicles, etc.
Thus, the costs that significantly affect the development of production in general are divided into groups:
a) of the primary economic elements (eg, labor costs);
b) expenditure (this article calculation - raw materials, fuel, energy, maintenance, etc.);
c) by the method of attributing costs to the cost of production (direct - indirect);
g) for her role in the formation of the cost of production (basic - overheads);d) depending on the degree of change in the volume of production; e) depending on the time of occurrence (current or upcoming, prepaid expenses).
Cost Accounting in the course of business is required to calculate the cost of goods or services.Moreover, reduction of production costs is an important factor of production.There are many ways to reduce costs, which are used by experienced managers.And this means that the novice entrepreneur should look into this matter.
