2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Any activity of an enterprise, organization, institution implies minimal investment with maximum return. In striving for the first, managers organize technological processes and technologies as efficiently as possible. And for the implementation of the second task, all external influences on enterprises are considered.
Costs of production - types, structure by economists of different times were considered differently. So, Karl Marx divided them into production and distribution costs. The first included the costs associated with the purchase of raw materials and materials, the payment of wages to workers, depreciation of labor tools. To the second - all the costs associated with the sale of products.
Modern economists invest both noted types in the concept of costs. But, unlike the previous exercises, they are divided into those that depend on the volume of output and those that do not. The latter include fixed costs, the types of which are associated with rent, interest on loans, expenses for equipment and its maintenance, maintenance of security … That is, for all the moments of expenses that arise regardless of whether the enterprise is operating, producing products, or not. If costs depend on outputproducts, they are classified as variables. This usually includes the cost of materials, raw materials, energy, wages, and so on.
Considering the costs, their types outlined above, it should be noted that in
sets of variables and constants give gross costs. For precise measurement in order to analyze production, economists introduce the concept of averages. That is, average fixed costs, average variable costs. To determine them, there are quite primitive formulas. To determine the value of average fixed costs, it is necessary to find the quotient between the constants and the quantity of output. Similarly, the average values of variables and gross are found.
The listed costs, their types and the method of calculation are not the last in economic analysis. It is important to know the maximum level of profit. For this, it becomes necessary to calculate the size of output. At this stage of economic analysis, the concept of marginal cost arises. They represent additional costs due to the release of additional products to those already produced. Calculate this type of cost
required by subtracting existing gross costs from estimated ones. At the same time, the types of fixed costs remain unchanged.
In Russia, the practical calculation of costs differs from the calculation in Western countries. This is due to the use in the Russian Federation of the cost category, which is the sum of the costs of sales and productionproducts. In the West, all indirect costs, their types are classified as fixed and variable, sometimes using the concept of partially variable. This division makes it possible to obtain a meter - added value. It is determined by subtracting the company's variable costs from revenue. In other words, value added is the sum of fixed costs and profits. Which allows us to say that this is an indicator of production efficiency.
Recommended:
Logistics costs - what is it? Classification, types and methods for calculating enterprise costs
The production activity of enterprises and firms is a complex process. It consists of different stages. This, for example, the creation, storage, distribution, transportation of goods. Each of these links in the commodity-production chain is associated with a number of difficulties, risks and costs. As a rule, they need to be expressed in monetary terms. The resulting figures are called logistics costs
External costs are The concept and classification of costs
Doing any business involves certain costs. One of the laws of the market is that in order to get something, you need to invest something. Even if an organization or an entrepreneur sells the result of his own intellectual activity, he still bears certain costs. This article discusses what costs are, what they are, the differences between external and internal costs, as well as the formulas for calculating them
Exchange rate differences. Accounting for exchange rate differences. Exchange differences: postings
The legislation that exists today in the Russian Federation, within the framework of Federal Law No. 402 "On Accounting" dated December 06, 2011, provides for the accounting of business transactions, liabilities and property strictly in rubles. Tax accounting, or rather its maintenance, is also carried out in the specified currency. But some receipts are not made in rubles. Foreign currency, in accordance with the law, must be converted
Variable costs - the way to reduce costs
Variable costs are included in the prime cost. Cost reduction helps enterprises not only to achieve efficient operation, but also to get more profit
Variable costs include the cost of What costs are variable costs?
In the composition of the costs of any enterprise there are so-called "forced costs". They are associated with the acquisition or use of different means of production
