Variable costs are included. Fixed and variable costs

Direct and indirect costs

Direct costs usually include the wages of production workers, the cost of raw materials, payment for electricity and heat, and some others. Indirect costs are distributed by calculation between the relevant types of tourism products, while a separate type of direct costs is taken as the economic basis for distribution, for example, the wages of the main production workers, or the total amount of direct costs, or the amount of revenue from the sale of services.

Production and selling costs

Production costs are associated with the main activity of the company, for example, for a tour operator, these are the costs of forming a tourist product. At the end of the reporting period, they are collected on account 20 "Main production".
Selling costs associated with the sale of a product and include advertising costs, funds paid to sales and intermediary organizations Basic and overhead costs

The main costs are direct costs that are directly related to the process of providing services, i.e. the cost of accommodation, food, excursions and transport services. The main costs are directly and directly included in the cost of the tourist product.
Overhead costs are costs that are necessary for the formation, promotion and sale of a tourist product, but they cannot be directly attributed to a specific type of product for the following reasons:
- or it is practically impossible, i.e., the costs cannot be directly attributed to a separate type of tourism product (for example, the cost of social security for the company's employees);
- either because of expediency or inexpediency, i.e., attributing costs to a separate type of tourist product is not economically justified.

Fixed and variable costs

Variables are called costs, which vary with changes in the volume of activities. These costs may depend on the duration of labor, the type and class of service, the cost of food, as well as the cost of hotel services, the number of tourists, etc.

Fixed costs are expenses that are relatively stable (change slightly) with fluctuations in the volume of production, services (for example, depreciation, rent, etc.)

43 Cost items

Calculation - determination of costs in value (monetary) form for the production of a unit or group of units of products, or for certain types of production. Calculation makes it possible to determine the planned or actual cost of an object or product and is the basis for their assessment.

Depending on the specifics of the technology and the nature of the manufactured products, the object of costing can be a product, a group of similar products, an order for a batch of similar products, certain types of work, services.

Cost items included in the calculation are as follows:

1 Raw materials and supplies net of return costs. This item includes the cost of purchasing raw materials and supplies per unit of output.

2 Purchased products, semi-finished products, cooperation services per unit of production.

3 The main salary of production workers, the tariff fund of the salary of workers employed in the production program and per unit of production is taken into account.

4 The main salary of production workers, payment for vacations, preferential hours, is taken as a percentage of the main salary of workers.

5 Deductions for social needs from the sum of the basic and additional salary. Determined by government decree.

6 Costs for preparation and development of production.

7 Expenses for the maintenance and operation of equipment.

8 Price costs (overhead) production maintenance costs. salary of shop personnel, lighting, repairs.

Total shop cost

9 General factory expenses (general business) are directed to cover the costs of managing and servicing general business needs. business trips, labor protection.

10 Losses from marriage.

Total production cost

11 Non-manufacturing expenses (commercial). Sales, packaging and advertising expenses.

Total full (commercial) cost.

44 Reserves for reducing the cost of products, works, services

In the conditions of transition to a market economy, the role and importance of reducing the cost of production, work and services of a commercial organization is increasing dramatically. From an economic and social standpoint, the importance of reducing the cost of products, works and services for organizations is as follows:

- in increasing the profit remaining at the disposal of the organization, and, consequently, in the emergence of opportunities not only in simple, but also in expanded production; - in the emergence of opportunities for material incentives for employees and solving many social problems of the organization's staff; - in the possibility of reducing the selling price of their products, which can significantly increase the competitiveness of products and increase sales; - in reducing the cost of products in joint-stock companies, which is a good prerequisite for paying dividends and increasing their rates.

The decisive condition for cost reduction is continuous technical progress. The introduction of new technology, the comprehensive mechanization and automation of production processes, the improvement of technology, the introduction of progressive types of materials can significantly reduce the cost of production. A serious reserve for reducing the cost of production is the expansion of specialization and cooperation. In organizations specializing in the production of specific products with mass production, the cost of production is much lower than in organizations that produce the same products in small quantities. The development of specialization also requires the establishment of the most rational cooperative links between organizations.

Reducing the cost of production is ensured primarily by increasing labor productivity. With the growth of labor productivity, labor costs per unit of output are reduced, and, consequently, the share of wages in the cost structure also decreases.

45 Foreign experience in determining production costs

Over the past 35-40 years abroad, the method of calculating the costs of manufacturing products according to a limited, reduced nomenclature of calculation items has been widely used. The costs include only variable costs: raw materials and materials, wages, a variable part of indirect costs.

The production costs of the enterprise are divided into fixed, variable, gross and marginal. At foreign enterprises, the grouping of production costs according to economic elements and cost items is also used.

The grouping of costs by cost items includes the following items. 1. "Materials". These costs are the most important cost item. These include the cost of purchasing raw materials, basic and auxiliary materials, semi-finished products. 2. "Payment". This includes the wages of workers and administrative staff. Abroad, as well as in our country, two fundamentally different forms of remuneration are used: time and piecework. Time wages for workers are applied where the amount of output produced by the worker does not depend on his individual efforts. Piecework wages encourage workers to achieve greater output, which is beneficial to both the worker and the enterprise.3. "Payment for the rent of premises." If an enterprise or firm rents premises, then the costs under this item are equal to the total rent. If the premises are owned by the enterprise itself, then the payment for its rent consists of a number of items: payments on mortgage debt, property taxes, insurance, operating costs, as well as interest on equity invested in this property. 4. "Depreciation". Several depreciation methods are used: linear, residual value, production volume and sum of years. 5. "Other costs". This includes the cost of operating and repairing machinery and other elements of fixed capital, the cost of various types of energy, the cost of shipping products. In foreign enterprises, the cost structure is often understood as the percentage of variable and fixed costs of the enterprise within its gross costs.

46 Methodology for calculating the point of cost recovery.

The breakeven point forecast should answer the question of how many units of products or services will need to be sold or how much sales will be achieved so that the income of the enterprise coincides with its expenses, i.e. for the business to pay off. For a business to pay off, the liabilities (also called fixed or fixed costs) must be fully covered by sales proceeds. So, by the breakeven point, we mean such a state when the difference between all expenses and incomes turns out to be equal to zero, i.e. the company does not make a profit, but also does not incur losses.

The total volume of sales corresponding to the breakeven point must coincide with the sum of the variable and fixed costs of the enterprise. After the enterprise pays off, the sale of each subsequent unit of production will be profitable, in any case, if the price of the product does not fall below its cost (unit cost multiplied by the volume of output, gives a value called "variable costs").

The biggest difficulty in calculating the breakeven point is determining which costs are fixed and which are variable. For new enterprises, this is not so easy to do, and it is often necessary to classify one or another item of expenditure in a certain category simply by a strong-willed decision. Be that as it may, it is reasonable to consider fixed costs for depreciation, salaries of administrative staff, rent and insurance. The costs of purchasing raw materials and materials, selling costs (for example, commissions to sales agents), the wages of production workers, as a rule, are considered variable. Variable costs per unit of output are determined by dividing the total wages of direct production workers, the cost of raw materials and materials used and other production costs by the volume of output.

47 R&D costing

R&D costs are calculated according to a single list of expenditure items for research organizations. Direct costs: 1) staff salary (the average monthly salary of employees is determined, the expected labor intensity in months); 2) accrual on salary; 3) materials and components (the cost of basic and auxiliary materials, semi-finished products, taking into account their cost); 4) special equipment for scientific work; 5) expenses for scientific trips (in this case, the calculation is carried out according to the number of trips, taking into account travel expenses according to state standards; 6) work performed by third parties under a contract (prototype); 7) other direct costs not included in the previous ones (depreciation, additional work); 8) overhead costs - the costs of managing an enterprise, for general business needs, included in the cost price indirectly (in proportion to the salary fund); 9) cost (the sum of all previous costs); 10) profit: *the minimum amount of profit must ensure payments to the budget and the formation of material incentive funds (taxes); * profit should not depend on the cost of research and development, but on the improvement of the technical and economic indicators of the project in comparison with the analogue; * the level of profit should take into account the degree of satisfaction of demand for a given scientific and technical product; 11) contract price (add all the previous ones) cost price + profit.

48 Calculation method for calculating the price of products. Price types.

When applying the costing method, the price is calculated:

1) the cost of production and sale of products (full cost);

2) profit (producer price);

4) tax on D.S. (VAT)

1+2+3+4=factory wholesale price

5) costs of the supply and household organization;

6) profit of wholesale organizations

5+6=wholesale sales discount (mark-up of wholesalers)

1+…+7=wholesale price of industry

8) distribution costs of a trade organization;

9) profit of a trading organization

8+9=sales allowance

11) 1+…+10=retail price

Depending on the nature of the turnover service, wholesale and retail prices are distinguished.

Wholesale price - the price at which products are sold in large quantities. Retail price - the price of goods sold for personal consumption in small, single quantities. Purchase prices are the prices of state purchases of products from enterprises, organizations, and the population.

49 Profit of the enterprise and its functions

Profit is the monetary expression of monetary savings created by enterprises. As an economic category, it characterizes the financial result of entrepreneurial activity of enterprises. Profit is an indicator that most fully reflects the efficiency of production, the volume and quality of manufactured products, the state of labor productivity, and the level of cost. At the same time, profit has a stimulating effect on strengthening commercial calculation and intensifying production. At the expense of profits, measures are financed for scientific, technical and socio-economic development, and an increase in the payroll fund. Profit is not only a source of ensuring the intra-economic needs of enterprises, but is becoming increasingly important in the formation of budgetary resources, extra-budgetary and charitable funds.

Profit performs the following main functions:

It is an indicator of the effectiveness of the enterprise;

It has a stimulating function, tk. acts as the main element of the financial resources of the enterprise;

It is a source of formation of budgets of various levels.

50. relationship between gross income, cost and profit

Gross income is the income that a company earns from its core business, usually from the sale of goods or services to consumers. In many countries, the term gross income is synonymous with turnover.

For non-profit organizations, the annual gross income may be referred to as gross funding income. Such funding includes donations from individuals or companies, funding from government agencies, income from the activities of a statutory non-profit organization, income from shares associated with the attraction of donations, membership fees or income from the placement of share capital)