Classification of production costs


Efficiency of any production processdepends on the adjusted accounting of production costs. Classification of production costs is carried out by groups: by area of ​​origin (workshops and production sites), by the nature of production activity. By their nature, production can be basic, these are those in which the production process itself is realized and services are provided. The auxiliary industries are those that do not concern the manufacture of products, but are engaged in its servicing. Classification of production costs by cost elements notes what is specifically spent on manufacturing products and has separate cost elements in the total mass of costs. By items of cost, or costing, allocate: various materials and raw materials, waste return, services provided by third-party enterprises that are of a production nature, purchased semi-finished products and other products, fuel and energy components for technological purposes, wages directly to production personnel, social contributions , costs associated with preparatory production work, general economic and general production expenses, losses due to marriage. This list can be expanded with confidence by such elements as: other expenditures of production orientation, costs associated with sales, and the cost of production is complete. The classification of production costs associated with the method of inclusion in cost includes the costs of direct costs and overhead costs. Direct costs are understood as costs that, based on the primary documentation, are attributed to the costs of a specific type of manufactured products. Under indirect, or otherwise overhead, costs are understood as expenses related to most types of work and services. This includes lighting and heating of production areas, work of technological equipment. Depending on the volume of production, variable costs are allocated - those that are subject to the greatest fluctuations and are in directly proportional relationship with the volume of goods produced. Conditionally fixed costs - this type of expenditure is also dependent on the volume of output. This includes the costs of salary payments to working personnel, as well as deductions to the depreciation fund. Classification of production costs is based on the objects in respect of which these costs are calculated, and includes in its composition a number of types of costs, divided by individual characteristics.

Classification of cost of production costs

A separate place in various accounting systemscosts are their classification. Classification of costs of production costs subdivide indirect and direct costs, which depends on technological processes, as well as fixed and variable. Direct costs are usually taken into account in the debit of the account more commonly known as No. 20 under the name "Basic Production". Such costs can be attributed to a certain type of product. The sizes of such costs are independent of the volume of output of goods, and they can be reduced only by increasing the scale of production activity. Indirect costs are tied to the management of the enterprise, the costs of selling products and the maintenance of the main production.

Classification of costs by item

Among the entire mass of classification characteristicscosts, a special place is taken by the classification of costs by item. To this end, the costs that are productive are divided into overhead and basic. In the composition of overheads, it is customary to take into account the costs that are incurred to operate the equipment and its contents. In this category is also worth attributing the costs of managing production sites and the enterprise as a whole. In addition, the costs associated with the sale and production of products, in calculating and accounting for cost are also divided into separate articles.

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