On constants and variables. Types of variable costs. Fixed production costs

This question may arise from a reader familiar with management accounting, which is based on accounting data, but pursues its own goals. It turns out that some management accounting techniques and principles can be used in regular accounting, thereby improving the quality of information provided to users. The author suggests familiarizing yourself with one of the ways to manage costs in accounting, which the document on calculating product costs will help with.

About the direct costing system

Management (production) accounting- management economic activity enterprise based information system, reflecting all the costs of the resources used. Direct costing is a subsystem of management (production) accounting based on the classification of costs into variable and fixed depending on changes in production volumes and cost accounting for management purposes only for variable costs. The purpose of using this subsystem is to increase the efficiency of resource use in production and economic activity and maximizing the enterprise's income on this basis.

In relation to production, there are simple and developed direct costing. When choosing the first option, the variables include direct material costs. All the rest are considered constant and are transferred in total to complex accounts, and then at the end of the period they are excluded from total income. This is income from the sale of manufactured products, calculated as the difference between the cost of products sold (revenue from sales) and variable cost. The second option is based on the fact that conditionally variable costs, in addition to direct material ones, in some cases include variable indirect costs and part of the fixed costs, depending on the utilization rate of production capacity.

At the stage of implementation of this system, enterprises usually use simple direct costing. And only after its successful implementation can an accountant switch to more complex, developed direct costing. The goal is to increase the efficiency of resource use in production and economic activities and to maximize enterprise income on this basis.

Direct costing (both simple and developed) is distinguished by one feature: priority in planning, accounting, calculation, analysis and cost control is given to short-term and medium-term parameters compared to accounting and analysis of the results of past periods.

About the amount of coverage (marginal income)

The basis of the method of cost analysis using the “direct costing” system is the calculation of the so-called marginal income, or “coverage amount”. At the first stage, the amount of “coverage contribution” for the enterprise as a whole is determined. The table below displays this indicator along with other financial data.

As you can see, the amount of coverage (marginal income), which is the difference between revenue and variable costs, shows the level of reimbursement of fixed costs and profit generation. If fixed costs and the coverage amount are equal, the enterprise's profit is zero, that is, the enterprise operates at break-even.

Determination of production volumes that ensure break-even operation of the enterprise is carried out using a “break-even model” or establishing a “break-even point” (also called the coverage point, the point of critical production volume). This model is based on the interdependence between production volume, variable and fixed costs.

The break-even point can be determined by calculation method. To do this, you need to create several equations in which there is no profit indicator. In particular:

B = DC + AC ;

c x O = DC + AC x O ;

PostZ = (ts - AC) x O ;

O=	*PostZ*	=	*PostZ*	, Where:
	*ts - peremS*		md

B - revenues from sales;

PostZ - fixed costs;

PeremZ - variable costs for the entire volume of production (sales);

variable - variable costs per unit of production;

ts  - Wholesale price units of production (excluding VAT);

ABOUT - volume of production (sales);

md - the amount of coverage (marginal income) per unit of production.

Let us assume that during the period variable costs ( PeremZ ) amounted to 500 thousand rubles, fixed costs ( PostZ ) are equal to 100 thousand rubles, and the production volume is 400 tons. Determination of the break-even price includes the following financial indicators and calculations:

- ts = (500 + 100) thousand rubles. / 400 t = 1,500 rub./t;

- variable = 500 thousand rubles. / 400 t = 1,250 rub./t;

- md = 1,500 rub. - 1,250 rub. = 250 rub.;

- ABOUT = 100 thousand rubles. / (1,500 rub./t - 1,250 rub./t) = 100 thousand rub. / 250 rub./t = 400 t.

The level of the critical selling price, below which a loss occurs (that is, you cannot sell), is calculated using the formula:

c = PostZ / O + AC

If we plug in the numbers, the critical price will be 1.5 thousand rubles/t (100 thousand rubles / 400 t + 1,250 rubles/t), which corresponds to the result obtained. It is important for an accountant to monitor the break-even level not only in terms of unit price, but also in terms of the level of fixed costs. Their critical level, at which total costs (variables plus fixed) are equal to revenue, is calculated using the formula:

PostZ = O x md

If we plug in the numbers, then top bar these costs are 100 thousand rubles. (250 rub. x 400 t). The calculated data allows the accountant not only to track the break-even point, but also to a certain extent to manage the indicators that affect this.

About variable and fixed costs

The division of all costs into the specified types is the methodological basis for cost management in the direct costing system. Moreover, these terms mean conditionally variable and conditionally fixed expenses, recognized as such with some approximation. In accounting, especially when it comes to actual costs, nothing can be constant, but small fluctuations in costs can not be taken into account when organizing a management accounting system. The table below shows distinctive characteristics named in the cost section heading.

Fixed (semi-fixed) expenses	Variable (conditionally variable) expenses
Costs for production and sales of products that do not have a proportional relationship with the quantity of products produced and remain relatively constant (time wages and insurance premiums, part of the costs of maintenance and production management, taxes and contributions to various funds)	Costs for production and sales of products, varying in proportion to the quantity of products produced (technological costs for raw materials, materials, fuel, energy, piecework wages and the corresponding share of the single social tax, part of transport and indirect costs)

The amount of fixed costs over a certain time does not change in proportion to changes in production volume. If production volume increases, then the amount of fixed costs per unit of output decreases, and vice versa. But fixed costs are not absolutely constant. For example, security costs are classified as permanent, but their amount will increase if the administration of the institution considers it necessary to increase the salaries of security workers. This amount may decrease if the administration purchases such technical means, which will make it possible to reduce security personnel, and the savings on wages will cover the costs of purchasing these new technical equipment.

Some types of costs may include fixed and variable elements. An example is telephone costs, which include a constant term in the form of charges for long-distance and international telephone calls, but vary depending on the duration of the conversations, their urgency, etc.

The same types of costs can be classified as fixed and variable, depending on specific conditions. For example, the total cost of repairs may remain constant as production volumes increase - or increase if production growth requires installation additional equipment; remain unchanged when production volumes are reduced, unless a reduction in the equipment fleet is expected. Thus, it is necessary to develop a methodology for dividing disputed costs into semi-variable and semi-fixed ones.

To do this, it is advisable for each type of independent (separate) expenses to assess the growth rate of production volumes (in physical or value terms) and the growth rate of selected costs (in value terms). The assessment of comparative growth rates is made according to the criterion adopted by the accountant. For example, this can be considered the ratio between the growth rate of costs and production volume in the amount of 0.5: if the growth rate of costs is less than this criterion compared to the growth of production volume, then the costs are considered constant, and in the opposite case - to variable expenses.

For clarity, we present a formula that can be used to compare the growth rates of costs and production volumes and classify costs as constant:

(	*Aoi*	*x 100% - 100) x 0.5 >*	*Zoi*	*x 100% - 100* , Where:
	*Abi*		*Zbi*

Aoi - volume of i-product output for the reporting period;

Abi - volume of output of i-products for the base period;

Zoi - i-type costs for the reporting period;

Zbi - i-type costs for the base period.

Let's say that in the previous period the volume of production was 10 thousand units, and in the current period it was 14 thousand units. Classified costs for repair and maintenance of equipment are 200 thousand rubles. and 220 thousand rubles. respectively. The specified ratio is satisfied: 20 ((14 / 10 x 100% - 100) x 0.5)< 10 (220 / 200 x 100% - 100). Следовательно, по этим данным затраты могут считаться условно-постоянными.

The reader may ask what to do if during a crisis production does not grow, but declines. In this case, the above formula will take a different form:

(	*Abi*	*x 100% - 100) x 0.5 >*	*Zib*	*x 100% - 100*
	*Aoi*		*Zoi*

Let's assume that in the previous period the volume of production was 14 thousand units, and in the current period it was 10 thousand units. Classified costs for repair and maintenance of equipment are 230 thousand rubles. and 200 thousand rubles. respectively. The specified ratio is satisfied: 20 ((14 / 10 x 100% - 100) x 0.5) > 15 (220 / 200 x 100% - 100). Therefore, according to these data, costs can also be considered semi-fixed. If costs have increased despite a decline in production, this also does not mean that they are variable. Fixed costs have simply increased.

Accumulation and distribution of variable costs

When choosing simple direct costing, when calculating variable costs, only direct material costs are calculated and taken into account. They are collected from accounts 10, 15, 16 (depending on the adopted accounting policy and methodology for accounting for inventories) and written off to account 20 “Main production” (see. Instructions for using the Chart of Accounts).

Cost of work in progress and semi-finished products own production accounted for at variable costs. Moreover, complex raw materials, the processing of which produces a number of products, also refers to direct costs, although they cannot be directly correlated with any one product. To distribute the cost of such raw materials among products, the following methods are used:

The indicated distribution indicators are suitable not only for writing off costs for complex raw materials used for manufacturing different types products, but also for production and processing in which direct distribution of variable costs to the cost of individual products is impossible. But it’s still easier to divide costs in proportion to sales prices or natural indicators of product output.

The company is introducing simple direct costing in production, which results in the production of three types of products (No. 1, 2, 3). Variable costs - for basic and auxiliary materials, semi-finished products, as well as fuel and energy for technological purposes. In total, variable costs amounted to 500 thousand rubles. Products No. 1 produced 1 thousand units, the selling price of which was 200 thousand rubles, products No. 2 - 3 thousand units with a total selling price of 500 thousand rubles, products No. 3 - 2 thousand units with a total selling price of 300 thousand . rub.

Let's calculate the cost distribution coefficients in proportion to sales prices (thousand rubles) and the natural output indicator (thousand units). In particular, the first will be 20% (200 thousand rubles / ((200 + 500 + 300) thousand rubles)) for product No. 1, 50% (500 thousand rubles / ((200 + 500 + 300) thousand rubles)) for products No. 2, 30% (500 thousand rubles / ((200 + 500 + 300) thousand rubles)) for products No. 3. The second coefficient will take the following values: 17% (1 thousand units / ((1 + 3 + 2) thousand units)) for product No. 1, 50% (3 thousand units / ((1 + 3 + 2) thousand units)) for product No. 2 , 33% (2 thousand units / ((1 + 3 + 2) thousand units)) for product No. 2.

In the table we will distribute variable costs according to two options:

Name	Types of cost distribution, thousand rubles.
Name	By product release	At selling prices
Product No. 1	85 (500 x 17%)	100 (500 x 20%)
Product No. 2	250 (500 x 50%)	250 (500 x 50%)
Product No. 3	165 (500 x 33%)	150 (500 x 30%)
Total amount	500	500

Options for the distribution of variable costs are different, and more objective, in the author’s opinion, is to assign them to one or another group according to quantitative release products.

Accumulation and distribution of fixed costs

When choosing a simple direct costing, fixed (conditionally fixed) costs are collected on complex accounts (cost items): 25 “General production expenses”, 26 “General business expenses”, 29 “Production and household maintenance”, 44 “Sales expenses”, 23 "Auxiliary production". Of the above, only commercial and administrative expenses can be reported separately after the gross profit (loss) indicator (see the financial results statement, the form of which is approved By order of the Ministry of Finance of the Russian Federation dated July 2, 2010 No.66n). All other costs must be included in the cost of production. This model works with developed direct costing, when there are not so many fixed costs that they can not be distributed to the cost of production, but can be written off as a decrease in profit.

If only material costs are classified as variables, the accountant will have to determine the full cost of specific types of products, including variable and fixed costs. Eat the following options distribution of fixed costs for specific products:

in proportion to variable cost, including direct material costs;
in proportion to the shop cost, including variable cost and shop expenses;
in proportion to special cost distribution coefficients calculated on the basis of fixed cost estimates;
natural (weight) method, that is, in proportion to the weight of the products produced or another natural measurement;
in proportion to the “selling prices” accepted by the enterprise (production) according to market monitoring data.

In the context of the article and from the point of view of using a simple direct costing system, it begs the attribution of fixed costs to costing objects based on previously distributed variable costs (based on variable cost). We will not repeat ourselves; it would be better to point out that the distribution of fixed costs by each of the above methods requires special additional calculations, which are performed in the following order.

The total amount of fixed costs and the total amount of expenses according to the distribution base (variable cost, shop cost or other base) are determined from the estimate for the planned period (year or month). Next, the distribution coefficient of fixed expenses is calculated, reflecting the ratio of the amount of fixed expenses to the distribution base, using the following formula:

*Kr =*	n		m	Zb , Where:
	*SUM*	*Salary /*	*SUM*
	*i=1*		*j=1*

Kr - coefficient of distribution of fixed costs;

Salary - fixed costs;

Zb - distribution base costs;

n , m - number of cost items (types).

Let's use the conditions of example 1 and assume that the amount of fixed costs in the reporting period amounted to 1 million rubles. Variable costs are equal to 500 thousand rubles.

In this case, the distribution coefficient of fixed costs will be equal to 2 (1 million rubles / 500 thousand rubles). The total cost based on the distribution of variable costs (by product output) will be increased by 2 times for each type of product. We will show the final results taking into account the data from the previous example in the table.

Name
Product No. 1	85	170 (85 x 2)	255
Product No. 2	250	500 (250 x 2)	750
Product No. 3	165	330 (165 x 2)	495
Total amount	500	1 000	1 500

The distribution coefficient is calculated similarly for applying the “proportional to sales prices” method, but instead of the sum of the costs of the distribution base, it is necessary to determine the cost of each type of marketable product and all marketable products in prices of possible sales for the period. Next, the general distribution coefficient ( Kr ) is calculated as the ratio of total fixed costs to the cost of marketable products in prices of possible sales using the formula:

*Kr =*	n		p	*Ctp* , Where:
	*SUM*	*Salary /*	*SUM*
	*i=1*		*j=1*

Stp - the cost of marketable products in prices of possible sales;

p - number of types of commercial products.

Let's use the conditions of example 1 and assume that the amount of fixed costs in the reporting period amounted to 1 million rubles. The cost of manufactured products No. 1, 2, 3 in sales prices is 200 thousand rubles, 500 thousand rubles. and 300 thousand rubles. respectively.

In this case, the distribution coefficient of fixed costs is equal to 1 (1 million rubles / ((200 + 500 + 300) thousand rubles)). In fact, fixed costs will be distributed according to sales prices: 200 thousand rubles. for product No. 1, 500 thousand rubles. for product No. 2, 300 thousand rubles. - for product No. 3. In the table we show the result of the distribution of costs. Variable expenses are distributed based on product sales prices.

Name	Variable costs, thousand rubles.	Fixed costs, thousand rubles.	Total cost, thousand rubles.
Product No. 1	100	200 (200 x 1)	300
Product No. 2	250	500 (500 x 1)	750
Product No. 3	150	300 (300 x 1)	450
Total amount	500	1 000	1 500

Although the total total cost of all products in examples 2 and 3 is the same, this indicator differs for specific types and the accountant’s task is to choose a more objective and acceptable one.

In conclusion, variable and fixed costs are somewhat similar to direct and indirect costs, with the difference that they can be more effectively controlled and managed. For these purposes, cost management centers (CM) and responsibility centers for cost formation (CO) are created at manufacturing enterprises and their structural divisions. The former calculates the costs that are collected in the latter. At the same time, the responsibilities of both the control center and the central authority include planning, coordination, analysis and cost control. If both there and there are distinguished between variable and fixed costs, this will allow them to be better managed. The question of the advisability of dividing expenses in this way, posed at the beginning of the article, is resolved depending on how effectively they are controlled, which also implies monitoring the profit (break-even) of the enterprise.

Order of the Ministry of Industry and Science of the Russian Federation dated July 10, 2003 No. 164, which introduced additions to the Methodological provisions for planning, accounting for costs of production and sales of products (works, services) and calculating the cost of products (works, services) at chemical enterprises.

This method is used with a predominant part of the main product and a small share of by-products, valued either by analogy with its costs in standalone production, or at the selling price minus the average profit.

As you know, costs are the costs of an enterprise expressed in monetary terms for the production of goods.

It is very important for any company to have the most full information about costs. This allows you to correctly set the price of manufactured products, calculate the level of efficiency of processes, learn about the efficiency of resource use by specific departments, etc.

Definition

In general, specialists divide costs into fixed and variable e. Fixed costs do not depend on the level of output. These include renting premises, costs for retraining personnel, payment utilities etc.

The amount of variable costs depends on the volume of products produced. The main feature: when production stops, this type of waste disappears.

It should be noted that this division is very arbitrary. For example, conditionally variable costs are also distinguished. Their value depends on the company’s business activity, but such dependence is not direct. These include, for example, long-distance calls as part of the subscription fee for telephone services.

As a rule, variable expenses can be considered direct. This means that, firstly, they are directly related to the production of a product or service, and secondly, they can be included in the cost of goods based on primary documentation without any additional calculations.

You can find out more detailed information about these indicators in the following video:

Varieties

Without delving into the essence of the problem, one can decide that the growth of such costs grows with an increase in production volume, with an increase in product sales, etc. However, this is not entirely true. Depending on the nature of the output volume, variable costs include:

proportional, which increase with an increase in production volume (if the production of goods increases by 20%, then spending proportionally increases by 20%);
regressive variables, the growth rate of which is slightly behind the growth rate of production (if production increases by 20%, spending can only increase by 15%);
progressive variable, which increase slightly faster than the production and sale of goods increases (if production increases by 20%, spending increases by 25%).

Thus, we see that the value of variable costs is not always directly proportional to the volume of production. For example, if, in the event of an enterprise expansion and an increase in the volume of output, night shift, then the payment for it will be higher.

Direct and indirect costs among the variables are distinguished rather arbitrarily:

Usually to straight lines refers to the costs that may be associated with the production of a particular product. They relate directly to the cost of the product. This could be expenses on raw materials, fuel or wages workers.
To indirect General shop and plant expenses can be included, that is, those associated with the production of a group of goods. Due to factors such as technological specifics or economic expediency, they cannot be attributed directly to cost. The most common example is the purchase of raw materials in complex industries.

In statistical documentation, expenses are divided into total and average. This division makes sense in the reporting documents of enterprises:

Average are calculated by dividing variable expenses by the volume of goods produced.
Are common is the sum of the organization's fixed and variable costs.

We can also talk about production and non-production types. This division is directly related to the manufacturing process of products:

Production are included in the cost of goods. They are tangible and can be inventoried.
Non-productive they no longer depend on production volumes, but on duration. Therefore, it is impossible to inventory them.

Thus, we can highlight the following most common examples of variable costs in production:

wages of workers, depending on the volume of goods produced by them;
the cost of raw materials and other materials necessary for the manufacture of products;
expenses for warehousing, transportation and storage of goods;
interest paid to sales managers;
taxes related to production volumes: VAT, excise taxes, etc.;
services of other organizations related to production services;
the cost of energy resources at enterprises.

How to count them?

For convenience, variable costs can be expressed schematically as follows:

Variable expenses = Raw materials + Supplies + Fuel + Percentage of wages, etc.

For the convenience of calculating the dependence of expenses on production volume, the German economist Mellerovich introduced cost response factor (K). The formula showing the relationship between cost changes and productivity growth looks like this:

K = Y/X, Where:

K is the cost response coefficient;
Y – cost growth rate (in percent);
X is the growth rate of production (trade exchange, business activity), also calculated as a percentage.

110% / 110% = 1

The response coefficient of progressive spending will be greater than one:

150% / 100% = 1,5

Therefore, the coefficient of regressive expenses is less than 1, but more than 0:

70% / 100% = 0,7

The cost of any unit of production can be expressed by the following formula:

Y= A + bX, Where:

Y stands for total costs(at any monetary unit, for example, rubles);
A – constant part (i.e. one that does not depend on production volumes);
b – variable costs, which are calculated per unit of product (expense response coefficient);
X is an indicator of the enterprise’s business activity, presented in natural units.

AVC = VC/Q, Where:

AVC – average variable costs;
VC – variable costs;
Q – volume of output.

On the graph, average variable costs are usually presented as an increasing curved line.

The expenses of any enterprise include so-called forced costs. They are associated with the acquisition or use different means production.

Cost classification

All costs of an enterprise are divided into variable and fixed. The latter includes payments that do not affect the volume of products produced. Accordingly, we can say, . Among them, in particular, are the costs of renting premises, management costs, payment for risk insurance services, payment of interest for the use of credit funds, etc.

What expenses are considered variable costs?? This category of costs includes payments that directly affect production volume. Variable expenses include costs for raw materials and materials, remuneration of personnel, purchase of packaging, logistics, etc.

Fixed costs always exist throughout the entire operation of the enterprise. Variable costs, in turn, when stopping production process are missing.

This classification is used to determine the company's development strategy over a certain period.

In the long run, all types of costs can treat variable expenses. This is due to the fact that they all, to a certain extent, influence the volume of output of finished products and profit from the production process.

Cost value

Over a relatively short period, the enterprise will not be able to radically change the method of production of goods, capacity parameters, or begin the production of alternative products. However, variable cost indices can be adjusted during this time. This, in fact, is the essence of cost analysis. The manager, by adjusting individual parameters, changes the production volume.

It is impossible to significantly increase the quantity of output by adjusting this index. The fact is that at a certain stage of increasing only those costs that will not lead to a significant jump in growth rates - it is necessary to adjust part of the fixed costs. In this case, you can rent additional production space, launch another line, etc.

Types of variable costs

All the costs that refer to variable expenses, are divided into several groups:

Specific. This category includes costs that arise after the creation and sale of one unit of goods.
Conditional. TO conditionally variable expenses include all costs directly proportional to the current quantity of products produced.
Average variables. This group includes average values of specific costs taken over a certain period of time of operation of the enterprise.
Direct variables. This type of cost is related to the production of products of a particular type.
Limit variables. These include the costs incurred by the enterprise when producing each additional unit of goods.

Material costs

Variable expenses include costs included in the cost of the final (finished) product. They reflect the cost:

Raw materials/materials obtained from third party suppliers. These materials or raw materials must be used directly in the production of the product or be part of the components necessary to create it.
Work/services provided by other business entities. For example, the enterprise used a control system supplied by a third party, the services of a repair team, etc.

Sales costs

TO variables include expenses for logistics. We are talking, in particular, about transport costs, costs of accounting, movement, write-off of valuables, costs of delivering finished products to warehouses of trading enterprises, to points retail sales etc.

Depreciation deductions

As you know, any equipment used in the production process wears out over time. Accordingly, its effectiveness decreases. To avoid negative influence moral or physical wear and tear of equipment for the production process, the enterprise transfers a certain amount to a special account. At the end of its service life, these funds can be used to modernize obsolete equipment or purchase new ones.

Deductions are made in accordance with depreciation rates. The calculation is made based on the book value of fixed assets.

The amount of depreciation is included in the cost of finished products.

Remuneration of personnel

Variable expenses include not only the direct earnings of the company’s employees. They also include all mandatory deductions and contributions established by law (amounts to the Pension Fund, Compulsory Medical Insurance Fund, personal income tax).

Calculation

To determine the amount of costs, a simple summation method is used. It is necessary to add up all the costs incurred by the enterprise over a certain period of time. For example, the company spent:

35 thousand rubles. for materials and raw materials for production.
20 thousand rubles. - for the purchase of packaging and logistics.
100 thousand rubles. - to pay salaries to employees.

Adding up the indicators, we find the total amount of variable costs - 155 thousand rubles. Based on this value and production volume, their specific share in the cost can be found.

Let's say the company produced 500 thousand products. Unit costs will be:

155 thousand rubles. / 500 thousand units = 0.31 rub.

If the enterprise produced 100 thousand more goods, then the share of expenses will decrease:

155 thousand rubles. / 600 thousand units = 0.26 rub.

Break even

This is a very important indicator for planning. It represents the state of the enterprise in which production is carried out without loss for the company. This state is ensured by the balance of variable and fixed costs.

The break-even point must be determined at the planning stage of the production process. This is necessary so that the management of the enterprise knows what minimum quantity of products needs to be produced in order for all costs to be recouped.

Let's take the data from the previous example with some minor additions. Let's say the fixed costs are 40 thousand rubles, and the estimated cost of a unit of goods is 1.5 rubles.

The amount of all costs will be - 40 + 155 = 195 thousand rubles.

The break-even point is calculated as follows:

195 thousand rubles. / (1.5 - 0.31) = 163,870.

This is exactly how many units of product the enterprise must produce and sell to cover all costs, i.e., to break even.

Variable expense rate

It is determined by indicators of estimated profit when adjusting the amount of production costs. For example, when new equipment is put into operation, the need for the same number of employees will no longer be required. Accordingly, the volume of the wage fund may be reduced due to a decrease in their number.

Variable and fixed costs are the two main types of costs. Each of them is determined depending on whether the resulting costs change in response to fluctuations in the selected cost type.

Variable costs- these are costs, the size of which changes in proportion to changes in the volume of production. Variable costs include: raw materials and supplies, wages of production workers, purchased products and semi-finished products, fuel and electricity for production needs, etc. In addition to direct production costs, some types of indirect costs, such as: costs of tools, auxiliary materials, etc. Per unit of production, variable costs remain constant, despite changes in production volume.

Example: With a production volume of 1000 rubles. with a cost per unit of production of 10 rubles, variable costs amounted to 300 rubles, that is, based on the cost of a unit of production they amounted to 6 rubles. (300 rub. / 100 pcs. = 3 rub.). As a result of doubling production volume, variable costs increased to 600 rubles, but calculated on the cost of a unit of production they still amount to 6 rubles. (600 rub. / 200 pcs. = 3 rub.).

Fixed costs- costs, the value of which almost does not depend on changes in the volume of production. Fixed costs include: salaries of management personnel, communication services, depreciation of fixed assets, rental payments, etc. Per unit of production, fixed costs change in parallel with changes in production volume.

Example: With a production volume of 1000 rubles. with a cost per unit of production of 10 rubles, fixed costs amounted to 200 rubles, that is, based on the cost of a unit of production they amounted to 2 rubles. (200 rub. / 100 pcs. = 2 rub.). As a result of doubling production volume, fixed costs remained at the same level, but based on the cost of a unit of production they now amount to 1 rub. (2000 rub. / 200 pcs. = 1 rub.).

At the same time, while remaining independent of changes in production volume, fixed costs can change under the influence of other (often external) factors, such as rising prices, etc. However, such changes usually do not have a noticeable impact on the amount of general business expenses, therefore, when planning, in accounting and control, general business expenses are accepted as constant. It should also be noted that some of the general expenses may still vary depending on the volume of production. Thus, as a result of an increase in production volume, the salaries of managers and their technical equipment (corporate communications, transport, etc.) may increase.

The expenses of any enterprise include so-called forced costs. They are associated with the acquisition or use of various means of production.

Cost classification

All costs of an enterprise are divided into variable and fixed. The latter includes payments that do not affect the volume of products produced. Accordingly, we can say which expenses are not considered variable. Among them, in particular, are the costs of renting premises, management costs, payment for risk insurance services, payment of interest for the use of credit funds, etc.

What expenses are classified as variable costs? This category of costs includes payments that directly affect production volume. Variable expenses include costs for raw materials and supplies, staff salaries, purchase of packaging, logistics, etc.

Fixed costs always exist throughout the entire operation of the enterprise. Variable costs, in turn, are absent when the production process is stopped.

This classification is used to determine the company's development strategy over a certain period.

In the long run, all types of costs can be classified as variable costs. This is due to the fact that they all, to a certain extent, influence the volume of output of finished products and profit from the production process.

Cost value

It is impossible to significantly increase the quantity of output by adjusting this index. The fact is that at a certain stage, an increase in only those costs that relate to variable costs will not lead to a significant jump in growth rates - part of the fixed costs also needs to be adjusted. In this case, you can rent additional production space, launch another line, etc.

Types of variable costs

All costs that relate to variable expenses are divided into several groups:

Specific. This category includes costs that arise after the creation and sale of one unit of goods.
Conditional. Conditionally variable costs include all costs that are directly proportional to the current quantity of products produced.
Average variables. This group includes average values of specific costs taken over a certain period of time of operation of the enterprise.
Direct variables. This type of cost is related to the production of products of a particular type.
Limit variables. These include the costs incurred by the enterprise when producing each additional unit of goods.

Material costs

Variable costs include costs included in the cost of the final (finished) product. They reflect the cost:

Raw materials/materials obtained from third party suppliers. These materials or raw materials must be used directly in the production of the product or be part of the components necessary to create it.
Work/services provided by other business entities. For example, the enterprise used a control system supplied by a third party, the services of a repair team, etc.

Sales costs

Variables include logistics costs. We are talking, in particular, about transport costs, costs of accounting, movement, write-off of valuables, costs of delivering finished products to warehouses of trading enterprises, to retail points, etc.

Depreciation deductions

As you know, any equipment used in the production process wears out over time. Accordingly, its effectiveness decreases. To avoid the negative impact of moral or physical wear and tear of equipment on the production process, the enterprise transfers a certain amount to a special account. At the end of its service life, these funds can be used to modernize obsolete equipment or purchase new ones.

Deductions are made in accordance with depreciation rates. The calculation is made based on the book value of fixed assets.

The amount of depreciation is included in the cost of finished products.

Remuneration of personnel

Calculation

To determine the amount of costs, a simple summation method is used. It is necessary to add up all the costs incurred by the enterprise over a certain period of time. For example, the company spent:

35 thousand rubles. for materials and raw materials for production.
20 thousand rubles. - for the purchase of packaging and logistics.
100 thousand rubles. - to pay salaries to employees.

Adding up the indicators, we find the total amount of variable costs - 155 thousand rubles. Based on this value and production volume, their specific share in the cost can be found.

Let's say the company produced 500 thousand products. Specific costs will be:

What are fixed and variable costs

rub. / 500 thousand units = 0.31 rub.

If the enterprise produced 100 thousand more goods, then the share of expenses will decrease:

155 thousand rubles. / 600 thousand units = 0.26 rub.

Break even

Let's take the data from the previous example with some minor additions. Let's say the fixed costs are 40 thousand rubles, and the estimated cost of a unit of goods is 1.5 rubles.

The amount of all costs will be - 40 + 155 = 195 thousand rubles.

The break-even point is calculated as follows:

195 thousand rubles. / (1.5 - 0.31) = 163,870.

This is exactly how many units of product the enterprise must produce and sell to cover all costs, i.e., to break even.

Variable expense rate

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Fixed costs FC (English fixed costs) are costs that do not depend on production volume.

Fixed costs- These are costs that do not change with changes in production volume. They are associated with fixed costs in each period of time, i.e. depend not on production volume but on time. Examples of fixed costs:

· Rent.

· Property taxes and similar payments.

· Salaries of management personnel, security, etc.

The schedule is straight.

Variable costs, their essence and graphic expression.

Variable costs VC (English variable costs) are costs that depend on production volume. Direct costs of raw materials, materials, labor, etc. vary depending on the scale of activity.

The graph is a linear slope.

Average gross, average variable and average fixed costs, dynamics of their changes (show graphically).

Under average refers to the firm's costs of producing and selling a unit of goods. Highlight:

· average fixed costs AFC (English average fixed costs), which are calculated by dividing the firm's fixed costs by production volume;

average variable costs AVC

What costs are variable and constant examples?

average variable costs), calculated by dividing variable costs by production volume;

· average gross costs or the total cost per unit of an ATC product (average total costs), which are defined as the sum of average variable and average fixed costs or as the quotient of gross costs divided by output volume.

Rice. 10.4. Family of firm cost curves short term: C - costs; Q - output volume; AFC - average fixed costs; AVC - average variable costs; ATC - average gross costs; MC - marginal cost

Marginal costs, formulas for their expression and graphical display.

The increase in costs associated with the release of an additional unit of production, i.e. The ratio of the increase in variable costs to the increase in production caused by them is called the marginal costs of the company MC (marginal costs):

where sVC is the increase in variable costs; sQ is the increase in production volume caused by them.

If, with an increase in sales volume by 1OO units. of goods, the firm's costs will increase by 800 rubles, then the marginal costs will be 800: 100 = 8 rubles. This means that an additional unit of goods costs the company an additional 8 rubles.

As production and sales volume increases, the firm's costs may change:

a) evenly. In this case, marginal costs are a constant value and are equal to variable costs per unit of goods (Fig. 10.3, A);

b) with acceleration. In this case, marginal cost increases as production volume increases. This situation is explained either by the action of the law of diminishing returns, or by the rise in prices of raw materials, materials and other factors, the costs of which are classified as variables (Fig. 10.3, b);

c) with slowdown. If the company's expenses for purchased raw materials, materials, etc. decrease as output increases, marginal costs decrease (Fig. 10.3, V).

Rice. 10.3. Dependence of changes in firm costs on production volume

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Variable Cost Examples

Conditionally fixed and conditionally variable costs

In general, all types of costs can be divided into two main categories: fixed (conditionally fixed) and variable (conditionally variable). According to the legislation of the Russian Federation, the concept of fixed and variable costs is present in paragraph 1 of Article 318 of the Tax Code of the Russian Federation.

Conditionally fixed costs(English)

Types of production costs

total fixed costs) - an element of the break-even point model, representing costs that do not depend on the volume of output, contrasted with variable costs, which add up to total costs.

In simple terms, these are expenses that remain relatively unchanged during the budget period, regardless of changes in sales volumes. Examples are: administrative expenses, expenses for rent and maintenance of buildings, depreciation of fixed assets, expenses for their repairs, time wages, on-farm deductions, etc. In reality, these expenses are not constant in the literal sense of the word. They increase with the increase in the scale of economic activity (for example, with the advent of new products, businesses, branches) at a slower pace than the growth of sales volumes, or they grow spasmodically. That's why they are called conditionally constant.

This type of cost largely overlaps with overhead, or indirect costs that accompany the main production, but are not directly related to it.

Detailed examples of semi-fixed costs:

Interest for obligations during the normal operation of the enterprise and maintaining the volume of borrowed funds, a certain amount must be paid for their use, regardless of the volume of production, however, if the volume of production is so low that the enterprise is preparing for bankruptcy , these costs can be neglected and interest payments can be stopped
Enterprise property taxes , since its value is quite stable, are also mainly fixed expenses, however, you can sell property to another company and rent it from it (form leasing ), thereby reducing property tax payments
Depreciation deductions using the linear method of accrual (evenly for the entire period of use of the property) in accordance with the selected accounting policy, which, however, can be changed
Payment security, watchmen , despite the fact that it can be reduced by reducing the number of workers and reducing the load on checkpoints , remains even if the enterprise is idle, if it wants to preserve its property
Payment rental depending on the type of production, duration of the contract and the possibility of concluding a sublease agreement, it can act as a variable cost
Salary management personnel in conditions normal functioning the enterprise is independent of production volumes, however, with the accompanying restructuring of the enterprise layoffs ineffective managers can also be reduced.

Variable (conditionally variable) costs(English) variable costs) are expenses that change in direct proportion in accordance with the increase or decrease in total turnover (sales revenue). These costs are associated with a business's operations to purchase and deliver products to consumers. This includes: the cost of purchased goods, raw materials, components, some processing costs (for example, electricity), transportation costs, piecework wages, interest on loans and borrowings, etc. They are called conditional variables because their direct proportional dependence on sales volume actually exists only during a certain period. The share of these costs may change over a certain period (suppliers will raise prices, the rate of inflation of selling prices may not coincide with the rate of inflation of these costs, etc.).

The main sign by which you can determine whether costs are variable is their disappearance when production stops.

Variable Cost Examples

In accordance with IFRS standards, there are two groups of variable costs: production variable direct costs and production variable indirect costs.

Manufacturing variable direct costs- these are expenses that can be attributed directly to the cost of specific products based on primary accounting data.

Manufacturing Variable Indirect Costs- these are expenses that are directly dependent or almost directly dependent on changes in the volume of activity, but due to technological features their production cannot or is not economically feasible to directly attribute to manufactured products.

Examples direct variables costs are:

Costs of raw materials and basic materials;
Energy costs, fuel;
Wages of workers producing products, with accruals for it.

Examples indirect variables costs are the costs of raw materials in complex production. For example, when processing raw materials - coal - coke, gas, benzene, coal tar, and ammonia are produced. When milk is separated, skim milk and cream are obtained. It is possible to divide the costs of raw materials by type of product in these examples only indirectly.

Break even (BEP — break-even point) - the minimum volume of production and sales of products at which costs will be offset by income, and with the production and sale of each subsequent unit of product the enterprise begins to make a profit. The break-even point can be determined in units of production, in monetary terms, or taking into account the expected profit margin.

Break-even point in monetary terms- such a minimum amount of income at which all costs are fully recouped (profit is equal to zero).

B EP =* Revenue from sales

Or, which is the same thing BEP = = *P (see below for explanation of meanings)

Revenue and costs must relate to the same period of time (month, quarter, six months, year). The break-even point will characterize the minimum acceptable sales volume for the same period.

Let's look at the example of a company. Cost analysis will help you clearly determine BEP:

Break-even sales volume - 800/(2600-1560)*2600 = 2000 rubles. per month. Actual sales volume is 2600 rubles/month. exceeds the break-even point, this good result for this company.

The break-even point is almost the only indicator about which we can say: “The lower, the better. The less you need to sell to start making a profit, the less likely it is to go bankrupt.

Break-even point in units of production- such a minimum quantity of products at which the income from the sale of these products completely covers all the costs of its production.

Those. it is important to know not only the minimum allowable revenue from sales as a whole, but also the necessary contribution that each product should bring to the overall profit - that is, the minimum required amount sales of each type of product. To do this, the break-even point is calculated in physical terms:

VER =or VER = =

The formula works flawlessly if the enterprise produces only one type of product. In reality, such enterprises are rare. For companies with a large range of production, the problem of diversity arises total value fixed costs for certain types of products.

Fig.1. Classic CVP analysis of the behavior of costs, profits and sales volume

Additionally:

BEP (break-even point) - break even,

TFC (total fixed costs) - the value of fixed costs,

V.C.(unit variable cost) - the value of variable costs per unit of production,

P (unit sale price) - cost of a unit of production (sales),

C(unit contribution margin) - profit per unit of production without taking into account the share of fixed costs (the difference between the cost of production (P) and variable costs per unit of production (VC)).

C.V.P.-analysis (from the English costs, volume, profit - expenses, volume, profit) - analysis according to the “costs-volume-profit” scheme, an element of managing the financial result through the break-even point.

Overhead- costs of conducting business activities that cannot be directly correlated with the production of a specific product and therefore are distributed in a certain way among the costs of all produced goods

Indirect costs- costs that, unlike direct ones, cannot be directly attributed to the manufacture of products. These include, for example, administrative and management costs, costs for staff development, costs in production infrastructure, costs in the social sphere; they are distributed among various products in proportion to a justified base: the wages of production workers, the cost of materials consumed, the volume of work performed.

Depreciation deductions- an objective economic process of transferring the value of fixed assets as they wear out to the product or services produced with their help.

Solution. 1. Determine the share of semi-fixed costs in the cost of production:

1. Determine the share of semi-fixed costs in the cost of production:

2. Planned production costs will be:

3. The amount of cost reduction in the planning period due to an increase in production volume:

Costs per unit of production decreased from 2 million rubles. (40000: 2000) up to 1.82 million rubles. (4.36: 2 1.2), i.e. almost 200 thousand rubles.

Cost structure in production and the factors that determine it

Under cost structure its composition by elements or items and their share in the total cost are understood. It is in motion and is influenced by the following factors:

1) specifics (features) of the enterprise. Based on this, they distinguish: labor-intensive enterprises (a large share of wages in the cost of production); material-intensive (large share of material costs); capital-intensive (large share of depreciation); energy-intensive (large share of fuel and energy in the cost structure);

2) acceleration scientific and technological progress . This factor influences the cost structure in many ways. But the main influence is that under the influence of this factor the share of living labor decreases, and the share of materialized labor in the cost of production increases;

3) level of concentration, specialization, cooperation, combination and diversification of production;

4) geographical location of the enterprise;

5) inflation and changes in the interest rate of bank loans.

The structure of product costs is characterized by the following indicators:

The relationship between living and materialized labor;

Share individual element or items in full costs;

The relationship between fixed and variable costs, between fixed and overhead costs, between production and commercial (non-production) costs, between direct and indirect, etc.

Systematic determination and analysis of the cost structure of an enterprise are very important, primarily for managing costs in an enterprise in order to minimize them.

The cost structure makes it possible to identify the main reserves for their reduction and develop specific measures for their implementation at the enterprise.

Behind last years(1990-2004), the cost structure in general for industry and its branches has changed significantly, as evidenced by the data presented in Table 2.

Analysis of the data in this table allows us to conclude that the structure of production costs in the industry as a whole during the analyzed period has changed significantly: the share of depreciation decreased from 12.1 to 6.8%; other expenses increased from 4.1 to 18.1%; the share of material costs decreased from 68.6 to 56.3%; contributions for social needs increased from 2.2 to 5.1%; The cost structures for production of products in individual industries differ quite significantly.

The cost structure for the analyzed period was influenced by the following factors:

Inflationary process.

QUESTION 2: What are the main differences between the concepts of “costs” and “expenses”?

Cost of material resources, fixed assets, work force changed inadequately in relation to each other, this was reflected in the cost structure;

The process of disposal of fixed assets is ahead of the process of their input, which led to a decrease in the share of depreciation. The fact that the repeated revaluation of fixed assets did not correspond to the level of inflation also had an impact;

The cost structure at each enterprise should also be analyzed both element-by-element and item-by-item. This is necessary, as already noted, to manage costs in the enterprise.

Planning of production costs at the enterprise

The production cost plan is one of the most important sections of the economic and social development enterprises. Planning the cost of production at an enterprise is very important, as it allows you to know what costs the enterprise will require for the production and sale of products, what financial results can be expected in the planning period. The product cost plan includes the following sections:

1. Cost estimate for production (compiled by economic elements).

2. The cost of all commercial and sold products.

3. Planned costing of individual products.

4. Calculation of the reduction in the cost of commercial products based on technical and economic factors.

The most important qualitative indicators of the plan for the cost of production are: the cost of commercial and sold products; unit cost the most important species products; costs per 1 rub. commercial products; percentage of cost reduction by technical and economic factors; percentage reduction in the cost of compared products.

Production cost estimate is compiled without intra-plant turnover based on calculations for each element and is the main document for the development financial plan. It is compiled for the year with the distribution of the entire amount of expenses by quarter.

The costs of raw materials, main and auxiliary materials, fuel and energy in the cost estimate are determined primarily for the production program based on the planned volume, standards and prices.

The total amount of depreciation charges is calculated based on current standards by groups of fixed assets. Based on the cost estimate, the costs for the entire gross and commercial output are determined. Production costs gross output are determined from the expression

Cost of products sold represents the full cost of commodity output minus the increase plus the decrease in the cost of the balances of unsold products in the planning period.

Calculation unit cost called calculation. Calculations can be estimated, planned, or normative.

Estimate calculation compiled for products or orders that are carried out on a one-time basis.

Planned costing(annual, quarterly, monthly) is compiled for mastered products provided for by the production program.

Standard calculation reflects the level of product costs calculated according to cost standards in force at the time of its preparation. It is compiled in those industries where there is a standard accounting of production costs.

Methods for planning production costs. In practice, two methods of product cost planning are most widely used: standard and planning based on technical and economic factors. As a rule, they are used in close interrelation.

The essence of the normative method is that when planning the cost of products, rules and regulations for the use of material, labor and financial resources are applied, i.e. normative base enterprises.

The method of planning the cost of production based on technical and economic factors is more preferable than the standard method, since it allows us to take into account many factors that will most significantly influence the cost of production in the planning period. This method takes into account the following factors: 1) technical, i.e. implementation at the enterprise in the planning period new technology and technology; 2) organizational. These factors mean the improvement of the organization of production and labor at the enterprise in the planning period (deepening specialization and cooperation, improving organizational structure enterprise management, introduction of a brigade form of labor organization, NOT, etc.); 3) changes in the volume, nomenclature and range of products; 4) the level of inflation in the planning period; 5) specific factors that depend on the characteristics of production. For example, for mining enterprises - changes in mining and geological conditions for the development of mineral resources; For sugar factories- change in sugar content in sugar beets.

All these factors ultimately affect the volume of output, labor productivity (output), changes in standards and prices for material resources.

To determine the amount of change in the cost of production in the planning period due to the influence of the above factors, the following formulas can be used:

a) change in the value of production costs from changes in labor productivity (DCpt):

b) change in the value of the cost of production from a change in production volume

c) changes in the value of production costs due to changes in norms and prices for material resources

We will show the methodology for planning product costs based on technical and economic factors using a conditional example.

Example. During the reporting year, the volume of marketable products at the enterprise amounted to 15 billion rubles, its cost was 12 billion rubles, including wages with deductions

for social needs - 4.8 billion rubles, material resources - 6.0 billion rubles. Conditionally fixed costs in the cost of production amounted to 50%. In the planning period, through the implementation of a plan of organizational and technical measures, it is planned to increase the volume of marketable products by 15%, increase labor productivity by 10%, and average wages by 8%. The consumption rates of material resources will decrease by 5% on average, and their prices will increase by 6%.

Determine the planned cost of marketable products and planned costs per 1 ruble. commercial products.