Any leader of an operating enterprise engaged in the production of any goods has an understanding of costs, expenses, costs. For the successful operation of the company, it is necessary to clearly and strictly control costs, be able to manage them and strive to constantly reduce them.
Cost entity
To put it simply, costs represent the monetary value of the resources spent on the production, storage and marketing of products. It is very important to track where and in what quantities the material, labor and economic resources of the company are spent. If this is neglected, then the organization will eventually collapse.
If the manager does not take into account the fact that the cost of the products he produces is growing, while profits do not increase or decrease, this indicates an imminent crisis in the life cycle of the enterprise. Therefore, it is required to regularly conduct a cost study, analysis of costs per 1 ruble of marketable products and strive to reduce them by various methods.methods.
Classification
At the moment there are many types and classifications of costs. They are distinguished depending on:
- elements - material, wages, deductions, depreciation, other;
- costing items - each industry has its own specific costs, an approximate list is shown in the figure below;
- relations to cost - direct and indirect;
- relations to the level of business activity - variable and constant;
- expense recognition method - product costs (including costs per ruble of marketable products) and costs for the time interval;
- sales - sold and marketable;
- numbers of elements - singleton and multielement;
- adjustability options - adjustable and non-adjustable;
- relations to production - production and non-production.
Sold and salable products
Represents the total amount of goods produced that were sold to the customer and for which the business received revenue. This indicator is expressed in monetary terms. To find the value of this indicator, you need to add the amount of marketable products to the balances of unsold products at the beginning of the period and subtract the balances of unsold products at the end of the period. Sold products do not differ in composition from the commodity. But there are differences in the amount.
And marketable products are all products, including those not yet sold in warehouses.
Formula of costs per ruble of commodity output
If you want to determine the cost per ruble of marketable products, you need to divide its full cost by the amount of sales. The latter in this case is used at wholesale prices, that is, without specifying value added tax.
This indicator, which characterizes the level of costs per ruble of marketable products, can be interpreted in two variations: these are the costs that are necessary for the production of 1 ruble of marketable products, as well as the ratio indicator characterizing the cost and its structure.
If, as a result of calculating the cost per ruble of marketable output, the indicator turned out to be below one, then such production is defined as profitable, if it is higher - unprofitable.
Return on Costs
In general, it is important not only to know the cost per ruble of marketable products, but also to understand how profitable the costs are in principle. Return on costs characterizes the amount of profit received from 1 ruble of products sold. The balance sheet will be the source of data for calculations.
Balance formula is profit before tax divided by total cost of goods. If we consider from the point of view of the codes of balance sheet items, then the calculation formula looks like this:
(2200 / 2120)100 %
Change in the indicator indicates that it is necessary to take measures in relation to pricing policy or cost.
Return on cost may decrease by twocases: when the cost price increases and profit decreases. And also when the company's management deliberately reduces prices in order to stimulate sales. At the same time, administrative costs for distribution are growing.
If profitability is growing, it means that OPF and current assets began to return faster.
Cost drivers
Analysis of the cost of the ruble of marketable products can show the dynamics during the period. This explains to us that some factors influence the changes. In particular, they include:
- equipment of the enterprise with modern and high-quality equipment, its equipment, serviceability;
- the dynamics of purchase prices for materials and services in cost items;
- seasonal factor (depending on the type of product or service);
- indicators of qualitative and quantitative labor (productivity, scrap rate);
- dynamic selling prices for a product or service offered by the firm;
- dynamics of the volume and assortment of the product catalog;
- change in unit costs.
In order to understand which factor had an impact on the increase or decrease in costs, a factor analysis is carried out aimed at identifying that very specific structural unit in the composition of costs.
Method of determination
As a result of the analysis of costs per ruble of marketable products, we can conditionally divide them into 3 groups:
- The first group reflects the costs of materials and raw materials.
- The second contains information about the means of labor.
- Third is information about labor costs.
And depending on whose share of the three groups is greater, the type of production is determined by the nature of the costs. Namely:
- material-intensive;
- fund-intensive;
- labor intensive.
And based on the picture obtained, it is worth drawing a conclusion and finding a solution to reduce the costs of a particular group.
So where does cost analysis begin? To begin with, we need a table of production costs, broken down by cost elements. From it we will see the dynamics and deviations of indicators. And also find out the cost structure and determine the type of production.
Next, we will make a table and calculate the costs per ruble of marketable and sold products. The table contains data on the volume of marketable and sold products and their cost, the cost per ruble each.
Then you can determine the change in costs by costing items and conduct a factor analysis.
Ways to reduce costs
Let's take a brief look at the main ways to reduce costs in a manufacturing enterprise. There are 2 ways to cut costs:
- First - reducing conditionally variable costs: rationalizing the use of raw materials and materials, semi-finished products, fuel and energy, increasing labor productivity and improving the use of working time.
- The second direction is the reduction of semi-fixed costs (maintenance of machinery and equipment, distribution costs andgeneral expenses). Mechanization and automation of production will play a positive role in this matter.
In the struggle to reduce costs, the introduction of a savings regime at the enterprise is important. Also, in order to reduce costs, it is necessary to regularly review and evaluate the management apparatus and the costs of its maintenance. Efficient work of quality control department helps to reduce losses from marriage.
Case Study
As an example, let's take Ardon LLC, which manufactures small-sized cabinet furniture. Let's look at Table 1, which characterizes the composition and cost structure for 2010-2012.
Table 1. Composition and cost structure of LLC "Ardon" for 2010-2012.
| Cost item | Value, thousand rubles. | Value, thousand rubles. | Value, thousand rubles. | Deviation, +/- | Structure, % | Structure, % | Structure, % | Deviation, +/- |
| 2010 | 2011 | 2012 | 2012 from 2010 | 2010 | 2011 | 2012 | 2012 from 2010 | |
| Material costs | 9125 | 14569 | 11692 | +2567 | 88, 8 | 81, 5 | 80, 1 | -8, 7 |
| Salary | 360 | 801 | 1520 | +1160 | 3, 5 | 4, 5 | 10, 4 | +6, 9 |
| Deductions | 108 | 240 | 456 | +348 | 1, 1 | 1, 3 | 3, 1 | +2, 0 |
| Depreciation | 119 | 152 | 210 | +91 | 1, 2 | 0, 8 | 1, 4 | +0, 2 |
| Other expenses | 556 | 2123 | 732 | +176 | 5, 4 | 11, 9 | 5, 0 | -0, 4 |
| Full cost | 10268 | 17885 | 14592 | +4324 | 100 | 100 | 100 | - |
After analyzing the data obtained, we can calculate the cost per ruble of marketable products. The data is systematized in table 2.
Table 2. Analysis of costs per ruble of marketable and sold products.
| Indicators | 2010 | 2011 | 2012 | 2012 to 2010, % |
| Commercial output, thousand rubles | 14985 | 21052 | 22300 | 148, 8 |
| Cost of TP, thousand rubles | 10268 | 17885 | 14592 | 142, 1 |
| Sales products, thousand rubles | 14203 | 20607 | 21712 | 152, 9 |
| Cost of RP, thousand rubles. | 13120 | 16821 | 17676 | 134, 7 |
| Costs for 1 ruble of TP, kopecks | 68, 4 | 85, 0 | 65, 4 | 95, 6 |
| Costs for 1 ruble of RP, kop. | 92, 4 | 81, 6 | 81, 4 | 88, 1 |
Based on the data in the table, we see that costs are decreasing, despite the jump in prime cost in 2011. This indicates the rational use of resources, an increase in production volumes and the efficient operation of fixed assets.
Next, we turn to Table 3 to review the cost dynamics.
Table 3. Dynamics of costs per 1 ruble of commercial output.
| Cost item | Cost, thousand rubles. | Cost, thousand rubles. | Cost, thousand rubles. | Costs for 1 rub. | Costs for 1 rub. | Costs for 1 rub. | Deviation, +/- | ||
| 2010 | 2011 | 2012 | 2010 | 2011 | 2012 | 2012 from 2010 | |||
| TP, thousand rubles. | 14985 | 21052 | 22300 | - | - | - | - | ||
| Material costs | 9125 | 14569 | 11692 | 60, 9 | 69, 2 | 52, 4 | -8, 5 | ||
| Salary | 360 | 801 | 1520 | 2, 4 | 3, 8 | 6, 8 | +4, 4 | ||
| Deductions | 108 | 240 | 456 | 0, 7 | 1, 1 | 2, 0 | +1, 3 | ||
| Depreciation | 119 | 152 | 210 | 0, 8 | 0, 7 | 0, 9 | +0, 1 | ||
| Othercosts | 556 | 2123 | 732 | 3, 7 | 10, 1 | 3, 3 | -0, 4 | ||
| Cost | 10268 | 17885 | 14592 | 68, 5 | 85, 0 | 65, 9 | -2, 6 |
After analyzing the example, we can consider how competent enterprise management increases its profitability. Thus, we have considered an example of calculating the costs per ruble of marketable products, and also calculated the dynamics of costs in the study period.
