Direct costs

Each enterprise in the production of products orservice delivery spends a certain amount of resources. All his expenses are divided into direct and indirect. Direct costs include costs associated directly with the process of manufacturing goods or providing services and are directly attributable to costs. Like other costs of production, they are grouped by place of origin (plots, shops, other structural units), cost bearers (type of products or services) and types of expenses (economically homogeneous elements).

There is a generally accepted classification of costs. Direct costs are composed of:

- material costs;

- labor costs;

- deductions from the salary;

- depreciation charges;

- other expenses related to the main type of activity.

Let us consider in more detail what these economic elements include. The material costs include the total cost of materials spent (except for own production):

- basic materials, raw materials;

- Purchased semi-finished products, components;

- fuel, electricity;

- spare parts;

- building materials;

- container;

- auxiliary materials.

Direct costs for material resources are reduced by the sum of the cost of all return wastes (residual raw materials, material resources arising in the production of products or services).

All payroll payments for tariffs and salaries, incentives, bonuses, pay for vacations and time left are considered to be labor costs.

Direct costs of deductions include deductions for social insurance.

Depreciation charges include the amountdepreciation of fixed assets, intangible assets, other intangible assets (temporary constructions, inventory containers) directly involved in the production of products.

Other direct costs include: communication services, travel expenses, settlement and cash services, etc.

At those enterprises or shops where production specializes in one kind of product, almost all costs are direct.

Direct costs for most industrialenterprises are accounted for on the basis of progressive norms for spending different types of resources. Depending on the type of management tasks, the classification of costs can be very diverse. Main management tasks:

- calculation of the cost price;

- calculation of expected profit;

- planning;

- control and regulation of production.

To solve each of the above tasks, there is a classification of expenses.

Accounting for direct production costs allows you to easily calculate the cost of production. The growth of part of these costs in the total cost increases the accuracy of the calculation of costs.

There are the following methods of accounting for production costs: ordering, regulatory, process.

A custom method is used when the unitproducts has characteristic properties, and the products are manufactured in separate batches. The object of accounting for this are specific orders for a batch or a unit of products.

Accounting for costs, based on the calculation of individual processes, is as follows:

1. The cost per unit of output is determined for each process (redistribution).

2. Summarizes the cost of all units of production and calculates the total cost of the final product.

The normative method is based on the creationsystem of norms and norms. On their basis are the cost estimates of the standard cost and take into account those costs that are associated with deviation from the established standards. The actual cost price is determined by adjusting the standard cost price for all cost items.