Semi-finished products, works and services of a production nature).
Commercial products are products intended for external sales.
Commercial products consist of the following three elements:
The cost of finished products produced in the reporting period by main, subsidiary and secondary enterprises;
- Cost of semi-finished products of own production and products of auxiliary workshops sold to the outside;
- The cost of industrial work performed on orders from outside or for non-industrial divisions and organizations of a given enterprise.
Commercial products do not include those results of production activities that remain at the enterprise itself and are not intended for release outside its borders. In addition, commercial products do not include finished products consumed at the enterprise, as well as the cost of raw materials and customer materials from which products are manufactured at this enterprise.
Commercial products are products obtained as a result of the production activities of an enterprise, sold or ready for sale externally. This indicator is calculated in industry, agriculture and construction.
At an industrial enterprise, the composition of commercial products includes:
The cost of finished products produced in the reporting period by the main, subsidiary, secondary and auxiliary workshops, with the exception of products consumed by the enterprise for its production needs;
the cost of semi-finished products sold externally;
the cost of industrial work performed on external orders.
Products made from raw materials and materials of the customer are included and commercial products are not included at full cost, but minus the cost of raw materials and materials of the customer not paid by the manufacturer. The cost of installation work performed by the manufacturer's workers at the customer's enterprise is included in the commercial product only if the installation is a continuation of the technological process and the product, according to technical conditions, must be handed over to the customer after installation and appropriate testing.
Commercial output can also be determined on the basis of gross output. In this case, it will be the sum of gross output minus the cost of remaining semi-finished products and work in progress, the cost of processed raw materials and customer materials not paid for by the manufacturer. The volume of marketable products as a whole for the production association is determined as the cost of products manufactured by all production units, which are intended for sale both outside the association and to independent enterprises included in the association, and the cost of products manufactured by independent enterprises subordinate to the association for sale. This does not include the cost of products intended for supply to the industrial production needs of other production units of the same association.
Commercial agricultural products are the part of gross output sold externally by each agricultural enterprise. Commodity products are determined both in natural and in value terms. In order to improve planning and enhance the impact of the economic mechanism on increasing production efficiency and quality of work in construction, an indicator of marketable construction products is being introduced. It represents the estimated cost of construction and installation work for enterprises, queues, start-up complexes, and facilities prepared for the production of products or provision of services delivered to the customer.
When determining marketable construction products, the full estimated cost of work on completed objects (stages and work packages) is taken into account in the actual volume completed. The indicator of marketable construction products is used to assess the results of production activities of construction and installation organizations and is linked to the final products of construction. The plans of construction ministries and organizations approve the total volume of commercial construction products carried out on their own; This indicator is used to monitor the implementation of planned targets.
Volume of commercial products
The volume of marketable products is determined by the formula:Tp = Tg + Tk + Ti + F,
Where Tg is the cost of finished products (services, works) intended for external sales;
Tk - the cost of finished products for the needs of capital construction and non-industrial economy of your enterprise;
Ti - the cost of semi-finished products of its production and products of auxiliary and subsidiary farms intended for external sales;
F is the cost of fixed assets of own production.
The cost indicators of the volume of production of an industrial enterprise are:
Gross turnover;
gross output;
gross production turnover;
commercial products;
shipped products;
sold products;
clean products.
Gross output (GP) is the main indicator of the production volume of an industrial enterprise, which in value terms is calculated using the formula:
VP = VO-VZO,
Where VO is gross turnover, which characterizes the cost of the entire volume of total production of the enterprise (finished products and semi-finished products) regardless of their subsequent purpose;
VZO - intra-plant turnover, which shows the cost of semi-finished products of own production.
Gross production turnover (GPO), which is calculated using the formula:
VPO = VZO + TP,
TP - commercial products that correspond to the cost of products of the current (reporting) period for shipment outside the main activity (outside) and are calculated using the formula:
TP = VP-NTCh,
Where NTC is the non-commodity part of gross output.
Commodity products can be expressed in current and fixed prices. In the first case, the indicator characterizes the results of work in the reporting period, in the second - to determine the dynamics of production volume.
Shipped products (SP) is the cost of products for which the corresponding settlement documents for shipment have been drawn up in a given period and which is calculated using the formula:
OP = TP-(Zk-Zp),
Where 3k, Zp are the balances of products in the warehouse, respectively, at the end and beginning of the period.
Cost of commercial products
The cost of commercial products includes all the enterprise's costs for the production and sale of commercial products in the context of costing items. The cost of products sold is equal to the cost of goods minus the increased costs of the first year of mass production of new products, reimbursed from the fund for the development of new equipment, plus the production cost of products sold from last year's balances. Costs reimbursed from the fund for the development of new equipment are included in the cost of goods, but are not included in the cost of products sold.They are defined as the difference between the planned cost of the first year of mass production of products and the cost accepted when approving prices:
SR = ST - ZN + (SP2 - SP1),
where CP is the cost of goods sold
ST - cost of commercial products
ZN - increased costs of the first year of mass production of new products, reimbursed from the fund for the development of new technology
SP1, SP2 - production cost of the balance of unsold (in warehouses and shipped) products, respectively, at the beginning and end of the year.
To analyze the level of cost at different enterprises or its dynamics over different periods of time, production costs must be reduced to the same volume. The cost of a unit of production (costing) shows the enterprise’s costs for the production and sale of a specific type of product per one natural unit. Costing is widely used in pricing, cost accounting, planning and benchmarking.
Industrial enterprises, in addition to the indicator of reducing the cost of a unit of production, plan the cost of all marketable products in an absolute amount. When analyzing the implementation of the plan for the cost of marketable products, it is necessary to consider the actual consumption, identify deviations from the plan and outline measures to eliminate overexpenditures and to further reduce costs for each item.
Assessment of the implementation of the plan at the cost of all commercial products is carried out based on data on its actual volume and assortment, calculated according to the planned and actual costs of the reporting year.
In general, the cost of production consists of material costs, costs of paying wages to workers and complex expense items. An increase or decrease in costs for each element causes either an increase in price or a decrease in the cost of production. Therefore, when analyzing, it is necessary to check the costs of raw materials, materials, fuel and electricity, wage costs, workshop, general plant and other expenses.
Costs for wages of production workers are reflected directly in cost items. The wages of auxiliary workers are mainly reflected in the cost items for the maintenance and operation of equipment; the wages of employees and engineers are included in shop and general plant expenses. The wages of workers engaged in auxiliary production are included in the cost of steam, water, electricity and affect the cost of marketable products not directly, but indirectly, through those complex items that include the consumption of steam, water and electricity. Therefore, the analysis of wages, first of all, is carried out according to its general fund and the funds of individual categories of industrial and production personnel of the enterprise, regardless of which articles reflect this wage. After identifying the reasons that caused a change (deviation) in the wage fund of certain categories of workers, it is possible to determine the extent to which these deviations affected various items of product cost.
The reduction in production costs is largely determined by the correct ratio of the growth rate of labor productivity and wage growth. The growth of labor productivity should outpace the growth of wages, thereby ensuring a reduction in production costs.
The cost indicator for 1 ruble of commercial products is determined based on the level of costs for the production of commercial products in relation to the cost of products in wholesale prices of the enterprise.
This indicator not only characterizes the planned level of cost reduction, but also determines the level of profitability of commercial products. Its value depends both on the reduction in production costs and on changes in wholesale prices, assortment and quality of products.
In terms of the cost of production at the enterprise, along with the costs of 1 rub. of commercial products there are the following indicators: the cost of individual types of products, the cost of commercial products, reduction in the cost of comparable products.
Determining the planned cost of individual types of products serves as the basis for planning production costs. The planned cost of all commercial products is calculated based on data on the volume of commercial output and the planned cost of individual types of products.
Assessment of plan implementation at the cost of all marketable products is carried out taking into account changes in prices for materials and tariffs for transportation and energy that occurred during the reporting year.
To determine the task of reducing the cost of comparable commercial products, a cost calculation is made for the entire range of products based on the volume of production provided for by the enterprise plan and taking into account the planned cost level per 1 ruble. commercial products at wholesale prices.
Ways to reduce production costs
The decisive condition for reducing costs is continuous technical progress. The introduction of new technology, comprehensive mechanization and automation of production processes, improvement of technology, and the introduction of advanced types of materials can significantly reduce the cost of production.
The cost of production is characterized by indicators expressing:
A) the total amount of costs for all manufactured products and work performed by the enterprise for the planned (reporting) period - the cost of commercial products, comparable commercial products, sold products;
b) costs per unit of volume of work performed - unit cost of certain types of commercial products, semi-finished products and production services (products of auxiliary workshops), costs per 1 rub. commercial products, costs per 1 rub. regulatory clean products.
Cost reduction is planned according to two indicators: for comparable commercial products; at costs per 1 rub. commercial products, if in the total output the share of products comparable to the previous year is small. Comparable commercial products include all types of products produced at a given enterprise in the previous period on a mass or serial basis.
Production of commercial products
The volume of products sold is determined according to the current wholesale prices of the enterprise and the net product standard.The composition and volume of commercial and sold products for the same period are divided, since the latter does not take into account warehouse balances or products at the sales stage (merchandising, transportation and settlements).
Work-in-progress refers to products, expressed in value form, that are not completed in production and are at various stages of production in the form of backlogs that are subject to further processing.
The composition of unfinished products includes blanks, parts, assembly units, kits located at workplaces, at control points, in workshop storerooms, during assembly and testing, as well as finished products, but which have not passed technical acceptance and have not been delivered to the warehouse or to the customer.
Materials, blanks and semi-finished products received from suppliers, even if they are delivered to the workshop, are not included in work in progress until they are put into processing at this enterprise.
Work in progress (backlog) is a necessary condition for ensuring the continuity and rhythm of production. Work in progress is planned in a minimal amount, but sufficient for the smooth progress of production.
At an enterprise with a stable product range and a short production cycle (up to two months), the level of work in progress does not undergo significant changes and is not taken into account in the plan.
Ruble of commercial products
Each enterprise, firm, before starting production, determines what profit, what income it can receive.The profit of an enterprise or firm depends on two indicators: the price of the product and the cost of its production. The price of products on the market is a consequence of the interaction of supply and demand. Under the influence of the laws of market pricing in conditions of free competition, the price of products cannot be higher or lower at the request of the manufacturer or buyer; it is automatically equalized.
Another thing is the cost of production - production costs. They can increase or decrease depending on the volume of labor or material resources consumed, the level of technology, the organization of production and other factors. Consequently, the manufacturer has many cost-cutting levers that it can use with skillful management.
Costs are the monetary expression of the costs of production factors necessary for an enterprise to carry out its production and commercial activities. They can be presented in terms of product cost, which characterizes in monetary terms all material costs and labor costs that are necessary for the production and sale of products.
In general, production and sales costs (cost of products, works, services) represent the valuation of natural resources, raw materials, supplies, fuel, energy, fixed assets, labor resources, and others used in the production process of products (works, services). costs of its production and sale.
The costs of an enterprise consist of the entire amount of expenses of the enterprise for the production of products and their sale. These costs, expressed in monetary terms, are called prime costs and are part of the cost of the product. It includes the cost of raw materials, materials, fuel, electricity and other labor items, depreciation charges, wages of production personnel and other cash expenses.
In economic practice and legislative acts of our country, the term “cost” is often used to determine the value of production costs. Cost corresponds to the considered concept of explicit (accounting) production costs. Therefore, it is necessary to dwell in more detail on the production costs included in the cost of production. The cost of products (works, services) is a valuation of the natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources used in the production process of products (works, services), as well as other costs for its production and sale.
The cost of production is interconnected with production efficiency indicators. It reflects most of the cost of products and depends on changes in the conditions of production and sales of products. Technical and economic factors of production have a significant impact on the level of costs. This influence manifests itself depending on changes in technology, technology, organization of production, in the structure and quality of products and on the amount of costs for its production. Cost analysis, as a rule, is carried out systematically throughout the year in order to identify internal production reserves for their reduction.
To analyze the level and dynamics of changes in the cost of products, a number of indicators are used.
These include:
Production cost estimate;
- cost of commercial and sold products;
- reduction in the cost of comparable commercial products;
- costs per ruble of commercial (sold) products.
The production cost estimate is the most general indicator that reflects the entire amount of an enterprise's expenses for its production activities in the context of economic elements.
It reflects:
Firstly, all expenses of main and auxiliary production associated with the production of commercial and gross output;
secondly, the costs of works and services of a non-industrial nature (construction and installation, transport, research and design, etc.);
thirdly, the costs of mastering the production of new products, regardless of the source of their reimbursement.
These expenses are calculated, as a rule, without taking into account intra-factory turnover.
The cost of commercial products includes all the enterprise's costs for the production and sale of commercial products in the context of costing items. The cost of products sold is equal to the cost of goods minus the increased costs of the first year of mass production of new products, reimbursed from the fund for the development of new equipment, plus the production cost of products sold from last year's balances.
To analyze the level of cost at different enterprises or its dynamics over different periods of time, production costs must be reduced to the same volume. The cost of a unit of production (costing) shows the enterprise’s costs for the production and sale of a specific type of product per one natural unit. Costing is widely used in pricing and benchmarking.
The cost of one ruble of commercial (sold) products is the most well-known generalizing indicator in practice, which reflects the cost of a unit of production in monetary terms impersonally, without distinguishing it by specific types.
It is widely used in the analysis of cost reduction and allows, in particular, to characterize the level and dynamics of production costs in the industry as a whole.
To take into account the dynamics of product costs at enterprises, an additional indicator of the cost of all commercial products is calculated - costs per ruble of commercial products (TP). The total cost of commercial products / the cost of commercial products in wholesale prices of the enterprise = costs per ruble of commercial products.
The indicator of costs per ruble of production is an important general indicator of product cost, which is advantageous because it is very universal: it can be calculated in any industry and clearly shows the direct relationship between cost and profit. It is determined by the ratio of the total cost of production and sales of products to the cost of manufactured products in current prices.
When analyzing the cost of manufactured products, one should take into account both the change in the volume of growth of manufactured and sold products, and the change in prices for them, as well as changes in the range of products. Costs (production costs) should take into account: changes in production volumes, changes in prices for resources, changes in the rates of resource expenditure for the production of a unit of product and changes in the range of products.
As the main indicator of the economic efficiency of current costs (resource consumption), you can use the cost indicator per 1 ruble. commercial or sold products, especially since private indicators of the use (application) of living labor resources and means of labor can be identified as factors influencing the level and dynamics of the cost indicator.
In the process of such a comprehensive analysis, the cost indicator per 1 ruble is first determined. cost of production, and the numerator (the total amount of current costs) is presented as the sum of four terms - costs associated with the use of living labor, costs associated with the use of means of labor or fixed capital, costs associated with the use of objects of labor, and other costs that take into account costs of the main factors of production.
Reducing production costs is the most important factor in the development of an enterprise's economy. The cost of production, representing the enterprise's costs of production and circulation, serves as the basis for measuring expenses and income, i.e. self-sufficiency is a fundamental feature of economic market calculation. Thus, cost is one of the general indicators of intensification and efficiency of resource consumption.
Effective cost management of an enterprise involves reducing costs, planning and accounting for costs, monitoring deviations with identifying the causes of these deviations and organizing an information system that would allow making management decisions and creating a basis for stimulating employees of the enterprise. This task is especially relevant for a water supply company, since there is government regulation of prices.
It is important not only to study the actual level and validity of the costs that form the cost, but also to develop proposals for improving accounting at the enterprise, identifying the main factors of cost growth, their causes, and the cost management system.
For the successful functioning of an enterprise in the modern market, it is necessary to form a perfect system for managing the costs of production, adopting for a long period of management regulations governing the responsibilities for developing and approving plans, communicating planned tasks to performers, control, as well as the distribution of planned and control activities over time. Therefore, a structural and procedural organization of the processes of planning, accounting and control of enterprise costs is required.
The cost management system should assist management in making decisions regarding product development, pricing, marketing, assortment and facilitate improvements.
Thus, cost management is understood as a set of measures to influence them. Its objects are the level, formation and structure of costs. Individual cost management methods put forward different main tasks; they do not exclude each other, but can be implemented in many ways in parallel or complementarily.
Currently, many industrial enterprises are faced with problems associated with the high level of costs per ruble of the products they produce, which affects the profitability of the enterprises, since they have to set prices for products several times lower than their cost. Therefore, there is a need to develop an integrated cost management system based on the search for reserves, capable of solving the problems of effective use of on-farm cost reduction factors using methods for their identification, analysis and planning.
Cost of commercial products
The cost consists of the following components:1. Material costs – this includes: costs for materials and feedstock, costs for components, etc.; costs for electricity, fuel, coal, etc.; general production costs.
2. Labor costs are the payment of salaries to company employees: key personnel (engaged in production); support staff (servicing machinery, equipment); intellectual staff (analysts, marketers); company employees (accountants, HR officers, management and managers, etc.); junior service personnel.
3. Contributions for social events.
4. Expenses for depreciation of fixed assets.
5. Other expenses - expenses for advertising, marketing of products, overhead costs that are associated with the production of products and their sale, etc.
In turn, there is a division according to costing items:
1. Materials are raw materials and semi-finished products, components and assemblies, components, etc.
2. Energy and fuel consumed in creating products.
3. Depreciation of fixed assets (fixed production assets) - these are machines and equipment, machinery, equipment, etc.
4. Basic salary (salary) of the main personnel of the company.
5. Additional salary for key personnel - this includes various allowances and additional payments to the basic salary in accordance with the Labor Code, etc. Additional salary is expressed as a certain percentage of the main one.
6. Social contributions are various funds: social, pension, insurance, unemployment fund, accident payment fund, etc. These deductions are also counted as a percentage of the basic salary.
7. OPR (total production costs) – costs of selling products, internal production costs, employee salaries, etc. (for example, under the item “repairs” these are costs for the purchase of plaster, linoleum, glue, etc.). Also a percentage of point D.
8. Travel allowances are expenses for purchasing tickets, paying for a hotel stay, and issuing daily allowances.
9. Payment for the work of contractors (third-party companies and organizations).
10. Administrative expenses are the maintenance of the administrative apparatus, a kind of “bureaucracy expenses”.
The calculation of product costs may differ slightly depending on the field of activity; for example, additional expense items may appear.
Sales of commercial products
The final stage of the process of circulation of enterprise funds is the sale of products (works, services), as a result of which finished products (works, services) are converted into money.With the introduction of the Tax Code of the Russian Federation, the concept of sales of finished products was defined. According to Article 39 of the Tax Code, the sale of goods (work, services) is the transfer of ownership of goods from one person to another.
Sales are the main volumetric indicator of an enterprise’s activity. The sales process is a set of business transactions related to the marketing and sale of products. Planning the implementation process begins with providing the enterprise with orders. On their basis, a nomenclature plan is drawn up, which is the basis for organizing the production output of the relevant types of products. Orders are coordinated with product customers and material suppliers. Agreements are concluded with buyers, which specify the assortment, shipment terms, quantity and quality of products, price, and form of payment.
According to Article 39 “Sales of goods, works or services”: the sale of goods, works or services by an organization or an individual entrepreneur is recognized as the transfer on a reimbursable basis (including the exchange of goods, works or services) of ownership of goods, results of work performed by one person for another person, the provision of paid services by one person to another person, and in cases provided for by this Code, the transfer of ownership of goods, the results of work performed by one person for another person, the provision of services by one person to another person - on a free basis.
The place and moment of actual sale of goods, works or services are determined in accordance with part two of this Code.
The following are not recognized as sales of goods, works or services:
1) carrying out operations related to the circulation of Russian or foreign currency (except for numismatic purposes); On the applicability of the norm of subparagraph 1 of paragraph 3 of Article 39 of the Code to income received by banks from the purchase and sale of foreign currency, see letter of the Ministry of Taxes of the Russian Federation N DCH-8-07/1477
2) transfer of fixed assets, intangible assets and (or) other property of the organization to its legal successor(s) during the reorganization of this organization;
3) transfer of fixed assets, intangible assets and (or) other property to non-profit organizations for the implementation of the main statutory activities not related to business activities;
4) transfer of property, if such transfer is of an investment nature (in particular, contributions to the authorized (share) capital of business companies and partnerships, contributions under a simple partnership agreement (agreement on joint activities), share contributions to mutual funds of cooperatives);
5) transfer of property within the limits of the initial contribution to a participant in a business company or partnership (his legal successor or heir) upon exit (disposal) from the business company or partnership, as well as when distributing the property of a liquidated business company or partnership between its participants;
6) transfer of property within the limits of the initial contribution to a participant in a simple partnership agreement (joint activity agreement) or his legal successor in the event of the separation of his share from the property that is in common ownership of the participants in the agreement, or the division of such property;
7) transfer of residential premises to individuals in houses of the state or municipal housing stock during privatization;
8) seizure of property by confiscation, inheritance of property, as well as the conversion into the property of other persons of ownerless and abandoned things, ownerless animals, finds, treasure in accordance with the norms of the Civil Code of the Russian Federation;
9) other operations in cases provided for by this Code.
Retail trade is the most important sector of economic activity. The main indicator of the performance of trading enterprises is retail turnover. In the sphere of retail trade, the process of circulation of goods ends, and they move into the sphere of personal consumption. Retail trade is the sale of goods directly to the public for personal consumption. Retail trade is divided according to forms of ownership: state, collective, joint, private, mixed.
Accounting at a retail trade enterprise must ensure:
Monitoring the implementation of the retail turnover plan, preparing information necessary to manage all services of the enterprise;
- checking the correctness of documentation, legality and expediency of commodity-package operations, their timely and complete reflection in accounting;
- organization of financial liability for goods and containers;
- control over the correct write-off of commodity losses;
- monitoring compliance with the rules for conducting inventories, timely identification and recording of their results.
The main component of retail turnover is the sale of goods to the public for cash, and the volume of sales is determined by the revenue for goods sold. At a retail trade enterprise, one of the most important parts of accounting is the accounting of goods and containers.
Sales of goods in retail trade enterprises are carried out in cash. Accounting for goods at retail trade enterprises selling goods to the public is carried out in total or quantitative-total terms. Documentation of the sale of goods for cash depends on the form of customer service and the procedure for receiving cash from them.
The main purpose of wholesale trade is to organize an uninterrupted, rational supply of goods to retailers and industrial enterprises, to ensure a balance between supply and demand.
The main quantitative indicator that allows us to assess the volume of work of a wholesale enterprise is wholesale turnover.
Wholesale trade turnover is the sale of goods by trading enterprises to other enterprises that use these goods either for subsequent resale, or for industrial consumption as raw materials, or for material support, economic needs. As a result of wholesale trade, goods do not pass into the sphere of personal consumption, but remain in the sphere of circulation or enter the sphere of industrial consumption. In other words, in wholesale trade, goods are sold for subsequent processing or resale.
The volume of trade turnover, its structure, types and forms of commodity circulation predetermine other important indicators of economic activity.
Depending on the purpose of commodity resources and the degree of completion of wholesale sales, wholesale trade turnover is divided into the following types:
Wholesale sales turnover includes the sale of goods to organizations and retail and public catering enterprises located in the area where the wholesale enterprise operates, deliveries to off-market consumers (for industrial processing and industrial consumption, for stocks of workwear, special footwear, etc.) and for export. Wholesale sales also include the cost of goods supplied to retail under direct contracts, if the wholesale enterprise is involved in organizing these deliveries, deliveries to off-market consumers, for export and through clearing. It is typical for wholesale sales that it completes the movement of goods in the wholesale chain and accounts for almost 2/3 of the gross wholesale turnover.
Wholesale trade turnover to enterprises represents the sale of goods in large quantities using cash and non-cash payments. In this case, cash payments between legal entities can be made within 10,000 rubles, a larger amount must be transferred. Cash turnover is subject to sales tax and value added tax, which must be reflected in the accompanying documents. Wholesale sales involve completing a transaction by signing contracts, which indicate all the details of the counterparty enterprises, as well as all the parameters of the contract, with a reservation for cash or non-cash payments.
The main tasks of accounting for the receipt of goods and the implementation of supply contracts:
Monitoring the implementation of the plan for the receipt of goods in general, as well as by sources of receipt;
- monitoring the fulfillment of contractual obligations by suppliers in terms of quantity (volume), assortment, quality, delivery times of goods;
- control over the correct determination of the quantity, quality, prices, cost of goods received by the store, over the timely and high-quality execution of documents for received goods. The justification and timely submission of claims to the supplier or transport organizations for short-delivery of goods, for a decrease in their quality compared to that specified in the supplier’s documents depends on this;
- control over the timely and complete posting of received goods by financially responsible persons, which is an important condition for ensuring the safety of inventory items;
- control over the implementation of timely and correct payments to suppliers for received and capitalized goods.
Indicators of commercial products
Depending on the nature of the tasks being solved in assessing product quality, indicators can be classified according to various criteria.The most widely used indicators in assessing the quality of industrial and technical products are grouped by characteristic properties.
Purpose indicators characterize the properties of a product, determining the main functions for which it is intended to perform, and determine the scope of its application.
They are divided into the following categories:
Indicators of functional and technical efficiency - machine productivity, fabric strength, etc.;
design indicators - overall dimensions, coefficients of prefabrication and interchangeability, etc.;
indicators of composition and structure - percentage, concentration, etc.
Reliability indicators characterize the following properties:
Reliability is the property of a product to continuously maintain operability for some time or some operating time, expressed in the probability of failure-free operation, average time to failure, failure rate.
Maintainability is a property of a product that consists in its adaptability to preventing and detecting the causes of failures, damage and eliminating their consequences through repairs and maintenance. Single indicators of maintainability are the probability of restoration to a working condition and the average recovery time.
The recoverability of a product is characterized by the average recovery time to a given value of the quality indicator and the level of recovery.
Storability is the property of products to maintain a serviceable and functional state suitable for consumption during and after storage and transportation. Single indicators of shelf life can be the average shelf life and the assigned shelf life.
Durability is the property of a product to remain operational until a limiting state occurs with an established system of maintenance and repairs. Single indicators of durability are the average resource, the average service life.
Cost-effectiveness indicators determine the perfection of a product based on the level of expenditure of material, fuel, energy and labor resources for its production and operation.
This is first of all:
Cost price;
purchase price;
consumption price;
profitability, etc.
Ergonomic indicators characterize the system “person - product - environment of use” and take into account a complex of such human properties as:
Hygienic;
anthropometric;
physiological;
psychological.
Aesthetic indicators characterize:
Informational and artistic expressiveness of the product;
rationality of form;
integrity of the composition.
Manufacturability indicators relate to such properties of a product design that determine its suitability for achieving optimal costs during production, operation and restoration of specified values of quality indicators. They are decisive for efficiency indicators.
Single indicators of manufacturability include:
Specific labor intensity;
material consumption;
energy intensity of product manufacturing and operation;
duration of the maintenance and repair cycle, etc.
Indicators of standardization and unification characterize the saturation of a product with standard, unified and original components, which are the parts, assemblies, assemblies, kits and complexes included in it.
This group of indicators includes the following coefficients:
Applicability;
repeatability;
unification of a product or group of products.
Patent legal indicators characterize the degree of patent purity of technical solutions used in a product, which determines its competitiveness in the domestic and foreign markets.
Environmental indicators determine the level of harmful effects on the environment during operation or consumption of a product. These include:
Safety indicators characterize the features of a product that determine the safety of humans and other objects during its use. They must reflect the requirements for measures and means of human protection in an emergency situation that is not authorized and not provided for by the operating rules in a possible danger zone.
PRODUCT QUALITY INDICATORS BY THE NUMBER OF CHARACTERIZED PROPERTIES
The indicator by which the decision is made to evaluate product quality is called determining. The properties taken into account by the defining indicator can be characterized by single, complex (generalizing) and (or) integral indicators, which relate to the classification criterion of product quality indicators according to the number of characterized properties.
Single indicators characterize one property of a product, constituting its quality in relation to certain conditions of creation, operation and consumption.
Complex (generalizing) indicators are an average value that takes into account quantitative assessments of the main properties of products and their weight coefficients. Integral indicators reflect the ratio of the beneficial effect of operation and the costs of purchasing and operating products.
The optimal value of a product quality indicator is one at which the greatest beneficial effect from the operation (consumption) of a product is achieved at a given cost of its creation and operation (consumption).
Similar quality indicators are determined for consumer goods, but they must take into account the specific purpose and use of these items. In world practice, in order to assess the degree of superiority of products, gradation (class, grade) is used - a category or rank assigned to products that have the same functional application, but different quality requirements.
When designating numerically, the highest class is usually assigned the number 1, and when designating by the number of any characters, such as asterisks, usually the lower class has a smaller number of such characters.
According to the Federal Law of the Russian Federation “On the Protection of Consumer Rights”:
For durable goods, the manufacturer is required to establish a service life;
for food, medicine, household chemicals - expiration date.
These two indicators establish periods after which the product poses a danger to the life, health and property of the consumer or becomes unsuitable for its intended use.
Features of assessing the quality of industrial and technical products and consumer goods are reflected in industry normative and technical documentation, which regulates the selection of a range of quality indicators, methods for their calculation and scope of application.
Costs per ruble of commercial products
One of the most important sections of economic (managerial) analysis of the activities of industrial enterprises is the study of the cost of manufactured and sold products.Cost is the sum of the costs of a given enterprise for the production and sale of products.
The cost of products (works, services) is the valuation of natural resources, raw materials, materials, fixed assets, labor resources and other costs for its production and sale used in the production process.
Cost is part of the cost of production and shows how much it cost the company to produce the product.
Cost price:
Total cost - the sum of the costs of producing the entire volume of products;
Individual cost - the cost of producing only one product;
Average cost is determined by dividing the total cost by the number of products produced.
Types of cost:
Production cost - costs associated with the production process (from the start of production to shipment to the finished product warehouse);
Total cost is the sum of expenses associated with the production of products and the costs of selling them (production cost + selling expenses).
Selling expenses - costs for packaging, transportation and advertising.
Reducing production costs is the main direction of increasing profits and increasing profitability.
The most important indicators expressing the cost of production are the cost of all commercial products, costs per 1 ruble of commercial products, and the cost of a unit of production.
Sources of information for the analysis of product costs are: Form 2 “Profit and Loss Statement” and Form 5 Appendix to the balance sheet of the enterprise’s annual report, costing of commercial products and costing of certain types of products, consumption rates of material, labor and financial resources, cost estimates for production and their actual implementation, as well as other accounting and reporting data.
As part of the cost of production, a distinction is made between variable and semi-fixed expenses (costs). The amount of variable costs changes with changes in the volume of products (works, services). Variables include the material costs of production, as well as the piecework wages of workers. The amount of semi-fixed costs does not change when the volume of production (work, services) changes. Conditionally fixed expenses include depreciation, rental of premises, time-based wages of administrative, managerial and service personnel and other costs.
As we can see, the increase in the actual cost of marketable products compared to the planned one is caused by overexpenditure of raw materials, additional wages of production workers, an increase in other production costs against the plan and the presence of losses from defects. For the remaining items of calculation, savings occur.
We looked at the grouping of product costs by cost items (cost items). This grouping characterizes the purpose of the costs and the place of their occurrence. Another grouping is also used - according to homogeneous economic elements. Here costs are grouped according to economic content, i.e. regardless of their intended purpose and the place where they are used.
These elements are the following:
Material costs;
labor costs;
insurance contributions;
depreciation of fixed assets (funds);
other costs (depreciation of intangible assets, rent, mandatory insurance payments, interest on bank loans, taxes included in the cost of production, contributions to extra-budgetary funds, travel expenses, etc.).
During the analysis, it is necessary to determine the deviations of actual production costs by element from the planned ones, which are contained in the production cost estimate.
So, analysis of the cost of production in the context of costing items and homogeneous economic elements allows us to determine the amounts of savings and overruns for individual types of costs and facilitates the search for reserves for reducing the cost of products (works, services).
The main place in the cost of industrial products is occupied by material costs, i.e. costs of raw materials, supplies, purchased semi-finished products, components, fuel and energy, equal to material costs.
The share of material costs is about three-quarters of the cost of production. It follows that saving material costs to a decisive extent ensures a reduction in production costs, which means an increase in profits and an increase in profitability.
The most important source of information for analysis is the costing of products, as well as the costing of individual products.
The analysis begins with a comparison of actual material costs with planned ones, adjusted for the actual volume of production.
The amount of material costs is influenced by three main factors:
Change in specific consumption of materials per unit of production;
change in the procurement cost per unit of material;
replacing one material with another material.
1) A change (reduction) in the specific consumption of materials per unit of production is achieved by reducing the material intensity of products, as well as by reducing waste of materials in the production process.
The material intensity of products, which is the share of material costs in the price of products, is determined at the stage of product design. Directly in the course of the current activities of the enterprise, the reduction in specific consumption of materials depends on the reduction in the amount of waste in the production process.
There are two types of waste: returnable and irrecoverable. Returnable waste materials are subsequently used in production or sold externally. Irrevocable waste is not subject to further use. Returnable waste is excluded from production costs, since it is returned to the warehouse as materials, but the waste is not received at the price of full-fledged waste, i.e. source materials, but at the price of their possible use, which is significantly less.
The main reasons for changes in specific material consumption are:
A) changes in materials processing technology;
b) change in the quality of materials;
c) replacing missing materials with other materials.
2. Change in the procurement cost of a unit of material.
The procurement cost of materials includes the following main elements:
A) supplier’s wholesale price (purchase price);
b) transportation and procurement costs. The value of purchase prices for materials does not directly depend on the current activities of the enterprise, but the amount of transportation and procurement costs does, since these expenses are usually borne by the buyer. They are influenced by the following factors: a) changes in the composition of suppliers located at different distances from the buyer; b) changes in the method of delivery of materials;
c) changes in the degree of mechanization of loading and unloading operations.
Change in commercial products
Factors influencing changes in commercial products can be classified according to several criteria:Technological – changing the product range; duration of the production cycle; improving the use and application of new types of raw materials and materials, the use of economical substitutes and the full use of waste in production; improving product technology, reducing its material and labor intensity.
2. Based on the time of occurrence, planned and sudden factors are distinguished. An enterprise can plan the following activities: commissioning and development of new workshops; preparation and development of new types of products and new technological processes; optimal placement of certain types of products throughout the enterprise. Sudden (unplanned) factors include production losses; changes in the composition and quality of raw materials; changes in natural conditions; deviations from established production standards and others.
3. Based on the place of occurrence, factors are divided into external (independent of the enterprise) and internal (depending on the enterprise). The cost of production, regardless of the enterprise, can be affected by the economic situation in the country, inflation; natural and climatic conditions; technical and technological progress; changes in tax legislation and other factors. Internal include the production structure of the enterprise; management structure; level of concentration and specialization of production; duration of the production cycle.
4. Based on their purpose, major and minor factors are distinguished. This group of factors depends on the specialization of the enterprise. If we consider a material-intensive production, for example, a meat processing plant, then the main factors include the following factors: prices for material resources and consumption of raw materials and other materials; technical equipment of labor; technological level of production; production rate; nomenclature and range of products; organization of production and labor. To a lesser extent, the cost of production will be affected by the management structure; natural and climatic conditions; wages of production workers; structure of other costs and other factors.
The following main directions for reducing the cost of production of an industrial enterprise can be identified:
1. Increasing the technical level of production. This is the introduction of new, progressive technology, mechanization and automation of production processes; improving the use and application of new types of raw materials and materials; changes in the design and technical characteristics of products; other factors that increase the technical level of production. For this group, the impact on the cost of scientific and technological achievements and best practices is also analyzed.
Cost reduction can occur by creating automated control systems, using computers, improving and modernizing existing equipment and technology. Costs are also reduced as a result of the integrated use of raw materials, the use of economical substitutes, and the complete use of waste in production. A large reserve also conceals the improvement of products, a reduction in their material and labor intensity, a reduction in the weight of machinery and equipment, a reduction in overall dimensions, etc.
2. Improving the organization of production and labor. A reduction in cost can occur as a result of changes in the organization of production, with the development of production specialization; improving production management and reducing production costs; improving the use of fixed assets; improvement of logistics; reducing transport costs; other factors that increase the level of organization of production.
A serious reserve for reducing production costs is the expansion of specialization and cooperation. In specialized enterprises with mass production, the cost of production is significantly lower than in enterprises producing the same products in small quantities.
A reduction in current costs occurs as a result of improving the maintenance of the main production, for example, the development of continuous production, the streamlining of auxiliary technological work, the improvement of tool facilities, and the improvement of the organization of control over the quality of work and products. A significant reduction in living labor costs can occur with a reduction in lost working time and a reduction in the number of workers who do not meet production standards. Additional savings arise when improving the management structure of the enterprise as a whole. It is expressed in a reduction in management costs and in savings in wages and salaries due to the release of management personnel.
With improved use of fixed assets, cost reduction occurs as a result of increased reliability and durability of equipment; improving the preventive maintenance system; centralization and introduction of industrial methods of repair, maintenance and operation of fixed assets.
Improving the logistics supply and use of material resources is reflected in a reduction in the consumption rates of raw materials and supplies, reducing their cost by reducing procurement and storage costs. Transportation costs are reduced as a result of reduced costs for the delivery of raw materials and materials and for the transportation of finished products.
Certain reserves for reducing costs are laid down in the elimination or reduction of costs that are not necessary in the normal organization of the production process (excessive consumption of raw materials, supplies, fuel, energy, additional payments to workers for deviations from normal working conditions and overtime work, payments for regressive claims, etc.). P.). This also includes the most common production losses, such as losses from defects. Identifying these unnecessary costs requires special methods and attention of the enterprise team. Eliminating these losses is a significant reserve for reducing production costs.
The next factor influencing the cost of production is labor productivity. It is necessary to take into account that the reduction in production costs is largely determined by the correct ratio of the growth rate of labor productivity and wage growth. The growth of labor productivity should outpace the growth of wages, thereby ensuring a reduction in production costs.
Let us consider under what conditions, with an increase in labor productivity at enterprises, labor costs per unit of output are reduced. An increase in production output per worker can be achieved through the implementation of organizational and technical measures, due to which production standards and, accordingly, prices for work performed change, and by exceeding established production standards without carrying out organizational and technical measures.
In the first case, the company receives savings on workers' wages. This is explained by the fact that due to a decrease in prices, the share of wages in the cost of a unit of production decreases. However, this does not lead to a decrease in the average wages of workers, since the organizational and technical measures taken enable workers to produce more products with the same labor costs.
In the second case, the cost of workers' wages in the unit cost of production does not decrease. But with an increase in labor productivity, the volume of production increases, which leads to savings on other expense items, in particular, production maintenance and management costs are reduced.
It is also important to reduce shop floor and general plant expenses. This consists primarily in simplifying and reducing the cost of the management apparatus, in saving on management costs; as well as reducing the cost of wages for auxiliary and auxiliary workers.
3. Changes in the volume and structure of products can lead to a relative reduction in semi-fixed costs (except for depreciation), depreciation charges, changes in the nomenclature and range of products, and an increase in their quality. With an increase in production volume, the number of semi-fixed costs per unit of production decreases, which leads to a decrease in its cost. Changes in the nomenclature and range of products produced are one of the important factors affecting the level of production costs. With different profitability of individual products (relative to cost), shifts in the composition of products associated with improving its structure and increasing production efficiency can lead to both a decrease and an increase in production costs.
4. Improved use of natural resources. This takes into account: changes in the composition and quality of raw materials; changes in the productivity of deposits, the volume of preparatory work during extraction, methods of extraction of natural raw materials; changes in other natural conditions. These factors reflect the influence of natural conditions on the amount of variable costs.
5. Industry and other factors: commissioning and development of new workshops, production units and production facilities, preparation and development of production in existing associations and enterprises; other factors.
Significant reserves are included in reducing the costs of preparation and development of new types of products and new technological processes, in reducing the costs of the start-up period for newly commissioned workshops and facilities.
The impact on the cost of commercial products of changes in the location of production is analyzed when the same type of product is produced at several enterprises that have unequal costs as a result of the use of different technological processes. In this case, it is advisable to calculate the optimal placement of certain types of products at the enterprises of the association, taking into account the use of existing capacities, reducing production costs and, based on a comparison of the optimal option with the actual one, to identify reserves.
If changes in the amount of costs during the analyzed period are not reflected in the above factors, then they are included among others: for example, a change in the size or termination of various types of mandatory payments, a change in the amount of costs included in the cost of production, etc.
Analysis of commercial products
When analyzing the products and services of an enterprise, the following factors are considered:Needs satisfied by the product;
quality indicators;
economic indicators;
external design;
comparison with other similar products;
patent protection;
export indicators and its possibilities;
main directions for product improvement;
possible key success factors.
Needs satisfied by a product. The main purpose of the product is to satisfy the needs of the company's client. In this regard, the task of the business plan is to correctly determine the core value of the product, focusing on the needs that it satisfies, and not just on its technical and operational characteristics.
The business plan reflects: scope of application - primary and secondary (indirect benefit); list of functional features; product attractiveness factors; advantages; factors providing uniqueness; disadvantages and methods to overcome them.
Here it is necessary to note the strengths and weaknesses of the product, to give a complete picture of the beneficial effect that can be obtained from the product, i.e., for what the product is purchased. The consumer perceives a product as a set of certain properties, distinctive features, which make it possible to obtain a useful effect. These properties and features are determined by the specifics of the product.
Quality indicators. Indicators of its quality are directly related to the properties of the product: durability, reliability, ease and safety of operation and repair, and other advantages. Some quality indicators can be assessed quantitatively; the corresponding data is provided in the business plan. The set of properties, as well as the level of quality, should be measured in terms that correspond to consumer perceptions. Quality indicators can also be presented in table form. The availability of industrial product certificates is indicated.
Economic indicators. The price of consumption is given, i.e. the costs of purchasing and operating the product, cost, profit.
Exterior design. Compliance with modern design, the form of the product and its functions. A business plan will benefit greatly if it contains a photograph or drawing of a product that gives a fairly clear idea of the product’s presentation.
Comparison with other similar products. The difference between a new or existing product and a competitor’s product is clearly formed. If the product offered by the enterprise does not differ from other products available on the market, then the business plan must indicate how it is intended to attract the buyer.
Patent protection. It is very important for business plan developers to take care of the protection of copyrights, trademarks, and trade secrets. All new products, ideas, technologies, if possible, should be patented or protected by trademarks in the business plan. The company's patent rights, utility model patents, and trademarks are described. The availability of licenses for these objects, as well as know-how, is indicated. Details of patent documents can be included in an appendix to the business plan.
Export indicators and its possibilities. If products are supplied to a foreign market, the main indicators characterizing exports should be given: country, sales volume, foreign exchange earnings. For other goods, the possibility or feasibility of adapting products intended for the domestic market to the conditions and requirements of foreign consumers is indicated.
Main directions for product improvement. This paragraph provides the main goals, directions and opportunities for product modernization in order to better satisfy consumer needs.
Possible key success factors. For example, a new product (service) for the market, a gain in time with the appearance of the product (service) on the market, etc.
A critical component of product planning is product renewal. Entrepreneurs are pushed to constantly update their products by competition, which threatens those lagging behind with financial losses. Experience shows that introducing a new product into the market is more likely than squeezing out the manufacturers of a well-known product.
External causes of innovation are scientific and technological progress, changing people's needs, saturation of the market with goods, the threat of losing in competition.
Internal reasons for innovation are the desire of the manufacturer to increase sales of goods, expand its market, reduce dependence on the sale of only one product, and create the image of an “innovative enterprise.”
For a new product, the business plan indicates whether this product meets the requirements of “novelty”.
This term refers to the following products:
1. A product that has no analogues on the market, which is the original result of fundamentally new discoveries and inventions that are the consequences of qualitative breakthroughs in science. There are very few such products. It has been established that only 10% of goods are truly new, original and are called goods of world novelty. Developing such products, organizing their production and bringing them to market requires high costs and is associated with increased risk. Their classic examples are fax machines and computers.
2. A product that has a significant qualitative improvement in relation to similar products available on the market. For example, laser sound-reproducing discs are being released onto the market, which replace existing traditional gramophone records.
3. A product that was already on the market, after which it was improved so that its properties fundamentally changed.
4. A product of market novelty, i.e. new only for a given market. 5. An old product that has successfully found a new application.
In a business plan, it is important to present what new unique properties the product has, to prove that it is capable of arousing the interest of buyers.
Calculation of commercial products
Price is the amount of money in exchange for which the seller is willing to transfer (sell) a unit of goods, that is, the price is the coefficient of exchange of a specific product for money.In practice, the price of commercial products is influenced by:
The solvency of the buyer of this product;
volume of demand - the amount of goods that the buyer is able to purchase;
usefulness of the product and its consumer properties;
production costs;
prices of resources or means of production used in the production of the relevant good.
Depending on the environment of commodity circulation, prices are divided into the following main types:
Wholesale price (selling price);
retail price;
purchase price;
transport tariff;
tariffs for utilities and household services provided to the population.
Wholesale price (selling price) is the price of the manufacturer of products at which the enterprise sells its products to wholesale distribution organizations or other enterprises.
In the context of the transition to a market, wholesale prices are designed to ensure the possibility of further economic activity for enterprises and organizations. In other words, by selling its products at wholesale prices, the enterprise must recoup its production costs and obtain a profit level that would allow it to survive in market conditions.
Retail price is the price at which goods are sold to the public, that is, retail prices are formed in retail trade. The retail price includes the wholesale price of commodity products plus a trade margin.
The markup serves trade organizations to reimburse expenses:
For transportation and storage of goods;
for remuneration of sales workers;
to generate profits for trading enterprises.
The purchase price is the price that is introduced for the purchase of agricultural products from collective farms, state and cooperative organizations.
A transport tariff is the price for moving a material object in space. Transport tariffs include tariffs for freight and passenger transportation. Transport tariffs are collected by transport companies. Tariffs for utilities and household services provided to the population are the amount of payment for utilities and household services. The size of tariffs is set annually by government authorities of the constituent entities of the Russian Federation.
Utilities in accordance with the Housing Code of the Russian Federation include:
Cold and hot water supply;
drainage;
electricity supply;
gas supply (including supplies of domestic gas in cylinders);
heating (heat supply, including the supply of solid fuel in the presence of stove heating).
Wholesale prices for commercial products and methods for determining such prices
Enterprises determine the wholesale price of manufactured commodity products in different ways. Some take into account the competitor’s prices for similar products, others take into account the wishes of their customers. There are companies that set prices for commercial products, taking into account the costs incurred plus profits. In the latter case, the price of the produced product covers all the costs of its production, and making a profit is the main incentive for any form of entrepreneurship. In our opinion, this method of pricing is the most acceptable, and it is less labor-intensive.
When calculating the cost, the actual costs of the organization are taken into account (as a rule, according to accounting data), and the required amount of profit for the enterprise (company) is determined by the needs of its development and must be no less than the minimum acceptable level that ensures the normal reproduction process.
Let's consider the formula for determining the wholesale price for commercial products: Wholesale price = Product cost + Profit.
The cost of production is the costs expressed in monetary terms for its production and sale.
Profit is the difference between income (revenue from the sale of goods and services) and the costs of producing or purchasing and marketing these goods and services.
Profit is calculated using the following formula:
Profit = Revenue – Costs (in monetary terms).
The cost includes documented costs incurred associated with:
Entrepreneurial activity;
statutory activities of the enterprise;
production and sale of a specific type of product.
In the domestic economy, the following types of costs are traditionally distinguished:
1) cost from cost planning:
Actual;
planned.
When calculating the price of commercial products, as a rule, the planned cost is used. To do this, a summary calculation of production costs is compiled for a certain period preceding the calculation. The summary calculation includes all actual expenses incurred (shop expenses, expenses of auxiliary production, other overhead expenses, etc.). The summary calculation is drawn up on the basis of accounting data.
The planned cost per unit of production is determined by calculation.
There are the following methods for calculating products:
Direct calculation;
apportionment;
eliminating the cost of by-products;
summation of production costs;
normative method;
combined method.
Direct calculation method. All production costs taken into account under costing items are divided by the number of units of output.
Method of proportional distribution. Production costs are distributed among individual types of products in proportion to the economically justified base. The choice of base depends on the characteristics of production and products.
A method for eliminating the cost of by-products. The products obtained in the main production are divided into main and by-products. No calculation is made for the cost of by-products, and the cost of by-products at predetermined prices is excluded from the total cost of the main production. By-products can be valued at sales prices or at purchase prices for raw materials and supplies.
A method for summing up production costs. The unit cost of production is determined by summing up the production costs for individual parts of the product or its manufacturing processes.
The normative method is an integral part of the normative cost accounting method and is based on the use of calculation of the normative cost per unit of production and taking into account deviations from norms and standards.
The combined method is used when one of the above methods cannot be used. It is a combination of several methods;
2) cost based on the completeness of inclusion of expenses:
Workshop;
production (general plant);
full (production + auxiliary production + service production and facilities).
When calculating the price of commercial products, it would be more correct to use the full cost price, since it takes into account all expenses incurred by the organization;
3) cost based on production volume:
Units of production;
the entire production volume.
When calculating the price of commercial products, as a rule, the unit of production indicator is used.
Production costs can be divided into the following types:
By impact on the cost of the final product: direct and indirect;
in relation to production capacity utilization: variable and constant;
in relation to the production process: production and non-production;
by consistency in time: constant in time and episodic in time;
by type of cost accounting: actual and standard (costing);
by divisional proximity to manufactured products: production and non-production.
Direct and indirect costs. The composition of direct and indirect costs depends on the technological process and the range of products.
In production, direct costs include material assets, semi-finished products and spare parts, losses from defects, electricity, depreciation of fixed production assets, basic and additional wages of production workers, social insurance contributions from these wages.
The remaining costs are defined as indirect.
A specific list of cost items is established by the organization independently and approved in the accounting policies of the organization.
Depending on the calculation method established in the organization, the cost may include direct and indirect costs - the full cost. The cost price can only consist of direct costs. Indirect expenses at the end of each month are completely written off against the financial results from the sale of products (works, services) - incomplete cost.
Fixed and variable costs. Fixed costs include depreciation, pay for service personnel, insurance, advertising, loan payments, etc. Fixed costs do not depend on changes in output and exist even when the firm does not produce anything.
Variable costs include the cost of raw materials, materials, fuel, payment of production workers, etc. Variable costs change in proportion to the change in the volume of production.
Proximity to manufactured products. Production costs are costs directly related to the production of goods (works, services). Such expenses include basic expenses, expenses of auxiliary production, general production and general business expenses.
Basic expenses are expenses directly related to the production of products (works, services).
Auxiliary production is energy facilities that serve production with types of energy (electricity, steam, gas, air), transport facilities that serve production, repair shops, container shops, workshops for the production of tools, dies, spare parts, refrigerators, etc. Auxiliary production is intended to perform work (provide services) for the needs of the main (or servicing) production or for third parties.
General production costs are the costs of maintaining, organizing and managing production (main, auxiliary, servicing). These include:
Expenses for the maintenance and operation of machinery and equipment;
depreciation charges and costs for repairs of property used in production;
costs for heating, lighting and maintenance of premises;
rent for premises;
remuneration of workers engaged in production maintenance;
other expenses similar in purpose.
General expenses are expenses not directly related to the production process. These include:
Administrative and management expenses;
maintenance of general business personnel;
depreciation charges and expenses for repairs of fixed assets for management and general economic purposes;
rent for general business premises;
expenses for payment of information, auditing, consulting, etc. services;
other administrative expenses similar in purpose.
Non-production expenses are expenses not related to production, for example, expenses of service industries and farms, landscaping of the territory.
Service industries include: housing and communal services, consumer service workshops, subsidiary agriculture, canteens and buffets; children's preschool institutions, rest homes, sanatoriums and other health, cultural and educational institutions that are on the balance sheet of the organization.
Service industries and farms are intended to perform work (provide services) for the needs of the main (or auxiliary) production, for the non-production needs of the organization (dormitories, canteens) or for third-party organizations.
Amount of marketable products
It is necessary to calculate the minimum cost of production at which the enterprise will operate with the planned profit.To do this, first determine the costs of production; in economics this is called variable costs. These costs depend on the volume of production.
Production cost per unit of production = costs of raw materials and materials for the production of a unit of production + labor costs for the production of a unit of production
The overhead costs of a business are called fixed costs. They do not depend on production volume.
The structure of overhead costs includes:
Salaries of administrative and management personnel;
- depreciation of equipment;
- energy consumption, etc.
The definition of expenses, their structure and even the form of presentation of information in an investment project is well described in Appendix 7 of the Methodological Recommendations for assessing the effectiveness of investment projects and their selection for financing.
Total cost per unit of production = costs of raw materials and materials for the production of a unit of production + labor costs for the production of a unit of production + overhead costs (distributed per unit of production) + planned profit + VAT
The planned profit ranges from 5 to 30% of the sum of all costs per unit of production, different for each enterprise.
VAT - value added tax, 18% of the amount of all costs per unit of production + planned profit
To calculate the total cost of production, it is again necessary to distribute the overhead costs of the enterprise for each type of product.
Employees of the planning department are responsible for calculating the cost of production at the enterprise.
In a manufacturing plant, there are several options for allocating overhead costs across multiple products.
Product quality
The modern market economy makes fundamentally different demands on the quality of products. Product quality is one of the most important performance indicators of an enterprise. Improving product quality largely determines the survival and success of an enterprise in market conditions, the pace of technical progress, innovation, increased production efficiency, and savings of all types of resources used in the enterprise.It should be noted that the national economy also benefits from the production of high-quality products, since in this case the export potential and the revenue side of the country’s balance of payments increase, and the authority of the state in the world community increases.
This implies the need for constant, focused, painstaking work by commodity producers to improve the quality of products in comparison with competitors’ analogues.
The concept of product quality is regulated in the Russian Federation by the state standard GOST 15467-79 "Product Quality Management. Basic Concepts. Terms and Definitions."
Quality is a set of product properties that determine its suitability to satisfy certain needs in accordance with its purpose.
Quality can only be relative; it is fixed for a specific period of time and changes with the advent of more advanced technology. If it is necessary to assess the quality of a product, then it is necessary to compare the totality of its properties with some standard. The standard can be the best domestic or foreign samples, requirements enshrined in standards or technical specifications. The term “quality level” is used here.
However, any document or standard legitimizes a certain set of properties only for a certain period of time, and needs are constantly changing, so an enterprise, manufacturing products even in strict accordance with the regulatory and technical documentation, risks producing it of poor quality, i.e. unsatisfactory to the consumer.
Thus, the main place in assessing the quality of products or services in a market economy is given to the consumer, and standards (including international ones) only consolidate and regulate the progressive experience accumulated in the field of quality.
The quantitative characteristics of the properties of a product that make up its quality are called product quality indicators. Currently, the classification of the following ten groups of properties and, accordingly, indicators is recognized: purpose, reliability, manufacturability, standardization and unification, ergonomic, aesthetic, transportability, patent legal, environmental, safety.
Purpose indicators characterize the main functional value of the beneficial effect from the operation of the product. For industrial and technical products, this indicator can be its productivity.
Reliability indicators characterize the properties of an object to maintain over time, within established limits, the values of all parameters and required functions. The reliability of an object includes four indicators: reliability, durability, maintainability and storability. Depending on the purpose of the product and the conditions of its use, all or some of the indicated indicators can be used.
Reliability is the property of a product to continuously maintain functionality over a certain period of time. Reliability is extremely important for some vehicle mechanisms (brake system, steering). For aircraft, reliability is the most basic indicator of quality.
Durability is the property of a product to remain operational until destruction or another limiting state.
Repairability is a property of a product, expressed in its adaptability to carry out maintenance and repair operations.
Storability is the ability of an object to retain its properties under certain conditions. Storability plays an important role in food products.
Manufacturability indicators characterize the effectiveness of design and technological solutions to ensure high labor productivity in the manufacture and repair of products. It is with the help of manufacturability that mass production of products is ensured, rational distribution of costs of materials, funds, labor and time during technological preparation of production, manufacturing and operation of products.
Indicators of standardization and unification characterize the saturation of products with standard, standardized and original components, as well as the level of unification in comparison with other products. All parts of the product are divided into standard, unified and original. The more standard and standardized parts in a product, the better for both the manufacturer and its consumer.
Ergonomic indicators reflect the ease of use of the product by humans. The interaction of a person with a product is expressed through a complex of hygienic, anthropometric, physiological and psychological properties of a person. This may be the effort required to drive a tractor, a car, the position of the steering wheel of a bicycle, lighting, temperature, humidity, dust, noise, vibration, radiation, etc.
Aesthetic indicators characterize the compositional perfection of the product. This is the rationality of the form, the combination of colors, the stability of the presentation of the product, style, etc.
Transportability indicators express the suitability of a product for transportation by various means of transport without compromising its properties.
Patent legal indicators characterize patent protection and patent purity of products and are a significant factor in determining competitiveness.
Environmental indicators reflect the degree of influence of harmful effects on the environment that arise during storage, operation or consumption of products, for example, the content of harmful impurities, the likelihood of emissions of harmful particles, gases, radiation during storage, transportation and operation of products.
Safety indicators determine the degree of safety of operation and storage of products, i.e. ensure safety during installation, maintenance, repair, storage, transportation, and consumption of products.
The combination of these indicators forms the quality of the product. The product must be reliable, aesthetically pleasing to the eye, and perform its functions well, i.e. satisfy the needs for which it is intended. But in addition to these indicators, the price of the product is also important. The question of economically rational quality is related to price. When purchasing a product, the buyer always compares whether the price of the product compensates for the set of properties that it possesses.
Economically optimal quality refers to the ratio of quality and costs, which can be represented by the following formula:
Copt = Q/C,
Where Q is the quality of the product;
C is the cost of purchasing and operating the product.
It is not difficult to determine the denominator of the formula, since it includes the selling price of the product, the costs of operation, repair and disposal of the product. It is more difficult to determine the numerator, i.e. quality, including a wide variety of indicators. This is the subject of a whole science - qualimetry, which has developed quite acceptable methods for quantitative assessment of product quality.
Stock of commercial products
The continuity of the circulation of goods in the market process of purchase and sale is supported by the constant presence on the market of a certain mass of goods, which is usually called inventory.A product has two ultimate goals: on the one hand, to satisfy the buyer’s need, on the other, to bring profit or, at least, not cause damage to its owner. While the product is not sold, while it is in the channels of the sphere of commodity circulation and awaits the moment of sale, it is a commodity stock. Thus, the ultimate goal of inventory is to be sold, i.e. exchanged for money. The commodity stock ceases to be such at the moment of sale, the transition from the sphere of commodity circulation to the sphere of consumption. Consequently, both the seller, the manufacturer, and the buyer should strive to ensure that the inventory passes through the market channels as quickly as possible from the moment of its production to the moment of sale.
The inventory is formed for objective reasons, regardless of the desires and intentions of the owners. It should be noted that inventory does not bring anything to its owner except costs and losses; Only trade turnover brings profit. Consequently, the price of a product also includes the costs associated with holding the product in the form of inventory.
The main form of distribution of commercial products is carried out through independent wholesale intermediary firms: they purchase goods at their own expense, and at the same time bear the risk caused by changes in market conditions, obsolescence of goods, etc.
By forming inventory, intermediary firms thereby perform important commercial functions:
Reduce inventories of suppliers and consumers;
Provide transportation and advertising;
Provide advisory and information services.
Commodity stock is a collection of commodity mass located in the sphere of circulation and intended for sale.
The creation of a commodity stock is dictated by the need to ensure the continuity of the process of commodity circulation.
The need to create inventory is due to the following reasons:
The discrepancy between seasonal fluctuations in the production of goods and their consumption;
changes in population demand over the seasons under the influence of fashion and other factors;
discrepancy between the structure of demand and the range of production of personal consumption items by individual enterprises, which leads to the accumulation of products from different enterprises and the formation on this basis of a trade assortment in accordance with market needs;
conditions for transporting goods, as well as the need for early delivery of goods to certain regions of the country, taking into account the climatic, geographical and other characteristics of these regions.
Commodity inventories thus perform, first of all, the functions of a continuous process of commodity circulation:
Ensure the continuity of expanded production and circulation, during which their systematic formation and expenditure occur;
- satisfy the effective demand of the population, since they are a form of product supply;
- characterize the relationship between the volume of demand and product supply.
Commodity inventories can be classified based on grouping according to a number of socio-economic and trade-organizational characteristics. The classification of inventory according to production and consumer characteristics is similar to the classification of goods. However, there is a specific gradation of inventory. Inventories can be studied by territory, submarkets, by forms of sales and trading activities, by types and types of enterprises where they are stored.
According to the forms of sales and trading activities, inventory in the logistics system is divided into the following types:
Ready inventories, which serve to compensate for deviations in actual demand from the forecasted (guarantee) stock;
inventories intended to meet expected demand: they are necessary in order to cover the forecasted demand (the amount of such inventories is determined by the amount of demand and the time of its manifestation);
Warranty inventories needed to meet unpredictable increases in demand, i.e. compensate for the deviation of actual demand from the forecast.
Depending on the location of inventory, inventory can be classified into the following categories: manufacturing inventory, goods in transit, wholesale inventory, and retail inventory.
Formation of one or another group of inventory, i.e. The total quantity of goods provided for sale and the goods forming this stock depends on a number of general conditions:
Volume of goods production;
- methods of their distribution (distribution and distribution channels);
- range and quality of goods;
- economic situations emerging in the market.
The level of inventory is also formed depending on marketing sales tactics, which is why the system of physical distribution of commodity flows must be prepared for the occurrence of sales peaks. These same issues are taken into account when making market forecasts.
Systematic analysis of inventory levels serves as a marketing tool that allows you to determine and maintain service standards, thereby ensuring:
Regular replenishment of goods in the distribution system, satisfying spontaneous needs, regardless of what product is needed - standard, modified or special;
maintaining a regional or other level of production inventories in accordance with the level of sales, i.e. maintaining a balance between production and sales.
Composition of commercial products
The company's commercial products include:1) finished products and semi-finished products intended for export;
2) consumer goods products from raw materials and waste;
3) outsourced production services (electricity, steam, water, repair, installation and other work).
Products made from the customer's raw materials are included in commercial products not at their full cost, but only at the cost of processing.
Semi-finished products and services consumed within the enterprise for production needs are not included in commercial products. Sold production wastes are not counted as marketable products if they have not been subjected to the preliminary processing necessary for their sale; defective products, if they are even sold; outsourced factory transport services; design, research and other works and services of a non-productive nature.
Since marketable products include only products intended for external sales, they cannot serve as an indicator of the total volume of products produced by the enterprise in the planning period.
The indicator expressing the total volume of production by an enterprise is gross output. Gross output includes all marketable products, as well as the increase or decrease in the balance of work in progress.
The volume of commercial products is planned and taken into account in the current wholesale prices of enterprises (excluding turnover tax) and at cost. This is necessary to link the volume of industrial production with production costs and other indicators of the financial plan.
For the convenience of measuring the dynamics of production volume, gross output is usually taken into account at constant prices.
Assortment of commercial products
F. Kotler defines the product range as follows: “A group of goods closely related to each other by similar principles of operation, sale to the same groups of buyers, marketing method of market promotion, or belonging to the same price range.”The assortment is characterized by the following characteristics: breadth, completeness or depth and novelty. "The breadth of the assortment is the available number of types, varieties and names of goods of homogeneous and heterogeneous groups. The completeness of the assortment is the ability of a set of goods of a homogeneous group to satisfy the same needs. Novelty (updating) of the assortment is the ability of a set of goods to satisfy changed needs through new products."
These three indicators are closely related and a change in one of them always entails a change in the others. First of all, the breadth of the assortment is taken into account: a wider assortment increases the number of buyers, but requires higher costs and increases the risk of some types of goods being left behind; a narrower assortment covers a small number of buyers, but provides quick, high short-term income. But the narrow assortment can be expanded to better meet customer needs through the introduction of new products.
Expansion of the product range occurs when the number of products produced increases without removing old goods from production. For example, a company begins to develop a new market segment in which it is already well known, but to do this it needs to slightly change its products, say, make them cheaper, but at the same time slightly reduce their quality. Or, on the contrary, improve the quality of products while increasing the price. In this case, the enterprise is not repurposed, but the company receives a larger number of buyers.
The decision to deepen the range is made if there are unmet needs within the market segments in which the company operates. If a decision is made to deepen the range, the company begins to produce new models designed to satisfy the identified needs. But in this case, in order not to confuse buyers, new models must differ significantly from existing ones.
The assortment needs to be updated when it is necessary to either modernize existing models or create fundamentally new ones. But it is not recommended to update the entire range at once, but to change several models first in order to track consumer reaction to the changes made.
As new products are added, some cost items increase, for example, design costs, transportation costs, and personnel training costs. Consequently, when planning the assortment, the enterprise must carefully consider all possible consequences, because Due to the introduction of new products, it may incur losses that will not be commensurate with the profit received from the sale of the new product. Also, carefully thought-out planning of the assortment will help prevent the refusal to sell any product when a lot of money has been spent on it, and the product has not yet exhausted all its capabilities.
Assortment management
Assortment planning is closely related to assortment management, the essence of which lies in the timely offering by the commodity producer of a certain set of goods that, generally corresponding to the profile of its production activities, will most fully satisfy the requirements of certain groups of buyers.
Currently, the entrepreneur who acts wisely is the one who chooses for his business goods and services, the production or provision of which requires the least possible dependence on outside supplies or the possible replacement of raw materials or materials. However, such a strategy cannot be universal for all entrepreneurs; everyone must choose what is right for him.
Assortment management, or more precisely, its continuous improvement, is one of the most important functions of company management. Firstly, it is necessary to take into account the real capabilities of the company: production, financial resources, personnel qualifications, etc. After this, it is necessary to determine the needs of the market and the requirements of buyers for the quality indicators of goods. Having analyzed all this data, the company determines the product range and market segment in which it intends to operate, i.e. The place that each product should occupy on the market is determined. When choosing a product range, it is taken into account that all products offered by manufacturers for sale can be divided into groups according to quality, i.e. high, medium low and non-competitive goods.
Often conditions in the market where the company operates may change, so the range will need to be adapted to new conditions. To do this, an enterprise can take the following measures: expand the range, deepen it or limit it. There is one more operation that an enterprise can perform on its assortment: ordering. This is used only in cases where an excessively wide range of products requires extensive placement and extensive storage facilities. All this is associated with certain costs and great risk associated with storing products in warehouses and selling them. For these reasons, as well as as a result of fluctuations in demand and business downturns, it may be necessary to maintain production volumes and concentrate efforts on producing part of the existing range.
Thus, the essence of the problem of assortment formation and management is planning virtually all types of activities aimed at selecting products for future production and sale on the market, adapting these products to the constantly changing needs of consumers, modernizing or removing them from the enterprise’s assortment range. Assortment management, carried out on the basis of planning, is a continuous process that continues throughout the entire life cycle of a product, starting from the moment the idea of its creation is conceived and ending with its withdrawal from the product program.
Depending on its profile, an enterprise can produce various products. A product refers to everything that can be offered on the market to satisfy customer needs. Once a product is priced and placed on the market, it becomes a commodity. All goods can be divided into three types: consumer goods, industrial goods and services. An enterprise can present on the market one type of product, or two, or three. But in any case, demand plays the main role in deciding what the enterprise’s product range will consist of.
Increase in commercial output
The net product indicator is determined by subtracting material costs (costs of raw materials, materials, fuel, energy, semi-finished products and components), as well as depreciation charges, from the wholesale price of products (without value added tax). In other words, net production is the sum of the wage fund with contributions to extra-budgetary funds, and profit. The indicator of conditionally net production is equal to the indicator of net production plus depreciation charges.Reserves for increasing production output
I. Reserves for fixed assets.
These include:
Increasing equipment shifts. The amount of the reserve is determined as the product of the number of additional hours of equipment operation by the average output per machine-hour;
eliminating the causes of whole-shift and intra-shift equipment downtime;
commissioning of uninstalled equipment (defined as the product of the number of equipment units put into operation by the average output of a unit of equipment);
implementation of organizational and technical measures that have not yet been completed to reduce the time spent on equipment operation to produce a unit of product.
II. Reserves in terms of labor items, i.e. material resources.
These include:
Elimination of causes of excess material waste;
beneficial use of planned waste materials;
implementation of organizational and technical measures to save material resources.
III. Reserves in terms of labor resources.
These include:
Bringing the number of workers to the planned level (determined by multiplying the number of missing workers by the average annual output of one worker);
eliminating the causes of whole-shift and intra-shift downtime for workers;
implementation of organizational and technical measures to reduce the labor intensity of manufacturing products.
Knowing the reserves for each of the three groups, the total amount of the reserve for increasing production output should be determined. We cannot add up the amounts of reserves we received, since they belong to different groups of factors (resources). As a reserve for increasing production output, the total amount of reserves is taken, i.e. the smallest amount of the total reserves of the three groups. The smallest amount is taken because it is secured by reserves for the other two groups, i.e. is complete.
Having determined the reserve for increasing production output, we will find the reserve for increasing the volume of its sales. Such a reserve in the sphere of production is equal to the complete reserve for increasing production output.
Balance of commercial products
Product balance (form N 16-APK)This form shows the amount of products produced in the cooperative, received from outside, its consumption through channels of use for sales, seeds, animal feeding, processing, wages in kind, public catering, etc.
The volume and cost of agricultural products sold or issued as payment for wages to employees of the cooperative are shown in the certificate attached to this form.
The certificate also reflects the volume and cost of products spent on public catering, as well as sold on the collective farm market.
Column 2 reflects the total quantity of products produced in the reporting year in mass after processing, including useful waste, in physical mass without conversion into full-fledged grain.
Column 3 shows products purchased and received through exchange transactions, as well as other income, including seed and feed loans.
Column 4 shows the entire consumption of products: sales to state resources, delivery to seed funds, expenses for seeds, for livestock feed, return of seed and fodder loans, for public catering, other sales, as well as all other expenses for the year.
Column 5 shows all products actually sold (shipped) during the year in physical mass. This also includes products sold for public catering and supply of workers and employees, collective farmers through their own canteens, buffets, stalls and shops, as well as sold directly on the farm to their employees and outside parties for harvesting, repayment of loans in kind and through barter transactions .
From column 5, including “for reference”, by codes 320 - 500 in column 1 the amount of products sold to their employees is distinguished, in column 4 - sold at the collective farm market, and in column 6 - the amount of products spent on public catering.
Column 6 shows products spent on feed for livestock and poultry.
Column 8 reflects the products actually issued (and not accrued) to employees as payment in kind, and its value is shown in column 3 using codes 320 - 500, assessed at state regulated prices, and in their absence, at free market prices.
Column 10 takes into account losses and shortages of products attributed to the perpetrators who are obliged to compensate the farm for the damage caused in kind or money.
Column 11 reflects losses of products during storage (including losses within the established norms of natural loss), accepted at the expense of the farm in the absence of perpetrators and documented in the prescribed manner.
Column 12 reflects products transferred free of charge to other established enterprises during the division of property.
Column 13 reflects other consumption of products for various household needs, not indicated in columns 5 - 12: straw used for construction, heating; eggs laid for incubation; grain donated to inter-farm insurance seed funds, etc.
Code 010 provides data on the use of grain, including rice.
Code 020 reflects the movement of factory sugar beets and for livestock feed. Royal beet is not specified here.
Code 050 takes into account open and closed ground vegetables.
Seeds and mother plants of vegetable crops are not reflected in this code.
According to code 110, column 2 also reflects hay prepared by the farm on the outside (not purchased) and hay prepared for the farm by farm employees on the lands of the state land fund and state forest fund.
According to code 120, column 2 shows the intake of straw and chaff from grain and legume crops (winter and spring crops) regardless of their actual use (for livestock feed, bedding and other household needs) without corn stalks. Straw of perennial grasses, as well as harvested wild plants (yantak, reeds, etc.) are not included in these data.
Open and closed ground vegetables (code 050), fruits and berries (code 130), grapes (code 140) are reflected in fresh, unprocessed form.
Code 170 indicates processed products and waste from grain processing obtained both at their own enterprises and externally.
Code 200 in column 2 reflects sugar obtained from sugar beets produced in-house and processed externally (on a toll basis).
Code 240 also reflects milk purchased from citizens under contracts. Milk received from farm workers for sale on their instructions is not reflected under this code.
According to code 280, column 6 takes into account honey left in the hives for winter feeding of bees.
According to code 296, column 2 takes into account the actual fish produced by breeding, as well as commercial fish caught in natural reservoirs.
Capital productivity of commercial products
Do you think that many academic disciplines at the university only confuse students, and the knowledge acquired in this way will never be useful in life? This is what a huge number of people think. Moreover, most of them express similar unflattering reviews about all kinds of economic indicators, they say, there is no point in teaching them, because they will definitely not be useful in life. This statement can be argued using the example of capital productivity - an indicator the calculation of which can lead an entrepreneur to success!Capital productivity and its significance
The capital productivity indicator illustrates the volume of marketable or gross output in relation to the value of the enterprise's fixed assets. Back in Soviet times, it was he who was considered evidence of the economic efficiency of the organization. This is not surprising, because capital productivity shows how many products an enterprise produces for each unit of value of fixed assets that were invested in it. In terms of importance and even semantic load, it can be compared with the profitability of products or depreciation of fixed assets, because it is on the basis of the capital productivity indicator that one can draw a conclusion about how efficiently any enterprise operates. To do this, as a basic verification figure, they usually use a comparison of the volume of products already produced and the cost of fixed assets involved in the production process. Then the amount of profit in its pure form is determined, which is compared with depreciation charges. If depreciation is less than the net profit received, then the operation of the enterprise can be called effective.
When and why is it used in such complex calculations? For example, this indicator helps make decisions when purchasing equipment. If the profit from its use exceeds the cost of purchase, we can consider that the entrepreneur has effectively invested in his own business. That is why we can say that the capital productivity indicator serves as a means of insurance and forecasting for any businessman who is not indifferent to the fate of the company.
Calculation of capital productivity
The basic formula for capital productivity (F) is as follows:
Ф = Produced goods / Initial cost of fixed assets
Why does the formula display exactly the initial cost of fixed assets? The whole point is that it is determined for manufactured products in relation to the funds that were invested in them. But it is interesting that the authors did not come to a consensus when determining the formula for this indicator.
That is why capital productivity can also be determined in the following ways:
F = Commodity products / ((Fixed assets at the end of the period + Fixed assets at the beginning of the period) / 2)
Ф = Annual output / Average annual cost of fixed assets Factors influencing capital productivity
If the enterprise operates successfully (that is, it operates with increased efficiency and not at a loss), then the capital productivity indicator tends to increase.
However, in addition to depreciation and the cost of fixed assets, other factors may also influence it:
Changing the structure of technological equipment and overhauling its key units;
- change in the ratio of fixed assets for production and non-production purposes;
- planned modernization of equipment;
- change in production capacity utilization due to changes in the range of products for release;
- change in the volume of output due to the influence of market and other factors on this process.
As you can see, many of the above reasons are “outside the production process,” however, since capital productivity is highly variable, they have a direct impact on it. For example, if it is known that a company is characterized by a high degree of depreciation of fixed production assets, then the commissioning of modern information systems can have a negative impact on the capital productivity indicator and lead to incorrect conclusions in terms of its calculation. But its capabilities should not be underestimated, because with the help of capital productivity, an enterprise can independently compare its own capabilities with the advantages of competitors! Moreover, for this you will only need open statistical data or officially published information on the company’s financial statements.
But it should be remembered that capital productivity does not take into account some factors, for example, changes in product quality. That is why it is important to take into account fluctuations in this indicator when assessing the results of the analysis.
At this stage it is necessary to determine:
Changing the structure of fixed assets for production purposes;
- change in the part of active (production) fixed assets;
- change in downtime of machinery and equipment;
- change in equipment performance.
Is it possible to influence this indicator and lead to its growth? This can be achieved through the following measures:
An increase in the share of fixed equipment and, as a consequence, a change in the structure of fixed assets;
- use of new equipment to replace outdated models;
- sale of equipment that is not used or rarely used in the process of work;
- increasing the number of shifts, eliminating downtime at the company, which will lead to an increase in the utilization rate of machine time;
- transition to the manufacture of products with a higher level of added value;
- a general increase in production efficiency by increasing labor productivity, eliminating auxiliary fixed assets that are no longer needed, etc.
As you can see, the connection between capital productivity and productivity is inextricable. That is why, calculating this indicator will allow you to develop your business in the right direction, receiving timely information about its condition!
FORESTRY COLLEGE OF Emperor Peter I
N. L. Teplitskaya
"Fundamentals of Economics"
METHODOLOGICAL INSTRUCTIONS FOR CARRYING OUT
PRACTICAL LESSONS
for specialty
140448 Technical operation and maintenance of electrical and electromechanical equipment (timber industry)
Practical lesson No. 1
Topic: Production program and production capacity.
Target: Learn to calculate the indicators of the production program, the production capacity of the enterprise, and the utilization rate of production capacity.
Work order:
OPTION Sample
Problem 1
Exercise 1: Determine the volume of commodity (TP), gross (GP) and sold (RP) products according to the data in the table
Initial data:
Solution to problem 1. Determine the volume of commodity (TP), gross (GP) and sold (RP) products using the formulas.
Volume of commercial products
C g - cost of finished products
C to - the cost of finished products for the needs of capital construction and non-industrial economy of your enterprise
С n - cost of semi-finished products of own production and products of auxiliary workshops for external sales
F is the cost of fixed assets of own production introduced during the period.
C y - the cost of services and work of an industrial nature on orders externally or for non-industrial farms and organizations of one’s own enterprise.
Problem 2
Task 1. Determine the production program, production utilization rate using the formula Mpr (production capacity), planned output volume (Qpr). capacity (K.m.);
Task 2. Draw a conclusion on the use of equipment (identify the leading group of equipment and the “bottleneck” based on labor costs).
Initial data: The amount of equipment, its time fund, and the labor intensity of manufacturing operations are given.
353pcs. etc.
2. The leading group is determined by the greatest labor costs (this is 100 hours - group 6, its We set the value of the production program to 320 pcs.
3. calculate the production capacity utilization rate (Ki.m.) using the formula
Conclusion: The leading group (6) of equipment is determined by the highest labor costs (100 hours per product). Utilization factor K im.m.=1, i.e. calculated for conditions when the production volume Q (production program) is set at the level of production capacity Mpr.
The “bottleneck” is group 1 with Ki.m. = 1.04, the rest require the development of measures for a more complete load.
Control questions.
The production program (product production plan) is determined on the basis of sales volume, product range and range, its quality, profit margin, level of profitability and market share of the enterprise.
The production program consists of two sections: a production plan in physical (conditionally natural) terms and a production plan in value terms.
Production capacity is the ability of the means of labor assigned to the enterprise (machines, equipment, installed production areas) to achieve maximum production output per year. It is calculated in the same natural units in which the volume of production is planned. Characterizes the potential of the enterprise. Determined per year based on the capacity of leading workshops and units.
Every enterprise faces the inevitability of planning production volumes and sales of products. Calculation of product output is a mandatory element not only in production planning, but also in the work of sales and supply departments. In addition, the company's management needs to present production capacities calculated in natural and monetary equivalents. Let's talk about the meaning of production volume and its calculation.
Definition
In essence, the volume of output is the summed amount of goods produced over a certain period and expressed in various indicators. The significance of this indicator is due to two points of view:
- financial, since it is the main volumetric value characterizing the scale of the company’s production activities. The company is obliged to provide such information to higher organizations, founders, investors and other users;
- strategic, since it positions the enterprise and provides conditions for concluding contracts and promoting in the market.
The units of measurement of production volume and product sales are the following indicators:
- Natural (pieces, m, tons, kg);
- Cost (in rubles or other currency);
- Conditionally natural (in generalizing the assessment of the volume of output of heterogeneous products).
Output volume: formula
The main indicators characterizing the volume of production are the gross and commodity value of the product. Gross value is the monetary value of all company products and services provided during the reporting period. It takes into account the total cost of manufactured products, semi-finished products, services provided, changes in work in progress balances and intra-system turnover.
Commodity value refers to the cost of products produced by an enterprise and intended for sale. Fluctuations in the value of “work in progress” and intra-farm turnover are not included in the commodity value. In many enterprises, the values of gross and marketable output are identical if there are no indicators of internal turnover and work in progress.
Gross production volume is calculated using the formula:
VP = TP + (NP k/g – NP n/g), where
VP and TP – gross and marketable products,
NP k/y and NP n/y – work in progress at the end and beginning of the year.
Equally important is the expression of production volume using natural values. This method is used when analyzing production volumes and sales of products by types and categories of homogeneous products. Production volume is calculated using the formula:
O pr = K x C, where K is the number of units of goods produced, C is the price of the product.
For example, if during the period under review 100 parts were produced at a price of 200 rubles. and 500 parts at a price of 300 rubles, then the total production volume will be 170,000 rubles. (100 x 200 + 500 x 300).
How to find product sales volume: formula
Product sales volume is calculated based on the size of products shipped or revenue received. It is important for the analyst to know how the product is being sold, whether demand for it is falling and whether to increase production volume. The indicator of the volume of products sold (in dynamics) answers these questions. It is calculated using the formula:
O rp = VP + O gpng - O gpkg, where
VP – gross product,
О gpng and О gpkg – GP balances at the beginning and end of the year.
For example, the volume of production for the year amounted to 300,000 rubles, the balance of the state enterprise in warehouses amounted to: 20,000 rubles. at the beginning of the year, 35,000 rubles. - finally. The volume of products sold was:
O rp = 300,000 + 20,000 – 35,000 = 285,000 rub.
Optimal output volume
The optimal production volume is one that ensures the fulfillment of the terms of the concluded agreements within the agreed time frame with minimal costs and maximum efficiency. The optimal volume is determined by comparing gross or maximum indicators.
By comparing gross values, profit is calculated for different volumes of production and sales of products in the following sequence:
Determine the size of the output volume at which profit is equal to 0;
Calculate the volume of production with maximum profit.
Let us demonstrate the calculation of optimal values using an example:
|
volume of sales |
price |
revenue |
gross costs |
profit (revenue – gross costs) |
|
|
permanent |
variables |
||||
The essence of the calculations is to identify the sales indicator with zero and marginal profit. The table shows that the company will be able to achieve zero profit by producing from 15 to 20 parts. The profit will reach its maximum value when producing 50 pieces. In this example (with given cost parameters), a sales volume of 50 units will be the optimal indicator, and when concluding supply contracts, one should proceed from the optimal production size.
By comparing the marginal indicators, it is determined to what point an increase in production volume will be appropriate. Here the economist's attention is drawn to costs and income. There is a rule - if the maximum income per unit of product is higher than the maximum cost, then you can further increase production volumes.
When calculating the optimal values, it is necessary to take into account factors affecting the volume of product sales. These include:
- factors indicating the company’s provision with material and raw materials resources, specialists, the use of new technologies and techniques, etc.;
- factors that depend on market indicators, for example, product prices, market saturation with competitive products, purchasing power, etc.
Analysis of production volume and product sales
Analytical work begins with a study of production volumes and growth rates. Therefore, the primary tasks of analyzing production volume and product sales are:
- assessment of the dynamics of production volume;
- identifying conditions that influence changes in these values;
- disclosure of reserves for increasing output and sales.
- Volume of commercial products
- Volume of commercial products for three groups of products
- Commodity products in the base and planning year
- Commercial products and outsourced work
- Determine commodity, gross output and material costs
- Determine the volume of gross and commercial output
Task 1. Volume of marketable products
Determine the volume of commercial output of the enterprise for the year if it is known that the enterprise produces two types of products A and B.
This year the company produced products A - 300 pieces. and products B - 150 pcs. The price of product A is 2000 UAH, the price of product B is 1800 UAH.
Solution
Let's find the volume of production of goods A and B using the formula:
V is the volume of production.
P – product price.
Q – number of units of production.
VA=300*2000=600,000 UAH.
VB=150*1800=270,000 UAH.
To find the volume of production of commercial products, you need to add the volume of production of goods A and B
Vtotal=600,000+270,000=870,000 UAH.
Answer: the volume of commercial output is 870,000 UAH.
Task 2. Volume of marketable products for three groups of products
Determine the volume of marketable products using the following data:
Solution
Let's find the volume of commercial products using the formula:
Vtotal=VA+VB+VB
P – product price
Q – number of pieces
V – production volume
Vtotal= 150*5000+200*7000+100*8000=750,000+1,400,000+800,000=2,950,000 UAH.
Answer: the volume of commercial output is UAH 2,950,000.
Task 3. Marketable products in the base and planning year
Determine the volume of marketable products in the base and plan years using the following data:
Solution
Vtotal=VA+VB+VB
P – product price
Q – number of pieces
V – production volume
V b=200*6000+230*7000+380*9000=1,200,000+1,610,000+3,420,000=
6,230,000 UAH.
V pl=210*6000+230*7000+370*9000=1,260,000+1,610,000+3,330,000=
6,200,000 UAH.
Answer: commodity volume in the base year is equal to 6,230,000 UAH, commodity volume in the planning year is equal to 6,200,000 UAH.
Task 4. Commercial products and outsourced work
The company produces three types of products: A, B, C. Determine the volume of marketable products in the base and plan years, if the indicators of output volumes in physical terms and the price of each type of product are known.
Analyze the dynamics of the volume of commercial output by product and in the enterprise as a whole.
Initial data:
|
Base year | Planned year | ||||
|
Issue pcs. |
Product unit price UAH. |
Issue pcs. |
Product unit price UAH. | Cost of outsourced work | |
| 7 800 | |||||
Solution
Let's find the volume of marketable products in the base and plan years using the formula:
Vtot b=VA+VB+VB
Vtotal area = VA + VB + VB + Cost of work on the side
P – product price
Q – number of pieces
V – production volume
V total b=250*3000+340*5800+190*4000=750,000+1,972,000+760,000=
3,482,000 UAH.
265*3000+360*5800+180*4000+7800=795 000+2 088 000+720 000+7800=
3,610,800 UAH.
∆v=3,610,800- 3,482,000=128,800 UAH.
Answer: the volume of commercial products in the base year is equal to 3,482,000 UAH, the volume of commercial products in the planning year is equal to 3,610,800 UAH. The volume of commercial products in the planning year increased by UAH 128,800.
Task 5. Determine marketable, gross output and material costs
The company produced main products worth 325.6 thousand UAH. The cost of industrial work carried out externally amounted to 41.15 thousand UAH. Semi-finished products of our own production were produced in the amount of 23.7 thousand UAH, of which 80% were used in our production. The size of work in progress increased at the end of the year by UAH 5 thousand. Material costs account for 40% of the cost of marketable products. Determine commodity, gross output and material costs.
Solution.
We will find commercial products at the enterprise.
Commodity products are products manufactured for sale. Commodity products include main products, industrial work performed externally, and the cost of semi-finished products externally produced.
Let's substitute the values into the formula.
It should be noted that commercial products include the cost of semi-finished products of our own production, manufactured externally. Since in our task at the enterprise 80% of semi-finished products are used for its production, we need to find 20% of their cost.
Pf=23.7*0.2=4.74 thousand UAH.
TP= 325.6+41.15+23.7*0.2=325.6+41.15+4.74=371.49 thousand UAH.
Let's find the gross output of the enterprise. Gross output includes the value of marketable products and changes in the value of work in progress.
VP = TP + NZPk - NZPn
Let's substitute the values into the formula.
VP=371.49+5=376.49 thousand UAH.
Let's find material costs. Material costs account for 40% of the cost of marketable products. Accordingly, material costs are equal:
MZ=371.49*0.4=148.596 thousand UAH.
Answer:
TP=371.49 thousand UAH.
VP=76.49 thousand UAH.
MZ=148.596 thousand UAH.
Task 6. Determine the volume of gross and marketable output
Based on the data given in the table below, determine the volume of gross and marketable products at wholesale prices.
|
Finished products, including product A: | ||
|
Wholesale price including VAT, UAH. | ||
|
Issue, pcs. | ||
|
Product B | ||
|
Wholesale price including VAT, UAH. | ||
|
Issue, pcs. | ||
|
Product B | ||
|
Wholesale price including VAT, UAH. | ||
|
Issue, pcs. | ||
|
Semi-finished products of own production, intended for sale, thousand UAH. | ||
|
Industrial services, thousand UAH. | ||
|
Remains of work in progress, thousand UAH. | ||
|
For the beginning of the year | ||
|
At the end of the year |
Solution.
First, let's find the cost of the main products at the enterprise. To do this we use the formula:
OP=V*P
Let's substitute the values into the formula.
OP=150*32000+180*21500+200*5100=4,800,000+3,870,000+1,020,000=9,690,000 UAH.
Please note that in the conditions we are given the wholesale price of the goods including VAT. Accordingly, we need to find the cost of the main products without VAT. In Ukraine, VAT is 20%.
Let's find the cost of the main products without VAT.
OP=9890*0.8=7912 thousand UAH.
Now let's find the cost of commercial products. Let's use the formula:
TP=Main products + industrial works, outsourced + cost of semi-finished products of own production, outsourced
Instructions
Sold products are products shipped by the company from its territory and paid for by the buyer. Its volume is calculated in kind or monetary terms.
All necessary information for analysis is taken from standard accounting statements: “Profit and Loss Statement” (form No. 2), “Movement of annual products, their shipment and sale” (statement No. 16), accounting data reflected in accounts 40 “Issue products", 43 "Finished Products", 45 "Shipped Products" and 90 "Sales". You can also use regular statistical reporting (for example, form No. 1-p “Report on products industrial enterprise").
Volume of sales products in physical terms is calculated as the sum of units of all shipped and paid products for all periods included in the reporting period. Natural indicators are pieces, kilograms, packages, tons, meters, etc.
Volume of sales products in monetary terms (or value) is determined by the selling price of the product, including value added tax. The measuring units here are rubles (dollars, euros, etc.). Simply put, products sold in monetary terms are the enterprises received for goods shipped to it.
Also the volume of sales products can be determined on the basis of commodity products. To the commodity products refers to fully finished products that have already been transferred to the buyer or are in the warehouse. In this case, the volume of sales products can be calculated as the difference between marketable products and the balance in the warehouse for a specified period.
It should be remembered that only those products are considered sold for which payment has been received to the company’s bank account (or to the cash register). Therefore, the calculation does not include products transferred to the buyer but not yet paid for.
Sources:
- volume of product sales
Determining the volume of produced or sold products is one of the fundamental operations that every economist should be able to do. That is why in economics and financial educational institutions tasks are so common in which it is necessary to find the volume products.
Instructions
Most often, under the expression “volume products» volume produced or sold by the enterprise products for a certain time. It can be expressed in quantitative and monetary terms. To find the volume products in monetary terms, multiply its quantity by the unit price. The calculation becomes somewhat more complicated if the products are not homogeneous, and the price, accordingly, varies depending on the batch. In this case, find the volume of each batch separately and add up the results.
Quite often there is a need for volume products in the so-called. Comparable prices are prices either for a specific year or for a specific date. They can be clearly known and recorded, or the corresponding coefficients can be found, for example, through the level. In the case where you need to find the volume products at comparable prices, the quantity produced should be multiplied products to prices of a certain year, or adjust the volume products at current prices for the necessary .
There are also common situations when you need to find the volume products implemented within a certain period, for example, a quarter, six months or a year. In this case, as a rule, the residues are known products at the beginning and end of a given period. To find the volume products within a certain period of time, to the volume products produced during a given period, for example, a year, add the existing balances products at the beginning of the year and subtract the balances products in warehouses at the end of the year.
The correct calculation of the volume of production ensures rational planning of the work of any production, as well as sales and supply services. In addition, this procedure helps to objectively assess the capacity of an enterprise/organization in physical terms and in monetary terms.
You will need
- - financial statements.
Instructions
Calculate the monetary value of two amounts - finished products at the beginning of the reporting period and at the time of its end. To carry out this operation, borrow indicators from statistical accounting reports, which are compiled by an organization or enterprise for the statistics committee of the region where it is located.
Find the volume of finished products in natural. It is not difficult to standardize such a calculation process. To do this, add up such quantities as finished products released, the number of their outgoing balances, the number of finished products sold and the number of finished products left at the beginning of the reporting period.
Since the above calculation is relative, to obtain a more accurate and correct value, add to the revenue from the sale of manufactured products the difference calculated above by the total amount of production for the reporting period and the balance of manufactured products.
note
The rationality of drawing up a plan for its sales through the existing distribution network, as well as the correctness of expanding this network, depends on the correctness of calculating the volume of finished products in monetary terms.
Helpful advice
The dynamics of changes in the volume of production are monitored according to the growth/decrease graph of the revenue of an enterprise or organization during the reporting period. This schedule is built on the basis of the data specified in Form No. 2 of the financial statements. Information is taken for two reporting years or a longer period.
Sources:
- Analysis of production volume and product sales
- determine production volume
Volume of sales products– perhaps the main indicator of the efficiency of an enterprise. The sales forecast for the next period depends on it, and on it, in turn, the required production volume. Analysis of this indicator allows you to assess the degree of plan implementation, the dynamics of sales growth (sales) and timely identify weaknesses and reserves for increasing output and sales products.
You will need
- Accounting statements of the enterprise
Instructions
Volume of sales products calculated in natural or value (monetary) terms. All necessary information for analysis can be taken from the accounting or statistical reports of the enterprise.
Products sold in physical terms are how many pieces of parts a workshop smelted, how many meters of curtains a garment factory sewed, or how many square meters of housing it built. The main difficulty in calculating the volume of sales products in physical terms lies in a heterogeneous assortment.
Indeed, if a plant produces only one type products, calculation of the volume of sales products comes down to counting the units sold in each period. It is much more difficult if the enterprise produces a wide variety of products. In this case, the calculation of the volume of sales is used products in conditionally natural terms.
Calculation in conditionally natural terms is used to generalize different types of production products. For example, a bottling plant can produce mineral water, lemonade, iced tea, each type of drink in plastic and tin cans, different volumes, etc. Then a certain conditional indicator is introduced, for example, a 0.5 liter bottle of water. All other drinks are measured in terms of this standard bottle.
Volume of sales products can also be calculated in value (or monetary) terms. Products sold in value terms is the total volume products, shipped to customers and paid in full.
After calculating the volume of sales products it is necessary to compare it with planned indicators, as well as with the volume of production products. This analysis will allow you to competently plan the need for resources and production rates products and predict future sales rates.
Sources:
- natural sales volume
In a computer science course, visual, textual, graphical and other types of information are presented in binary code. This is “machine language” - a sequence of zeros and ones. Information volume allows you to compare the amount of binary information included in different media. As an example, you can consider how the volumes of text and graphics are calculated.
Instructions
To calculate the information volume of the text from which , determine the initial data. You should know the number of pages in the book, the average number of lines of text on each page, and the number of whitespace characters in each line of text. Let the book contain 150 pages, 40 lines per page, 60 characters per line.
Find the number of characters in the book: multiply the data from the first step. 150 pages * 40 lines * 60 characters = 360 thousand characters in the book.
To find the information volume of a graphic, also determine the initial data. Let a 10x10 cm image be obtained using a scanner. You need to know the resolution of the device - for example, 600 dpi - and depth. The last one, also for example, you can take 32 bits.
Calculate the total number of points that make up the image. 2360 * 2360 = 5569600 pieces.
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