RUB the cost of production will increase by. Three ways to increase your cost with a tax benefit

The most important indicators expressing the cost of production are the cost of all commercial products, the cost of 1 ruble of commercial products, the cost of a unit of production.

Sources of information for the analysis of product costs are: Form 2 “” 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 of products 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.

So, the task of the business plan for the cost of all marketable products has not been completed. The above-plan increase in cost amounted to 58 thousand rubles, or 0.29% of the plan. This was due to comparable marketable products. (Comparable products are not new products that were already produced in the previous period, and therefore their output in the reporting period can be compared with the previous period).

Then it is necessary to establish how the plan for the cost of all marketable products has been fulfilled in the context of individual costing items and determine for which items there are savings and for which there is overexpenditure. Let's present the corresponding data in Table 16.

Table No. 16 (thousand rubles)

	Indicators	Full cost of actually manufactured products		Deviation from plan
		at the planned cost of the reporting year	at the actual cost of the reporting year	in thousand rubles
					to the plan for this article	to the full planned cost
	Raw materials
	Returnable waste (subtracted)
	Purchased products, semi-finished products and services of cooperative enterprises
	Fuel and energy for technological purposes
	Basic wages of main production workers
	Additional wages for key production workers
	Insurance contributions
	Expenses for preparation and development of production of new products
	Expenses for maintenance and operation of equipment
	General production (general shop) expenses
	General (plant) expenses
	Losses from marriage
	Other production costs
	Total production cost of marketable products
	Selling expenses (selling expenses)
	Total total cost of marketable products: (14+15)

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).

Analysis of costs per 1 ruble of commercial products

- a relative indicator characterizing the share of cost in the wholesale price of products. It is calculated using the following formula:

Costs per 1 ruble of commercial products this is the total cost of commercial products divided by the cost of commercial products at wholesale prices (excluding value added tax).

This figure is expressed in kopecks. It gives an idea of ​​how many pennies are spent, i.e. cost, accounts for every ruble of the wholesale price of products.

Initial data for analysis.

Costs per 1 ruble of marketable products according to plan: 85.92 kopecks.

Costs per 1 ruble of actually produced commercial products:

• a) according to the plan, recalculated for actual output and product range: 85.23 kopecks.
• b) actually in prices in force in the reporting year: 85.53 kopecks.
• c) actually at the prices adopted in the plan: 85.14 kopecks.

Based on these data, we will determine the deviation of actual costs per 1 ruble of marketable products in prices in force in the reporting year from the costs according to the plan. To do this, subtract line 1 from line 2b:

85,53 — 85,92 =— 0.39 kopecks.

So, the actual figure is 0.39 kopecks less than the planned figure. Let us find the influence of individual factors on this deviation.

To determine the impact of a change in the structure of manufactured products, we compare the costs according to the plan, recalculated for the actual output and product range, and the costs according to the plan, i.e. lines 2a and 1:

85.23 - 85.92 = - 0.69 kopecks.

It means that by changing the product structure the analyzed indicator decreased. This is the result of an increase in the share of more profitable types of products that have a relatively low level of costs per ruble of products.

We will determine the impact of changes in the cost of individual types of products by comparing the actual costs in the prices adopted in the plan with the planned costs recalculated for the actual output and range of products, i.e. lines 2c and 2a:

85.14 - 85.23 = -0.09 kopecks.

So, by reducing the cost of certain types of products the cost indicator for 1 ruble of commercial products decreased by 0.09 kopecks.

To calculate the impact of changes in prices for materials and tariffs, we divide the amount of change in cost due to changes in these prices for actual marketable products in the wholesale prices adopted in the plan. In the example under consideration, due to an increase in prices for materials and tariffs, the cost of commercial products increased by + 79 thousand rubles. Consequently, costs per 1 ruble of commercial products due to this factor increased by:

(23,335 thousand rubles - actual marketable products at wholesale prices adopted in the plan).

The influence of changes in wholesale prices for the products of a given enterprise on the cost indicator for 1 ruble of marketable products will be determined as follows. First, let's determine the overall influence of factors 3 and 4. To do this, let’s compare the actual costs per 1 ruble of marketable products, respectively, in the prices in force in the reporting year and in the prices adopted in the plan, i.e. lines 2b and 2c, we determine the impact of price changes on both materials and products:

85.53 - 85.14 = + 0.39 kopecks.

Of this value, the influence of prices on materials is + 0.33 kopecks. Consequently, the impact of product prices accounts for + 0.39 - (+ 0.33) = + 0.06 kopecks. This means that a decrease in wholesale prices for the products of this enterprise increased the costs of 1 ruble of marketable products by + 0.06 kopecks. The total influence of all factors (balance of factors) is:

0.69 kopecks — 0.09 kopecks + 0.33 kop. + 0.06 kop. = - 0.39 kop.

Thus, the decrease in the cost indicator per 1 ruble of commercial products took place mainly due to changes in the structure of manufactured products, as well as due to a decrease in the cost of certain types of products. At the same time, an increase in prices for materials and tariffs, as well as a decrease in wholesale prices for the products of this enterprise, increased costs per 1 ruble of marketable products.

Material Cost Analysis

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.

Material costs at the enterprise increased compared to their stipulated value by 94 thousand rubles. This increased the cost of production by the same amount.

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.

Consequently, the violation of the specified specific consumption of materials, which caused the presence of excess waste, increased the cost of production by the amount:

57.4 thousand rubles. — 7 thousand rubles. = 50.4 thousand rubles.

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.

Suppliers' wholesale prices for materials increased by 79 thousand rubles against those provided for in the plan. So, the overall increase in the procurement cost of materials due to an increase in supplier wholesale prices for materials and an increase in transportation and procurement costs is 79 + 19 = 98 thousand rubles.

3) replacing one material with another material also leads to a change in the cost of materials for production. This can be caused by both different specific consumption and different procurement costs of the replaced and replacement materials. We will determine the influence of the replacement factor using the balance method, as the difference between the total amount of deviation of actual material costs from the planned ones and the influence of already known factors, i.e. specific consumption and procurement cost:

94 - 50.4 - 98 = - 54.4 thousand rubles.

So, the replacement of materials led to savings in material costs for production in the amount of 54.4 thousand rubles. Substitutions of materials can be of two types: 1) forced replacements, unprofitable for the enterprise.

After considering the total amount of material costs, the analysis should be detailed for individual types of materials and for individual products made from them in order to specifically identify ways to save various types of materials.

Let us determine by the method of differences the influence of individual factors on the costs of material (steel) for product A:

Table No. 18 (thousand rubles)

The influence on the amount of material costs of individual factors is: 1) change in specific material consumption:

1.5 * 5.0 = 7.5 rub.

2) change in the procurement cost of a unit of material:

0.2 * 11.5 = + 2.3 rub.

The total influence of two factors (balance of factors) is: +7.5 + 2.3 = + 9.8 rub.

So, the excess of the actual costs of this type of material over the planned ones is caused mainly by the above-planned specific consumption, as well as by an increase in procurement costs. Both should be regarded negatively.

The analysis of material costs should be completed by calculating reserves for reducing production costs. At the analyzed enterprise, reserves for reducing production costs in terms of material costs are:

• elimination of the causes of excess returnable waste of materials during the production process: 50.4 thousand rubles.
• reduction of transportation and procurement costs to the planned level: 19 thousand rubles.
• implementation of organizational and technical measures aimed at saving raw materials (there is no reserve amount, since the planned measures have been fully implemented).

Total reserves for reducing production costs in terms of material costs: 69.4 thousand rubles.

Payroll Cost Analysis

During the analysis, it is necessary to assess the degree of validity of the forms and systems of remuneration used at the enterprise, check compliance with the regime of economy in spending funds on labor costs, study the ratio of the growth rate of labor productivity and average wages, and also identify reserves for further reducing production costs by eliminating the causes unproductive payments.

Sources of information for analysis are calculations of product costs, data from the statistical form of the labor report f. No. 1-t, application data to the balance f. No. 5, accounting materials on accrued wages, etc.

At the analyzed enterprise, planned and actual data on the wage fund can be seen from the following table:

Table No. 18

(thousand roubles.)

This table separates out the wages of workers who receive mainly piecework wages, the amount of which depends on changes in the volume of production, and the wages of other categories of personnel, which does not depend on the volume of production. Therefore, the wages of workers are variable, and the wages of other categories of personnel are constant.

In the analysis, we first determine the absolute and relative deviation in the wage fund of industrial production personnel. The absolute deviation is equal to the difference between the actual and basic (planned) wage funds:

6282.4 - 6790.0 = + 192.4 thousand rubles.

The relative deviation is the difference between the actual wage fund and the base (planned) fund, recalculated (adjusted) by the percentage change in production volume, taking into account a special conversion factor. This coefficient characterizes the share of variable (piece-rate) wages, depending on changes in the volume of production, in the total amount of the wage fund. At the analyzed enterprise this coefficient is 0.6. The actual volume of production is 102.4% of the base (planned) output. Based on this, the relative deviation in the wage fund of industrial and production personnel is:

So, the absolute overexpenditure on the wage fund of industrial and production personnel is equal to 192.4 thousand rubles, and taking into account the change in production volume, the relative overexpenditure amounted to 94.6 thousand rubles.

Then you should analyze the wage fund of workers, the value of which is mainly variable. The absolute deviation here is:

5560.0 - 5447.5 = + 112.5 thousand rubles.

Let us determine by the method of absolute differences the influence on this deviation of two factors:

• change in the number of workers; (quantitative, extensive factor);
• change in the average annual wage of one worker (qualitative, intensive factor);

Initial data:

Table No. 19

(thousand roubles.)

The influence of individual factors on the deviation of the actual wage fund of workers from the planned one is:

Change in the number of workers:

51* 1610.3 = 82125.3 rub.

Change in average annual salary per worker:

8.8 * 3434 = + 30219.2 rub.

The total influence of two factors (balance of factors) is:

82125.3 rub. + 30219.2 rub. = + 112344.5 rub. = + 112.3 thousand rubles.

Consequently, the overexpenditure on the workers' wage fund was formed mainly due to an increase in the number of workers. The increase in the average annual wage of one worker also influenced the formation of this overexpenditure, but to a lesser extent.

The relative deviation in the wage fund of workers is calculated without taking into account the conversion factor, since for the sake of simplicity it is assumed that all workers receive piecework wages, the size of which depends on changes in the volume of production. Consequently, this relative deviation is equal to the difference between the actual wage fund of workers and the basic (planned) fund, recalculated (adjusted) by the percentage change in production volume:

So, according to the workers’ wage fund, there is an absolute overexpenditure in the amount of + 112.5 thousand rubles, and taking into account the change in production volume, there is a relative saving in the amount of 18.2 thousand rubles.

• additional payments to piece workers due to changes in working conditions;
• additional payments for working overtime;
• payment for all-day downtime and hours of intra-shift downtime.

At the analyzed enterprise there are unproductive payments of the second type in the amount of 12.5 thousand rubles. and the third type for 2.7 thousand rubles.

So, the reserves for reducing production costs in terms of labor costs are eliminating the causes of unproductive payments in the amount of: 12.5 + 2.7 = 15.2 thousand rubles.

Next, the wage fund of other categories of personnel is analyzed, i.e. managers, specialists and other employees. This salary is a semi-fixed expense that does not depend on the degree of change in production volume, since these employees receive certain salaries. Therefore, only the absolute deviation is determined here. Exceeding the basic value of the wage fund is recognized as an unjustified overexpenditure, the elimination of the causes of which is a reserve for reducing the cost of production. At the analyzed enterprise, the reserve for reducing costs is the amount of 99.4 thousand rubles, which can be mobilized by eliminating the causes of overexpenditures in the wage funds of managers, specialists and other employees.

A necessary condition for reducing production costs in terms of wage costs is for the growth rate of labor productivity to outpace the growth rate of average wages. At the analyzed enterprise, labor productivity, i.e. The average annual output per worker increased compared to the plan by 1.2%, and the average annual wage per worker increased by 1.6%. Therefore, the advance coefficient is:

The faster growth of wages compared to labor productivity (this is the case in the example under consideration) leads to an increase in production costs. The impact on the cost of production of the relationship between the growth of labor productivity and average wages can be determined by the following formula:

Y wages - Y produces labor multiplied by Y, divided by Y produces. labor.

where, Y is the share of wage costs in the total cost of marketable products.

The increase in production costs due to the faster growth of average wages compared to labor productivity amounts to:

101,6 — 101,2 * 0,33 = + 0,013 %

or (+0.013) * 19888 = +2.6 thousand rubles.

At the end of the analysis of wage costs, reserves for reducing production costs in terms of labor costs identified as a result of the analysis should be calculated:

• 1) Elimination of reasons causing unproductive payments: 15.2 thousand rubles.
• 2) Elimination of the causes of unjustified overexpenditure in the wage funds of managers, specialists and other employees 99.4 thousand rubles.
• 3) Implementation of organizational and technical measures to reduce labor costs, and therefore wages for production: -

Total reserves for reducing production costs in terms of wage costs: 114.6 thousand rubles.

Analysis of production maintenance and management costs

These expenses mainly include the following items of product cost calculation:

• a) costs of maintaining and operating equipment;
• b) general production expenses;
• c) general business expenses;

Each of these items consists of different cost elements. The main purpose of the analysis is to find reserves (opportunities) for reducing costs for each item.

Sources of information for the analysis are the calculation of product costs, as well as analytical accounting registers - statement No. 12, which records the costs of maintaining and operating equipment and general production expenses, and statement No. 15, where general business expenses are recorded.

The costs of maintaining and operating equipment are variable, i.e., they directly depend on changes in the volume of production. Therefore, the basic (as a rule, planned) amounts of these expenses should first be recalculated (adjusted) by the percentage of fulfillment of the production plan (102.4%). However, these expenses include conditionally constant items that do not depend on changes in production volume: “Depreciation of equipment and intra-shop transport”, “Depreciation of intangible assets”. These items are not subject to recalculation.

The actual expense amounts are then compared with the recalculated base amounts and variances are determined.

Expenses for maintenance and operation of equipment

Table No. 21

(thousand roubles.)

	Composition of expenses:		Adjusted plan	Actually	Deviation from the adjusted plan
	Depreciation of equipment and intra-shop transport:
	Operation of equipment (energy and fuel consumption, lubricants, salary of equipment adjusters with deductions):		(1050 x 102.4) / 100 = 1075.2
	Repair of equipment and intra-shop transport:		(500 x 102.4) / 100 = 512
	In-plant movement of goods:		300 x 102.4 / 100 = 307.2
	Wear of tools and production equipment:		120 x 102.4 / 100 = 122.9
	Other expenses:		744 x 102.4 / 100 = 761.9
	Total costs for maintenance and operation of equipment:

In general, there is an overexpenditure for this type of expense compared to the adjusted plan in the amount of 12.8 thousand rubles. However, if we do not take into account savings on individual expense items, then the amount of unjustified overexpenditure on depreciation, operation of equipment and its repair will be 60 + 4.8 + 17 = 81.8 thousand rubles. Eliminating the causes of this unlawful overspending is a reserve for reducing production costs.

General production and general business expenses are semi-fixed, i.e. they do not directly depend on changes in the volume of production.

General production expenses

Table No. 22

(thousand roubles.)

	Indicators	Estimate (plan)	Actually	Deviation (3-2)
	Labor costs (with accruals) for shop management personnel and other shop personnel
	Amortization of intangible assets
	Depreciation of buildings, structures and workshop equipment
	Repair of buildings, structures and workshop equipment
	Expenses for testing, experiments and research
	Occupational Health and Safety
	Other expenses (including wear and tear of inventory)
	Non-productive expenses: a) losses from downtime due to internal reasons b) shortages and loss of damage to material assets
	Excess material assets (subtracted)
	Total overhead costs

In general, for this type of expense there is a saving of 1 thousand rubles. At the same time, for certain items there is an excess of the estimate in the amount of 1+1+15+3+26=46 thousand rubles.

Eliminating the causes of this unjustified cost overrun will reduce production costs. Particularly negative is the presence of non-productive expenses (shortages, losses from spoilage and downtime).

Then we will analyze general business expenses.

General running costs

Table No. 23

(thousand roubles.)

	Indicators	Estimate (plan)	Actually	Deviations (4 - 3)
	Labor costs (with accruals) for administrative and management personnel of the plant management:
	The same for other general business personnel:
	Amortization of intangible assets:
	Depreciation of buildings, structures and equipment for general purposes:
	Conducting tests, experiments, research and maintaining general economic laboratories:
	Occupational Safety and Health:
	Personnel training:
	Organized recruitment of workers:
	Other general expenses:
	Taxes and fees:
	Non-productive expenses: a) losses from downtime due to external reasons: b) shortages and losses from damage to material assets: c) other non-productive expenses:
	Excluded income from surplus material assets:
	Total general expenses:

In general, there is an overexpenditure in the amount of 47 thousand rubles for general business expenses. However, the amount of unbalanced overexpenditure (that is, without taking into account savings available on individual items) is 15+24+3+8+7+12=69 thousand rubles. Eliminating the causes of this overexpenditure will reduce production costs.

Savings on certain items of general production and general business expenses may be unjustified. This includes items such as costs for labor protection, testing, experiments, research, and personnel training. If there are savings on these items, you should check what caused them. There may be two reasons: 1) the corresponding costs are incurred more economically. In this case, the savings are justified. 2) Most often, savings are the result of the fact that planned measures for labor protection, experiments and research, etc., have not been carried out. Such savings are unjustified.

At the analyzed enterprise, as part of general business expenses, there is unjustified savings under the item “Training” in the amount of 13 thousand rubles. It is caused by incomplete implementation of planned personnel training activities.

So, as a result of the analysis, unjustified overexpenditures were identified in terms of costs for the maintenance and operation of equipment (81.8 thousand rubles), in general production expenses (46 thousand rubles) and in general business expenses (69 thousand rubles).

The total amount of unjustified cost overruns for these cost items is: 81.8+46+69=196.8 thousand rubles.

However, as a reserve for reducing costs in terms of production maintenance and management costs, it is advisable to accept only 50% of this unjustified cost overrun, i.e.

196.8 * 50% = 98.4 thousand rubles.

Here, only 50% of unjustified overexpenditure is conditionally accepted as a reserve in order to eliminate double-accounting of costs (materials, wages). When analyzing material costs and wages, reserves for reducing these costs have already been identified. But both material costs and wages are included in the costs of production maintenance and management.

At the end of the analysis, we will summarize the identified reserves for reducing production costs:

in terms of material costs, the reserve amount is 69.4 thousand rubles. by eliminating excess returnable waste of materials and reducing transportation and procurement costs to the planned level;

in terms of wage costs - the amount of the reserve is 114.6 thousand rubles. by eliminating the reasons causing unproductive payments and the reasons for unjustified overspending on the wage funds of managers, specialists and other employees;

in terms of production maintenance and management costs - the amount of the reserve is 98.4 thousand rubles. by eliminating the causes of unjustified cost overruns in the costs of maintaining and operating equipment, general production and general business expenses.

So, the cost of production can decrease by 69.4 +114.6+98.4=282.4 thousand rubles. The profit of the analyzed enterprise will increase by the same amount.

This indicator shows how efficient and profitable production is. Also, cost directly affects pricing. Now we will tell you in detail everything about this quality indicator and learn how to calculate it.

General concept of cost

In every economics textbook you can find a varied interpretation of the term “cost”. But no matter how the definition sounds, its essence does not change.

Product cost - Thisthe sum of all costs incurred by the enterprise for the manufacture of goods and its subsequent sale.

Costs are understood as expenses associated with the purchase of raw materials and materials necessary for production, remuneration of workers, transportation, storage and sale of finished products.

At first glance, it may seem that calculating the cost of production is quite simple, but this is not entirely true. At every enterprise, such an important process is entrusted only to qualified accountants.

It is necessary to calculate the cost of goods regularly. This is often done at certain intervals. Every quarter, 6 and 12 months.

Types and types of cost

Before you start calculating production costs, you need to study what types and types it is divided into.

Cost can be of 2 types:

• Full or medium– includes absolutely all expenses of the enterprise. All costs associated with the purchase of equipment, tools, materials, transportation of goods, etc. are taken into account. The indicator is averaged;
• Limit – depends on the quantity of products produced and reflects the cost of all additional manufactured units of goods. Thanks to the obtained value, it is possible to calculate the efficiency of further expansion of production.

The cost is also divided into several types:

• Workshop cost– consists of the costs of all enterprise structures whose activities are aimed at producing new products;
• Production cost– represents the sum of shop costs, target and general expenses;
• Full cost– includes production costs and costs associated with the sale of finished products;
• Indirect or general business cost– consists of costs that are not directly related to the production process. These are management expenses.

Cost can be actual or standard.

When calculating the actual cost, real data is taken, i.e. Based on actual costs, the price of the product is formed. It is very inconvenient to make such a calculation, because Often it is necessary to find out the cost of a product before it is sold. The profitability of the business depends on this.

When calculating standard cost, data is taken in accordance with production standards. Thanks to this, it is possible to strictly control the consumption of materials, which minimizes the occurrence of unjustified costs.

Product cost structure

All enterprises that produce products or provide services are different from each other. For example , The technological processes of an ice cream manufacturing plant and a soft toy sewing factory are completely different.

Therefore, each production individually calculates the cost of finished products. This becomes possible thanks to a flexible cost structure.

Cost is the amount of expenses. They can be divided into the following categories:

1. Expenses on raw materials and materials necessary for production;
2. Energy costs. Some industries take into account the costs associated with using a certain type of fuel;
3. Costs of machinery and equipment through which production is carried out;
4. Payment of wages to employees. This item also includes payments related to taxes and social services. payments;
5. Production expenses (premises rental, advertising campaigns, etc.);
6. Expenses for social events;
7. Depreciation deductions;
8. Administrative costs;
9. Payment for services of third parties.

All costs and expenses are percentages. Thanks to this, it is easier for the head of the enterprise to find the “weak” aspects of production.

The cost price is not constant. It is influenced by factors such as:

• Inflation;
• Loan rates (if the company has any);
• Geographical location of production;
• Number of competitors;
• Use of modern equipment, etc.

In order for the enterprise not to go bankrupt, it is necessary to timely calculate the cost of the product.

Formation of production costs

When calculating production costs, the costs required to produce products are summed up. This indicator does not take into account the costs of selling products.

The formation of the cost price at the enterprise occurs before the products are sold, because the price of the product depends on the value of this indicator.

It can be calculated in several ways, but the most common is cost calculation. Thanks to it, you can calculate how much money is spent to produce 1 unit of product.

Classification of production costs

As we said earlier, production costs (product cost) are different at each enterprise, but they are grouped according to individual characteristics, which makes it easier to make calculations.

Costs, depending on the method of their inclusion in the cost, are:

• Direct - those that relate directly to the production of products. That is, costs associated with the purchase of material or raw materials, payment of workers who participate in the production process, etc.;
• Indirect costs are those costs that cannot be attributed directly to production. These include commercial, general and general production costs. For example, executive salaries.

In relation to the entire production volume, costs are:

• Constant - those that do not depend on production volumes. These include rent of premises, depreciation charges, etc.;
• Variables are costs that directly depend on the volume of products produced. For example, costs associated with the purchase of raw materials and supplies.

Depending on the importance of a specific manager’s decision, costs are:

• Irrelevant - costs that do not depend on the decision of the manager.
• Relevant – dependent on management decisions.

For better understanding, consider the following example. The company has an empty premises at its disposal. Certain funds are allocated for the maintenance of this structure. Their value does not depend on whether some process is being performed there. The manager plans to expand production and use this premises. In this case, he will need to purchase new equipment and create workplaces.

There are two ways to calculate the cost of production in production. These are the costing method and the tiering method. The first method is most often used, since it allows you to more accurately and quickly determine the cost of production. We will look at it in detail.

Cost calculation - This is a calculation of the amount of costs and expenses that fall on a unit of production. In this case, costs are grouped by item, due to which calculations are made.

Depending on the production activity and its costs, calculation can be carried out using several methods:

• Direct costing. This is a production accounting system that arose and developed in a market economy. This is how the limited cost is calculated. That is, only direct costs are used in the calculation. Indirect are written off to the sales account;
• Custom method. Used to calculate the manufacturing cost of each unit of production. It is used in enterprises that produce unique equipment. For complex and labor-intensive orders, it is rational to calculate costs for each product. For example, at a shipbuilding plant where several ships are produced per year, it is rational to calculate the cost of each one separately;
• Transverse method. This method is used by enterprises that carry out mass production, and the manufacturing process consists of several stages. The cost is calculated for each stage of production. For example, in a bakery, products are produced in several stages. In one workshop the dough is kneaded, in another bakery products are baked, in a third they are packaged, etc. In this case, the cost of each process is calculated separately;
• Process method. It is used by mining industry enterprises, or companies with a simple technological process (for example, in the production of asphalt).

How to calculate cost

Depending on the type and type, there may be several variations of cost calculation formulas. We will look at simplified and expanded ones. Thanks to the first, every person who does not have an economic education will understand how this indicator is calculated. Using the second, you can make a real calculation of production costs.

A simplified version of the formula for calculating the total cost of a product looks like this:

Total cost = Production cost of the product + Selling costs

You can calculate the cost of sales using the expanded formula:

PST = PF + MO + MV + T + E + RS + A + ZO + NR + ZD + OSS + CR

• PF – expenses for the purchase of semi-finished products;
• MO – costs associated with the purchase of basic materials;
• MV - related materials;
• TR – transport costs;
• E – costs of paying for energy resources;
• РС – expenses associated with the sale of finished products;
• A – depreciation expenses;
• ZO – remuneration of the main workers;
• HP – non-production costs;
• ZD – allowances for workers;
• ZR – factory expenses;
• OSS – insurance contributions;
• CR – shop expenses.

To make it clear to everyone how to make calculations, we will give an example of cost calculation and step-by-step instructions

Before you start with the numbers, you need to do the following:

1. Sum up all the costs associated with the purchase of raw materials and materials necessary for production;
2. Calculate how much money was spent on energy resources;
3. Add up all the expenses associated with paying salaries. Don't forget to add 12% for additional work and 38% for social services. deduction and health insurance;
4. Add deductions for depreciation costs with other expenses that are associated with the maintenance of devices and equipment;
5. Calculate the costs associated with selling products;
6. Analyze and take into account other production costs.

Based on the initial data and cost calculation items, we make calculations:

Expense category		Calculation		Total value
Fund allocations	Point 4 of the initial data
General production costs	Point 6 of the initial data
General running costs	Point 5 of the initial data
Production cost of 1000 m of pipes	Sum of points 1-6 ref. data	3000+1500+2000+800+200+400
Sales costs	Point 7 of the initial data
Full cost	Amount of production. Costs and sales expenses

Components of cost - what does this indicator depend on?

As has already become known, the cost consists of the costs of the enterprise. It can be divided into different types and classes. This is the main factor that must be taken into account when calculating the cost of an enterprise.

Different costs imply the presence of completely different components. For example, when calculating workshop costs, we do not take into account the costs of selling products. Therefore, every accountant is faced with the task of calculating exactly the indicator that will most accurately show the efficiency of a given enterprise.

The cost per unit of production depends on how well the production is organized. If each department of the enterprise “lives its own life”, employees are not interested in quickly and efficiently performing their duties, etc., then with great confidence, we can say that such an enterprise is suffering losses and has no future.

By reducing the cost of production, the company receives greater profits. That is why every manager is faced with the task of establishing the production process.

Cost reduction methods

Before you start reducing costs, you need to understand that the quality of the product should not suffer in any way. Otherwise, the savings will be unjustified.

There are many methods to reduce costs. We tried to collect some of the most popular and effective methods:

1. Increase labor productivity;
2. Automate workplaces, purchase and install new modern equipment;
3. Engage in consolidation of the enterprise, think about cooperation;
4. Expand the range, specificity and volume of products;
5. Introduce a savings regime throughout the enterprise;
6. Use energy resources wisely and use energy-saving equipment;
7. Carry out a careful selection of partners, suppliers, etc.;
8. Minimize the appearance of defective products;
9. Reduce the cost of maintaining the management apparatus;
10. Conduct market research regularly.

Conclusion

Cost is one of the most important quality indicators of any enterprise. It is not a constant value. The cost tends to change. Therefore, it is very important to periodically calculate it. Thanks to this, it will be possible to adjust the market value of the goods, which will avoid unjustified expenses.

§ 1. The essence of cost as an object of analysis.

§ 2. Problems of cost analysis and sources of information.

Chapter 2. Product cost analysis.

§ 1. Analysis of product costs by cost elements and costing items.

§ 2. Analysis of costs per ruble of marketable products.

§ 4. Analysis of the impact of labor costs on the cost price.

§ 5. Analysis of complex cost items.

5.1. Analysis of production maintenance and management costs.

5.2. Analysis of other complex cost items.

§ 1. The essence of cost as an object of analysis.

In the system of indicators characterizing the efficiency of production and sales, one of the leading places belongs to the cost of production.

The cost of production is the costs expressed in monetary terms for its production and sale. The cost of production as a synthetic indicator reflects all aspects of the production and financial and economic activities of the enterprise: the degree of use of material, labor and financial resources, the quality of work of individual employees and management as a whole.

The calculation of this indicator is necessary for many reasons, including to determine the profitability of individual types of products and production as a whole, determine wholesale prices for products, carry out intra-production cost accounting, and calculate national income across the country. Product cost is one of the main factors in generating profit. If it has increased, then, other things being equal, the amount of profit for this period will necessarily decrease due to this factor by the same amount. There is an inverse functional relationship between the size of profit and cost. The lower the cost, the greater the profit, and vice versa. Cost is one of the main parts of economic activity and, accordingly, one of the most important elements of this management object.

One of the main conditions for obtaining reliable information about the cost of production is a clear definition of the composition of production costs. In our country, the composition of production costs is regulated by the state. The basic principles for the formation of this composition are defined in the Law of the Russian Federation “On the income tax of enterprises and organizations” and are specified in the Regulations on the composition of costs. In addition, on the basis of this Regulation, ministries, departments, intersectoral government associations, and concerns are developing industry regulations on the composition of costs and methodological recommendations on planning, accounting and calculating the cost of products (works, services) for subordinate enterprises. The regulatory role of the state in relation to the cost of production is also manifested in the establishment of depreciation standards for fixed assets, tariffs for contributions to social needs, etc.

The regulation on the composition of costs determines that 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, as well as other costs for its production and sale.

In addition, in the practice of planning, accounting, calculation and analysis, a distinction is made between shop, production and full cost. The workshop cost of a product consists of the costs (direct and indirect) of all workshops not producing it. Production cost is formed from all enterprise costs associated with the production and management process. The total cost consists of production costs and non-production costs (i.e. costs associated with selling products to customers).

§ 2. Problems of cost analysis and sources of information.

The main objectives of analyzing the cost of products (works, services) are:

• an objective assessment of the implementation of the plan at cost and its changes relative to previous reporting periods, as well as compliance with current legislation, contractual and financial discipline;
• investigation of the reasons that caused the deviation of indicators from their planned values;
• providing cost responsibility centers with the necessary information for operational management of the formation of product costs;
• assistance in developing the optimal amount of planned costs, planned and standard calculations for individual products and types of products;
• identification and summary calculation of reserves for reducing costs of production and sales of products;

The nature of these tasks indicates the great practical significance of the analysis of product costs in the economic activities of an enterprise.

Analysis of economic activity is based on a system of indicators and involves the use of data from a number of sources of economic information.

The main sources of information necessary for cost analysis are reporting data; accounting data (synthetic and analytical accounts reflecting the costs of material, labor and money, relevant statements, order journals and, if necessary, primary documents); planned (estimated, regulatory) data on the costs of production and sales of products and individual products (works, services).

§ 1. Analysis of product costs by cost elements and costing items.

Production costs of enterprises and associations in planning, accounting, reporting and analysis are grouped in 2 directions: by economic elements and costing items.

Cost analysis by element. The grouping of costs by elements is uniform and mandatory and is determined by the Regulations on the composition of costs. Grouping by economic elements shows What exactly spent on the production of products, what is the ratio of individual elements in the total amount of expenses. In this case, only purchased materials, products, fuel and energy are reflected in the elements of material costs. Remuneration and contributions for social needs are reflected only in relation to personnel of the main activity.

Grouping costs by elements allows you to control the formation, structure and dynamics of costs by type that characterize their economic content. This is necessary for studying the relationship between living and past (materialized) labor, rationing and analysis of production inventories, calculating particular indicators of turnover of certain types of regulated working capital, as well as for other calculations at the sectoral, national and national economic levels (in particular, for calculating the amount of production created in industry national income).

The element-by-element costs of all material and fuel and energy resources are used to determine the planned level of material costs and assess its compliance. Analysis of the element-by-element composition and structure of production costs makes it possible to outline the main directions for searching for reserves depending on the level of material intensity, labor intensity and capital intensity of production.

From Table 1.1 (see next page) it is clear that the main share of expenses falls on material costs and labor costs, therefore these elements need to be given special attention when identifying reserves for cost reduction.

In the reporting period, the shares of material costs and labor costs increased compared to the previous year, but were lower than planned by 0.9% and 0.4%, respectively. The share of the “Other costs” element increased by 1.8% compared to the plan, mainly due to a decrease in expenses for other elements.

Table 1.1. Cost analysis by element.

Cost elements	For the last year		According to the plan for the reporting year		Actually for the reporting year		Change in actual allocation. weights compared
	amount, thousand rubles	allotment weight, %	amount, thousand rubles	allotment weight, %	amount, thousand rubles	allotment weight, %	compared to last year, % (group 6-group 2)	with plan, % (group 6-group 4)
	1	2	3	4	5	6	7	8
Material costs	57527	29,6%	66258	31,3%	60753	30,4%	+0,8%	-0,9%
Labor costs	49484	25,5%	59627	28,2%	55457	27,8%	+2,3%	-0,4%
Contributions for social needs	22602	11,6%	22599	10,7%	20335	10,2%	-1,5%	-0,5%
Depreciation of fixed assets	19741	10,2%	18252	8,6%	17175	8,6%	-1,6%	-0,0%
Other costs	44957	23,1%	44949	21,2%	46096	23,1%	-0,1%	+1,8%
Total:	194311	100%	211685	100%	199816	100%

Analysis of product costs based on costing items. The standard grouping of costs by costing items is established by the Basic Provisions for Planning, Accounting and Calculation of Product Costs at Industrial Enterprises. The itemized reflection of costs in planning, accounting, reporting and analysis reveals their intended purpose and connection with the technological process. This grouping is used to determine costs by individual types of products produced and the location of costs (workshops, sections, teams).

Some of the costing items are mainly single-element, i.e., expenses that are homogeneous in their economic content. These include raw materials and materials, purchased components and semi-finished products, fuel and energy for technological purposes, basic and additional wages of production workers, and social insurance contributions. When analyzing them, one cannot limit oneself only to indicators for the enterprise as a whole, since this neutralizes the results achieved in the production of individual products. Therefore, calculations of the influence of individual factors on the total cost of these items are subsequently detailed by individual products, types of consumable materials, systems and forms of remuneration of production workers based on reporting calculation data.

The remaining cost items are complex and combine several economic elements. Thus, the article “Costs for the maintenance and operation of equipment” includes the costs of materials, energy, fuel, labor costs, and depreciation of fixed assets. Such cost items as expenses for preparation and development of production, workshop, general plant (general economic) and other production expenses are also complex in nature. These costs are determined primarily by the total volume and organizational and technical level of production and are analyzed, as a rule, for the enterprise (association) as a whole or its individual divisions.

Analysis of plan implementation on an item-by-item basis begins with a comparison of actual costs with planned costs, recalculated to actual output and assortment. Thus, the identified deviations reveal changes in costs regardless of structural and assortment shifts in product output (Table 1.2).

Table 1.2. Cost analysis based on costing items

No.	Expenditures	Actual products released, thousand rubles.		Deviations from the plan (+,-)
		according to planned cost	according to actual cost	thousand roubles.	in percentages
					to the planning item	to the whole plan. yourself
A	B	1	2	3	4	5
1	Raw materials	43456	37865	-5591	-12,9%	-2,75%
2	Returnable waste (subtracted)	-96	-107	-11	+11,5%	-0,01%
3	Raw materials minus waste	43360	37758	-5602	-12,9%	-2,75%
4	Purchased products, semi-finished products and production services of third-party enterprises and organizations	19344	17134	-2210	-11,4%	-1,09%
5	Fuel and energy for technological purposes	1006	1024	+18	+1,8%	+0,01%
6	TOTAL direct material costs	63710	55916	-7794	-12,2%	-3,83%
7	Basic wages for production workers	46783	42424	-4359	-9,3%	-2,14%
8	Additional wages for production workers	8561	8545	-16	-0,2%	-0,01%
9	Social insurance contributions	23730	21353	-2377	-10,0%	-1,17%
10	TOTAL direct salary with deductions	79074	72322	-6752	-8,5%	-3,32%
11	Expenses for preparation and development of production	2561	2549	-12	-0,5%	-0,01%
12		10716	10329	-387	-3,6%	-0,19%
13	Shop expenses	13170	12873	-297	-2,3%	-0,15%
14	Factory overhead	18420	18515	+95	+0,5%	+0,05%
15	TOTAL production maintenance and management costs	44867	44266	-601	-1,3%	-0,30%
16	Losses from marriage	X	72	+72	X	+0,04%
17	Other production costs	-	-	-	-	-
18	Production cost of commercial products	187651	172576	-15075	-8,0%	-7,41%
19	Non-production (commercial) expenses	15903	19554	+3651	+23,0%	+1,79%
20	Full cost of commercial products	203554	192130	-11424	-5,6%

In gr. 4 tables 1.2 shows the percentage ratio of deviations from the plan to planned costs for each costing item; in gr. 5 – share of changes in costs for relevant items in the total percentage reduction in the total cost of marketable products. In this way, the degree of influence of deviations in individual items on the overall result is established.

In accordance with the table data, the total cost of manufactured products decreased in the reporting period by 11,424 thousand rubles, or 5.6%, compared to the plan. The most significant reduction in expenses was under the item “Raw materials” (-12.9%), which allowed saving 2.75% of the total planned cost of marketable products. The most significant excess of the plan (by 23%) is observed in non-production (commercial) expenses. This excess caused an increase in cost by 1.79% due to an increase in this item.

When analyzing, the main attention should be paid to those items for which unplanned losses and overexpenditures occurred. However, cost analysis should not be limited only to these items. Significant reserves for reducing the cost of production can be revealed for other items with a more detailed analysis of the costs of materials, fuel, energy, wage costs and complex cost items.

§ 2. Analysis of costs per ruble of marketable products.

In most industries, the cost target is approved by the enterprise in the form of a maximum cost level per ruble of marketable products.

The cost indicator per ruble of commercial products characterizes the level of cost of one ruble of impersonal products. It is calculated as the quotient of dividing the total cost of all marketable products by its cost in wholesale prices of the enterprise. This is the most general indicator of product cost, expressing its direct connection with profit. The advantages of this indicator also include its dynamism and wide comparability.

A direct influence on the change in the level of costs per ruble of commercial products is exerted by 4 factors that are in direct functional connection with it:

• change in the structure of manufactured products;
• changes in the level of costs for the production of individual products;
• changes in prices and tariffs for consumed material resources;
• changes in wholesale prices for products.

Let's consider the influence of these factors based on the data in Table 2.1.

Table 2.1. Costs per ruble of commercial products.
(calculation of indicators for periods 1-6 is given in.)

Indicator name	Line no.	Calculation formula	Sum
Planned cost of the entire technological process, thousand rubles.	1	e qпSп	203554
Cost of all manufactured products:
b) at actual cost, thousand rubles.	2	e qfSp	194321
a) at planned cost, thousand rubles.	3	e qфSф	192130
TP in wholesale prices of enterprises:
a) according to plan, thousand rubles.	4	e qpSp	250066
b) actually in the prices adopted in the plan, i.e.	5	e qfSp	235883
c) actually in prices in force in the reporting year, thousand rubles.	6	e qfSf	237199
Costs per ruble of TP according to plan (page 1:page 4), kopecks.	7	e qпSп e qпСп	81,40
Costs per ruble of actually issued TP:
a) according to the plan, recalculated for actual production and assortment (page 2: page 5), cop.	8	e qfSp e qfSp	82,38
b) actually in prices in force in the reporting year (page 3:page 6), kopecks.	9	e qfSf e qfSf	81,00
c) actually in the prices adopted in the plan ((p. 3 - price change): p. 5), kopecks.	10	e qfS"f e qfSp	79,46
d) actually in wholesale prices for finished products adopted in the plan (page 3: page 5), kopecks.	11	e qfSf e qfSp	81,45
Costs per ruble of TP according to the report for last year, kopecks.	12		81,90

Legend:
q -- number of products;
S -- cost per unit of product;
C -- wholesale price per unit of product;
S"f is the actual cost per unit of product, adjusted for changes in prices and tariffs for consumed material resources.

The total deviation of costs per ruble of marketable products from the plan is determined by comparing lines 9 and 7: 81.00 – 81.40 = –0.4 kopecks, i.e. actual costs turned out to be lower than those approved by the plan. Let us analyze the influence of each of the 4 factors listed above on this deviation.

Influence structural changes as part of the product determined by the following formula (compare lines 8 and 7 of Table 2.1):

Thus, changes in the range of manufactured products led to increase costs per ruble of marketable products by 0.98 kopecks. (82.38 – 81.40).

Influence changes in the level of costs for the production of individual products in the product composition is determined by the formula (difference between lines 10 and 8 of Table 2.1):

that is, 79.46 – 82.38 = –2.92 kopecks. The resulting change in cost due to this factor is net savings achieved as a result of reducing the cost of material resources, using more advanced equipment and technology, and increasing labor productivity.

Highlight Impact changes in prices and tariffs for consumed material resources you can use the formula

or by comparing terms 11 and 10 of the table: 81.45 – 79.46 = 1.99 kopecks. An increase in average prices and tariffs for resources led to increase cost indicator per ruble of marketable products by 1.99 kopecks.

The influence of the last factor - changes in wholesale prices for products is determined by comparing lines 9 and 11, i.e. according to the formula

The resulting deviation indicates decrease costs 0.45 kopecks. (81.00 – 81.45) due to an increase in the average selling prices set by the enterprise in the reporting period for its products.

At the end of the reporting period, the plan to reduce costs per ruble of marketable products was significantly exceeded (instead of reducing costs according to the plan by 0.5 kopecks, they were actually reduced by 0.9 kopecks). Having analyzed the influence of all 4 factors on this change, it turned out that the reduction in costs mainly accounts for pure savings, i.e., savings in the level of costs for the production of individual products. This is a positive thing. However, the total savings could have been significantly greater if not for the negative impact of 2 other factors. The company needs to pay special attention to the range of products, and also, if possible, take a more responsible approach to the selection of suppliers of material resources, since these factors (structural shift in products and increase in prices for consumed resources) influenced the increase in costs.

§ 3. Analysis of the impact on the cost of direct materials
costs.

The main objectives of the analysis of material costs as the most important component of product costs are:

• identification and measurement of the influence of individual groups of factors on the deviation of costs from the plan and their changes compared to previous periods;
• identifying reserves for saving material costs and ways to mobilize them.

When studying the reasons for deviations in the level of material costs from the planned, previous period and other comparison bases, these reasons are conventionally called factors prices, norms and replacements. Price factors mean not only changes in the price of raw materials and supplies, but also changes in transportation and procurement costs. The norm factor reflects not only the change in the consumption norms themselves, but also the deviation of the actual consumption per unit of production (specific consumption) from the norms. The replacement factor is understood, in addition to the impact of complete replacement of some types of material assets by others, a change in their content in mixtures (formulations) and the content of useful substances in them (especially common in the food industry).

The methods of analysis highlighting these groups of factors are the same for all items of material costs, i.e., raw materials and basic materials, fuel, purchased semi-finished products and components. (Below these techniques will be discussed using basic materials as an example.)

Price factor, i.e. a group of factors that determine procurement cost of materials consists of the cost of the materials themselves at supplier prices And transportation and procurement costs(TZR).

To determine the impact of changes in the level of fuel and equipment (after adjusting them for changes in tariffs) on the procurement cost of materials, it is necessary to have data on their percentage to the cost of procured materials and fuel. The data necessary for this can be obtained from analytical accounting to the “Materials” account.

At the analyzed enterprise, labor and production costs were planned in the amount of 4% of the cost of materials at supplier prices. Thus, the procurement cost of materials was 104% of the cost of materials at supplier prices. The actual average level of TZR reached 5%. The overrun was 1% (105% – 104%). Having the actual procurement cost of materials consumed is 39,365 thousand rubles. (see Table 1.2), overexpenditure on TZR is determined as follows:

i.e., the cost of the materials used turned out to be 375 thousand rubles. more due to the excess of the actual percentage of TWP exceeding the planned value.

Of decisive importance for reducing costs is saving materials in kind - the norm factor and rational replacement of materials - the replacement factor. The leading role of these factors is explained by the fact that saving material costs under the influence of the price factor has a direct impact on reducing costs through a reduction amounts by items of material costs. Savings under the influence of factors of standards and replacement not only have a direct impact on these items, but create the opportunity to increase the volume of output and thereby indirectly affect the reduction in the level of fixed costs per unit of production, i.e. entails a relative reduction in general plant and shop expenses. Thus, the range of influence of saving material costs due to norms and replacement factors on reducing production costs is wider than due to the price factor.

Below is an analysis of the deviation of material consumption from the planned one in terms of the influence of norms, prices and replacement factors.

Table 3.1 (see next page) provides a breakdown of the costs of materials for calculating the cost of a refrigerator. To facilitate calculations, a recalculated planned indicator (column 7) is entered into the table, representing the product of the actual amount of material consumed by its planned procurement cost (conventionally called the price).

First of all, find the general deviation, i.e. the difference between the cost amounts according to the report and according to the plan (see Table 3.1, group 6–group 5).

To measure the impact of changes in specific consumption of materials on the amount of material costs, compare the value of the recalculated indicator with the planned amount of costs for each line. The difference shows the deviation due to the norms (gr. 7–gr. 5).

The impact of the price factor is measured by comparing the same actual quantity of materials consumed in two estimates - actual and planned prices, i.e., by subtracting the recalculated indicator from the actual amount of costs (column 6–column 7).

It remains to determine the impact of the replacement. The result of the replacement is determined by comparing the planned cost of the actually used set of materials with the planned one.

In this example, the actual set of materials consists of 2 components instead of 3 as planned. The changes were caused by the failure to meet the supply plan for brass, which was partially replaced by aluminum and synthetic materials.

Table 3.1. Material cost analysis.

Name of costing groups of materials, purchased semi-finished products and components	Consumption, kg		Price per kg, thousand rubles.		Amount thousand rubles			Deviation from plan (+,-), thousand rubles.
	plan	report	plan	report	plan (column 1x gr.3)	report (gr.2 x gr.4)	recalculated target indicator (column 2 x group 3)	total (gr.6-gr.5)	including at the expense
									norms (gr.7-gr.5)	prices (group 6-group 7)	replacements
A	1	2	3	4	5	6	7	8	9	10	11
Raw materials and main materials:
Sheet steel	32,0	35,0	3,0	3,2	96,0	112,0	105,0	+16,0	+9,0	+7,0	---
Tin	1,2	1,1	18,0	18,4	21,6	20,2	19,8	-1,4	-1,8	+0,4	---
Synthetic materials	X	X	X	X	124,0	131,0	131,0
Aluminum	3,0	8,0	5,1	5,9	15,3	47,2	40,8	-10,0	---	+6,4	-16,4
Brass	5,0	2,0	16,3	16,3	81,5	32,6	32,6
Other basic materials	X	X	X	X	150,0	152,0	152,0	+2,0	+2,0	---	---
TOTAL basic materials					488,4	495,0	481,2	+6,6	+9,2	+13,8	-16,4

In the columns of the table reserved for the recalculated indicator, the actually used set of materials is recorded, but at the planned procurement cost, only 204.4 thousand rubles. (131.0+40.8+32.6) instead of 220.8 thousand rubles. (124+15.3+81.5) according to plan. Consequently, the reduction in costs due to replacement amounted to 16.4 thousand rubles. with a simultaneous increase in the procurement cost of consumed aluminum by 6.4 thousand rubles. (price factor). The total savings on replaced materials amounted to 10 thousand rubles.

Based on the results of the deviations obtained in Table 3.1, it can be seen that the total cost of basic materials for the production of one refrigerator increased by 6.6 thousand rubles. This was a consequence of an increase in prices for materials (+13.8 thousand rubles) and an increase in their consumption rates (+9.2 thousand rubles), and only the replacement made led to savings in material costs (-16.4 thousand rubles). However, the replacement was made due to a supply failure, that is, it was not planned in advance, which indicates either the enterprise’s omissions in planning the consumption of certain materials for individual components of the refrigerator, or a decrease in the quality of the product as a result of a forced replacement.

In terms of actual production of refrigerators reserve for cost reduction by saving costs on materials is (thousand rubles):

due to the norms of 11.0 tr. * 61 pcs. = 671.0 t.r.

due to prices of 13.8 tr. * 61 pcs. = 841.8 t.r.

due to the replacement of 0.0 tr.(since there was no overspending)

Total 1512.8 t.r.

§ 4. Analysis of the impact of labor costs on the cost price.

Wages constitute one of the most important elements of production costs; its share is especially large in most branches of the mining industry, as well as in mechanical engineering. In the cost of production, only the wages of production workers are allocated as an independent item. Salaries of other categories of industrial production personnel are included in complex cost items, as well as transport and procurement expenses. The wages of workers employed in auxiliary production are included in the cost of steam, water, electricity and affect the cost of marketable products through those complex items that include the consumption of steam, water and energy.

The wages of piece workers and bonuses paid from the wage fund directly or indirectly depend on the fulfillment of the production plan (bonuses paid from the consumption fund do not affect the wage fund). Other components of the wage fund depend on the number of employees, tariff rates and official salaries, i.e. they are influenced by many common factors. Therefore, wage analysis is carried out in 2 directions: 1) analysis of the wage fund as an element of production costs; 2) analysis of wages in the context of individual calculation items, primarily an independent item - the wages of production workers.

Only after the general factors that caused deviations in the wage fund of certain categories of workers have been identified, is it determined to what extent they influenced different items of production costs.

Before starting to analyze the use of the wage fund, it is important to analyze the validity of its planned value. The specific methodology for such analysis will depend on the method of payroll planning adopted at the enterprise. In addition, when planning the wage fund and monitoring its expenditure, compliance with the planned ratio between the growth rate of average earnings (including payments from the consumption fund) and labor productivity must be checked.

The influence of the use of the wage fund of industrial production personnel on the cost of production. The cost of production includes all payments to industrial and production personnel. The salary fund of non-industrial personnel (canteens, clubs, pioneer camps, etc.) is not included in the cost of industrial products.

Absolute overexpenditure of the wage fund of industrial production personnel does not entail an increase in costs if the percentage of above-plan growth in production volume is higher than the wage fund, since in this case the costs per ruble of production are reduced compared to the planned level.

Exceeding the production volume plan must necessarily be accompanied by relative savings in the wage fund and an above-plan reduction in costs because in this case only payments to piece workers and bonuses increase, and the time wage does not change. The greater the share of time-based wages in the general wage fund, the greater (other things being equal) the savings achieved.

To determine the full amount of relative savings or overexpenditure of the wage fund and their impact on costs, it is necessary to proceed from the ratio of the growth rates of the wage fund and production. This ratio is equal to the ratio of the growth rate of labor productivity and average wages.

The fact is that labor productivity, measured by average output per worker, is the quotient of dividing production (Q) by the average number of workers (R), while average wages is the quotient of dividing the wage fund (F z) by the same average number of employees. The ratio of the growth rates of these fractions is equal to the ratio of the rate of change of the numerators of the fractions - the volume of production and the wage fund:

Determination of the influence of the actual ratio of growth rates of labor productivity and wages on the cost of manufactured products. One of the most important factors in reducing costs is the growth rate of labor productivity outpacing the growth rate of average wages.

Calculation of changes in the wage fund (D F z) under the influence of an increase in average annual output and the average annual salary of one employee or worker is carried out according to the formula

, Where

F salary - planned salary fund, thousand rubles.

3% and W% - growth rate, respectively, of the average annual salary of 1 worker and average annual labor productivity compared to the plan, %

Let's substitute the data from Table 4.1 into the formula.

Now it is necessary to determine how much of the savings is reflected in the cost of production. To do this, the amount of savings is multiplied by the ratio production cost of actual output to the amount production costs:

Thus, due to the rapid above-plan growth of labor productivity, wage costs included in the cost of production decreased by 313.1 thousand rubles.

The above calculation is approximate, since it does not take into account differences in the share of wages in production costs and production costs. These differences are inevitable because the cost of products produced in the reporting year includes the costs of parts and semi-finished products that were in work in progress at the beginning of the year, and part of the production costs of the reporting year relates to work in progress at the end of the year.

Analysis of the composition of the wage fund. Relative savings (or overspending) characterizes the use of the wage fund as a whole. In order to identify reserves for an additional reduction in wages per ruble of marketable products, it is necessary to first identify reserves for further growth in labor productivity and savings in average wages, primarily through the elimination of unproductive payments and unjustified increases in wages for certain categories of industrial production personnel.

For this purpose, the composition of the workers' wage fund is analyzed and unproductive payments, grouped according to the following 3 points:

1. Additional payment to piece workers due to changes in working conditions;
2. Additional pay for working overtime;
3. Payment for forced downtime.

There is no need to separately calculate non-productive payments for defects, since the amount under the item “Losses from defects” is fully taken into account in the consolidated calculation of cost reduction reserves.

Reserves for reducing payments for service personnel salary fund are identified by analyzing deviations from the headcount plan and the average salary per employee of each category of personnel and determining the impact of these deviations on salary expenditure.

Overexpenditure of the wage fund due to the maintenance of an excess number of all categories of service personnel should be classified as non-production expenses, and its liquidation should be considered a reserve for reducing costs.

Deviations from the average salary plan may be caused by:

• an increase or decrease in the share of higher-paid employees in the total number of the corresponding category. (If there is an understaffing of employees, such a deviation is inevitable and is not considered an overrun);
• violation of established salaries (the resulting overexpenditure of the fund is an unacceptable non-production expense);
• above-plan exceeding of production standards and above-plan payment of bonuses included in the salary fund (valid reasons), incorrect billing of work, unproductive payments and other shortcomings affecting the average salary (unvalid reasons).

The impact of a change in the number of employees on the wage fund is determined by multiplying the deviation from the plan for the number of employees (D N) by the planned average salary (Z p), and the impact of the deviation from the plan of the average annual salary (D Z) - by multiplying this deviation by the actual number of employees (N f) for certain categories of personnel (absolute difference method):

Analysis of wages of production workers. The wages of production workers are highlighted as a separate item in the calculation. A detailed analysis of this part of the fund is carried out for the most important products in those industries where the wages of production workers play a significant role in determining the cost of production and where, therefore, a special section of the calculation provides for a breakdown of the article “Basic and additional wages.”

Data on wage fund expenditures for production workers are shown in Table 4.2.

Table 4.2. Analysis of salaries of production workers.

Products	Unit of measurement	Issue for	Wages in commercial products, thousand rubles.			Wages in the cost of a unit of production, thousand rubles.
		March	according to plan	actually	deviations (+,-) (gr.5-gr.4)	according to plan (gr.4:gr.3)	actually (gr.5:gr.3)	deviations (gr.8-gr.7)
1	2	3	4	5	6	7	8	9
A	PC.	730	9839,7	9783,1	-56,6	13,48	13,40	-0,08
B	PC.	643	5412,0	5314,0	-98,0	8,42	8,26	-0,15
IN	PC.	40	661,2	674,9	+13,7	16,53	16,87	+0,34
Other products	thousand rubles		44,5	57,0	+12,5
Total			15957,4	15829,0	-128,4

The table shows that in fact the costs of workers' wages turned out to be lower than the planned value by 128.4 thousand rubles. Savings were achieved by reducing wages for products A and B. At the same time, for product B and other products, the wages of production workers exceeded the plan (by 0.34 thousand rubles per unit of product B and by 12.5 thousand rubles for all other products).

Next, it is necessary to analyze the deviation of workers' wage fund expenses as a result of changes labor intensity products. Reducing labor intensity ensures wage savings and increased labor productivity.

Table 4.3 presents the necessary data to determine the influence of labor intensity and hourly rate on wages for product B.

Table 4.3. Analysis of the impact of labor intensity.

Indicators	Designations	Plan	Fact	Deviations from the plan (+,-)
Number of units of product B, pcs.	q	643	643	--
Labor intensity of product unit B, standard hours	Q	1,20	1,18	-0,02
Hourly rate, rub.	L	7014	7004	-10
Amount of wages, thousand rubles.	U	5412,0	5314,0	-98,0

The influence of each factor was:

a) the influence of labor intensity

b) the impact of a change in hourly rate

Thus, wage costs for product B decreased by 98.0 thousand rubles. At the same time, by reducing the labor intensity of product production by 0.02 standard hours, wage costs decreased by 90.2 thousand rubles, and by changing the hourly rate by 10 rubles. expenses decreased by 7.8 thousand rubles.

It is advisable to carry out similar calculations for all manufactured products.

Another important reason for deviations of the actual wages of production workers from the planned ones are deviations from the established technology, recorded by special accounting documents - additional payment slips, which are grouped by places of detection, reasons and culprits.

§ 5. Analysis of complex cost items.

Complex costs are those that consist of several elements. The following groups of complex expenses are distinguished as part of the cost price: expenses for preparation and development of production of new types of products; expenses for maintenance of production and its management (they include three items - expenses for the maintenance and operation of equipment, shop expenses, general plant (general) expenses); losses from marriage; other production costs; non-production (commercial) expenses.

Each item of comprehensive expenses includes costs of various economic natures and purposes. In accounting, they are detailed into more fractional items that combine expenses of the same purpose. Therefore, deviations from the cost estimate are determined not by the item as a whole, but by the individual items included in it. Then the amounts exceeding the plan for some items and savings for others are calculated separately. When assessing the changes obtained, it is necessary to take into account the dependence of individual expenses on the plan for production volume and the number of employees, as well as on other production conditions.

Based on their dependence on production volume, expenses are divided into those that do not depend on the degree of implementation of the plan - conditionally permanent and dependent - variables. Variable costs can also be divided into conditionally proportional, which, when the plan for production volume is exceeded, increases almost in full accordance with the percentage of fulfillment of this plan, and digressive, the growth of which to one degree or another lags behind the above-plan growth in production volume.

According to research, with minor deviations of production volume from the plan (within ±5%), workshop and general plant costs remain unchanged.

Expenses for the maintenance and operation of equipment increase when the plan for production volume is exceeded, but not proportionally, but digressively, and the rate of their growth depends on the factors that determined the above-plan growth of production. Of the individual components of these expenses, almost in proportion to the fulfillment of the plan for production volume, the item “Wear of low-value and wear-out tools and devices” increases or decreases. At the same time, expenses under the item “Depreciation of equipment and vehicles” remain unchanged.

The items “Other production expenses” and “Non-production (commercial) expenses” are also variables.

Due to the absence of certain coefficients that determine the permissible increase in the variable part of complex costs with above-plan growth in production volume, in practice, when analyzing complex cost items, variable costs are recalculated to the percentage of fulfillment of the production plan, and conditionally fixed costs are limited to the budget. However, for no item of complex expenses should deviations increase in proportion to changes in production volume: in all cases relative savings should be achieved.

According to the possibilities of influence of the enterprise itself, deviations - both overruns and savings - are divided into dependent And independent From him.

According to the nature of the reasons that caused the deviations, they differ: savings, which are and are not the merit of the enterprise; overexpenditure, unjustified and justified, which is not considered the fault of the enterprise.

5.1. Analysis of production maintenance and management costs.

The analysis of costs for production maintenance and management begins with studying the dynamics of their absolute amounts and share in the standard net production.

The study of the dynamics of absolute amounts of expenses is carried out from the point of view of determining the impact on their change of measures to strengthen the economy regime, improve production maintenance and management. Studying the dynamics of expenses is also important for checking the validity of the planned growth or reduction of individual items and expenses. The planned change in their amounts should follow from the planned change in the number of service and management personnel, the growth of the organizational and technical level of the enterprise and other business conditions affecting the size of the corresponding expense items.

Table 5.1. Analysis of the dynamics of costs for production maintenance and management.

Indicators	Last year		Reporting year
	thousand roubles.	to net production, %	plan		actually
			thousand roubles.	to net production, %	thousand roubles.	to net production, %
Regulatory clean products	64764	100,0%	70800	100,0%	69844	100,0%
Expenses for maintenance and operation of equipment	11001	17,0%	10716	15,1%	10329	14,8%
Shop expenses	12125	18,7%	13170	18,6%	12873	18,4%
General plant expenses	17000	26,2%	18420	26,0%	18515	26,5%
TOTAL production and management costs	40126	62,0%	42306	59,8%	41717	59,7%

Analyzing the data in Table 5.1, we can say that a decrease in the level of expenses with an increase in their absolute amount indicates that the growth of expenses lags behind the growth rate of production volumes, which leads to a decrease in costs. The growth in production volume over the two years being compared led to a relative reduction in the level of costs for production maintenance and management, despite a slight increase in the absolute amount of shop floor and especially general plant expenses. However, it is necessary to find out the reasons for the underfulfillment of the plan for shop expenses, since savings could have been achieved through failure to implement labor protection measures, experiments and research, reducing the current repair of buildings and structures, etc.

The comparison allows us to establish only the general trend of changes in expenses. The individual cost items included in them depend on many factors. It is possible to identify reserves for their savings only on the basis of a detailed study of the dynamics and deviations from the plan for each article separately. It should be borne in mind that, by their nature, the costs of maintaining and operating equipment, in contrast to shop and general plant expenses, are variable. Therefore, when analyzing them, it is necessary to take into account that these costs change approximately in proportion to changes in production volume. Consequently, actual costs in this case must be compared not only with the plan for the approved production volume, but also with the recalculated estimate (Table 5.2).

Table 5.2. Item-by-item analysis of the costs of maintaining and operating equipment.

Title of articles	According to plan, thousand rubles.	Plan in terms of actual output, thousand rubles.	In fact, thousand rubles.	Deviations (+,-) (group 3-group 2), thousand rubles.
A	1	2	3	4
Depreciation of equipment and vehicles*	2270	2270	2278	+8
Equipment operation	1810	1786	1663	-123
Current repairs of equipment and vehicles	1971	1944	1938	-6
In-plant movement of goods	755	745	867	+122
Inspection of low-value and wear-out tools and devices	1693	1670	1357	-313
other expenses	2217	2187	2226	+39
Total expenses for the maintenance and operation of machinery and equipment for the reporting period	10716	10602	10329	-273

* Depreciation charges are not recalculated, since they do not depend on production volume.

The table data shows that the actual costs of maintaining and operating the equipment turned out to be 273 thousand rubles, or 2.6%, compared to the plan, adjusted for changes in product output (in this case, there was a decrease in output volumes against the planned one by 1.4%). At the same time, significant deviations from the plan are observed for individual items, so it is necessary to establish specific reasons for savings or overspending on these items. (Large deviations are likely the result of unreasonable planning of these expense items.)

Analysis of costs for preparation and development of production. The main part of this expense item is associated with the development of new types of products and new technological processes and the preparation of industrial production of these products. In addition, this item in the mining industry reflects the costs of mining preparation work. All actual costs for these purposes are taken into account from the beginning as part of deferred expenses, and then are written off gradually to the cost of production based on the planned period for their full reimbursement and the planned volume of production during this period.

Expenses for preparation and development of production are divided into items related to individual production stages. In the process of analysis, it is necessary to establish for which items of the estimate there were overruns and their reasons, whether additional savings were obtained as a result of non-fulfillment of the production preparation plan or less thorough implementation, which may subsequently lead to a decrease in the efficiency of the introduction of new equipment and technology. Overexpenditures can be justified if they are compensated by an increase in the economic effect from the long-term implementation of the production and operation of a new facility.

Analysis of losses from defects. This expense item is planned as an exception only in production where it is impossible to completely prevent such losses due to hidden defects in raw materials and materials that cause defects during their processing, and for other unavoidable reasons. However, in practice, most enterprises experience losses from defects, and their elimination or at least reduction is a significant reserve for reducing production costs.

Analysis of losses from defects usually begins with a comparison of general data on the level of defects for the corresponding data for the previous period, and in enterprises where defects are planned, with the planned level.

Then the analysis is detailed by the place where the defect occurred (in which production units of the association and in which workshops), by the reasons (factors) for its occurrence, and by the culprits. The degree of compensation for losses from marriage by the perpetrators is considered.

The dynamics of the relationship between the costs of final defects and correction of defects should be studied. The higher the proportion of final defects, the worse the inter-operational and inter-shop quality control of parts and semi-finished products is at the enterprise.

Non-production expenses. These include all costs for packaging, its delivery to the destination station, loading, as well as other sales costs. These costs depend on the volume of products shipped, i.e. they are variable. Adjustment of estimates for them should be carried out based on changes natural shipment volume, since packaging and shipping costs are proportional to the weight and dimensions of the product, and not their cost.

When calculating reserves for reducing non-production expenses, one must strive to identify as fully as possible the overexpenditures for individual types of these expenses, avoiding their balancing with cost savings for other purposes.

Annex 1. Estimated data for table 2.1 "Costs per ruble of marketable products."

product name	Number of products (items), pcs.		Cost per unit of product, thousand rubles.		Wholesale price per unit of product, thousand rubles.		Change prices and tariffs for materials.	Estimated indicators for table 2.1. "Costs per ruble of commercial products", thousand rubles.
	according to plan qp	actual qf	according to plan SP	actual Sф	according to plan SP	actual Cf	resources, thousand rubles	S qпSп	S qфSp	S qфSф	S qfS"f*	S qпСп	S qfSp	S qфСф
Vacuum cleaner	63	60	1013	999	1267	1313	+34	63819	60780	59940	57900	79821	76020	78780
Fridge	61	61	1903	1911	2199	2199	+41	116083	116083	116571	114070	134139	134139	134139
Coffee maker	95	35	113	108	177	180	-2	10735	3955	3780	3850	16815	6195	6300
Iron	114	128	78	65	94	107	+3	8892	9984	8320	7936	10716	12032	13696
Telephone	175	153	23	23	49	28	-1	4025	3519	3519	3672	8575	7497	4284
Total:	508	437						203554	194321	192130	187428	250066	235883	237199

* S"f - actual cost per unit of product, adjusted for changes in prices and tariffs for material resources compared to their planned value (S"f = Sf - changes in prices and tariffs).

1. Basic provisions for planning, accounting and calculating the cost of production at industrial enterprises (approved by the State Planning Committee of the USSR, the Ministry of Finance of the USSR, the State Committee for Prices of the USSR, the Central Statistical Office of the USSR on July 20, 1970).
2. Regulations on the composition of costs for the production and sale of products (works, services), included in the cost of products (works, services), and on the procedure for generating financial results taken into account when taxing profits (approved by Decree of the Government of the Russian Federation of August 5, 1992 No. 552 ; with amendments and additions approved by the Government of the Russian Federation dated July 1, 1995 No. 661 and November 20, 1995 No. 1133).
3. Analysis of financial and economic activities of enterprises. Ed. L. Korotkova and R. Medvedev. - M.: Gosfinizdat, 1963 - 357 p.
4. Analysis of economic activity in industry: Textbook / L.A. Bogdanovskaya, G.G. Vinogorov, O.F. Migun et al.: Under general. ed. IN AND. Strazheva. - Minsk: Vys. school, 1995. - 363 p.
5. Business analysis course. Ed. prof. S.K. Tatura and prof. A. D. Sheremeta. - M.: “Economics”, 1974 - 399 p.
6. Course of economic analysis: Proc. for economical specialist. universities Ed. M. I. Bakanova, A. D. Sheremeta. - M.: Finance and Statistics, 1984 - 412 p.
7. Methodology for economic analysis of the activities of a production association. Ed. A. I. Buzhinsky and A. D. Sheremet. - M.: Finance, 1978 - 224 p.
8. The theory of economic activity analysis: Textbook. - 2nd ed., revised. and additional - M.: Finance and Statistics, 1987. - 287 p.
9. Sheremet A.D., Saifulin R.S. Methodology for comprehensive analysis of economic activity. - M.: “Economy”, 1980 - 232 p.
10. Economic analysis of economic activity. Ed. A. D. Sheremeta - M.: “Economics”, 1979 - 373 p.
11. Economic analysis of economic activities of enterprises and associations: Textbook / Ed. S. B. Barngolts and G. M. Tatsia. - 3rd ed. reworked and additional - M.: Finance and Statistics, 1986 - 407 p.

The main source of profit generation is the main activity of the enterprise for the purpose of which it was created. The nature of this activity is determined by the specific industry of the enterprise. It is based on production and commercial activities, which are complemented by financial and investment activities.

Profit from the sale of products, works, services is defined as the difference between the proceeds from the sale of products, works, services (minus value added tax, excise taxes and similar mandatory payments), the cost of goods, works, services sold, commercial and administrative expenses.

The most important factors influencing the amount of profit from the sale of products, works, and services are:

• - change in product sales volume. An increase in sales of profitable products leads to an increase in profits and an improvement in the financial condition of the enterprise. An increase in the volume of sales of unprofitable products affects the decrease in the amount of profit;
• - changing the structure of the range of products sold. An increase in the share of more profitable types of products in the total sales volume leads to an increase in the amount of profit. An increase in the share of low-profit or unprofitable products affects a decrease in profits;
• - change in production costs. Reducing costs leads to an increase in profits, and vice versa, its growth affects a decrease in profits. This dependence exists in relation to commercial and administrative expenses;
• - change in product sales price. As the price level increases, the amount of profit increases, and vice versa.

In Table 7, we consider the influence of factors on changes in profit from sales of main types of products.

Table 7 - Influence of factors on changes in profit from sales of the main types of grape products at Yuzhnaya OJSC

During the period under study, sales profit increased significantly by 6,675 thousand rubles, this is due to a decrease in production volumes. Including, due to a change in sales volume, it increased by 1074.1 thousand rubles, due to a change in the average price, it increased by 11946.7 thousand rubles, and due to a change in cost, it decreased by 7103.1 thousand rubles.

The results of factor analysis of profit from sales allow us to evaluate reserves for increasing production efficiency and make informed management decisions.

The assessment of the above factors is possible using the factor analysis method.

An analysis of profits from the sale of products, works, and services can be carried out on the basis of the following data (Table 8).

Table 8 - Initial data for factor analysis of sales profit

Let us determine the influence of factors on the amount of profit using the following algorithm.

1. To determine the impact of sales volume on profit, it is necessary to multiply the profit of the previous period by the change in sales volume. The main methodological difficulty in determining this factor is associated with the difficulties of determining changes in the physical volume of products sold. It is most correct to determine changes in sales volume by comparing reporting and basic indicators expressed in natural or conditionally natural measures. This is possible when the products are homogeneous. In most cases, the products sold are heterogeneous in their composition and it is necessary to make comparisons in value terms. To ensure comparability of data and exclude the influence of other factors, it is necessary to compare the reporting and base sales volumes, expressed in the same prices (preferably in prices of the base period).

To bring the sales volume of the reporting period to a comparable form, it is necessary to know the index of changes in prices for products, works, and services. Recalculation is carried out by dividing the sales volume of the reporting period by the index of changes in sales prices. This calculation is not entirely accurate, since prices for sold products change throughout the reporting period.

In our example, the sales volume for the reporting period in prices of the base period amounted to 1,043,791.3 thousand rubles. (1200360/1.15). Taking this into account, the change in sales volume for the analyzed period amounted to 10.643% (1043791.3/1037121*100%), i.e. There was an increase in the volume of products sold by 0.643%.

Due to the increase in product sales, profit from product sales increased:

• 384057 * (0.00643) = 2469.5 thousand. rub.
• 2. The influence of the structure of the range of sold products on profit is determined by comparing the profit of the reporting period, calculated on the basis of prices and costs of the base period, with the base profit, recalculated for changes in sales volume.

The profit of the reporting period, based on the cost and prices of the base period, can be determined with some degree of convention as follows:

• - proceeds from the sale of the reporting period in prices of the base period 1043791.3 thousand rubles;
• - actual products sold, calculated at the base cost (523857 * 1, 00643) = 527225 thousand rubles. ;
• - commercial expenses of the base period 38920 thousand rubles;
• - administrative expenses of the base period 90287;
• - profit of the reporting period, calculated at the base cost and base prices (1043791.3-527225-38920-90287) = 387359.3 thousand rubles.

Thus, the impact of shifts in the assortment structure on the amount of profit from sales is equal to:

387359.3 - (384057*1.00643) = 833.3 thousand rubles.

The calculation shows that the share of products with a high level of profitability in the composition of sold products has increased.

• 3. The impact of changes in the cost of products sold on profit can be determined by comparing the cost of sales of products in the reporting period with the costs of the base period, recalculated for changes in sales volume:
• 598536 - (523857*1.00643)=71311 thousand rubles.

The cost of goods sold increased, therefore, the profit from the sale of products decreased by the same amount.

• 4. We will determine the impact of changes in commercial and administrative expenses on profit by comparing their values ​​in the reporting and base periods. Due to the reduction in commercial expenses, profit decreased by 2,784 thousand rubles. (36136 - 38920), and management expenses by 380 thousand rubles (89907-90287).
• 5. To determine the influence of sales prices of products, works, services on changes in profit, it is necessary to compare the sales volume of the reporting period, expressed in prices of the reporting and base periods, i.e.:
• 1200360 - 1043791.3= 156568.7 thousand rubles.

The total influence of all these factors is equal to:

• - change in sales volume 2469.5 thousand rubles;
• - change in the structure of the range of products sold RUB 833 thousand;
• - change in cost 71311 thousand rubles;
• - change in the amount of commercial expenses 2784 thousand rubles;
• - change in the amount of management expenses 380;
• - change in sales prices 156568.7 thousand. rub.;
• - total influence of factors 340122.2.

The significant increase in cost of goods sold was primarily due to increased volumes. In addition, increased sales volumes and positive changes in the product structure led to an increase in profits. The impact of these factors was supported by an increase in prices for sold products, as well as a decrease in business expenses. Consequently, the reserves for increasing the profit of an enterprise are an increase in sales volume, an increase in the share of more profitable types of products in total sales and a reduction in production costs.

The most important indicator of the economic efficiency of production is its cost. The cost reflects all aspects of economic activity and accumulates the results of using all production resources. The financial performance of enterprises, the pace of expanded reproduction, and the financial condition of business entities depend on its level.

To deeply study the reasons for changes in cost, reporting calculations for individual products are analyzed, the actual level of costs per unit of production is compared with the planned level and data from previous periods, other enterprises as a whole and by cost item. The influence of first-order factors on changes in the level of cost per unit of production is studied using a factor model:

C i = A i / V BP i + B i,

where C i— unit cost i-th type of product;

A i— fixed costs attributed to i-th type of product;

Bi- variable costs per unit i-th type of product;

V VP i— output volume i-th type of product.

Using this model and the data in Table. 1, we will calculate the influence of factors on changes in the cost of the product A by chain substitution method.

Table 1. Initial data for factor analysis of product cost A
Index	Plan	Fact	Deviation from plan
Product output volume ( V BP), pcs.
The amount of fixed costs ( a), thousand roubles.
The sum of variable costs per product ( b), rub.
Product cost (C), rub.

C plan = aP lan/ V BP plan + b plan = 12,000,000 / 10,000 + 2800 = 4000 rubles;

C condition 1 = a plan/ V VP fact + b plan = 12,000,000 / 13,300 + 2800 = 3702 rubles;

C condition 2 = a fact / V VP fact + b plan = 20,482,000 / 13,300 + 2800 = 4340 rubles;

C fact = a fact / V VP fact + b fact = 20,482,000 / 13,300 + 3260 = 4800 rub.

The total change in unit cost is:

ΔС total = С actual - С plan = 4800 - 4000 = +800 rub.

Including:

A) due to changes in production volume:

ΔС V BP = With condition 1 - With plan = 3702 - 4000 = -298 rub.;

b) due to changes in the amount of fixed costs:

ΔС A= From condition 2 - From condition 1 = 4340 - 3702 = +638 rub.;

V) due to changes in the amount of unit variable costs:

ΔС b= C fact - C condition 2 = 4800 - 4340 = +460 rub.

Similar calculations are made for each type of product (Table 2a, b).

Table 2b. Calculation of the influence of first-order factors on changes in the cost of certain types of products
Product type	Product cost, rub.				Change in cost, rub.
	plan	calculated ywords1, (conv. 1)	design condition 2, (ysl2)	fact	general
						output volume	fixed costs	unit variable costs

Table 3. Analysis of the cost of product A by cost item
Cost item	Product costs, rub.			Cost structure, %
	plan	fact		plan	fact
Raw materials and basic materials
Fuel and energy
Wages of production workers
Contributions for social needs
Expenses for maintenance and operation of equipment
General production expenses
General running costs
Losses from marriage
Other production costs
Business expenses
Total
Including: variables permanent

The data presented show an increase in all cost items and especially in material costs and wages of production personnel.

Similar calculations are made for each type of product. Established deviations for cost items are the object of factor analysis. As a result of an item-by-item analysis of product costs, internal and external, objective and subjective factors of changes in its level should be identified. This is necessary for qualified management of the cost formation process and the search for reserves for reducing them.

Analysis of direct material costs

Material costs occupy a large share in the cost of production. Total amount of material costs as a whole by enterprise depends on the volume of production ( V VP), its structure (Ud i) and changes in specific material costs for certain types of products (UMZ i). The level of the latter, in turn, may change due to the amount (mass) of material resources consumed per unit of production (UR i) and the average cost of a unit of material resources (C i). This relationship is shown schematically in the figure.

Structural-logical model of factor analysis of direct material costs

It is advisable to begin the analysis of direct material costs by studying the factors of change in material costs per unit of production, for which the following factor model is used:

UMP i= ∑(UR i× C i).

We will calculate the influence of these factors using the chain substitution method:

UMP plan = ∑(UR i plan × C i plan);

UMP conv = ∑(UR i fact × C i plan);

UMP fact = ∑(UR i fact × C i fact);

ΔUMZ UR = UMP conv - UMP plan;

ΔUMZ C = UMP fact - UMP conventional.

Table data 4 allow us to establish why the material costs per unit of production have changed in general and for each type of material resource. In the example under consideration, they increased mainly due to rising prices for resources.

Table 4. Calculation of the influence of factors on the amount of direct material costs per unit of production
Type of product and material	Material consumption per product, m		Price of 1 m of fabric, rub.		Material costs for the product, rub.			Change in material costs for the product, rub.
	plan	fact	plan	fact	plan	C i plan	fact	general	including at the expense
									consumption rates	prices
Product A
Upper fabrics
Fabrics for lining
Other materials
Total
Product B
Upper fabrics
Fabrics for lining
Other materials
Total

After this, you can study the factors that change the amount of direct material costs for the entire volume of production of each type of product, Why is the following factor model used:

MOH i = V BP i∑(UR i× C i).

In table Figure 5 presents an algorithm for calculating material costs for the production of product A.

Table 5. Material costs for the production of product A
Index	Calculation algorithm	Calculation procedure	Amount, thousand rubles
	V BP i plan = ∑(UR i plan × C i plan)
	V BP i fact = ∑(UR i fact × C i plan)
	V BP i fact = ∑(UR i fact × C i plan)
	V BP i fact = ∑(UR i fact × C i fact)

From the table Figure 5 shows that material costs for the production of product A increased by 11,130 thousand rubles, including due to changes in:

a) volume of production - +5610 thousand rubles. (22,610 - 17,000);

b) material consumption for the product - -612 thousand rubles. (21,998 - 22,610);

c) cost of material resources - +6132 thousand rubles. (28,130 - 21,998).

Similar calculations are made for all types of products (Table 6).

Table 6. Factor analysis of material costs by type of product
Product	Material costs, thousand rubles.					Change in material costs, thousand rubles.
	plan	design condition 1, (condition 1)		design condition 2, (condition 2)	fact	general	including due to changes
							output volume	consumption rates	resource prices
Total

The total amount of direct material costs for the entire enterprise In addition to these factors, it also depends on the structure of the products produced. The necessary data for the calculation are given in table. 7.

Table 7. Total cost of materials for production
Index	Calculation algorithm	Calculation	Amount, thousand rubles
	∑(V BP i plan × ur i plan × C i plan)	10,000 × 1.7 + 10,000 × 0.8
	MZ plan × I ch *
	∑(V BP i fact × UR i fact × C i plan)	13,300 × 1.7 + 5,700 × 0.8
	∑(V BP i fact × UR i fact × C i plan)	13,300 × 1.654 + 5,700 × 0.78
	∑(V BP i fact × UR i fact × C i fact)	13,300 × 2.115 + 5,700 × 0.94

*I vp - change in production volume (0.95).

Based on the data in table. 7 it can be established that the total amount of direct material costs for production increased by 8488 thousand rubles. (33,488 thousand rubles - 25,000 thousand rubles), including due to changes in:

a) volume of production - -1250 thousand rubles. (23,750 - 25,000);

b) structure of product production - +3420 thousand rubles. (27,170 - 23,750);

c) material intensity of products - -726 thousand rubles. (26,444 - 27,170);

d) cost of material resources - +7044 thousand rubles. (33,488 - 26,444).

Consumption of raw materials and materials per unit of production depends on their quality, replacement of one type of material with another, changes in the recipe of raw materials, equipment, technology and organization of production, qualifications of workers and other innovative measures.

During the analysis process, you need to find out the change in specific material consumption due to each factor, and then multiply the result obtained by the base price level and the actual production volume i-th type of product. As a result we get increase in the amount of material costs for production this type of product due to the corresponding factor in the reporting period:

ΔМЗ xi= ΔUR xi× C i plan × V VP i fact.

Average material price level depends on the markets for raw materials, inflationary factors, the intra-group structure of material resources, the level of transport and procurement costs, the quality of raw materials, the replacement of one type with another, etc. To find out how, due to each of them, the total amount of material costs, it is necessary to change the average price i-th type or group of materials due to i-th factor multiplied by the actual amount of materials used of the corresponding type:

ΔМЗ xi= ΔC xi× UR i fact × V VP i fact.

Many enterprises may have excess returnable waste of raw materials, which can be sold or used for other purposes. If we compare their cost with the price of possible use and the cost of raw materials, we will find out by what amount the material costs included in the cost of production have increased.

The presence of excess irrevocable waste leads to a direct increase in the cost of products and a decrease in their output. To establish how much the amount of material costs has increased, it is necessary to multiply the excess amount of irrecoverable waste by the planned price of the source material.

Let us summarize the results of the factor analysis of direct material costs and determine the unused, current and future reserves for their reduction per unit of production (Table 8).

Methodology for determining reserves for reducing production costs

The main sources of reserves for reducing the cost of industrial products (Р↓С) are:

1) increasing the volume of production due to more complete use of the production capacity of the enterprise (P V VP);

2) reducing production costs (P↓3) by increasing the level of labor productivity, economical use of raw materials, supplies, electricity, fuel, equipment, reducing unproductive costs, manufacturing defects, etc.

The amount of reserve for reducing the cost per unit of production determined by the formula:

Р↓С = С in - С f = (З f - Р↓З + З Д) / ( V VP fact + R V VP) - Z f / V VP fact,

where C f and C b are, respectively, the actual and possible (predicted) levels of unit cost of production;

Z f - actual costs of production in the reporting period;

Р↓З - reserve for reducing production costs;

Z d - additional costs necessary to develop reserves for increasing production;

V BP fact, P V VP - respectively, the actual volume and reserve for increasing production.

Reserves for increasing production are identified in the process of analyzing the implementation of the production program. With an increase in the volume of production at existing production facilities, only variable costs increase (direct wages of workers, direct material costs, etc.), while the amount of fixed costs, as a rule, does not change. As a result, the cost of products is reduced.

Cost reduction reserves are established for each expense item through specific innovative measures (introduction of new, more advanced equipment and production technology, improvement of labor organization, etc.), which will help save wages, raw materials, materials, energy, etc.

Saving labor costs (Р↓ЗП) as a result of innovative activities can be calculated by multiplying the difference between the labor intensity of products before implementation (TE plan) and after implementation (TE fact) of the corresponding measures by the planned level of average hourly wage (OT plan) and by the planned volume of production ( V BP plan):

Р↓ЗП = ∑(TE fact - TE plan) × FROM plan × V VP plan.

The amount of savings will increase by the percentage of deductions from the wage fund included in the cost of production.

Reserve for reducing material costs (Р↓МЗ) for the production of the planned output of products through the introduction of new technologies and other activities can be determined as follows:

Р↓МЗ = ∑(UR fact - SD plan) × V BP plan × C plan,

where SD plan, SD fact - consumption of material resources per unit of production, respectively, before and after the introduction of innovative measures;

C plan - planned prices for materials.

Cost reduction reserve (RA) for the maintenance of fixed assets through the sale, long-term lease, conservation and write-off of unnecessary, redundant, unused buildings, machinery, equipment (R↓OS i) is determined by multiplying their original cost by the depreciation rate (NA i):

RA = ∑(Р↓OS i× ON i).

Overhead savings reserves are identified on the basis of their factor analysis for each cost item through a reasonable reduction in management staff, economical use of funds for business trips, postal, telegraph and office expenses, reducing losses from damage to materials and finished products, paying for downtime, etc.

Additional costs for developing reserves for increasing production products are calculated separately for each type. This is mainly a salary for additional output, consumption of raw materials, supplies, energy and other variable costs, which vary in proportion to the volume of production. To establish their value, a reserve for increasing production output is necessary i-th type multiplied by the actual level of specific variable costs of the reporting period ( Bi fact):

Z d = R V BP i × Bi fact.

For example, the actual production of product A in the reporting period is 13,300 units, the reserve for its increase is 1,500 units, the actual amount of costs for the production of the entire output is 63,840 thousand rubles, the reserve for reducing costs on all items is 2,130 thousand rubles. , additional variable costs for developing the reserve for increasing production - 4890 thousand rubles. (1500 rubles × 3260 rubles).

The reserve for reducing the cost of a unit of production Р↓С will be: (63,840 - 2130 + 4890) / (13,300 + 1500) - 63,840 / 13,300 = 4.5 - 4.8 = 0.3 thousand rubles.

Similar calculations are carried out for each type of product, and, if necessary, for each innovative activity, which allows for a more complete assessment of their effectiveness.