Calculation of the total cost of production. How is the calculation of the cost of production, analysis on specific examples

Instruction

Compose costing on the product in several ways, which involve the calculation of production costs, the cost of goods produced and the volume of work in progress. There are four methods of costing: normative, simple (per-process), per-order, and per-order.

In mass, small-scale and serial production, it is appropriate to apply the standard method of costing. Its use must be accompanied by the obligatory drawing up of a normative calculation according to the norms that are valid at the beginning of the calendar month. It is also important to track all deviations from accepted norms at the initial stage of their occurrence. It is necessary to keep a record of any fluctuations in the existing norms, as well as to reflect these changes in a timely manner in the normative calculations.

When making a calculation for product using this method, it is important to know that those norms are considered to be in force, according to which the vacation and shipment of products to production are currently taking place, as well as the remuneration of workers for work already completed.

Due to the fact that there are no significant differences between the "repartition" and the "process", the step-by-step method is often described as a simple method of compiling a cost estimate. product.
This method is used in enterprises where raw materials go through several processing stages, or various types of finished products are produced through one technological process.

It should be noted that this method has two calculation methods - semi-finished and non-semi-finished. In the first case, the cost of each division includes the cost of the previous one, while in the second case, the cost of each division is calculated separately.

Compose costing on the product For enterprises operating on a custom basis, it is advisable to use the custom method.
Since the concept of an order means one or a small number of products, an analytical accounting card is issued for each series with an order code, and all production costs and expenses are aggregated in strict accordance with the orders being executed. The application of this method is appropriate in the case when it is necessary to know exactly the individual cost of manufactured products.

Sources:

how to make a cost estimate
Preparation of product costing

Costing - calculation of the unit cost of a product, service provided or performed work. This is one of the main indicators of planning. The calculation is made on work or services that are not related to the main activity of the enterprise and includes a breakdown of cost items for each type of product, work or service, established tax and other types of charges.

Instruction

The list of costs that you must take into account when compiling the calculation, their composition and distribution methods, depending on the type of product, service and performed, are determined by industry standards and regulations, as well as methodological recommendations used in a particular industry, taking into account the structure of production. The ones you included in costing, must be calculated, approved by the management of the enterprise or standards, which are determined in the prescribed manner.

In the calculation, in separate lines, highlight the direct costs directly related to the production of products, the performance of work, services and those costs that are considered indirect and are associated with the maintenance of production. Direct costs include costs associated with the technological process of manufacturing products, the cost of consumables, raw materials, fuel and electricity costs, wages and specialists, taxes and social contributions from. Indirect costs include the costs of preparatory work, maintenance, operation and maintenance of equipment, other production costs - selling and general business expenses.

Direct costs associated with manufacturing technology are determined per unit of production or for a separate technological stage based on direct accounting - timing, material consumption, etc.

Those expenses for which there are no direct norms and standards, including expenses for maintenance and production management, are included in the calculation according to the calculation in accordance with industry methods and estimates.

Sources:

draw up a work budget

Enterprise costing is defined to calculate the actual or planned cost of production in order to later calculate the correct product valuation and average production costs. As a rule, the planning and economic department of the company is engaged in the preparation of the calculation on the basis of accounting data.

Instruction

Compile the costing items of the enterprise that comply with industry-specific instructions for accounting, planning and cost analysis of products manufactured by the company. This may include: raw materials, purchased products, third-party services, return costs, spent fuel and energy, wages of workers, to the budget, costs of preparation for production, costs of maintaining production, losses in case of marriage, commercial expenses and others. enterprises.

Calculate the cost of production and record the cost of production at the full cost of the product. Attribute direct costs to the cost of individual types of products, and at the end of the reporting period, distribute indirect costs between these types of products in accordance with the production base. Thus, the value of the total cost of production will be calculated.

Make standard costing in case of changes in the source data. This indicator is used to analyze and control production processes, calculate the actual cost of production and determine deviations from the plan.

Reflect in accounting the actual costing of manufactured products. It reflects the costs and losses of the enterprise, which were not taken into account in the preliminary cost estimate. The compilation of this characteristic allows you to properly conduct the financial activities of the organization.

The ability to make a cost estimate for manufacturing is useful both at home and at work. When planning to repair an apartment, build a summer house or make a bath, you need to correctly calculate the cost of work and the amount of building materials.

You will need

Microsoft Office Excel program.

Instruction

Enter the column names. The first is the serial number. Designate it simply with the symbol No. The second is the name of the material or type of work. For example, when providing a service, list here point by point all the actions that will be performed. And when purchasing accessories - the name of all products. The third is the price per unit of a good or service. The fourth column is the quantity (pieces, times, etc.). Call it "quantity" for short.

The fifth column is the general cost estimate for work or materials. Enter here the amount for all items or services of the same name. Subsequently, the total cost will automatically add up. To be able to perform this operation, do the following:

Click on the left mouse button and select the entire fifth column;

Click on the right mouse button, then it will appear with actions;

Find "Format Cells";

Select the first tab "Number";

Specify - "Currency" or "Numeric".
After completing the steps, calculate the total amount. Select the entire column again. In the upper right corner, find the designation Σ (sigma). Click on it to add up all the numbers in the desired column.

Place your notes in the sixth column. Enter any additional information here. Where are the necessary ones, their color, deadlines for the completion of work, phone numbers of customers, etc. To display text information correctly, do the following:

Using the left mouse button, select all the lines of the sixth column;

Click the right mouse button to display the action table on the monitor;

Select "Format Cells";

Hover over the first tab "Number";

Set the text format.

If you decide to go into business, such as opening a hairdresser or a computer salon, you need to draw up costing services. A well-designed calculation will help you not only set the right prices, but also correctly draw up all the documents.

You will need

- prices for consumables;
- the amount of staff salaries.

Instruction

First of all, calculate the cost of materials. This is the most obvious, but not really a simple item of expenditure. Take into account not only direct costs - hair dye (for a hairdresser), detergents (for household services), printing paper (for a photo studio), gasoline (for trucking), etc., but also, for example, removable filters for washing machines or cartridge for, repair and maintenance of the car.

If you bought equipment for work, for example, computers, printers, clippers, vacuum cleaners, a car, then calculate depreciation. To do this, roughly estimate or find out exactly (in the accounting sheet) the service life of the product and divide the cost by the time for which the equipment will justify itself. You can calculate depreciation in other ways, depending on the specifics of your job.

Calculate gross and additional wages, taking into account bonuses, deductions, and other deductions, including social security and accident insurance contributions.

Add together all the amounts received - the cost of materials, depreciation, wages and social security contributions. insurance - and take 20% of this amount. This will be your overhead.

Food accounting involves the collection and processing of information on the receipt, storage and release of raw materials and semi-finished products, which will subsequently be used in the preparation of the product. The activity of the institution as a whole depends on its effectiveness.

Depending on the type of organization, accounting is regulated by law, but the basics are the same for everyone. Acceptance of food products by quantity is carried out only after its quality is confirmed by incoming control. To do this, the company must be equipped with a special laboratory and selected qualified personnel. If the product is hermetically packed and confirmed by a quality certificate, then a visual inspection is carried out. If low-quality raw materials are identified, an act of return to the supplier is drawn up.

Accounting for the receipt of products is carried out in the acceptance sheet, which indicates the number of the act or invoice, and the warehouse is marked in the inventory book. In it, the incoming batch is assigned an inventory number, the name, variety and quantity are registered.

If it is necessary to issue a product from a warehouse to production, the head chef draws up a menu-requirement for the release of raw materials, in which he indicates the necessary nomenclature and quantity.

The developed automated processes make it possible to keep records of the product from the moment it arrives at the warehouse until it is released as a finished dish.

At the end of the month, the accounting department, according to the statement of receipt of products, makes a general calculation of the incoming products by nomenclature, quantity and suppliers. Purchasing actual prices are compared with the calculation, which contains complete data on the cost of the finished dish.

There are special software systems in the form of calculators that automatically calculate the calculation of dishes for catering organizations. It is enough to enter a list of products there in quantitative and price terms, and the selling price will be immediately issued. But this type of calculation is not always convenient, since in order to approve the calculation by the management of the institution, it is necessary to provide its detailed transcript.

For this case, a pricing card approved by law has been developed, which reflects the total price for each dish, and the cost can be calculated for a certain number of products.

Before you draw up a map, you need to decide on the recipe and the amount of products needed to prepare the dish. For convenience, the calculation of raw materials is recommended to be done for 100 servings of the product. The prices indicated in the calculation must correspond to the purchase prices.

After all the information is collected, it is compiled, and all data on raw materials, the rate of its consumption per unit of product and cost are entered into it. To calculate the cost per unit of a dish, you need to divide the resulting cost by 100.

For a quick calculation, you can use Microsoft Excel spreadsheets, which provide for automatic entry of formulas.

The markup approved by the organization must be added to the cost price, and the calculation of the selling price is completed. The data obtained is entered into the calculation card.

Prices for purchased products change periodically, so you should constantly monitor them and make changes to ensure the reliability of the cost. Correctly drawn up calculation has a direct impact on the calculation of the margin, which takes into account the profit of the institution.

In the case of the economic activity of enterprises, the calculation of the cost of production becomes a significant factor. There is a direct dependence of this indicator on the volume of products, its quality. In addition, other factors also matter:

Time spent by employees on work.
Quantity and quality of materials used.
Equipment use.
Raw materials.

Cost indicator- basic, when it comes to determining the price of a particular product. Therefore, let's talk in more detail about how to calculate it, how the cost of production is calculated.

What is included in the cost

Cost: basic concept

When working with the cost price, they rely on the current costs of the enterprise that have arisen due to the organization of production processes and the sale of products.

There are two types of costs for companies:

According to plans.
In fact.

The cost price of the planned type depends on the level of production cost that is assumed. Measurements are carried out at certain time intervals. In this case, the following indicators are assumed to be used:

Consumption rates for materials.
Raw materials.
Labor costs.
Equipment.

Cost after the fact - an indicator associated with production indicators that exist now. Separately determine the level of costs required to create a unit of production. An excel template with calculations can be downloaded from us.

Calculation is used to calculate exact numbers. In this case, special articles are used that determine the type of costs. The types of such articles also depend on several factors:

Let out production together with characteristic features.
Production processes, their specificity.
The sector of the economy for which the company operates. An example is easy to download on our website.

About species

In relation to production practice, the concepts of full cost, as well as its production variety, are widely used. The last group involves the use of such expense items as:

General expenses, production and household.
Compensation for workers for work. This includes the standard salary.
Acquisition of fuel, raw materials and similar consumables.
Use of certain materials.

When it comes to the full cost, not only the costs associated with the production itself are taken into account, but also, for example, commercial ones. We are talking about the process of selling products, advertising, storage, creating suitable packaging, paying sellers, and the like. An example calculation in excel will help to understand.

Depending on the volume of goods produced, the costs that determine the cost may vary. Therefore, the costs themselves are fixed or variable. General production and general economic in this case represent a conditionally permanent variety. But technological costs and wages cannot be considered as such. After all, this characteristic can increase, depending on the results of the enterprise.

Cost of various products

On the role of costing in enterprise management

Accounting for production costs is a prerequisite for organizing the cost estimate itself. It is assumed that all operations in the enterprise must be documented. It is important to analyze and generalize information on the basis of various features. Only a detailed analysis of production allows you to organize a cost estimate with accurate results in the future.

There is a close relationship between production accounting and costing. For example, the information collected in the process of production accounting becomes the basis that helps to calculate the cost of one unit of goods. Accuracy has a different degree, depending on the goals of the enterprise in terms of costing.

The costing process itself has three stages:

At the first, the cost of products manufactured in general is calculated.
The next stage is the calculation of indicators for individual types of goods.
Finally, the latter includes indicators of one unit of goods, services or work.

The calculation process is often highly complex. First, there are primary costs, and then they move on to auxiliary indicators. It is important to take into account the so-called mutual services, which further complicates the process.

When it is necessary to manage production, costing becomes necessary, even only for objective factors.

Evaluation of the stock of finished goods has previously been the main goal for the creation of such systems.

What to consider when working

More balanced solutions are now being applied. The information used allows not only solving traditional problems, but also predicting economic consequences. For example, when you want to analyze the following indicators:

What is the quality level of the staff?
Would it make sense to upgrade current equipment?
The need to optimize the range of products.
What price will be optimal?
Should I continue to produce products, or do something else?

Thanks to such procedures, it becomes easier for the enterprise to evaluate the adopted plans. In addition, the data is used for further planning of activities.

On the principles and objects of calculation

The following principles become the main ones for costing, regardless of the characteristics of a particular enterprise:

Scientific justification for any costs. In some industries, this is important for the development of appropriate recommendations.
Accurate establishment of objects, units of measurement. In many cases, accounting objects for different areas of activity do not coincide with each other.

The choice of a specific unit of measure depends on the characteristics of production.

In addition, it is important to choose a specific method for allocating indirect costs. Otherwise, the unit cost of production cannot be determined correctly. The company chooses the appropriate method on its own. Research results are recorded in the accounting policy. The main thing is not to change them for at least one financial year.

Costs should be clearly delineated by period. The main principle is the so-called accrual principle. After all, transactions are often processed at the time of transfer, and may not be linked to cash flows. That is why we have to understand what exact calculation is.

Calculation methods

About methods in costing

It is important to understand which method is used to reflect all production costs, documentation. There are various options for action that can be taken in this direction.

Proprocess

The most relevant solution for the extractive industries. Energy companies also often use this method. It is also suitable for processing industries, which are characterized by the use of the simplest technologies.

The application of the method is suitable for enterprises with the following features:

In the production of products with mass production.
Nomenclature restrictions.
Measurement and calculation are carried out with a standard unit of measure.
The complete absence of unfinished processes in production, or their minimum number.

For products, the cost price is calculated in three stages:

Determination of the cost price for all goods released by production. Then we divide the costs by the number of products. We get the result associated specifically with the unit of production.
We carry out the division of the amounts of commerce and management activities by the volume of products created for a certain time period.
It remains only to add the numbers obtained in the two previous stages.

Transverse method

An excellent method in the presence of serial or industrial production. Production has several stages at once, through which products pass. The relevance of the method increases in enterprises where various types of chemical processing are used. Each completed repartition leads to the creation of objects in the form of products when costing for the production of products is carried out.

In the following way, the essence of the method of the step-by-step type is described. Current accounting is used when reflecting direct costs, but comes with a breakdown on the basis of processing units, and not varieties of goods. The situation was not an exception when different goods are received in one redistribution. Repartitions become objects for operations.

Redistribution is a part of production technologies, when a semi-finished product is obtained in finished form. It can be implemented on the side, or processed in the future. Passing through all stages of redistribution allows you to get finished products. Actual option for industrial complexes.

Table in Excel

custom

The method works best for unique products, each of which is made to order. A single type of production is the main characteristic of enterprises for which an order-based costing method will be relevant. This is important for those who are interested in how to do the calculations.

The following characteristics distinguish single-piece production:

A wide range of manufactured goods. Repetitions are largely absent. Individual items are created when specific orders are placed.
Each workplace has its own specialization in terms of technology. It is impossible to assign work processes and details to a separate place on a permanent basis.
Using tools with multi-purpose equipment.
The presence of a serious specific weight in manual assembly operations, fine-tuning.
A staff consisting of a large number of generalists whose qualifications are at a high level.

And in this method, separate costing articles are distinguished, which allow you to achieve the most accurate result.

The results of any calculation need to be corrected from time to time, because their accuracy is almost always questioned.

You will need

- Data on the volume of output in natural units
- Accounting data on the costs of materials and components, equipment wages, fuel and energy resources for the period.

Instruction

Based on documents on the write-off of raw materials and materials, acts on the performance of production work or services performed by auxiliary units or third-party organizations, determine the amount for production or services for. From material costs, exclude the amount of returnable waste.

Determine the amount of transport and procurement costs and the cost of packaging products.

Adding all the above sums, you will determine the common variables expenses for all produced during the period. Knowing the number of products produced, by dividing, find the sum of the variable costs per unit of output. Calculate the critical level of variable costs per unit of production according to C-PZ / V, where P - the price of production, PZ - constant expenses, V - the volume of output in natural units.

note

In terms of taxes, fees, other obligatory payments, the amount of which depends on the volume of production, the reduction of variable costs is possible only with a change in the legislative framework.

Helpful advice

Variable costs will be reduced by an increase in labor productivity, a decrease in the number of employees in the main and auxiliary industries, a decrease in the volume of stocks of raw materials and finished products, economical use of materials, the use of energy-saving technological processes, and the introduction of progressive management schemes.

Sources:

A practical journal for an accountant.
what costs are not variable
v - variable costs per unit of production, DE

What minimum capital you need to start your own business depends on what exactly you want to open. But there are costs that are common to almost all types of businesses. Let's take a closer look at these costs.

Instruction

At present, it is quite possible to open and with the most minimal investments or almost without them. For example, business on the Internet. But if you are still leaning towards the "traditional" form of business, then at least three mandatory cost items can already be distinguished: registration of a company or individual entrepreneur, rental of premises and purchase of goods (equipment).

If you will be involved in the registration of an LLC or individual entrepreneur, then all your costs are the state fee and notary expenses. The state duty for registration of a legal entity is currently 4,000 rubles. An individual can register himself as an entrepreneur by paying 800 rubles. Up to 1500 rubles goes to the notary. However, doing the registration yourself, you will save money, but spend quite a lot of time, so it is more profitable to hire a specialized company to register your business. The company will register you for 5000-10000 rubles.

The cost of renting a room depends on the location of your office or. Accordingly, the closer to the center of Moscow or to elite areas, the higher the cost of rent. On average, you will pay from $400 per square meter of rented premises per year. This will be the cost of a class C office (rather low class) in the Central Administrative District. The cost of renting a class A office can reach up to $1,500 per square meter per year, depending on the location. A room under the size of 200 sq.m in the same Central Administrative District will cost you an average of around 500,000 rubles.

Equipment costs or (if you decide to open a store) depend, of course, on the type of your business. In any case, you will need to equip your office with at least one computer (if you do not have employees yet), a telephone and other office equipment, as well as "little things" - paper, stationery. Owners should take care of cash registers.

Sooner or later your business will expand and you will need employees. Every office needs a secretary. His salary now starts at an average of 20,000 rubles a month. A part-time student can be hired for 15,000. Accordingly, the more qualified the employee, the more he will have to pay. Salaries of salesmen and cashiers now start from 10,000-15,000 rubles, but this is the minimum for which low-skilled employees will work.

Sources:

Small business website.

Variables are recognized costs, which directly depend on the volume of calculated production. Variables costs will depend on the cost of raw materials, materials, and on the cost of electrical energy, and on the amount of wages paid.

You will need

calculator
notebook and pen
a complete list of the company's costs with a specified amount of costs

Instruction

Add it all up costs enterprises that are directly dependent on the volume of products produced. For example, the trading variables that sell consumer goods include:
Pp - the volume of products purchased from suppliers. Expressed in rubles. Let a trade organization purchase goods from suppliers in the amount of 158 thousand rubles.
Uh, electric. Let the trade organization pay 3,500 rubles for.
Z - the salary of sellers, which depends on the amount of goods sold by them. Let the average payroll in a trade organization be 160 thousand rubles. Thus, the variables costs trade organization will be equal to:
VC \u003d Pp + Ee + Z \u003d 158 + 3.5 + 160 \u003d 321.5 thousand rubles.

Divide the resulting amount of variable costs by the volume of products sold. This indicator can be found by a trading organization. The volume of goods sold in the above example will be expressed in quantitative terms, that is, by the piece. Suppose a trade organization was able to sell 10,500 pieces of goods. Then the variables costs taking into account the quantity of goods sold are equal to:
VC \u003d 321.5 / 10.5 \u003d 30 rubles per unit of goods sold. Thus, variable costs are made not only by adding the costs of the organization for the purchase and goods, but also by dividing the amount received by the unit of goods. Variables costs with an increase in the quantity of goods sold, they decrease, which may indicate efficiency. Depending on the type of activity of the company, the variables costs and their types can change - be added to those indicated above in the example (costs for raw materials, water, one-time transportation of products and other expenses of the organization).

Sources:

"Economic theory", E.F. Borisov, 1999

Variables costs are types of costs, the value of which can only change in proportion to changes in the volume of production. They are opposed to fixed costs, which add up to total costs. The main sign by which it is possible to determine whether any costs are variable is their disappearance when production is stopped.

Instruction

According to IFRS standards, there are only two types of variable costs: production variable indirect costs and production variable direct costs. Production variable indirect costs - which are almost or completely directly dependent on volume changes, however, due to production technological features, they are not economically feasible or cannot be directly attributed to produced ones. Production variable direct costs - those costs that can be directly attributed to specific products in the primary data. Indirect variable costs of the first group are: all costs of raw materials necessary for complex production. Direct variable costs are: the cost of fuel, energy; expenses for basic materials and raw materials; workers' wages.

To find the average variables costs, need shared variables costs divided by the required amount of output.

Let's calculate the variables costs for example: The price per unit of manufactured A: materials - 140 rubles, wages for one manufactured product - 70 rubles, other costs - 20 rubles.
Price per unit of manufactured product B: materials - 260 rubles, wages for one manufactured product - 130 rubles, other costs - 30 rubles. Variables the cost per unit of product A will be equal to 230 rubles. (add all costs). Accordingly, variable costs per unit of product B will be equal to 420 rubles. Keep in mind that variable costs are always associated with the release of each unit of the manufactured product. Variables costs - those values that change only when the quantity of a given product is changed and include different types of costs.

Sources:

how to open variables in 2019

In the absence of a real idea of the material costs for the production of goods (costs), it is impossible to determine the profitability of production, which, in turn, is a fundamental characteristic for the development of a business as a whole.

Instruction

Familiarize yourself with the three main methods for calculating material costs: boiler, order and per-order. Select one of the methods, depending on the costing object. So, with the boiler method, such an object is production as a whole, in the case of the custom method, only a separate order or type of product, and with the alternate method, a separate segment (technological process). Accordingly, all material items are either not, or correlated by products (orders), or - by segments (processes) of production.

Use different units of calculation when using each of the costing methods (natural, conditionally natural, cost, units of time and work).

When using the boiler calculation method, do not forget about its low information content. The information obtained in the calculations by boilers can be justified only in the case of accounting for single-product industries (for example, at mining enterprises to calculate its cost). Material expenses are calculated by dividing the total amount of existing costs by the entire volume of production in physical terms (barrels of oil in this case).

Use the order-by-unit method for small-scale or even one-off production. This method is also well suited for calculating the cost of large or technologically complex products, when every step of the production process is physically impossible. Material expenses are calculated by dividing the sum of the costs for each order by the number of units produced and delivered in accordance with this order. The result of calculating the cost by this method is to obtain information about the implementation of each order.

Use the line-by-line method if you are costing for mass production, characterized by a sequence of technological processes and the repeatability of separately performed operations. Material expenses are calculated by dividing the sum of all costs for a certain period of time (or for the execution of each individual process or operation) by the number of units released for this period (or for the duration of the process or operation) of products. The total cost of production is the sum of material costs for each of the technological processes.

In production, there are costs that remain the same with hundreds and tens of thousands of dollars of profit. They do not depend on the volume of output. They are called fixed costs. How to calculate fixed costs?

Instruction

Determine the formula for calculating fixed costs. It calculates the fixed costs of all organizations. The formula will be equal to the ratio of all fixed costs to the total cost of works and services sold, multiplied by the basic income from the sale of works and services.

Calculate in non-current assets deductions for depreciation of fixed assets, such as land plots, for land improvement, buildings, structures, transmission devices, machinery and equipment, etc. Do not forget about library collections, natural resources, rental items, as well as capital investments in objects that have not been put into operation.

Calculate the total cost of works and services sold. This will include revenue from the main sale or from services provided, for example, and work performed, for example, construction organizations.

Calculate the basic income from the sale of works and services. Basic income is a conditional return per month in value terms per unit of physical indicator. Please note that “domestic” services have a single physical indicator, while “non-residential” services, for example, renting out housing and transporting passengers, have their own physical indicators.

Substitute the obtained data into the formula and get the fixed costs.

In the course of business activities of organizations, some managers are forced to send their employees on business trips. In general, the concept of "business trip" is a trip outside the workplace to resolve issues related to work. As a rule, the decision to send an employee on a business trip is made by the CEO. The accountant must calculate and subsequently pay the employee travel allowances.

You will need

- production calendar;
- time sheet;
- payrolls;
- tickets.

Instruction

To calculate travel allowance, calculate the average daily earnings of an employee for the last 12 calendar months. If the salary is different every month, then first determine the total amount of all payments for the billing period, include both bonuses and allowances in this number. Please note that any financial assistance, as well as cash payments in the form of gifts, must be deducted from the total amount.

Calculate the number of days actually worked in 12 months. Please note that this number does not include weekends and holidays. If an employee for any reason, even if it is valid, was not present at the workplace, then exclude these days as well.

Then divide the amount of payments for 12 months by the days actually worked. The resulting number will be the average daily earnings.

For example, manager Ivanov worked for the period from September 01, 2010 to August 31, 2011. According to the production calendar, with a five-day working week, the total number of days for the billing period is 249 days. But Ivanov in 2011 took a vacation at his own expense, the duration of which is 10 days. So 249 days - 10 days = 239 days. During this period, the manager earned 192 thousand rubles. To calculate the average daily earnings, you need to divide 192 thousand rubles by 239 days, you get 803.35 rubles.

After calculating the average daily earnings, determine the number of business trip days. The start and end of the business trip is the date of departure and arrival of the vehicle.

Calculate the travel allowance by multiplying your average daily earnings by the number of days you travel. For example, the same manager Ivanov was on a business trip for 12 days. Thus, 12 days * 803.35 rubles = 9640.2 rubles (travel allowance).

Steps

Part 1

Personal budget

Calculate fixed costs over a specific period of time (usually a month).

Fixed expenses include things you have to pay for every month, such as rent, utilities, phone bills, gas, food, and so on. Fixed costs do not change monthly (for example, if you buy clothes, your rent does not change).
Consider an example. Fixed costs: Rent = $800, utilities = $250, phone bill = $25, internet bill = $35, gas = $200, groceries = $900. Adding these numbers together, we get a monthly fixed cost of $2,210.

Calculate variable costs over a specific period of time (usually a month). Unlike fixed costs, variable costs depend on your lifestyle and include all expenses that are not necessary but improve the quality of your life.
- Variable expenses include spending on clothes (other than what you need), vacations, parties, fine dining, and so on. Please note that while some fixed costs, such as utility bills, may vary, they are not variable costs because they are mandatory.
- In our example, the variable costs include: theater ticket money = $25, weekend getaway = $500, a friend's birthday present = $100, and a new pair of shoes = $75. Thus, the total variable costs are $700.
This will be the total amount of money you spent during the month. As mentioned above, the formula for the calculation is: fixed costs + variable costs = total costs.
- In our example: total costs = $2210 (fixed costs) + $700 (variable costs) = $2910.
Track expenses to accurately calculate your total monthly spending. If you don't keep track of your expenses (do not write them down), you will not be able to calculate their total amount. So try to write down all your expenses for one month. As a result, you will get a good idea of your fixed costs and will only need to track your variable costs going forward.
- Tracking fixed costs is easy; to do this, keep utility bills, rent, and the like. Tracking food expenses is more difficult, but you can keep store receipts.
- It's even harder to keep track of variable costs. If you use a credit or debit card to make purchases, find out your charges by printing your card history. On the other hand, if you pay in cash, keep receipts or just write down the amounts paid.

Part 2

Company budget

Add up fixed costs. These are costs, the value of which does not change depending on the change in the volume of production and which are paid regardless of whether the firm produces any product or not.
- The fixed costs of a company are different from the fixed costs of an individual. A company's fixed costs include rent, utilities, equipment, machinery, insurance premiums, and labor not involved in the production of goods and services.
- Consider the example of a basketball factory. Fixed costs include: land rent = $4,000, insurance premiums = $1,500, loan payments = $3,000, equipment = $2,500, salaries of employees ($7,000) not involved in the production of goods (janitors, security guards, and so on). Adding these numbers together, we get a monthly fixed cost of $18,000.
Define variable costs. These are costs whose value varies depending on the change in the volume of production. In other words, the more goods produced, the higher the variable costs.
Add fixed costs and variable costs to get total costs. As mentioned above, the formula for the calculation is: fixed costs + variable costs = total costs.
- In our example, fixed costs are $18,000, variable costs are $16,000, and the plant's total monthly costs are $34,000.
The fixed and variable costs of most businesses can be found in their financial records. In particular, the profit and loss statement must reflect all variable and fixed costs. This declaration is mandatory for all companies.
- In addition, you can refer to another financial document called a balance sheet to determine a company's liabilities. This will help you determine the financial condition of the company in question: if its income barely covers expenses, and the amount of liabilities is large, then the company's financial position is rather precarious.

Part 3

Total investment cost

Determine the initial investment amount. When it comes to determining the value of an investment, your costs are usually not limited to the money invested. Ordinary people are advised to use the services of an investment advisor or broker to invest money profitably, but since these specialists do not work for free, the cost of investment will be slightly higher (compared to the amount that a certain person is going to invest).
- Consider an example. Let's say you recently inherited $20,000 and want to invest half of it. In this case, you want to invest $10,000.

Every business owner faces many issues, one of which is the management of production costs. It is important to be able to separate costs into fixed and variable, understand how they affect profit, how to calculate costs, and also how they change depending on changes in production volumes.

Any cost of the enterprise is the sum of fixed and variable costs.

fixed costs

Fixed costs (denoted by FC - “fixed costs”) are those costs that do not change with a decrease or increase in output. At the same time, on a certain scale of production, they are unchanged, but with the expansion of production they can increase, after which they do not change again for a certain time.

Thanks to fixed costs, production is in principle possible, since they create the initial conditions for the activity of the enterprise. These costs exist even when the enterprise does not produce anything. At the same time, fixed costs do not change with the construction of new buildings or the purchase of new equipment for the enterprise.

As a rule, fixed costs include the costs of depreciation of fixed assets, rent, a fixed salary for employees of an enterprise, fixed social benefits, the cost of maintaining equipment and a building in working order, and many others. The principle of how to calculate fixed costs is very simple: just determine which costs of your company are fixed and add them up. Also, enterprises often calculate average fixed costs, which are defined as the ratio of fixed costs to output.

If you calculate the fixed costs per unit of production, you can see that with the growth of sales, this number decreases, which leads to a fairly rapid increase in profits. At the same time, even a small change in revenue in any direction has a significant impact on profit. An enterprise, the bulk of whose expenses are fixed, is quite difficult to adapt to changes in its financial environment. That is why it is in the interests of the owner of the enterprise to minimize the share of fixed costs among the total costs.

If the enterprise operates in a more or less constant market situation and significant fluctuations in sales are not expected, fixed costs do not harm its work.

variable costs

Variable costs (denoted by VC - “variable costs”), in contrast to fixed costs, directly depend on the volume of output. At the same time, the dependence between them is directly proportional: the greater the output, the greater the costs.

From an economic point of view, variable costs are the costs of actually carrying out the activities of an enterprise in order to achieve its goals. Variable costs arise only when the enterprise begins to produce products. As the scale of production increases, variable costs also begin to rise.

Variable costs usually include the costs of materials, raw materials, components for equipment, electricity, fuel, wages for workers, marketing costs, and others. The principle of how to calculate variable costs is similar to fixed costs: it is enough to find out which costs of the enterprise are variable and add them up.

With a decrease in output, variable costs are proportionally reduced, and when production is stopped, they completely disappear. If the bulk of the costs of an enterprise are variable, it will be much easier to adapt to a change in the external background. If it is necessary to reduce output, such an enterprise will be able to more easily endure temporary difficulties in work. That is why, if the company has to work in a constantly changing market environment, it is important to try to ensure that the bulk of the costs are variable.

Mixed costs

At each enterprise, there are costs that cannot be unambiguously attributed to fixed or variable, so they are called mixed.

A prime example of mixed costs are telephone costs. Payment for it consists of a fixed monthly fee and variable costs for long-distance calls.

To facilitate accounting, mixed costs must be divided into variable and fixed. To do this, you need to introduce an appropriate accounting system. Now you know how to calculate costs. Good luck in business!

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