The costs of production and sales of products and their classification. The concept and classification of costs for the production and sale of products. Ways to reduce costs in Navigator LLC

Difference: Costs are a monetary assessment of the cost of material, labor, financial and other types of resources for the production and sale of products for a certain period of time. Expenses (narrower than costs) - a decrease in economic benefits as a result of the outflow of cash, other property and (or) the emergence of liabilities , leading to a decrease in capital, documented, economically justified (justified), fully transferred their value to the products sold during this period. Costs are a collection of different types of costs for the production and sale of products.

The costs of production and sales of products occupy the main weight in the monetary costs of the enterprise. All production and sales costs are their cost. The composition of costs included in the cost of production for the purpose of determining taxable profit is regulated by the Tax Code. Calculation of the cost price - the calculation of the amount of costs per unit of production.

Classification: According to the economic role, the costs of manufacturing products are divided into main (related to the technological process of production: raw materials, materials, fuel, energy, wages of production workers) and overhead (organization, maintenance of production and management of the other process: general production and general farm. According to the functions of the enterprise (this division allows in planning and accounting to determine the amount of costs in the context of the divisions of the enterprise): supply and procurement, production, commercial and household, organizational and management. main), which can be directly, according to the primary document, attributed to itself-the cost of a unit of a product (for example, the materials from which specific products are made). Indirect (overhead) costs associated with the release of several types of products, which cannot be correlated at the time of their occurrence with specific types of products. They are accumulated on separate accounts, then, at the end of the reporting period, they are distributed among the types of products in proportion to the selected base (for example, the costs of managing and maintaining production). By composition: single-element (not divided into components: materials, salary, depreciation) and complex (workshop costs, which include the salary of the relevant personnel, etc.). According to cost accounting: by item (This is a set of costs of the same type (what exactly is spent) without taking into account the place of origin (where). Allows you to analyze the structure of current production costs (share of costs in the total volume). (All material costs, all labor costs, social contributions, depreciation)) and by economic elements (They indicate the place of origin of costs (in production / workshops / sections / departments) and the reason for their occurrence and allow you to calculate the cost of certain types of products (production cost.). In relation to the volume of products: constant (do not change when the volume of sales changes: rent for fixed assets, depreciation of fixed assets, wages, utilities, taxes, etc.); variable (change when the volume of sales changes: costs of raw materials, materials, components and semi-finished products, fuel and energy, salary of basic workers, repair and maintenance of equipment.); mixed (monthly telephone fee: the amount of n (constant monthly fee and variable part, which depends on the number of calls). By influence on the result of the activity: productive / efficient (as a result, the enterprise receives income from the sale of products, which costs were incurred) and unproductive / ineffective (costs as a result of which the product will not be received and, accordingly, income: losses from marriage, downtime, damage to values)

In Russian accounting standards, retirement of assets for various reasons is not considered an expense. In this case, their disposal is called payment.

For example, the outflow of funds in connection with the acquisition of fixed assets, the repayment of loans and borrowings received is not attributed to the company's expenses, since as a result of these transactions, the company's equity capital will not change. In the first case, the total amount of assets did not decrease, their structure became different (the decrease in cash is compensated by a similar increase in the value of fixed assets). In the second case, a decrease in assets is balanced by a decrease in liabilities in the liabilities of the balance sheet.

Expenses for ordinary activities are reflected in accounting in an amount expressed in value terms, equal to the amount of payment in monetary terms or the amount of accounts payable. If the payment covers only a part of the recognized expenses, then the expenses accepted for accounting are determined as the amount of payment and accounts payable (in the part that is not covered by the payment). payment, expenses are shown in the accounting in the full amount of accounts payable.

To form the financial result of the enterprise from ordinary activities, the total cost of goods sold is determined, which is formed on the basis of expenses recognized both in the reporting year and in past reporting periods, and carryover costs related to the receipt of income in subsequent reporting periods. An item-by-item list of operating and non-operating costs is given in PBU 10/99 "Organization costs". (Operating expenses - cash costs for the production of goods, their sale, company management, interest payments on attracted deposits and loans, taxes, administrative and other expenses. Non-operating expenses are the amount of paid and received fines, penalties, penalties and other economic sanctions; interest received on the amounts of funds.) Expenses are recognized in accounting if the following conditions are met: they are incurred in accordance with a specific agreement; the amount of expenses can be determined; there is confidence that as a result of a business transaction there will be a decrease in the economic benefits of the enterprise. If in respect of any expenses incurred by the enterprise, at least one of the above conditions has not been fulfilled, then the accounts receivable are recognized in accounting.

The criterion for the optimality of current costs for the selling enterprise is the minimization of the cost-intensity ratio (Кзс. = Total cost price / net proceeds from sales). A lower level of this coefficient allows an enterprise to obtain certain competitive advantages over other companies in the commodity market, more freely to pursue its pricing policy and thereby obtain a significant profit from sales. However, a decrease in the level of cost intensity should not be accompanied by a deterioration in product quality.

Introduction

In modern economic conditions, one of the central issues of the theory and practice of enterprise management is to ensure sustainable growth rates in the short and long term. In this regard, the primary goal is to create conditions under which the efficiency of enterprises will increase, which will serve as the basis for their development. One of the most significant indicators reflecting the efficiency of enterprises and influencing the state and prospects of their development is the cost of production.

One of the main factors that determine the amount of profit is the cost (monetary value of costs) of products.

Analysis of the costs of products, works and services is extremely important. It allows you to identify trends in the change in this indicator, the fulfillment of the plan according to its level, to determine the influence of factors on its growth and, on this basis, to assess the work of the enterprise in using the opportunities and to establish reserves for reducing the cost of production.

The purpose of the course work is to study the theory and practice of cost analysis and their impact on the financial performance.

The topic of the work is relevant, since the profitability of production and individual types of products, the interdependence of types of products and their places in production, the identification of reserves for reducing the cost of production, determination of prices for products, the calculation of national income will depend on a thorough study of costs and the successful practical application of the findings. on a national scale, calculating the economic efficiency from the introduction of new equipment, technology, organizational and technical measures, as well as justifying the decision to manufacture new types of products and remove obsolete ones from production.

To achieve this goal, it is necessary to find a solution to the following tasks:

To study the theoretical foundations of the formation of costs and for the production and sale of products and the financial results of the enterprise;

To assess the formation of costs for production and sales of products and their impact on the financial result of LoKo LLC;

Identify the directions of optimization of the costs of the enterprise in order to maximize its profits.

The subject of the work is the process of studying the costs of production and sales of products, and their impact on the financial results of the enterprise, and the object of the study is the activities of LoKo LLC.

Theoretical foundations of the formation of costs for the production and sale of products and the financial results of the enterprise

The concept of costs of production and sales of products, their classification

costs production profit financial

In economic literature and regulations, terms such as "costs", "costs", "costs" are often used. The term "costs" is usually used in economic theory. These are the total victims of the enterprise associated with the performance of certain operations. Distinguish between explicit and opportunity costs. In this work, costs are understood as explicit (actual, estimated) costs of an enterprise, and costs are a decrease in an enterprise's funds or an increase in its debt obligations in the course of economic activity. Expenses mean the fact of using raw materials, services. Expenses usually take the form of an outflow or diminution of an asset. Expenses are recognized in the income statement based on the direct link between the costs incurred and the income from certain items of income. This approach is called cost-income matching.

Production and sales costs are the aggregate of costs of production and sales, expressed in monetary terms.

The composition of the costs of production and sale, first of all, includes:

Costs directly related to the production of products, due to the technology and organization of production, including the cost of controlling production processes and the quality of products;

Expenses for preparation and development of production;

Non-capital costs associated with improving technology, organizing production, improving product quality;

Invention and rationalization costs;

Maintenance costs of the production process;

Costs to ensure normal working conditions and technology, safety;

Operating costs associated with the maintenance and operation of environmental funds;

Production management costs;

Costs associated with training and retraining of personnel;

Payments stipulated by labor legislation for time not worked in production (not on hand);

Contributions to state extra-budgetary funds;

Payments on loans within the rate established by law;

Payment for some services of banks;

Contributions to special sectoral and cross-sectoral off-budget funds;

Costs associated with the sale of products;

Reproduction costs of fixed assets in the form of depreciation deductions for full restoration;

Depreciation of intangible assets;

Taxes, fees, payments and other mandatory deductions made in accordance with the procedure established by law;

Loss from marriage;

Costs for warranty repairs and warranty service, etc.

Costs attributable to prime cost are usually grouped in accordance with their economic content in five blocks:

Material costs;

Labor costs;

Social contributions;

Depreciation of fixed assets;

Other costs

The element "Material costs" reflects the cost:

Raw materials and materials purchased from the outside, which are part of the manufactured product, forming its basis, or are a necessary component in the manufacture of products (carrying out work, rendering services);

Purchased materials used in the production process of products (works, services) to ensure a normal technological process and for packaging products or consumed for other production and economic needs (testing, control, maintenance, repair and operation of equipment, buildings, structures, other fixed assets etc.), as well as spare parts for the repair of equipment, wear and tear of tools, fixtures, inventory, instruments, laboratory equipment and other means of labor that are not classified as fixed assets, wear and tear of overalls and other low-value items; purchased components and semi-finished products that undergo further installation or additional processing at this enterprise; works and services of a production nature performed by third-party enterprises or production facilities and enterprises of the enterprise that are not related to the main type of activity. Works and services of a production nature include: performance of individual operations for the manufacture of products, processing of raw materials and materials, testing to determine the quality of consumed raw materials and materials, monitoring compliance with established technological processes, repairing fixed assets, etc. Transport services of third-party organizations for the transport of goods within the enterprise (movement of raw materials, materials, tools, parts, blanks, other types of goods from the base (central) warehouse to workshops (departments) and delivery of finished products to storage warehouses, to the station (port, pier) consignments also refer to services of an industrial nature; natural raw materials (deductions for the reproduction of the mineral and raw material base, for land reclamation, payment for land reclamation carried out by specialized enterprises, payment for timber sold on the vine, payment for water taken by enterprises from water management systems ); purchased from the side of fuels of all types, consumed for technological purposes, the generation of all types of energy (electric, thermal, compressed air, cold and other types), heating buildings, transport work for the maintenance of production, performed by the transport of the enterprise; purchased energy of all types ( electric, warm new, compressed air, cold and other types), consumed for technological, energy, motor and other production and economic needs of the enterprise. The costs of the production of electrical and other types of energy generated by the enterprise itself, as well as the transformation and transmission of purchased energy to the places of its consumption are included in the corresponding cost elements; losses from shortage of incoming material resources within the limits of natural loss. The cost of material resources, reflected in the "Material costs" element, is formed on the basis of their purchase prices (excluding value added tax), margins (markups), commissions paid to supply organizations, the cost of services of commodity exchanges, including brokerage services, customs duties , transportation, storage and delivery charges performed by third parties.

The element "Labor costs" reflects the costs of labor costs for the main production personnel of the enterprise, including bonuses to workers and employees for production results, stimulating and compensatory payments, including compensation for labor compensation due to price increases and income indexation within the norms stipulated by the legislation, compensations paid in the amount established by the legislation to women who are on partially paid parental leave until they reach the age specified by the legislation, as well as the costs of remuneration of workers who are not on the staff of the enterprise employed in the main activity. The composition of labor costs includes payments of wages for actually performed work, calculated on the basis of piece rates, tariff rates and official salaries in accordance with the forms and systems of remuneration adopted at the enterprise, as well as other payments of a similar nature in the prescribed manner.

The element "Social deductions" reflects the obligatory deductions according to the norms established by law to the state social insurance bodies, the Pension Fund, the state employment fund and medical insurance against labor costs of employees included in the cost of products (works, services) for the element "Costs for wages "(except for those types of wages for which insurance premiums are not charged).

The element "Depreciation of fixed assets" reflects the amount of depreciation deductions for the full restoration of fixed assets, calculated based on the book value and the norms approved in the prescribed manner, including accelerated depreciation of their active part, carried out in accordance with the law.

Other costs are a large group with costs that are different in content and ways of attributing to the cost price: travel, entertainment, advertising, loan repayments. Within the limits of the established norms, they are attributed to the cost price, and the excess costs are paid off at the expense of net profit. This group also includes certain taxes, administrative expenses, costs of creating repair funds, depreciation charges on intangible assets, as well as other costs included in the cost of goods (works, services), but not related to the previously listed cost elements.

When calculating the cost price, the classification of costs is used according to two criteria:

1) as intended in the production process;

2) by the method of attributing costs to the cost price.

The purpose of cost classification is to single out the relevant part (the part that can be influenced at the moment) from the total mass. Therefore, the method of classification will depend on the specific task facing the manager.

Thus, it is necessary to consider costs simultaneously in several aspects:

By stages of the technological process;

By stage of costs;

By product type;

By centers of responsibility;

By the dynamics of costs in relation to the volume of output;

By the degree of cost control.

An entrepreneur is always faced with the task of determining the optimal volume of sales of products manufactured at his enterprise. Different volumes of production of goods require different costs in terms of volume and structure.

A change in the volume of output or sale of any type of product is associated with a change in profit, therefore, when making a decision, the manager must imagine how it will affect costs and revenues.

In this case, the category of costs cannot be regarded as a kind of monolith, the individual structural elements of which are subject to the same laws as the whole. It becomes necessary to separate fixed and variable costs from gross (total) costs.

Relevant is that part of the costs and benefits that changes when the volume of production of a given product changes.

In this regard, costs are divided into the following types:

Fixed costs (FC - from the English. Fixed Costs) - in relatively short periods of time do not depend on the volume of the issue.

They do not change within the established production capacity and, accordingly, change abruptly when the production capacity changes. They can be controlled in the long term. Fixed costs by their economic nature are the costs of creating conditions for a specific activity. These include expenses for the maintenance of buildings, premises, rent, remuneration of the administrative staff, deductions for compulsory property insurance, depreciation deductions, etc .;

The economic nature of variable costs is the cost of the practical implementation of the activities for which the firm was created. These include the cost of raw materials, supplies, fuel, gas and electricity, labor costs (in their variable component).

Grouping costs by economic elements.

4. Grouping of costs by calculation items.

5. Types of production costs.

6. Features of the formation of the cost of energy

enterprises.

1. The concept and the economic essence of the indicator of the cost of production

Costs arise in the process of forming and using resources to achieve a specific goal. They have a different focus, but the most important is the division of costs into investment and current costs associated with the implementation of the main function of the enterprise - the manufacture of products (provision of services).

Current costs are in kind and in cash. Planning and accounting for the costs of production resources in kind (quantity, weight, volume, etc.) are important for organizing the activities of an enterprise. However, for evaluating the results of this activity, the monetary value of the costs is decisive.

Production cost- these are the costs of the enterprise, expressed in monetary form, for its production and sale (sales).

The cost of production is one of the main estimated indicators characterizing the production and economic activities of the enterprise. It comprehensively reflects the degree of use of all resources of the enterprise, and, consequently, the level of technology, technology, organization of production. The better the enterprise works (the more intensively it uses production resources), the lower the cost of production. Therefore, the cost is one of the most important indicators of production efficiency.

The cost of production is closely related to its price: on the one hand, the cost is the basis for setting the price of products, on the other hand, the lower price limit.

To calculate the cost price, it is important to determine composition of costs that are included in it. As you know, the costs of the enterprise are reimbursed from two own sources - cost and profit. The costs of the enterprise should be reimbursed through the cost that ensure the simple reproduction of all factors of production: objects and means of labor, labor and natural resources.

For various reasons, in practice, there is no complete correspondence between the actual costs of production and the cost of production. The composition of costs included in the cost of products is regulated by the Law of Ukraine "On taxation of profits" (Article 9), Standard Regulations for planning, accounting and calculating the cost of products (works, services) in industry, industry instructions in accordance with the specifics of technology and organization of production.

Classification of production and sales costs

All costs that form the cost of production can be classified according to various criteria.

1. By degree of homogeneity costs are divided into simple and complex.

Simple costs are homogeneous in composition, have a single economic content and are primary. These include material costs, wages, deductions for social events, depreciation, etc. Complex costs are heterogeneous in composition, include several simple cost elements. For example, the costs of maintaining and operating equipment, general production, non-production costs, etc.

2. By method of attributing costs to cost different types of products distinguish between direct and indirect costs.

Direct costs directly related to the manufacture of a certain type of product and can be directly calculated per unit (according to consumption rates, output and time, prices, tariff rates, etc.). If one type of product is made, then all costs are direct. Indirect costs are not associated with the manufacture of specific types of products, but with the production process as a whole, therefore they cannot be directly calculated for individual types of products. These are, for example, the salary of service and management personnel, the maintenance and operation of buildings and structures, etc.

The higher the specialization of production, the greater part of the costs are direct costs, which increases the accuracy of determining the cost per unit of production.

3. In depending on the relationship of costs with the volume of production they are divided into conditionally variable and conditionally constant.

Notional variable costs- these are costs, the total amount of which for a certain period depends on changes in the volume of production. Moreover, their total value changes in proportion to the volume, and the value per unit of production remains unchanged with the invariability of labor standards and material resources. The conditionally variable (proportional) costs include: piecework wages, costs for raw materials, basic materials, components, fuel and energy for technological purposes, etc.

Conditional fixed costs- these are costs, the total amount of which does not depend on the volume of manufactured products (within certain limits). They are a function of time, not output. Only with significant changes in the volume of production, the consequence of which are changes in the production and organizational structure of the enterprise, the value of conditionally fixed costs changes abruptly, after which it remains constant again. With an increase in the volume of production, the value of conditionally fixed costs per unit of production decreases. The conditionally fixed costs include: expenses for the maintenance and operation of buildings and structures, wages of time workers, depreciation deductions, management costs, etc.

4. By in relation to the types of production processes costs of production and sales of products are divided into the main and waybills ... According to international standards, this division corresponds to production and operating rooms expenses.

Production (main) costs are directly related to the process of manufacturing products (performing work, providing services), represent the costs of the main shops and departments that directly support the manufacturing process of products and are made up of all conditional variables and part of direct conditionally fixed costs (for example, for certification of a certain product).

Operating (overhead) costs are associated with the processes of service and management of the processes of direct manufacturing of products and are written off to the cost price periodically. These include most of the nominally fixed costs: administrative costs, sales costs and others.

5. By degree of appropriateness costs can be broken down into:

¨ productive , i.e. planned by the technological process;

¨ unproductive , i.e. caused, as a rule, by mismanagement.

5. One of the most important classification features is content and purpose of costs ... On this basis, all costs can be grouped by economic elements and costing items .

1.1 The concept and composition of production costs

Costs are a monetary estimate of the cost of material, labor, financial, natural, informational and other types of resources for the production and sale of products.

Therefore, the costs are characterized by:

· Monetary value of resources, providing the principle of measuring various types of resources;
Target setting (associated with the production and sale of products in general or with any of the stages of this process);
· A certain period of time, that is, must be attributed to products for a given period of time.

Costs have another important property: if costs are not involved in production and are not written off (not fully written off) for a given product, then the costs turn into stocks of raw materials, materials, stocks in work in progress, stocks of finished products, etc.

Costs should be distinguished from costs. The definition of “expenses” is set out in the Regulation on accounting of organizations (PBU 10/99).

Expenses are expenses of a certain period of time, documented, economically justified (justified), fully transferred their cost to the products sold during this period.

Unlike costs, costs cannot be attributed to the assets of the enterprise. They are reflected in the calculation of the company's profit in the income statement.

The concept of "costs" is broader than the concept of "costs", however, under certain conditions, they may coincide.

Table-1 Composition of enterprise expenses

Types of expenses	Composition of expenses
Expenses for ordinary activities	· Expenses for the purchase of raw materials, materials, goods and other inventories (MPZ); · Expenses for the processing of inventories for the purpose of manufacturing products, performing work, rendering services and selling them, as well as resale of goods; · Payments for labor; · Deductions to the insurance fund; · depreciation deductions.
Operating expenses	· Costs associated with the provision of assets to organizations for temporary use for a fee; · Costs associated with the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property; · Expenses related to participation in the authorized capital of other organizations; · Costs associated with the sale, disposal and other write-off of fixed assets and other assets other than cash, goods, products. · Interest paid by the organization for the use of funds; · Costs associated with payment for services rendered by credit institutions; · Other operating expenses.
Non-operating expenses	· Fines, penalties, penalties for violation of the terms of contracts, compensation for losses caused by the organization; · Losses of previous years, recognized in the reporting year; · The amount of receivables for which the limitation period has expired, other debts that are not real for collection; · exchange difference; · The amount of the depreciation of assets (excluding non-current assets); · Other non-operating expenses.
Extraordinary expenses	· Costs associated with extraordinary circumstances (natural disasters, fires, accidents, etc.).

The Tax Code recognizes expenses as justified and documented expenses incurred by taxpayers.

Economically justified costs are justified. For this purpose, limits are set for certain costs for tax purposes, within which they are subject to recognition - for the payment of daily allowances when employees are on a business trip, field allowances, compensation for the use of personal cars for business trips and some other expenses. In accounting, such expenses are recognized at actual costs.

The documented costs are the costs confirmed by documents drawn up in the manner prescribed by law. It should be noted that this condition for the recognition of expenses in taxation does not differ from the recognition of expenses in accounting, since in accounting all entries in accounting registers are made only on the basis of correctly drawn up accounting documents.

The composition of expenses recognized in taxation is somewhat different from the composition of expenses recognized in accounting.

The classification of expenses for accounting and tax purposes differs significantly. In tax accounting, expenses are divided into expenses related to the production and sale of products, and into non-operating expenses, without separating operating and extraordinary expenses.

Costs are a collection of different types of costs for the production and sale of products as a whole or their individual parts. In addition, "costs" include specific types of costs: a unified social tax, losses from marriage, warranty repairs, etc.

The economic efficiency of production in its most general form means efficiency, that is, the ratio between the results achieved in the production process and the cost of labor. The most important requirement is to ensure maximum effect at minimum cost.

1.2 Classification of production costs

Along with the concept of "costs", the indicator of the cost of production is used as an identical concept.

The cost of production is the current costs of the enterprise, expressed in monetary terms, for the production and sale of products.

In the context of the transition to a market economy, the cost of production is the most important indicator of production and economic activity.

The structure of costs by economic elements is a generalization of the total cost of the enterprise as a whole and a regrouping of costs in the following nomenclature:

· Material costs;
· Labor costs;
· Depreciation;
· Other costs.

Material costs include direct and indirect material costs, i.e. the cost of the consumption of raw materials, basic and auxiliary materials, fuel and energy for technological needs, as well as the payment of utilities used for lighting and heating, plus the cost of fuel for the transport of the enterprise, minus the cost of returnable waste.

Labor costs include all accrued labor remuneration for the personnel of the enterprise: basic and additional; piecework and time-based; tariff earnings and bonuses. At the same time, some elements of remuneration remain, which will be included in other costs: this is voluntary insurance of employees (medical, pension, property) at the expense of the enterprise; payment of travel to the place of work; payment for meals at the workplace.

Social contributions, i.e. all deductions to state extra-budgetary funds amount to 30% of the accrued wages fund.

Depreciation of fixed assets includes the amount of depreciation charges for the complete restoration of fixed assets. Depreciation of fixed assets is charged in accordance with the accounting policy of the enterprise (on a straight-line basis or on an accelerated basis), but always evenly throughout the year and using the same method throughout the entire service life of the facility.

Other costs include payment for services from outside, rent, a number of taxes, etc. (taxes are derived from other costs when calculating value added).

The analysis of costs by economic elements is used not only for the preparation of cost estimates for enterprises, but also for macroeconomic analysis, for predicting intersectoral relationships.

The classification of costs by items of calculation is their division by production purpose and place of origin in the process of production and sale of products

Costing, by definition, is the setting of costs per unit of output. Classification by cost items is the basis for the development of cost estimates for certain types of products (works and services), all marketable products of the enterprise. A typical costing scheme for costing items includes:

· The cost of basic raw materials and basic materials;
· The cost of purchased components, purchased semi-finished products;
· Recyclable waste, by-products and related products (with a minus sign);
· Auxiliary materials for technological purposes;
· Fuel for technological purposes;
· Electricity for technological purposes;
· Water, steam for technological purposes;
· Basic wages;
· Additional wages;
· Deductions for social needs for basic and additional wages;
· Costs of maintenance of machinery and equipment;
· General shop expenses;
· General production costs;
· Business expenses;
· Administrative (general) expenses.

Costing items correspond to certain accounting reports, which summarize each type of cost from the above.

According to the method of attribution to the cost of production, direct and indirect costs are distinguished. Direct costs are directly related to the manufacture of specific types of products and, according to established standards, are attributed to their cost (raw materials, materials, fuel, energy). Indirect costs are due to the manufacture of various types of products and are included in the cost of certain types of products indirectly (conditionally), in proportion to any feature. These include part of the cost of maintaining and operating equipment, general production, general and other expenses.

According to the functional role in the formation of the cost of production, basic and overhead costs are distinguished. The main costs are directly related to the technological process of manufacturing products. Overhead costs include the costs associated with the creation of the necessary conditions for the functioning of production, this organization, management, maintenance. Overhead are general production and general expenses.

According to the degree of dependence on changes in the volume of production, costs are divided into proportional and disproportionate. Proportional costs (conditionally variable) are costs, the amount of which depends directly on the change in the volume of production. Disproportionate costs (conditionally fixed) are costs whose absolute value does not change or changes insignificantly when the volume of production changes (depreciation of buildings, fuel for heating, energy for lighting premises, salaries of management personnel).

Disproportionate costs are subdivided into start-up and residual costs. The starting ones include those fixed costs that arise with the resumption of production and sales of products. The residual includes that part of the fixed costs that the enterprise continues to bear, despite the fact that production and sales of products are stopped for some time.

The sum of fixed and variable costs is the gross costs of the enterprise.

Depending on the time of occurrence and attribution to the cost of production, costs can be current, future and forthcoming. The current ones arise mainly in this period and are included in the cost of production of this period. Deferred expenses are incurred in a given period of time, but are charged to the cost of production of subsequent periods in a certain proportion. Forthcoming costs are not yet incurred costs for which funds are reserved (vacation payments, seasonal expenses, etc.).

There are other signs of the classification of the costs of production and sales of products, some of which are important for management accounting. Relevant costs - those related to the decision being made. Irrelevant costs - which must be eliminated when making the final decision.

For control and regulation, costs are classified into regulated and non-regulated. Adjustable costs are costs that can depend on the manager. Unregulated costs are costs that are little dependent on the manager. Controlled costs can be controlled by the employees of the enterprise. Uncontrollable costs cannot be controlled by the employees of the enterprise.

1. 3 Economic essence and classification of implementation costs

Costs (cost) is the monetary expression of the costs of production factors necessary for the enterprise to carry out production and commercial activities related to the production and sale of products and the provision of services, that is, everything that costs the enterprise to manufacture and sell the product (products). In accordance with the definition of the costs (cost) of production of products, one should distinguish between the cost of production and sales, production and sales.

The costs of selling products according to the instructions include:

· The cost of paying interest on short-term bank loans, payment for bank services;
· Costs of warranty service;
· Costs associated with the sale of products;
• losses from marriage;
· Other costs.

In the process of creating products (goods), its actual production cost is determined, including the amount of costs for manufacturing products (goods). And the costs associated with the movement of goods from production to consumers, including their sale to end consumers, are distribution costs. They should be considered as the cost of purchasing, shipping and selling goods.

Trade enterprises distinguish between the costs of purchasing goods, capital investments in expanded reproduction of fixed assets and current costs of organizing economic activities (transportation, storage, processing, sorting, packaging, advertising and sale of goods).

For enterprises engaged in trading activities (supply, marketing, intermediary), the accounting nomenclature of distribution costs items includes:

· fare;
· Labor costs;
· Deductions for social needs;
· Costs of packaging;
· Loss of goods and technological waste;
· other expenses.

Enterprises have the right to maintain and expand the list of items within the limits of costs provided for by the standard Regulations on their composition.

The costs of trade enterprises in terms of volume and composition differ from the distribution costs. The main distinguishing feature is the form of reimbursement of expenses. The costs of circulation are reimbursed from income from trading activities.

For tax purposes, distribution costs are adjusted based on the approved limits, norms and standards for certain types of costs:

· Compensation for the use of personal cars for business trips;
· Expenses for the maintenance of official vehicles;
· Costs of business trips;
· Entertainment expenses related to commercial activities;
· Payments on bank loans;
· The rate of expenditures for training and retraining of personnel (established depending on the size of the cost of remuneration of employees of the enterprise);
· Payment of scholarships and tuition fees based on agreements with educational institutions;
· Advertising costs (the maximum rates of advertising costs are established depending on the volume of the trade enterprise's turnover).

The advertising budget is defined as the sum of the costs of all events. An increase in the advertising budget enables an enterprise to sell more or sell a given volume of products at a higher price at a prevailing price.

As an exception, payments for maximum permissible emissions (discharges) of pollutants into the environment are made at the expense of costs in the standard amount, and payments for exceeding them are made at the expense of the profit remaining at the disposal of nature users.

These costs relate to variable costs, the value of which is directly dependent on the volume and structure of trade.

The essence of these costs can be expressed as follows: variables include costs associated with the use of production factors, the value of which is determined by changes in the sale of goods (services).

In large, medium and small enterprises, the sizes of variable distribution costs (per unit of turnover) differ significantly. In larger enterprises, vehicles are used more efficiently, the turnover of circulating assets invested in inventories is faster, more qualified specialists work and labor is used more efficiently. For these reasons, in larger enterprises, compared to average ones, lower average variable distribution costs are added, including for such items as transportation costs, interest payments for using a loan, and labor costs.

The allocation of constant and variable types in the distribution costs is one of the basic principles of classification, which makes it possible to ensure their effective management.

Many types of costs, for example, losses resulting from careless storage of goods and losses resulting from the presence of receivables, are irrational (useless) costs that are recovered from profit and are not included in distribution costs. Such expenses, but included in the costs, include the costs associated with servicing the unused part of labor, material and financial resources (depreciation of unused fixed assets, payments to employees for downtime through no fault of their own, payment for the use of loans that were not used in the reporting period etc.).

Circulation costs characterize the amount of consumed resources. They represent the part of the cost of fixed assets transferred in the process of carrying out economic activities, costs associated with the use of working capital (transportation costs, costs of storage, additional work, sorting and packaging of goods, loss of goods and technological waste, costs of packaging, etc. ), the cost of using labor (wages, social contributions, etc.).

Based on the nature of social labor (productive and unproductive) and the content of economic processes in the service sector, all costs are often divided into two groups: additional and net.

Additional costs include costs associated with the movement of use value and the continuation of production processes in the sphere of circulation. These costs are additional in relation to the sphere of circulation and are included in the cost of the goods in socially necessary amounts.

In the presence of irrational costs (irrational transportation, costs of maintaining excess inventory, etc.), their value is reimbursed at the expense of the financial results of the enterprise.

Another group of expenses is associated with a change in the forms of value and includes the costs of accounting, advertising, costs associated with class operations, etc. These costs are classified as net costs arising from the essence of the sphere of circulation. They do not add value to the product and are reimbursed through net income.

The division of distribution costs into additional and pure ones allows to correctly determine the boundaries of material production, to investigate more deeply the processes occurring in the sphere of circulation and to improve their management on this basis.

1. 4 Cost control of product sales

The process of managing the costs and cost of production of an enterprise is complex in nature and provides for solving the issues of forming production costs and the cost of both individual types of products, and in their entirety, setting sales prices for each product and determining their profitability, identifying and practical use of reserves for saving costs and cost reduction, control over the state and nature of changes in the actual cost and cost in comparison with the planned indicators approved by the enterprise, and in dynamics.

Directly in the process of managing costs and production costs, they decide where, when and in what volumes the enterprise's resources should be spent, where, for what and in what volumes additional financial resources are needed and how to achieve the highest level of return from the use of resources. Therefore, the goal of managing costs and production costs is to ensure the economical use of resources and maximize the return on them.

Each enterprise should provide for the use of a variety of information about the activities of the enterprise in the cost and production cost management system:

· When forecasting, assessing the expected value of costs and establishing indicators of the cost of production in order to identify ways of development of the enterprise and profitability for a period of more than two years;
· In the planning process, i.e. justification of the amount of costs and production costs for the next one or two years, taking into account the organizational level of production and the influence of all factors that can be quantified. Of particular importance in the current planning of costs and production costs is the economic justification of decisions on the production of new products and the removal from production of obsolete ones, on the account of the efficiency of using all types of resources, new technology, organizational and technical measures, the introduction of new technology, etc.;
· When rationing, determining the optimal amount of material, labor and financial resources in the production of products planned for release;
· In the process of improving the accounting of actual costs, justifying the calculation of the cost of production;
· When analyzing costs and production costs by comparing actual indicators with planned ones, in dynamics, with competing enterprises and calculating the factors influencing these changes;
· In the process of monitoring and regulating indicators in the course of economic and financial activities, identifying reserves for saving production costs and opportunities to reduce the value and level of production costs (by improving management and organization of production, eliminating existing shortcomings in the activities of the enterprise, etc.).
§ In order to ensure effective management of costs and the formation of the cost of manufactured products, an industrial enterprise must strive to implement the following measures (observe the following work rules):
· To increase the production of competitive products at the expense of lower costs and, consequently, prices;
· Provide high-quality and real information about the cost of certain types of products and take into account their position in the market in comparison with the products of competing enterprises;
· Use the possibilities of flexible pricing;
· Provide objective data for drawing up the financial plan and budget of the enterprise;
· Be able to assess the activities of each structural unit from a financial point of view;
· Make informed and effective decisions.

The company must take into account two components in cost management - internal and external. The first component mainly affects the value of the production cost, and the external one affects the cost of goods sold.

The use of operating leverage (leverage) is also a form of cost optimization. Its essence lies in such a management of the ratio between fixed and variable costs, when not only the latter are optimized, but also the gross profit is maximized. With the same values of costs and gross profit, enterprises with a lower share of fixed costs reach the break-even point earlier than their competitors. This is of particular importance for the survival of newly formed enterprises. At that time, with a subsequent increase in sales volumes, the advantage (a greater share of profit in the increase in production) will be possessed by enterprises with a lower share of variable costs (the ratio of fixed costs and sales volume will decrease).

With a decrease in the share of variable costs (increase in the share of fixed costs), the effect of operating leverage increases. The level of fixed costs grows with the growth of depreciation charges, rental costs, administrative costs, time wages, property tax, interest on loans, and the volume of non-circulating funds. Therefore, with an increase in the capital-labor ratio of production, the effect of operating leverage grows. At the same time, as operating leverage grows, operational risk increases. The operating lever may have other forms of expression in addition to the above.

In the course of entrepreneurial activity, the company incurs cash costs. Their nature, composition and structure depend on many factors: the organizational and legal form of business, industry sector, the place occupied by an economic entity in the market for goods and capital, investment, financial and accounting policies, as well as the rules and principles of behavior of business entities in taxation established by law. , credit, insurance and stock spheres.

Thus, relevance of the covered topic, due to the fact that as a result of its activities, each company seeks to obtain the maximum profit at the minimum cost, each company tries to find the best option to achieve this goal and the solutions are very individual. Each enterprise decides for itself by reducing what costs it will be more profitable for it to continue its activities, therefore, the topic of determining current costs is very relevant for every entrepreneur.

Choosing a theme due to the need to find the best option for the volume of expenses for a specific type of activity arising from operating enterprises.

The main purposeresearch is the analysis of costs at the enterprise LLC "Navigator", consideration of the cost management of production and sales.

In accordance with the purpose of the work, the following tasks are set: to study the composition of the current costs at the enterprise LLC "Navigator".

The subject of the Society's activities is:

Production and sale of computer services,

Trade-purchasing and intermediary activities.

The subject of research is the study of the production costs of the enterprise, the analysis of costs and the identification of ways to optimize them. As a result, the management plans to obtain real conclusions and a proposal for a set of measures to improve, stabilize the financial condition and increase the profitability of the enterprise.

The methodological basis of this work is the works of modern domestic scientists, such as: V.Ya. Gorfinkel, K.A. Raitskiy, V.M. Semenov.

The structure of the course work includes three chapters, the first is theoretical, gives an idea of the basic concepts of enterprise costs. The second chapter - examines the analysis of production costs of an enterprise operating in modern conditions. The third chapter - recommends solving problems and suggests ways to reduce costs in the enterprise.

1. Classification of production costs - as the basis for cost accounting

1.1 Concept and composition of production costs

Expenses - is a monetary value of the cost of material, labor, financial, natural, informational and other types of resources for the production and sale of products.

Therefore, the costs are characterized by:

1. monetary value of resources, providing the principle of measuring various types of resources;

2. target setting (associated with the production and sale of products in general or with any of the stages of this process);

3. a certain period of time, that is, must be attributed to products for a given period of time;

It follows from this that the costs have the property of reserve intensity and in this case they relate to the assets of the enterprise.

Costs should be distinguished from costs. The definition of “expenses” is set out in the Regulation on accounting of organizations (PBU 10/99) and in the Tax Code of the Kyrgyz Republic.

Expenses - these are the costs of a certain period of time, documented, economically justified (justified), fully transferred their cost to the products sold during this period.

Unlike costs, costs cannot be in a state of inventory intensity, cannot relate to the assets of the enterprise. They are reflected in the calculation of the company's profit in the income statement.

The concept of "costs" is broader than the concept of "costs", but under certain conditions they can coincide.

Table 1.

The composition of the company's expenses.

Type of expenses	Composition of expenses
Expenses for ordinary types	¾ expenses for the purchase of raw materials, materials, goods and other inventories (MPZ). ¾ expenses for the processing of inventories for the purposes of production, performance of work, provision of services and their sale, as well as the resale of goods. ¾ payroll calculations. ¾ deductions to the insurance fund. ¾ depreciation deductions.
Operating expenses	¾ costs associated with the provision of assets to organizations for temporary use for a fee. ¾ costs associated with granting for a fee the rights arising from patents for inventions, industrial designs and other types of intellectual property. ¾ expenses related to participation in the authorized capital of other organizations. ¾ expenses related to the sale, disposal and other write-off of fixed assets and other assets other than cash, goods, products. ¾ interest paid by the organization for the use of funds. ¾ expenses related to payment for services rendered by credit institutions. ¾ other operating expenses.
Non-operating expenses	¾ fines, penalties, forfeits for violation of the terms of contracts, compensation for losses caused by the organization. ¾ losses of previous years recognized in the reporting year. ¾ the amount of receivables for which the limitation period has expired, other debts that are not real for collection. ¾ exchange difference. ¾ the amount of the depreciation of assets (excluding non-current assets). ¾ other non-operating expenses.
Extraordinary expenses	¾ expenses related to extraordinary circumstances (natural disasters, fires, accidents, etc.).

The Tax Code recognizes expenses as justified and documented expenses incurred (incurred) by taxpayers.

Costs - a set of different types of costs for the production and sale of products as a whole or its individual parts. In addition, "costs" include specific types of costs: a unified social tax, losses from marriage, warranty repairs, etc.

1.2 Classification of production costs

Along with the concept of "costs", the indicator of the cost of production is used as an identical concept.

Production cost - These are the current costs of the enterprise, expressed in monetary terms, for the production and sale of products.

In the context of the transition to a market economy, the cost of production is the most important indicator of production and economic activity.

The structure of costs by economic elements is a generalization of the total cost of the enterprise as a whole and a regrouping of costs in the following nomenclature:

¾ material costs;

¾ labor costs;

¾ deductions for social needs;

¾ depreciation;

¾ other costs;

This grouping of costs is also contained in the Decree of the Government of the Kyrgyz Republic dated August 5, 1992. No. 552-1.

Material costs include direct and indirect material costs, i.e. the cost of the consumption of raw materials, basic and auxiliary materials, fuel and energy for technological needs, as well as the payment of utilities used for lighting and heating, plus the cost of fuel for the transport of the enterprise, minus the cost of returnable waste.

Labor costs include all accrued wages to the personnel of the enterprise: basic and additional; piecework and time-based; tariff earnings and bonuses. At the same time, some elements of remuneration remain, which will be included in other costs: this is voluntary insurance of employees (medical, pension, property) at the expense of the enterprise; payment of travel to the place of work; payment for meals at the workplace.

Social contributions include the UST (unified social tax), i.e. all contributions to state off-budget funds in the order of compulsory pension and social insurance, only 35.6% of the accrued wages fund.

Part depreciation fixed assets includes the amount of depreciation charges for the complete restoration of fixed assets. Depreciation of fixed assets is charged in accordance with the accounting policy of the enterprise (using a straight-line method or an accelerated method), but always evenly throughout the year and using one method throughout the entire service life of the facility.

Other costsinclude payment for services from outside, rent, a number of taxes, etc. (taxes are derived from other costs when calculating value added).

The analysis of costs by economic elements is used not only for the preparation of cost estimates for enterprises, but also for macroeconomic analysis, for predicting intersectoral relationships.

The classification of costs by items of calculation is their division by production purpose and place of origin in the process of production and sale of products

Costing , by definition, it is the establishment of costs per unit of production. Classification by cost items is the basis for the development of cost estimates for certain types of products (works and services), all marketable products of the enterprise. A typical costing scheme for costing items includes:

¾ the cost of basic raw materials and basic materials;

¾ the cost of purchased components, purchased semi-finished products;

¾ recyclable waste, by-products and related products (with a minus sign);

¾ auxiliary materials for technological purposes;

¾ fuel for technological purposes;

¾ electricity for technological purposes;

¾ water, steam for technological purposes;

¾ basic wages;

¾ additional wages;

¾ social deductions for basic and additional wages;

¾ maintenance costs of machinery and equipment;

¾ general shop expenses;

¾ general production expenses;

Cost price

¾ business expenses;

¾ managerial(general running costs;

Full cost price.

Costing items correspond to certain accounting reports, which summarize each type of cost from the above.

According to the method of attribution to the cost of production, straight and indirect expenses. Direct costs are directly related to the manufacture of specific types of products and, according to established standards, are attributed to their cost (raw materials, materials, fuel, energy). Indirect costs are due to the manufacture of various types of products and are included in the cost of certain types of products indirectly (conditionally), in proportion to any feature. These include part of the cost of maintaining and operating equipment, general production, general and other expenses.

According to the functional role in the formation of the cost of production, they are distinguished the main and waybills expenses. The main costs are directly related to the technological process of manufacturing products. Overhead costs include the costs associated with the creation of the necessary conditions for the functioning of production, this organization, management, maintenance. Overhead are general production and general expenses.

According to the degree of dependence on changes in the volume of production, costs are divided by proportional and disproportionate... Proportional costs (conditionally variable) are costs, the amount of which depends directly on the change in the volume of production. Disproportionate costs (conditionally fixed) are costs whose absolute value does not change or changes insignificantly when the volume of production changes (depreciation of buildings, fuel for heating, energy for lighting premises, salaries of management personnel).

Disproportionate costs are subdivided into start-up and residual costs. The start-up costs include that part of fixed costs that arise with the resumption of production and sales of products. The residual includes that part of the fixed costs that the enterprise continues to bear, despite the fact that production and sales of products are stopped for some time.

The sum of fixed and variable costs is the gross costs of the enterprise.

Depending on the time of occurrence and attribution to the cost of production, costs can be current, future periods and forthcoming... The current ones arise mainly in this period and are included in the cost of production of this period. Deferred expenses are incurred in a given period of time, but are charged to the cost of production of subsequent periods in a certain proportion. Forthcoming costs are not yet incurred costs for which funds are reserved (vacation payments, seasonal expenses, etc.).

There are other signs of the classification of the costs of production and sales of products, some of which are important for management accounting. Relevant costs - relevant to the decision being made. Irrelevant costs - which must be excluded when making a final decision.

For control and regulation, costs are classified into regulated and unregulated... Adjustable costs are costs that can depend on the manager. Unregulated costs are costs that are little dependent on the manager. Controlled costs can be controlled by the employees of the enterprise. Uncontrollable costs cannot be controlled by the employees of the enterprise.

2.Composition of costs for selling products

2.1 The economic essence and classification of the cost of selling products

Costs (cost) is the monetary expression of the costs of production factors necessary for the enterprise to carry out production and commercial activities related to the production and sale of products and the provision of services, that is, everything that costs the enterprise to manufacture and sell the product (products). In accordance with the definition of the costs (cost) of production of products, one should distinguish between the cost of production and sales, production and sales.

The costs of selling products according to the instructions include:

¾ the cost of paying interest on short-term bank loans, payment for bank services;

¾ warranty service costs;

¾ costs associated with the sale of products;

¾ losses from marriage;

¾ other costs;

For enterprises engaged in trading activities (supply, marketing, intermediary), the accounting nomenclature of distribution costs items includes:

¾ fare;

¾ labor costs;

¾ deductions for social needs;

¾ expenses for packaging;

¾ loss of goods and technological waste;

¾ other expenses;

Enterprises have the right to maintain and expand the list of items within the limits of costs provided for by the standard Regulations on their composition.

For tax purposes, distribution costs are adjusted based on the approved limits, norms and standards for certain types of costs:

¾ expenses for the maintenance of official vehicles;

¾ business travel costs;

¾ entertainment expenses related to commercial activities;

¾ payments on bank loans;

¾ the rate of expenditures for training and retraining of personnel (established depending on the size of the cost of remuneration of employees of the enterprise);

¾ payment of scholarships and tuition fees based on agreements with educational institutions;

These costs relate to variable costs, the value of which is directly dependent on the volume and structure of trade.

The allocation of constant and variable types in the distribution costs is one of the basic principles of classification, which makes it possible to ensure their effective management.

Based on the nature of social labor (productive and unproductive) and the content of economic processes in the service sector, all costs are often divided into two groups: additional and net.

In the presence of irrational costs (irrational transportation, costs of maintaining excess inventory, etc.), their value is reimbursed at the expense of the financial results of the enterprise.

2.2 Cost control of product sales

Based on the content of the concept of "management", the main elements of cost management and the cost of production of an industrial enterprise are forecasting and planning, rationing of costs, organizing their accounting and calculating the cost of sales, analysis, control and regulation in the course of its implementation.

Each enterprise should provide for the use of a variety of information about the activities of the enterprise in the cost and production cost management system:

§ when forecasting, assessing the expected value of costs and establishing indicators of the cost of production in order to identify ways of development of the enterprise and profitability for a period of more than two years;

§ in the planning process, i.e. justification of the amount of costs and production costs for the next one or two years, taking into account the organizational level of production and the influence of all factors that can be quantified. Of particular importance in the current planning of costs and production costs is the economic justification of decisions on the production of new products and the removal from production of obsolete ones, on the account of the efficiency of using all types of resources, new technology, organizational and technical measures, the introduction of new technology, etc.;

§ when rationing, determining the optimal size of the cost of material, labor and financial resources in the production of products planned for release;

§ in the process of improving the accounting of actual costs, justifying the calculation of the cost of production;

§ when analyzing costs and production costs by comparing actual indicators with planned ones, in dynamics, with competing enterprises and calculating the factors influencing these changes;

§ in the process of monitoring and regulating indicators in the course of economic and financial activities, identifying reserves for saving production costs and opportunities to reduce the value and level of production costs (by improving management and organization of production, eliminating existing shortcomings in the activities of the enterprise, etc.).

In order to ensure effective cost management and the formation of the cost of production of products, an industrial enterprise should seek to implement the following measures (observe the following operating rules):

§ increase the production of competitive products at the expense of lower costs and, therefore, prices;

§ provide high-quality and real information about the cost of certain types of products and take into account their position on the market in comparison with the products of competing enterprises;

§ use the possibilities of flexible pricing;

§ provide objective data for drawing up the financial plan and budget of the enterprise;

§ be able to assess the activities of each structural unit from a financial point of view;

§ make informed and effective decisions;

3. Analysis of the costs of production and sales of products in Navigator LLC

3.1. Technical and economic characteristics of the enterprise

LLC "Navigator" is an enterprise created for the purpose of making a profit, coordinating entrepreneurial activities, representing and protecting the common property interests of owners, developing and strengthening business cooperation in the production of computer services.

LLC "Navigator" is a legal entity, has separate property, has an independent balance sheet, current and other accounts in credit institutions, a brand name, a seal with its name and brand name. Location: Bishkek, Toktogul str. 200.

The goal of Navigator LLC is to organize the development and analysis of strategic directions for the development of the corporate system of trade and production, as well as to make a profit.

A limited liability company is a legal entity from the moment of its state registration in accordance with the legislation of the Kyrgyz Republic as a legal entity.

The Society is a commercial organization, the period of the Society's activity is not limited.

From the moment of state registration, the Company acquires civil rights and obligations necessary for the implementation of any activities not prohibited by law. It acquires the right to conclude transactions in accordance with the constituent documents.

The company has a round seal with its name and stamps in the state and Russian languages.

The executive body - the Directorate of the Company is authorized to use and ensure the safety of the seals of the Company.

If the insolvency (bankruptcy) of the Company is caused by the actions (inaction) of its shareholders or other persons who have the right to give instructions binding for the Company or otherwise have the ability to determine its actions, then the said shareholders or other persons, in the event of insufficient property of the Company, may be entrusted with subsidiary responsibility for its obligations.

A society can create, independently and jointly with other societies, partnerships, cooperatives, enterprises, institutions, organizations and citizens on the territory of the Kyrgyz Republic, organizations with the rights of legal entities in any organizational and legal forms permitted by law. The company has the right to have subsidiaries and dependent companies with the rights of a legal entity.

The company can create branches and open representative offices in the territory of the Kyrgyz Republic and abroad.

The Company independently plans its production and economic activities. The plans are based on contracts concluded with consumers of products and services, as well as suppliers of material, technical and other resources.

Sales of products, performance of work and provision of services are carried out at prices and tariffs established by the Company independently.

The main goal of the Company is to make a profit.

Organizational structure of management of Navigator LLC

The company is managed in accordance with this charter of the company. The society independently determines the management structure.

The competence of the founder includes:

¾ amendment and approval of the charter of the company;

¾ determination of the main directions of the company's activities;

¾ change in the size of the authorized capital;

¾ resolving the issue of creating and liquidating a society;

¾ formation and recall of the executive body of the company;

The company is managed by the executive director. The director is endowed with the following powers:

¾ carries out operational management of the company's activities;

¾ acts without a power of attorney on behalf of and in the interests of society, representing it in all organizations, institutions, both in the Kyrgyz Republic and abroad.

¾ exercises the rights of hiring and dismissing employees of the company;

¾ performs transactions and other legal actions;

¾ concludes agreements and contracts on behalf of the company without a power of attorney, ensures their implementation;

The director has the right to make decisions on all issues of the company's activities.

The personnel of the company are employees and workers who participate by their labor in the economic activities of the company. The personnel of the society is recruited on a contract basis from the citizens of the Kyrgyz Republic.

The chief accountant was appointed director of the company. The duties of the chief accountant include:

¾ preparation of monthly reports and submission to the competent authorities;

¾ maintaining internal financial reporting;

¾ approves the staffing table;

¾ ensures the implementation of current and long-term plans of the company;

¾ preparation of annual reports for submission to the director and to the competent authorities;

The rest of the staff fulfills their labor obligations in accordance with the labor contract.

3.2 Analysis of the costs of production and sales of products

The purpose of the cost analysis for the production and sale of the company's products is to identify the dynamics, trends, volume, and the degree of optimality of the cost structure of the enterprise. Analysis of the costs of the company in the base period is a prerequisite for effective cost management in the reporting period. The costs of the enterprise are characterized by certain indicators. It's theirs absolute volume and his dynamics. The dynamics of the absolute volume of costs as a whole (in the absence of inflation or recalculated taking into account the rate of inflation) gives an idea of the cost efficiency of an economic entity. Comparison of planned (standard) and actual costs indicates savings or cost overruns. Therefore, cost analysis is also an analysis of the degree of fulfillment of planned (normative) tasks.

Cost analysis is also an analysis of their element-by-element structure. First of all, the most significant cost items are identified. The latter are often material costs and labor costs. According to these articles, the cost centers in the enterprise are determined. The generalizing relative indicator of production costs is capital ratio products, (Ккп), which is calculated according to the following formula:

K kp = ZAT prp: About b,

ZAT prp - the cost of manufacturing products sold,

About b - the volume of sales in the period under review.

Production costs for 2005 amounted to 680,000 soms, in 2006. - 710,000 soms, sales volume in 2005 amounted to 1,890,000 soms, in 2006. - 2,217,000 soms, hence:

K kp (2005) = 680,000: 1,890,000 = 0.36.

K kp (2006) = 710,000: 2,217,000 = 0.32.

Table 1.

Production costs

LLC "Navigator" 2005-2006, thousand soms.

Index	2005	2006
Raw materials and supplies	346 000	347 000
Fuels and lubricants	99 000	112 000
Fare	83 000	95 000
Tax	38000	40000
Labor costs	114000	116000
Total:	680 000	710 000

Consequently, at Navigator LLC, production costs increased in 2006 compared to 2005.

Figure 1. Dynamics of production costs of products sold by Navigator LLC

They also study the indicator capital intensity of products, the reciprocal of the rate of return on assets. It is calculated using the following formula:

Ф p = OK cf: About b,

OKav - the average cost of fixed assets.

At the analyzed enterprise, Navigator LLC, the following calculations can be made:

Average cost of fixed assets in 2005 amounted to 2000 000 soms, in 2006. - 2,741,000 soms, hence:

Ph p (2005) = 2000 000: 1890 000 = 1.06.

Ph p (2006) = 2,741,000: 2,217,000 = 1.23.

Allocate the indicator profitability of production costs as the ratio of profit (from sales or net) to the cost of manufacturing products sold. It is calculated using the following formula:

R un = P p: ZAT prp,

Figure 4. Dynamics of profitability of production costs of Navigator LLC.

At the analyzed enterprise, Navigator LLC, the following calculations can be made:

P un (2005) = 420,000: 680,000 = 0.62.

P un (2006) = 507,000: 710,000 = 0.71.

Similarly, it is defined profitability of distribution costs. It is calculated using the following formula:

P io = P p: ZAT rp,

ZATrp - the cost of selling products.

At the analyzed enterprise, LLC Navigator, the following calculations can be made, taking into account the fact that the cost of selling products in 2005. amounted to 590,000 soms, and in 2006. - 630,000 soms.

Rio (2005) = 420,000: 590,000 = 0.72.

Rio (2006) = 507,000: 630,000 = 0.81.

Figure 5. Dynamics of profitability of distribution costs of Navigator LLCMaking a conclusion, we can talk about the growth of the company's profitability in dynamics over two years.

3.3 Ways to reduce costs in Navigator LLC

There are direct and indirect ways to reduce costs. TO direct way reducing costs include activities directly aimed at reducing costs. This is the saving of material factors of production, strengthening labor discipline, strengthening the material responsibility of personnel, the technical and technological level of production, tightening the consumption rates of raw materials and materials per unit of production, changing the range of products, etc. Minimizing the estimated losses is called the criterion sevija. Cost reduction can also be carried out by minimizing preventable costs, reducing the absolute volume of material costs, reducing the share of the latter in the cost of production. This share can also change regardless of the efforts of the enterprise (for example, due to changes in prices for commodity and material resources).

Indirect methods cost reductions occur when cost reductions are a consequence (side effect) of activities with different priorities. For example, an enterprise that manufactures products with inelastic demand decided to increase selling prices. Paradoxically, a distant consequence of this process will be a reduction in production costs. The reason is that with rising prices, sales of products and the volume of their production will decrease. The latter will lead to a decrease in production costs. With an increase in production and sales, the fixed costs per unit of output are reduced. Reducing costs involves reducing not only production costs, but also distribution costs (commercial), non-operating costs, management costs.

It is very important to strive for reduction of accounts receivable, reduction of the terms of settlements with counterparties. At the same time, a reasonable increase in accounts payable reduces the operating costs of the enterprise (but in the future, costs may increase if penalties are applied). However, with high inflation, the danger of the latter is not so high. It is also necessary to reduce the cost of servicing borrowed funds. Loan agreements unfavorable for the company should be “leveled”, i.e. bring them in line with average lending conditions. In planning and forecasting the costs of an enterprise, it is necessary to provide for their reduction.

In conditions of inflation, not only sales proceeds grow, but also the enterprise's costs for the purchase of raw materials, materials, electricity, obtaining loans, etc. When the growth rate of prices for purchased products exceeds those sold by the enterprise, the need for circulating, primarily cash, increases. funds, the need for additional sources of financing is growing, costs are increasing, and the financial situation is deteriorating.

The underestimation of the real value of fixed and circulating capital in the balance sheet of the enterprise accordingly underestimates the amount of depreciation deductions and other necessary expenses, and also underestimates the cost price. The enterprise has an aggravated problem of replacing worn out tools and instruments of labor. This, in turn, leads to the "aging" of the production park, a decrease in the quality of products, and the surrender of competitive positions. In an inflationary environment, inventories are often assessed using the LIFO method (at the cost of the most recent acquisitions). In these conditions, the assessment of the acquisition and procurement of materials is more profitable at accounting prices and deviations from actual costs (and not at the actual cost of acquisitions).

Inflation sharply increases the importance of many factors of economic activity: saving material and labor resources; rationing of raw materials, materials, fuel, energy; growth in labor productivity (growth in production volumes at a given (unchanged) general level of costs); the ratio of accounts payable and receivable (with an increase in the share of the first, the company receives a relative gain and, conversely, with an increase in the second, it incurs additional losses due to the depreciation of funds).

In case of inflation, it is important not to allow the outstripping growth of costs for consumed products and raw materials in comparison with the inflation rate, it is necessary, if possible, to maintain the same level of costs per unit of output due to an increase in production volumes (in relation to fixed costs) and additional measures, for example, in terms of variable costs ... It is also possible to assume an increase in costs in accordance with the rate of profit dynamics.

With inflation in the composition of costs, the share of investments (especially production ones) falls, since it first of all devalues capital (long-term) investments. The share of depreciation deductions is also falling. If the company does not maintain the real wages at the same level, then its share also falls. At the same time, the funds and accumulations of enterprises "flow" into trade, financial, intermediary and other spheres with a faster (ie, less depreciating) capital turnover.

Among measures to prevent cost overruns relate:

Continuous analysis and cost control;

Continuous tightening of consumption rates for raw materials and supplies;

Implementation of austerity regime;

Expansion of the range of standardized working capital;

Identification of potential areas with the highest risk of cost overruns;

Achievement of the planned indicators of the volume of production (with a decrease in the latter, fixed costs per unit of production increase);

Determination of the relationship between the dynamics and relative indicators of costs with the volumes and dynamics of production and commercial activities of the enterprise and the quality of products (works, services).

In order to prevent cost overruns, it is necessary to determine the possible reasons for overspending costs.

This could be:

1) purchase of products with consumer properties lower than expected;

2) rise in the cost of investment projects;

3) forced use of loans and borrowings with unfavorable conditions;

4) an increase in the initial cost of purchased raw materials, materials or their initial underestimation;

5) shortcomings in the regulation of working capital or its absence;

6) use of outdated equipment or raw materials;

7) inefficient use of equipment; financial omissions and abuse of managers;

8) violations of legislation, regulations and the resulting penalties;

9) unwanted changes in legislation and regulations;

10) inflationary processes;

11) negative changes in exchange rates.

Prevention of cost overruns should cover all aspects of the enterprise, including those seemingly irrelevant to the policy of saving resources.

Conclusion

The relationship between the individual cost elements is the structure of production costs. All costs of production and sale of products are its full cost. For an enterprise, the cost is the basis for determining prices for manufactured products and, accordingly, the basis for determining profit from sales of products and income tax. Therefore, normative documents concerning the procedure for determining the cost price apply to all business entities, regardless of their form of ownership and legal status, which puts all enterprises on an equal footing in a market economy.

In this work, we tried to divide the costs of production and sales of products.

Production costs can be classified by economic elements, by items of calculation, by functional role, depending on the time of occurrence and attribution to the cost of production.

Selling costs are distribution costs. Circulation costs can be constant or variable. They are also divided into additional and clean ones.

In the third chapter, we examined the production and implementation costs of Navigator LLC. Analyzing the costs of the enterprise for 2006 and 2007, it can be concluded that the costs have increased, which means that more products and services were produced and sold.

To reduce costs for Navigator LLC, it is necessary to prevent cost overruns. The reasons for cost overruns can be: the purchase of products with consumer properties lower than expected, the rise in the cost of investment projects, the forced use of loans and borrowings with unfavorable conditions, an increase in the initial cost of purchased raw materials, or their initial underestimation, shortcomings in the regulation of working capital or its absence, the use of outdated equipment or raw materials, inefficient use of equipment; financial omissions and abuses of managers, violations of legislation, regulations and the resulting penalties, unwanted changes in legislation and regulations, inflationary processes, negative changes in exchange rates.

You also need to conduct ongoing analysis and cost control;

Continuous tightening of the consumption rates of raw materials and materials, the introduction of austerity regime, the expansion of the range of standardized working capital, the establishment of potential areas with the highest risk of cost overruns, the achievement of planned production volume indicators, determination of the relationship between the dynamics and relative cost indicators with the volumes and dynamics of production and commercial activities enterprise and product quality (works, services).

Literature

1. Gorfinkel V.Ya. Enterprise economy. Unity. M.

2. Raitskiy K.A. Enterprise economy. M. 1999

3. Volkov O.I., Sklyarenko V.K. Enterprise Economics. INFRA-M. Moscow 2005

4. Semenov V.M. Enterprise economy. Center for Economics and Marketing. M. 1998

5. V.P. Gruzinova Enterprise economy. Banks and exchanges. Unity. M. 2006

6. Tax Code of the Kyrgyz Republic, Bishkek. 2003.

7. Stoyanova E.S. Financial management. "Perspective" .M. 2003

8. Commercial appraisal of investment projects. The main provisions of the methodology.-SPb .: NIKTs "Alt", 2003.

10. Zheltyakova I. A., Makhovikova G. A, Puzynya N. Yu. Finances of the enterprise... Tests and tasks. - SPb .: PETER, 2004.

11. Kardanskaya N. L. Fundamentals of Management Decision Making: Textbook. - M .: Russian Business Literature, 2005.

12. Marenno N.A.Finance of the enterprisein the market economy of Russia. Lecture course. Finance and credit. Accounting and audit. - M .: Editorial URSS, 2000.

13. Pankratov F.G., Seregina T.K.Commercial activity: Textbook. - M .: ITC "Marketing", 2000.

14. Pritzker A. Introduction to imitation modeling and language SLAM P. - M .: Mir, 2004.

15. : Tutorial. - M .: INFRA-M, 2001.

16. Slepneva T. A., Yarkiy E. V. Finance: Tutorial. - M .: INFRA-M, 2001

17. Blind V.A., Nikolaeva T.E.Pricing: Textbook / Ed. prof. V. A. Slepov. - M .: FBK-Press, 2000.

18. Tsatsuin A.I. Financein the marketing system: Textbook. - M .: Filin, 2002.

19. Chudakov A, D., Kardanskaya N.L.Production management systems: analysis and design. Tutorial. - M .: Russian Business Literature, 2004.

20. Prices and pricing:A guide for preparing for exams / Avt.-comp. A. A. Oganesyan. - M .: Prior, 2001.

21. Finance: Textbook for universities / Ed. prof. I.K.Salimzhanova. - M .: Finstatinform, 2001.

22. Gadzhinsky A. M. Logistics: A Textbook. 2nd ed. - M .: ITC "Marketing", 2002.

23. Evlanov L. G. Theory and practice of decision making. - M .: Economics, 2001.

24. Kozlovsky, V.A., Kozlovskaya E.A., Savrukov N.T.Logistic management. - SPb .: Polytechnic, 2003.

Gorfinkel V.Ya. Enterprise economy. Unity. M. p. 188