Production And Costing

production – set of all recurrent costs an entrepreneur, including increasing backlog of work in progress, etc. The estimate is based on economically homogeneous elements, and each row includes the full cost this kind, no matter where they were made (total payroll – from ceo to janitor, the total amount of wear of all types of assets, etc, etc.). Thus, estimates of need for financial management enterprise agreement various sections of his plan (for example, a plan for labor and labor costs in the cost), the determination of national income and net production, determine the need for working capital. Costing .- allocation of costs associated with production and sales of selected products (works, services). It is only for products intended for sale, and on complex (Including heterogeneous elements) articles.

Their list, the composition and methods of distribution by type of product are determined by sectoral guidelines of the nature and structure of production (mass, series, individual, etc.). At the same time highlighted the costs directly associated with the production of selected products (raw materials and basic materials, fuel and energy used for technological needs, direct wages and major service fee), and indirect costs (for training and development of production, maintenance and operation of equipment, general and selling expenses). Costs of training and development of production include the costs: the initial work in mining, industries (up exploration fields, clearing land for surface mining, storage areas of fertile soil, the laying of temporary access roads, etc.), and development of new industries (testing machines, test operation and adjustment of equipment), and pre-production custom-built products. Mastering the production of serial and mass production recovered extrabudgetary funds R & D funding. Expenses for maintenance and operation of equipment include current costs for materials, parts, labor repairmen, wear, etc. General (not related to Certain products) shop costs consist of expenses for management and maintenance of production (cost of shop personnel, auxiliary workers, provision shop raw materials, fuel, energy, instrument, etc., maintenance of premises and equipment, maintenance of normal conditions and safety, including special food). These include costs and to streamline and invention (in Including experimental works), with additional salary earned.