Fixed costs. Variable, fixed and semi-fixed costs

In the activity of any enterprise, the adoption of correct management decisions is based on the analysis of its performance indicators. One of the objectives of such an analysis is to reduce production costs, and, consequently, increase the profitability of the business.

Fixed and variable costs, their accounting is an integral part of not only the calculation of the cost of production, but also the analysis of the success of the enterprise as a whole.

The correct analysis of these articles allows you to make effective management decisions that have a significant impact on profits. For the purposes of analysis in computer programs at enterprises, it is convenient to provide for automatic allocation of costs to fixed and variable based on primary documents, in accordance with the principle adopted in the organization. This information is very important for determining the "break-even point" of the business, as well as evaluating the profitability of various types of products.

variable costs

to variable costs include costs that are constant per unit of output, but their total amount is proportional to the volume of output. These include the cost of raw materials, consumables, energy resources involved in the main production, the salary of the main production personnel (together with accruals) and the cost of transportation services. These costs are directly related to the cost of production. In value terms, variable costs change when the price of goods or services changes. Unit variable costs, for example, for raw materials in the physical dimension, may decrease with an increase in production volumes due, for example, to a decrease in losses or costs for energy resources and transport.

Variable costs are either direct or indirect. If, for example, the enterprise produces bread, then the cost of flour is a direct variable cost, which increases in direct proportion to the volume of bread produced. Direct variable costs may decrease with the improvement of the technological process, the introduction of new technologies. However, if the refinery refines oil and as a result receives, for example, gasoline, ethylene and fuel oil in one technological process, then the cost of oil for the production of ethylene will be variable, but indirect. Indirect variable costs in this case, it is usually taken into account in proportion to the physical volumes of production. So, for example, if during the processing of 100 tons of oil, 50 tons of gasoline, 20 tons of fuel oil and 20 tons of ethylene are obtained (10 tons are losses or waste), then the cost of 1.111 tons of oil (20 tons of ethylene + 2.22 tons of waste) is attributed to the production of one ton of ethylene /20 tons of ethylene). This is due to the fact that in a proportional calculation, 20 tons of ethylene account for 2.22 tons of waste. But sometimes all the waste is attributed to one product. For calculations, data from technological regulations are used, and for analysis, actual results for the previous period.

The division into direct and indirect variable costs is conditional and depends on the nature of the business.

Thus, the cost of gasoline for the transportation of raw materials during oil refining is indirect, and for a transport company it is direct, as it is directly proportional to the volume of transportation. The wages of production personnel with accruals are classified as variable costs with piecework wages. However, with time wages, these costs are conditionally variable. When calculating the cost of production, planned costs per unit of production are used, and in the analysis, actual costs, which may differ from planned costs, both upwards and downwards. Depreciation of fixed assets of production, referred to a unit of output, is also a variable cost. But this relative value is used only when calculating the cost of various types of products, since depreciation charges, in themselves, are fixed costs / costs.

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Thus, total variable costs can be calculated using the formula:

Rperem \u003d C + ZPP + E + TR + X,

C - the cost of raw materials;

ZPP - salary of production personnel with deductions;

E - the cost of energy resources;

TR - transportation costs;

X - other variable expenses that depend on the profile of the company.

If an enterprise produces several types of products in quantities W1 ... Wn and, per unit of production, variable costs are P1 ... Pn, then the total amount of variable costs will be:

Pchange = W1P1 + W2P2 + ... + WnPn

If an organization provides services and pays agents (for example, sales agents) as a percentage of sales, then the remuneration of agents is a variable cost.

fixed costs

The fixed costs of a business are those that do not change in proportion to the volume of production.

The share of fixed costs decreases with the growth of production volume (scale effect).

This effect is not inversely proportional to output. For example, an increase in production volume may require an increase in the number of accounting and sales departments. Therefore, they often talk about conditionally fixed costs. Fixed costs also include expenses for management personnel, maintenance of the main production personnel (cleaning, security, laundry, etc.), organization of production (communications, advertising, banking expenses, travel expenses, etc.), as well as depreciation. Fixed costs are expenses for, for example, the rental of premises, and the rental price may change due to changes in market conditions. Fixed costs include some taxes. These are, for example, the single imputed income tax (UTII) and the property tax. The amounts of these taxes may change due to changes in the rates of such taxes. The amount of fixed costs can be calculated using the formula:

Rpost \u003d Zaup + AR + AM + H + OR

According to the dependence of the amount of costs on changes in the volume of production, costs are divided into fixed and variable.

The meaning of the subdivision of costs into variable and fixed is their different response to changes in the volume of production.

Variables (proportional) are called costs, the amount of which changes with a change in the volume of production. When the volume of production changes, such costs per unit of output remain unchanged. These are the costs of purchasing raw materials, materials, electricity consumption for technology, transportation costs, trade and commission costs, railway tariffs, etc.

Fixed costs are those costs that do not change or change little with changes in the volume of production. Fixed costs per unit of output decrease (increase) with an increase (decrease) in the volume of production.

Such costs include depreciation deductions under the straight-line method of their accrual, rent, salaries of managerial employees, expenses for stationery, as well as expenses for heating and lighting of industrial and non-industrial premises.

In addition to these two cost groups, there is a group of costs that have both variable and fixed components. These costs are called "mixed". For example, fuel costs. If the fuel is used in the production process, then these are variable costs, i.e. the more products produced, the more fuel will be needed. If this is the fuel consumption for heating the building and other similar needs, then its volume does not depend on the volume of output, and this part will relate to fixed costs. When the volume of production changes, the costs for such items are calculated using the following formula:

C 1 \u003d C 0 × K POST × B 0 / B 1 + C 0 × (1 - K POST), (1.1)

where С 0 , С 1– basic and modified value of costs for i- that article of the calculation, respectively, rub./unit;

K POST- the share of fixed costs in the cost item, shares of units;

B 0 , B 1– basic and modified volumes of output, respectively, units.

The division of costs into fixed and variable plays an important role in planning, accounting and analyzing the cost of production. Fixed costs, remaining relatively unchanged in absolute value, with the growth of production become an important factor in reducing the cost of production, because. their value at the same time decreases per unit of production. Variable costs increase depending on the growth of production, but calculated per unit of output, they are a constant value. Savings on these costs can be achieved through the implementation of organizational and technical measures that ensure their reduction per unit of output. In addition, this grouping of costs can be used in the analysis and forecasting of the break-even production, in calculating the financial strength of the enterprise and, ultimately, in choosing the economic policy of the organization.

A critical volume of production is such a volume of production at which the proceeds from the sale of products are exactly enough to cover both variable and fixed costs, while profit is equal to zero. At a critical volume of production, the organization reaches the break-even point (self-sufficiency point, zero point). The critical production volume is determined by the formula:

In kr \u003d Z post / (C unit - Z ud.per.), (1.2)

where In kr– critical volume of production, nat. units;

Z post- fixed costs for the entire volume of production, rub.;

C unit- price of a unit of production, rub./unit;

3 beats- variable costs per unit of production, rub./unit.

The critical production volume can be determined graphically.

An example of plotting a graph for finding the critical volume of production:

The annual output of products was 4000 pieces.

The price of one product is 0.5 million rubles / piece.

The amount of fixed costs of the organization is 400 million rubles per year.

Variable costs amounted to 0.275 million rubles per unit, which is equal to 1,100 million rubles in terms of the entire volume of production.

The construction of the graph is carried out in the following order:

1) A straight line is constructed corresponding to fixed costs. It is drawn parallel to the x-axis through a point on the y-axis corresponding to the sum of fixed costs.

2) A straight line of total costs is built using point A. Point A corresponds to the actual quantity of products (4000 pieces) and the total cost of its production (400 + 1100 = 1500 million rubles).

3) A straight line is constructed corresponding to the sales proceeds. This straight line passes through two points: zero and point B, which corresponds to the actual production volume (4000 units) and the actual sales proceeds (0.5 × 4000 = 2000 million rubles).

4) The break-even point corresponds to the volume of production equal to 1778 units and the proceeds from the sale in the amount of 889 million rubles. It is with this volume of sales that the revenue exactly covers the total costs and the profit is zero.

At the same time, the lower left triangle shows the company's loss zone, the upper right triangle shows the profit zone.

Rice. 1.1. Graph of the critical output volume

In order to determine what profit the organization will receive with the planned production volume, what should be the variable, total costs and what should be the proceeds from the sale of products, it is enough to draw a perpendicular from the point on the x-axis corresponding to the planned production volume and project the intersection this perpendicular with the lines of sales revenue and total costs on the y-axis.

The margin of financial safety is the difference between the actual sales revenue achieved and its threshold amount.

If the sales proceeds fall below the threshold amount, then the financial condition of the organization worsens, because. it has a shortage of liquidity.

The greater the share of fixed costs in the total costs of the organization, the stronger the production lever, and vice versa.

This once again proves that it is impossible to increase fixed costs uncontrollably, because with a decrease in sales proceeds, the loss of profit can be many times greater.

At the same time, if the organization is confident in the long-term increase in demand for its products (works, services), then it can afford to abandon the austerity regime on fixed costs, because the organization with a larger share of these costs will receive a greater increase in profits.

However, it should be noted that with a decrease in revenue from the sale of products, the amount of fixed costs in practice is very difficult to reduce.

If variable costs are, as a rule, the costs of production technology and they are of an objective nature, then fixed costs are, as a rule, overhead costs, and often their reduction is difficult for subjective reasons.

In essence, this means that a high proportion of fixed costs indicates a weakening of the organization's flexibility. In the event of a change in the market situation, it is difficult for an organization with a high share of fixed costs to leave its market niche and move to another area of ​​activity. The greater the value of fixed assets, the more the organization "bogs" in its market niche.

The size of which increases or decreases in accordance with the change in the volume of output. These include: the cost of raw materials and materials, the basic wages of production workers, technological and energy, motor electricity, etc. "

Official terminology. Akademik.ru. 2012 .

See what "Conditionally variable costs" are in other dictionaries:

variable costs- (English variable costs) types of costs, the value of which changes in proportion to the change in production volumes. Contrasted with fixed costs, which add up to total costs. The main sign by which you can ... ... Wikipedia

variable costs- Variable costs are types of costs, the value of which changes in proportion to the change in production volumes. Contrasted with fixed costs, which add up to total costs. The main sign by which you can determine ... ... Wikipedia

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First, the specific gas consumption for own needs and gas losses are determined, as well as conditionally variable costs for each calculated section of the layout diagram.

Specific conditionally variable operating costs (costs for purchased electricity, fuel gas, losses, reagents and materials) for the merging site are determined by the following formula

The division of costs into conditionally variable and conditionally fixed costs is of great importance for planning the cost of pipeline transport, since it allows you to set the size of its reduction with an increase in the volume of transportation and storage of oil, oil products and gas. The change in the cost of a unit of transport work due to an increase in the volume of transportation and storage of oil, oil products and gas is calculated by the formula

Depending on the change in the volume of production, costs are divided into conditionally variable and conditionally fixed. Conditional variables include costs, the total absolute size of which for the entire output changes in direct proportion to the change in the volume of production, but remains unchanged with respect to a unit of output, or changes slightly with a change in the volume of production, but not in direct proportion, i.e., the growth of these costs lag behind the growth in output or ahead of it. These are the costs of raw materials, materials, fuel, energy for technological purposes, the wages of the main production workers - piece workers.

In the context of a decrease in well flow rate and total production volume, when a certain stage of field development is reached, the volume of sales of products decreases, and, consequently, the level of profitability. However, the decrease in profitability is not proportional to the decrease in production volume, since this also reduces some conditionally variable costs - energy costs, costs for in-field pumping of oil, demulsification, etc. Deductions for geological exploration and exploration work and rental (fixed) payments are reduced, which are set for 1 ton of oil produced (rent payments for petroleum gas are not made).

Since variable costs depend on the volume of production, the difference between price and variable costs is subject to maximization. Semi-fixed costs (depreciation deductions, current repair costs, wages with accruals, general workshop and general factory expenses) are not included in the model and are subtracted from the objective function obtained on a computer. If the duration of the operation of the installation for each option is taken as unknown, then the variable costs for one day of its operation are calculated.

Production costs, depending on their role in the production process, are divided into basic and overhead methods of attribution to cost - to direct and indirect composition - to elemental and complex effects of production growth - to conditionally variable and conditionally constant.

Conditional variables are called costs that change in proportion to the growth of production volume. These are the costs of raw materials, basic and auxiliary materials, semi-finished products, fuel, energy.

Conditionally variable in most cases include the cost of raw materials, basic materials, the cost of transporting raw materials and the removal of finished products from workshops, the wages of pieceworkers, etc. conditionally fixed - for depreciation, equipment maintenance, lighting, administrative wages -management personnel (without bonuses), heating, security, etc.

There are conditionally variable and conditionally fixed costs. Conditional variables (proportional) include costs, the absolute value of which varies depending on the volume of production. This includes the cost of raw materials and materials, purchased products and semi-finished products, the basic wages of production workers, etc. At the same time, their value per unit of output does not change if the consumption rates of materials and labor standards do not change.

According to the dependence of costs on changes in the volume of production, they are divided into conditionally constant and conditionally variable.

Variable (proportional) costs are those that are in direct (proportional) dependence on the volume of output. Fixed costs are costs that are independent of changes in the volume of production. However, one should not understand the division of costs into variable and fixed in the literal sense of the word. All or almost all costs depend on the volume of production, but the degree of this dependence varies. Therefore, it would be more correct to call them conditionally variable and conditionally constant. Conditionally variable costs include the costs of raw materials, materials, wages of production workers (fuel, electricity, steam, water for energy and technological purposes, etc. Conditionally fixed costs - the cost of depreciation of fixed production assets, energy for heating and lighting , administrative and management expenses, etc.

The conditionally variable part of the cost of the annual production quantity includes the costs of basic and auxiliary materials for technological purposes wages (with deductions) of the main and auxiliary workers (if they are assigned to jobs) depreciation of universal equipment repair and modernization of universal equipment operation of universal devices, devices and other tooling maintenance of the premises occupied by the universal equipment defective products. .

When the use of a new method or means requires the use of large conditionally fixed reduced costs (C p. NB > SP.NB, rubles / year) and at the same time provides savings in specific conditionally variable reduced costs (i.e., c "P. on the

For analysis, it is very important to divide costs into conditionally variable and conditionally fixed costs.

Conditionally variable costs change in proportion to the change in the volume of production. In drilling, these include the consumption of energy, materials, etc., in oil production - the transport and storage of oil, energy consumption (during artificial lift), and so on.

Depending on the volume of production, expense items are divided into conditionally constant and conditionally variable. The latter include all costs that increase in line with the increase in production volume. These are the costs of raw materials, reagents, catalysts, and energy. The remaining costs do not depend on the volume of production and are characterized by relative stability. These are depreciation and current repairs of equipment, wages with accruals, shop and general factory expenses, etc.

Conditional variables are such costs that change in absolute value with changes in sales and production volume, but do not change per unit of product sales.

Conditionally variable costs, including 91676.02 83883.56 76753.46 7022941 64259.91 58797.82 53800.01 49227.01 45042.71 41214.08 634884

Conditionally variable costs for oil production and reconstruction, including 92711.11 86092.69 78774.81 72078.95 85952.24 60346.3 55216.87 50523.43 46228.64 42299.48 650224.8345

Conditionally variable costs for the extraction of 1 ton of oil, rub. 181.00

Conditionally variable costs refer to a unit of output or work performed and change with a change in the volume of production - costs for demulsification, in-field pumping and storage of oil, for collecting and transporting gas in oil and gas production for casing pipes, chemicals, cement, energy - in drilling.

The costs included in the cost of production are also divided into conditionally variable and conditionally fixed. Conditionally variable costs are related to a unit of output or work performed and change with a change in the volume of production - the cost of demulsification, infield pumping and storage of oil

In the concept of management accounting, costs occupy an important place, since their analysis is mandatory in the course of current activities. Semi-fixed costs are general business costs for advertising, as well as those that do not depend on the volume of production. Every organization has this part of the costs, so its study and optimization make it possible to increase profits.

Why is it necessary to classify costs?

To analyze the costs of the enterprise was easier and more efficient, it is customary to classify them according to certain criteria. This division allows you to identify their relationship and calculate how much each individual affects the cost of production and the profitability of the business as a whole.

In order for the cost structure of an enterprise to have order, it is necessary to effectively maintain accounts and link costs to objects. For this purpose, expenses are classified according to similar characteristics. The choice of differentiation determines the object: if it changes, this may entail a change in the cost category.

Classification types:

• Subjective. Costs are grouped according to specific characteristics: direct or indirect, fixed or variable.
• Objective. In this case, the subjective classification is tied to a specific object.

At each enterprise, costs can be differentiated in different ways so that the cost structure is clear and understandable. Management accounting allows you to choose the most optimal method. It should be noted that all costs are grouped by types of costs, cost carriers and the place where they arise.

By type, costs can be divided in accordance with economically homogeneous factors and costing items.

Cost carriers are products, activities or services. This category of expenses is necessary in order to determine the unit cost of production.

Costs and their classification also depend on the place of occurrence: it can be production shops or other divisions. It is advisable to group the costs in accounting so that the information is as accessible as possible for the analysis of costs and the definition of a savings strategy.

Costs and their classification

Enterprises distinguish between the main types of costs:

• semi-fixed costs;
• conditionally variable costs.

Semi-fixed costs are those that do not depend on the time period and production volumes. These costs increase with the increase in the scale of economic activity, but at a slower pace. In some cases, their growth tends to jump.

Simply put, semi-fixed costs are those that arise when the volume of production has increased dramatically, for example, the cost of additional equipment.

Conditionally variable costs include costs associated with the purchase and sale of products. Their value depends on many factors: supplier prices, and others.

Calculated as the sum of conditionally variable and conditionally fixed costs.

Internal and external costs

In relation to the environment, costs are classified into internal and external. He finances the internal ones on his own, and entrusts the care of external organizations to other organizations or society as a whole.

The grouping of costs by directions and articles is used to calculate the costs of manufacturing and selling goods or services. To make it more convenient to calculate losses and profits, analyze the cost and set prices, a calculation sheet is compiled. According to the items, the costs are divided depending on what role they play in the enterprise and for what needs they are used.

Indirect and direct costs

Indirect or divided depending on the method of attributing costs to cost.

Indirect costs are those costs that are not charged per unit of output, but are accumulated in the accounts. After that, they are included in the cost price by calculation. As a rule, indirect costs are taken into account at the places of their occurrence, and then distributed among the types of products. These include the salary of temporary workers or the cost of acquiring additional materials.

Direct costs are calculated on the basis of primary documents for each unit of production. All costs that relate to a particular product are called direct: the purchase of raw materials and materials, the salary of the main workers, as well as any others. When calculating an object, it is necessary to understand that the greater the share of direct costs, the more accurately you can calculate the cost per unit of goods.

Technical and economic costs

According to the technical and economic purpose, the costs can be divided as follows:

• Basic.
• Overhead.

It is customary to refer to the main costs those that are directly related to the production process or the provision of services. These are the costs necessary in order to carry out the production and release of a specific product: the cost of purchasing materials, the cost of electricity, fuel, wages, and so on.

General production and business expenses are considered indirect. They are related to the maintenance of structural divisions of the enterprise.

Costs characterizing the activities of the enterprise

To analyze the activities of the enterprise as a whole and evaluate the finished product, the cost structure of the enterprise is as follows: expenses are divided into incoming and expired. Incoming funds include acquired funds that are used to make a profit. If over time they have lost relevance or been used up, they are transferred to expired costs.

On the balance sheet asset, input costs can be shown as goods, finished goods, inventory, or work in progress.

Costs that relate to social or managerial development programs are usually called discretionary. To get the average unit cost, you need to add the unit fixed and variable costs.

Types of variable costs

Depending on the change in production volumes, non-fixed costs can be divided into types:

• Proportional. These costs change at the same rate as the scale of production.
• Progressive. Such costs increase much faster than the growth rate of the enterprise's activity. This may be due to interruptions in work or downtime.
• Degressive. To increase profits and reduce costs, the rate of these costs must exceed the rate of progressive and proportional costs.

Conditionally variable and conditionally fixed costs are important indicators in any business, so it is necessary to clearly understand the mechanism of their formation.