Example of product costing. The procedure and rules for registration of cost accounting for services

When calculating the cost of services, the CFO first determines the types of costs that should be attributed to the cost of services, and classifies them.

Costs fall into the following categories:

1. Direct identifiable costs are those costs that are directly related to the provision of a service and can be attributed to the cost of a service provided to a specific client.
2. Direct unidentifiable costs - costs related to the provision of services, but cannot be unambiguously attributed to a specific client.
3. Payroll and accruals on it - the salary of specialists providing this service, and the accruals of the PFR / FSS on it. Please note that the payroll for administrative specialists does not belong to this category, it should be classified as part of indirect expenses.
4. Indirect costs - costs that relate to the activities of the company as a whole, and cannot be attributed to any particular type of implementation. These include, as a rule, selling, administrative and general business expenses.

We will discuss these types of costs in more detail below. product cost calculation on their basis, and also give an example of minor repair services provided to shopping center tenants as services accompanying the main type of sale (rental of retail space) services, and calculation of their cost.

Direct identifiable costs

These are costs directly attributable to the provision of a service to a given client (for example, materials used)

Direct identifiable costs when calculating the cost of services include the costs of providing services that can be directly attributed to the type of service and to the specific client to whom it is provided. This is the easiest type of cost to account for.

Calculation of the cost of minor repairs for shopping center tenants. Example

In this case, the direct identifiable cost would be the consumption of materials (eg plumbing fittings).

Table 1. An example of calculating the cost of services

Direct non-identifiable costs

Such costs include costs that are attributable to the provision of services, but which cannot be identified by the client.

This type of costs includes those costs that can be attributed to a specific type of service, but cannot be directly attributed to a specific client. In this case, the following methods can be used to calculate the cost of the service provided to each client. cost sharing between clients:

• in proportion to the client's revenue;
• proportionate to direct identifiable costs attributable to the customer.

The first method is more universal, the second is more convenient to use in cases where direct unidentifiable costs are technologically related to direct identifiable costs.

Example 2. Depreciation of tools used in minor repair services for shopping center tenants

The total amount of depreciation of instruments per month is 10 thousand rubles.

The financial director draws up the following table (see table 2).

table 2. Comparison of distribution proportional to revenue and proportional to direct costs

	Option 1. Distribution by revenue		Option 2. Allocation by direct costs
		Share of depreciation	Direct costs	Share of depreciation
IP Petrov
Cosmos LLC
CJSC "Vector"
Individual Smirnov
TOTAL

How costs are allocated to customers is determined by the CFO, either based on accounting policies or based on whether the costs incurred are physically affected: revenue or direct costs. For example, in the example above, the method of distributing costs in proportion to revenue is more logical, because, even if there were no direct costs (materials) for the services of Smirnov's client, then the tools were used and depreciation should be charged.

Payroll and ways to evaluate it

Payroll, taxes and deductions from it can be classified as follows:

Section 2 (direct unidentifiable costs) - in the event that the employee (or department), whose salary we analyze, spends at least 80% of his working time on work related to the provision of the analyzed services.

Example 3. Payroll and accrual of specialists (plumbers) directly providing minor repairs to shopping center tenants

Specialists work on the terms of piecework hourly wages, for the analyzed month they earned 9,000 rubles, taking into account accruals, it is 11,970 rubles. Let's calculate the distribution of the payroll and accruals on it for customers in proportion to revenue.

Table 3. Calculation of payroll and accruals on it

In the event that a department or employee is estimated to spend less than 80% of working time on activities related to the provision of the analyzed services, or they are related to the main activities of the enterprise, the CFO should take the following actions:

1. Estimate the time spent by each specific contractor, or the unit as a whole, for each type of service and / or for each client.
2. Calculate the share of payroll and payroll accruals related to a specific type of service and/or to each specific client.

Example 4. Estimation of the share of the permanent payroll of the sales department of the rental department, attributable to the cost of minor repairs.

Table 4. Assessment of payroll attributable to repair services

Indicator	Meaning
Payroll amount (including personal income tax 13%), rub.
PFR/FSS deductions, rub.
Total payroll, rub.
Total time of telephone conversations with tenants, hours per month
Time spent negotiating minor repairs
Percentage of time spent negotiating minor repairs
Total payroll share in minor repair services

In this example, the CFO, using the table above, estimates the payroll amount (together with deductions) attributable to minor repairs. Further, this amount is distributed among customers in proportion to revenue.

Table 5. Payroll distribution among clients

Indirect costs in the calculation of the cost of services

Indirect costs include those costs that cannot be accurately attributed either to a specific type of implementation or to a specific client. An example of this would be administrative expenses.

For costing purposes, the CFO allocates indirect costs in proportion to revenue across all types of sales. The share of indirect costs attributed to a specific type of service is distributed by the financial director in proportion to the revenue received from each client.

Example 5

The amount of administrative expenses is 500,000 rubles. Revenue from rental services is 33 million rubles, revenue from minor repairs is 29,000 rubles. (see table 1.). In this case, the share of administrative expenses attributable to minor repairs is 500,000 x 29,000 / 33,000,000 = 439 rubles. Further, this amount is distributed to the cost of the service provided to specific customers, similar to depreciation in option 1 of Table 2.

Table 6. Allocation of the share of administrative expenses to the cost price

The total table of the cost of minor repair services by tenant is as follows.

Table 7. Cost of minor repair services by tenant

Type of expenses					TOTAL
	IP Petrov	Cosmos LLC	CJSC "Vector"	Individual Smirnov
Direct identifiable costs
materials
Direct non-identifiable expenses (in proportion to revenue)
Equipment depreciation
Payroll and accruals
Service Providers (Plumbers)
Commercial payroll in the part related to minor repairs
indirect costs
Administrative expenses related to minor repairs
TOTAL			13207,72

During customs clearance of cargo, customs officials may request a calculation of the unit cost of goods in order to prove the correctness of the indicated price. This situation often occurs when the cost of goods is below the throughput. Although many traders are convinced that this information is a trade secret of the manufacturer, and that, in fact, no supplier is obliged to devote the buyer to the intricacies of his earnings, we will still tell you what the calculation of the cost of goods is. This information will be useful to manufacturers and participants in foreign economic activity when calculating the planned profit from the sale of a particular product.

What is product costing

Product costing is the calculation of costs per unit of goods. In foreign trade operations, the cost of expenses when crossing the border is calculated. When calculating the cost of production, the following costs are taken into account:

• cost of goods;
• the price of cargo delivery;
• duties, customs payments, VAT;
• costs for the services of a customs broker;
• the cost of customs clearance.

Cargo transportation is a fairly large-scale procedure in which it is important to take into account all costs. Costing helps not only take them into account, but also reduce them by looking for more economical and efficient solutions.

At customs, costing may be required if the customs value of the goods raises doubts among customs officers, that is, you are suspected of underestimating the cost. No international trade rules provide for the mandatory provision of this information, such a clause is usually also absent in contracts, however, traders often face this problem.

Types of unit costing

There are the following types of costing:

The calculation types differ depending on the data used in the calculations. Each type has its own purpose.

Calculation allows you to reduce the cost of material resources and labor.

Calculation methods

There are three main methods for calculating the cost of production:

The costing data is used in production control.

Each of the considered types of calculation has its advantages and disadvantages. The choice of method depends on the area for which you want to make calculations.

Calculation example

For example, in the workshop you need to complete 240 interior doors. The calculation is made according to the following scheme:

All calculated indicators are summarized. As a result, we get the cost of the service.

As for providing a calculation at customs, experienced businessmen advise writing an explanatory note to the head of customs that the manufacturer refused to provide data, citing trade secrets, it indicates the contact details of the supplier and suggests making a request yourself. For some, it "works" and customs officers remove this issue from the agenda.

And their grouping by item of expenditure.

Cost accounting and calculation of production costs is a very important part of the economic policy of the enterprise, which makes it possible to determine with maximum accuracy the reasons that affect the final and intermediate cost of a unit of production and, if necessary, correct them. Calculation is a clear detailed calculation that allows the manager or owner to form their own opinion on the cost of production.

There are three types of calculation:

• regulatory - compiled in accordance with factory and industry standards. It is necessary in order to determine the technically and economically justified amount of expenses that will be needed for the production of products (works, services);
• planned - such costing is planned for a certain period for budgeting. It is necessary in order to determine the need for working capital and when planning profits;
• reporting - the one that really took place at the end of the reporting period.

In economic analysis, the planned and budgeted costing of production are compared with each other in order to determine the deviation and find out its causes. Also, such a comparison allows you to control the expenditure of resources and the efficiency of production units.

The calculation of the cost of production can be carried out according to the following main items:

• materials and all types of raw materials;
• returnable waste and packaging (these costs are deducted from the calculation amount, since they are subsequently returned to;
• fuel and energy (for technological purposes and production)
• including bonuses for production workers;
• social contributions from the wage fund;
• operating costs of production equipment and premises.

All these costs are technological cost. It is necessary to estimate the costs directly for the production process.

• overhead costs (for the maintenance of certain workshops and the costs of their management, are calculated in proportion to the sum of the wages of all production workers and personnel directly involved in production);
• general business expenses (these are the costs of managing and servicing the enterprise as a whole);
• losses from marriage;
• other business expenses.

All of the above costs create production cost. It is needed to estimate the costs of the production process, including its management and maintenance.

• non-production costs (shipping, storage, marketing).

All these costs create full cost. It is this cost that is the basis for determining the price of goods using the cost method.

The cost structure is the proportion of all the components of the costing items.

It is influenced by the nature of products, natural conditions and the level of technical and general organization of the enterprise.

If necessary, each costing article can be divided into sub-items related to the specifics of the activity, in order to obtain more detailed information.

Units of production - this is an internal document of the enterprise, which details all the costs for 1 unit of manufactured products, often it is a trade secret.

Calculating the cost of production is most often assigned to the economic department, accounting, as well as to the production and standardization department of the enterprise. - a very important point in budgeting the costs of the enterprise.

Costing is the calculation of costs for the production or sale of a unit of a product (a group of units, work, services), determined in cost form. In order for the company to work effectively, it is necessary to take the pricing process seriously.

At the same time, it is, perhaps, its main element and the most important stage in calculating the financial result of the enterprise.

A well-formed costing will help determine an important figure - This, in turn, will make it clear how competitive the product is on the market, and will also make it possible to navigate profitability, margins and calculate the expected profit.

It is quite simple to draw up such a document at an enterprise that produces homogeneous products. At the same time, if semi-finished products are not used in the manufacturing process and there is no work in progress at the end of the period, it is enough to collect all production costs. Unit costing in this case includes costs calculated by simply dividing all costs by the total number of products.

In general, the general positions of the statement are as follows: basic materials and raw materials, semi-finished products of their production, auxiliary materials, fuel and energy costs, wage costs for production workers, deductions from payroll for social needs, costs for mastering production, costs for operating machines , equipment, and This is an example of what shop floor costing includes.

If we add to them general business, other production costs and accounted for losses from marriage, we get products. The calculation, in which it is included, fully reflects the list of costs in monetary terms. All figures are included in the statement based on accounting data.

It should be noted that documents of such purpose may include preliminary and factual data.

Depending on this, the costing of services (products) can be planned, normative and actual.

Planned is the basis for calculating the price of products, which includes the costs of production and sales expected in a certain future period. It is based on progressive norms for the use of the organization's resources, and the planned cost estimate remains unchanged for the entire set period of time.

Standard costing is based on the currently valid standards. It helps to control the production process by identifying deviations.

Actual - is a reflection of the actual cost of production. Only in it you can see the real costs, costs and losses that cannot be taken into account in preliminary calculations. That is why it is impossible to imagine the activities of the enterprise without compiling an actual cost estimate.

- an extremely important parameter, the definition of which ensures a reduction in the cost of material and labor resources. This value is necessary for competent production management.

What is costing

Costing is the determination of the cost per unit of output. For example, a company is engaged in the production of doors. In this case, the cost of manufacturing one door is calculated. The cost includes costs in the following areas:

• Transportation of products.
• Cost of goods.
• Delivery of raw materials or products.
• Duty and customs payments.
• Material, raw material.

The cost includes many options. Calculation allows you to determine the costs for each direction. In the future, you can analyze the rationality of these expenses, and then reduce them. The manager is looking for the most effective methods to reduce costs.

Varieties of costing

The following types of calculations can be distinguished:

• Normative. When determining the cost, the raw material consumption rates valid at the beginning of the month are taken into account. It must be said that the real norms (which are used in the calculations) and the planned norms may differ from each other. For this reason, the target and planned costs will also be different.
• Planned. The cost of production in this case will be average. It is set for a specific planning period. When calculating, you need to take into account the average cost standards. If the company executes one-time orders, an estimate is generated. There is also an accounting calculation needed to determine the cost of the service. It does not include spending rates.
• Reporting. Determined at the end of the reporting period. When generating a reporting cost estimate, accounting data will be required: actual costs, production costs, quantity of manufactured goods. This form provides the ability to track the implementation of the plan to reduce the cost of production. Reporting costing is needed to establish the dynamics of reducing or increasing the cost. It allows you to find the real cost of the product, to determine the difference between the cost of actual and planned nature.

A cost estimate is classified according to the information that is used in the calculation.

Methods

Calculation can be carried out in various ways:

• Transverse. The redistribution represents the final step of processing and production. Calculations are carried out on the basis of information on processing or manufacturing. The method under consideration is used in the oil refining and food industries. Transitional costing is considered simple. It does not involve the compilation of statements, the redistribution of indirect costs. The first step is to perform the calculation in conventional units. The second step is to establish the cost of a conventional unit of goods. The third step is to determine the cost.
• Process. When calculating, you need to use information on a specific redistribution, which includes a list of processes. The process is a technological stage that is a component of production. The considered method is suitable for the mining, chemical industry. Relevant for mass production of goods. If there are no work-in-progress items, the cost is determined by dividing the costs by the number of manufactured products. Both expenses and the volume of goods are determined for a certain reporting period. If the release cycle is long, the costs must be allocated between production and work in progress.
• Custom. Relevant for the construction, aviation industry. It is used in small and medium businesses. Suitable for companies engaged in tailoring, furniture production, repair. This is an easy way to track costs. The peculiarity of this technique lies in the fact that it can be applied only after completion of work. This is due to the fact that all the completeness of information is needed for calculations.

The considered costing methods are necessary for the effective management of the production department.

Example of costing

The company is engaged in the production of interior doors. Calculations are carried out as follows:

• Raw material consumption. It is necessary to take into account the cost per unit of raw materials. For production, 6.8 units of glass will be needed. The price per unit is 85 rubles. The cost must be multiplied by the number of units (85 * 6.8). Calculations are carried out in relation not only to glass, but also to wood, paint and varnish products, and components.
• Electricity costs. First, the amount of electricity needed to illuminate the production facility and the operation of the equipment is calculated. Then the cost of 1 kW is determined. Then the amount of energy is multiplied by the cost of one unit.
• Payment for the work of workers. You need to determine the salary of all employees, paid for the entire order, and then divide it by the number of doors. Salary includes various bonuses.
• Repair. Spending on current repairs and maintenance of the equipment used is divided by the number of doors.
• Target spending. The target costs include the earnings of managers, the cost of maintaining the premises. This figure must be divided by the number of doors.
• Commercial spending. These include spending on advertising, shipping. This indicator is similarly divided by the number of doors.

All obtained values ​​must be added. The resulting number is the cost.

Basic tasks of costing

What is the calculation for? It is required for the following tasks:

• Determining the real cost of a particular product, work or service.
• Control over expenses, taking into account regulations and spending standards.
• Establishing profitability.
• Evaluation of the effectiveness of labor activity.
• Evaluation of the performance of individual departments.
• Collection of information about the upcoming analysis of the reserve to reduce the cost.
• Valuation of stocks of finished products and semi-finished products.

NOTE! Based on the cost price, the retail price of the goods is determined. It is unprofitable for the entrepreneur to reduce the retail price below the cost price. In this case, the company will go negative. Therefore, the cost price is the basis for setting a reasonable price.

What does the cost include?

The components of the cost depend on the specifics of the organization. For example, the cost of construction and installation works may include the following elements:

• Material and raw materials.
• Employee earnings.
• Equipment content.
• . Other expenses (rent of premises, assistance from third-party companies, insurance premiums).

Transport services may include these components:

• Basic expenses (earnings of drivers, taking into account deductions to non-budgetary funds).
• Fuel costs and vehicle depreciation.
• Vehicle maintenance costs (purchase of spare parts, maintenance of a garage, depreciation).
• General business expenses.
• Commercial spending.
• Management expenses.

Cost includes only actual costs. For example, if a company does not rent a room, then the cost of rent will not be included in the price. If the organization offers services, then the cost will include those materials that are used in the provision of services.