Percentage reduction in production costs formula. Calculation of product cost reduction. Let's calculate the amount of savings

Task. Determine cost reduction

Task. Determine material cost reduction

Task. Selecting a cost reduction project

How to reduce production costs?

Algorithms for calculating the economic effect of reducing production costs

Technological

Economic

Organizational

Send your good work in the knowledge base is simple. Use the form below

1. Increase in production volumes

2. Increased productivity

3. Saving operating costs for production

4. Reducing purchase prices for raw materials and materials for production

5. Reduction of technological losses and production defects

6. Optimization of production processes

Example 1

Cost is amount of costs, spent on the production of any product, product, service. Depending on the volume, there are shop, full, unit and production costs, which include different types costs.

By reducing costs, you can reduce the price of products, becoming a more competitive and attractive enterprise in the market, without reducing your profits, raise salaries for key personnel, and also significantly improve the financial stability of the company.

Cost includes the following elements:

Labor costs (worker wages).
(expenses for the purchase of materials, raw materials, tools, third-party services and everything that is used in the creation of the product).
Contributions to extra-budgetary funds.
Depreciation costs (depreciation of fixed assets).
Other.

The “other” element includes: fees for the use of housing and communal services, loan payments, rent, repairs, and so on.

Naturally, the management of each enterprise thinks about how to reduce production costs and get the greatest profit in order to increase its profitability.

To reduce product costs, it is required look for ways to reduce them.

In the cost structure, the largest share is traditionally occupied by material and labor resources, therefore, the primary direction of cost minimization will be the reduction of these costs.

Ways to minimize costs:

Increased production output. Fixed costs, such as rent, are spread over more products.
Search for analogues of materials.
Increased efficiency of equipment use, development of low-budget production.
Reduced use of third party services. If a company uses external services to a minimum, but, on the contrary, performs all functions on our own, then costs may be reduced. For example, reducing delivery or assembly costs.
Reduction of personnel, combination of positions. Not the most pleasant, but one of the most effective methods cost reduction.
Decrease in inventories.
Relations with suppliers. By providing, for example, a discount on the purchase of your goods to suppliers, it is possible to establish commercial relations with them and buy materials and components at a lower price. Also, you should choose those suppliers who carry out free shipping and free repairs under warranty.
Cost intensification. The introduction of new technologies into production and an increase in its volume has a positive effect on revenue; production activities are carried out faster, therefore, more products are produced per unit of time. It is possible to introduce a system of fines for downtime and defects in production, but this in turn can cause negativity on the part of the staff.
Saving energy and fuel.
Reducing telecommunications costs.
Sale or rental of unused premises, equipment, as well as sale of goods with an expiring shelf life.
Reducing tax costs (concluding agreements with individual entrepreneurs and legal entities, etc.).
Exercising control over receivables and payables.
Optimization of procurement, holding tenders.

Using several or one of these methods will help enterprise management reduce costs and reduce production costs. But, in addition to the ways to reduce costs, it is also necessary to know the factors influencing this reduction. Let's look at them in more detail.

The likelihood of a drop in the cost of products can be detected in 2 areas - sources and factors.

Sources are assumed to be those whose savings reduce the initial cost of the product. These are the costs of living and materialized labor, administrative and management costs. Let's look at the factors below.

This type of factors is associated with production technology, operation and quality of equipment and includes:

use of new, energy-saving and high-performance equipment;
improving the quality of manufactured products and labor;
modification of the nature and manufacturing technology;
the use of high-quality materials, due to which you can increase the price of products.

raising the level of work of production and management structures;
improving the work of human resources and economic services;
improvement organizational structure;
reduction of costs for unreasonable investments.

This type of factor involves the organization of labor and production, namely:

reduction in the number of downtime and product defects;
improving the use of funds, material and technical base;
reduction of transportation costs;
stimulating employees for greater labor productivity;
liquidation of obsolete and unnecessary inventories;
increasing the turnover of funds, as well as reducing the production cycle;
ensuring the rhythm of production;
improving the skills of workers.

In addition, factors influencing cost reduction can also be divided into production (inside production) and non-production ( external environment, for example, tariffs for housing and communal services, rent).

Now let’s look in detail at what measures exist to reduce the cost of a product, product or service.

The main, most realistic reserve for reducing product costs is considered to be a change in two main parameters characterizing products - depreciation intensity and material intensity.

S/N = M/N + A/N, where

M/N- material consumption, A/N— depreciation.

Savings from reducing depreciation of products can be determined in accordance with the data in the article “Depreciation of fixed assets” for formula:

Savings = ((If * Ia) / In - 1) * da * 100, where

If— index of growth in the value of fixed assets, Ia— growth index of the average depreciation rate, In— index of growth of marketable products for comparable purposes, da— the share of depreciation in the cost of production.

It must be remembered that cost reduction must be based on a systematic and pre-planned approach.

The systematic approach includes a number of activities that can be divided by time frame:

Compliance financial discipline . The head of the organization must draw up financial plan and carry out cost reduction measures only by strictly following this plan. Also, you need to create a system financial accounting, which provides for accounting not only of income, but also of expenses.
Drawing up a cost reduction plan. By analyzing the activities of an enterprise, you can identify weaknesses in it and reduce costs where required. Systematic cost reduction in general should be associated with improved management in three areas: investments, procurement, production processes (improvements due to organizational and technological changes).
Controlling. To reduce costs, monitoring defects, downtime, property damage, and low employee productivity is also effective. In many modern enterprises There is a controlling department that deals with these studies.

So, main measures to reduce costs are:

increasing the technical level of production (use of electronic computers, improvement of existing equipment, use of waste, etc.);
increased production management efficiency;
expansion of specialization and cooperation;
reduction of current costs (improved maintenance of main production)
reduction of living labor costs (reduction of lost working time, reduction of the number of workers who do not meet production standards);
reduction in management costs and savings wages and accruals to it in connection with the release of management personnel
elimination of losses, incl. from defects and downtime.
the growth of labor productivity should outpace the growth of wages, thereby ensuring a reduction in production costs.
reduction of workshop and general plant expenses.
increasing product output or changing its structure, assortment and nomenclature
improving the use of natural resources
development of new types of products.

Thus, the cost is most important factor in making a profit for the enterprise. Using systems approach By clearly planning areas for cost reduction and controlling this process, you can raise the enterprise to a new level of profitability and competitiveness in the market.

Cost reduction in 1C is lower.

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Posted on http://www.allbest.ru/

COURSE WORK

in the subject “Industry Economics”

“Calculation of savings from cost reduction”

Introduction

1.2 Pricing

1.3 Profit, its economic content, types and methods of determination

1.4 Profitability and factors influencing its increase

1.5 Tax policy

1.6 Remuneration of employees

1.7 Capital investments

II. Calculation part

1. Initial data

2. Calculation procedure

2.1 Drawing up cost estimates for production and sales of products

2.2 Calculation

2.3 Pricing

2.4 Profit generation

2.5 Distribution of nails

2.6 Investments in production development

2.7 Cost reduction

2.8 Savings

2.9 Payback period of investment

2.10 Self-supporting annual economic effect

Conclusion

Bibliography

Introduction

In connection with the radical restructuring of the Russian national economy, significant changes have occurred in the work of enterprises in the machine-building complex. For example, a transition was made from planning and distribution forms of management, when the functions of planning, provision of raw materials and supplies, and sales of products were carried out by the state, to work in conditions market economy. Currently, enterprises perform these functions independently, ensuring their livelihoods.

The result is financial economic activity enterprise is the amount of profit received, which depends on two indicators: the volume of products sold and production costs. The price of products is formed on the market as a result of the interaction of supply and demand. In conditions of free competition, it is little subject to the influence of individual commodity producers. The expense part of the financial result is the costs of production and sales of products. They directly depend on the efficiency of the organization’s production and economic activities and are one of the main objects of management in financial management.

The analysis of factors for reducing production costs is carried out in two complementary areas: cost elements and costing items. In the process of analyzing cost estimates, the nature of production is assessed (material-intensive, capital-intensive, labor-intensive) and the main directions for searching for reserves for cost reduction are determined. To carry out the analysis, production costs and the specific weights of their components should be assessed over time and compared with planned values. Analysis of cost by costing items allows us to identify deviations for each individual cost component relative to the basic and standard values. Identified deviations are subject to detailed analysis in order of priority specific gravity costs in the cost structure.

My goal course work is to learn how to prepare cost estimates and cost calculations and study issues of pricing, profit generation and profitability and production efficiency.

I. Calculation of savings from reducing production costs

1.1 Concept, structure, composition and classification of costs of industrial products

In the context of the transition to a market economy, many small and medium-sized enterprises use a reduced range of costing items, including:

material costs (raw materials, materials, fuel and energy for technological purposes);

labor costs;

other direct costs;

Production management and maintenance costs.
The cost of the means and objects of labor consumed in the production process (depreciation, cost of raw materials, materials, various types energy, etc.), part of the cost of living labor (wages), the cost of purchased products and semi-finished products, production services of third-party organizations are reflected in the cost of production. The cost of industrial products is the current costs of an enterprise for the production and sale of products, expressed in monetary terms.

Additionally, the cost of industrial products includes:

deductions for social insurance wage fund for key personnel (in proportion to wages);

interest on a bank loan;

contributions to the State Employment Fund;

contributions to maintain fixed capital in working condition.

Cost is the most important qualitative indicator that reflects the results of an enterprise’s economic activities, as well as a tool for assessing the technical and economic level of production and labor, quality of management, etc. It acts as the initial basis for pricing, and also has a direct impact on profits, the level of profitability and the formation of a national monetary fund - the budget. Depending on the location of costs in the economic activity of an enterprise, a distinction is made between shop cost, factory or production cost and full cost.

Workshop cost refers to the costs of a workshop for the production of manufactured products.

Factory cost is the sum of the production costs of the workshop and general plant expenses, which include the costs of managing the enterprise. Factory cost includes factory overhead as a percentage of shop cost.

The total cost of industrial products consists of the costs of production and sales of products, that is, it is the sum of the factory cost of non-production expenses (the cost of packaging purchased externally, deductions to sales organizations in accordance with established standards and contracts). Non-production costs are also taken into account (losses from defects, shortages and damage to materials and finished products).

The cost of production reflects the current costs of producing the entire volume of products and each unit. In the first case, a production cost estimate is drawn up, in which costs are grouped by element in order to:

determine in living and embodied labor for the production of the planned volume of products;

distribute costs according to economic content:

establish the share of a particular element in the total production costs.

When grouping costs by elements, the degree of participation of the main elements of production (fixed capital, working capital And work force). Since not all inventories play the same role in the production process, for objective assessment they are differentiated into smaller components (raw materials, basic and auxiliary materials, purchased products and semi-finished products, etc.).

Element-by-element classification provides for the distribution of costs according to the following elements:

element “Raw materials and basic materials” minus moves, including purchased components and semi-finished products. The element “Raw materials and basic materials” includes the cost of all types of raw materials and basic materials minus returnable waste;

element “Purchased components and semi-finished products”. Includes the cost of these products used in the production process, taking into account the services of cooperative enterprises;

element. "Supporting Materials". Takes into account the cost of materials that are not the basis of finished products, but are used in the production process to maintain continuity of the technological process;

element "Fuel". Includes costs for the purchase of all types of fuel both for production purposes and for general plant needs;

element "Energy". Takes into account the cost of all types of purchased energy (electric, fuel, steam, compressed air, etc.) consumed for production and economic purposes enterprises;

element "Salary". Includes basic and additional salary industrial production enterprise personnel, including bonuses to workers from the wage fund;

element “Social insurance contributions”. Takes into account deductions according to established standards for social insurance;

element “Depreciation of fixed capital”. Takes into account depreciation charges, which are calculated on the basis of the initial cost of fixed capital for both production and non-production purposes, that is, for social and cultural needs;

Element “Costs of fixed capital to maintain it in working condition.” Includes costs associated with various repairs;

Element "Other costs". Takes into account expenses that were not taken into account in the cost elements listed above: travel costs, rent, warranty repairs of products, etc.

Thus, the amount of costs for all of the above elements includes the costs of producing the planned volume of products.

Grouping costs by element allows you to determine the factory cost of gross and commercial output, coordinate the cost plan with other sections of the production plan, and develop the main directions for its reduction.

Expenses are grouped by costing items when determining cost individual species products, works and services, as well as when assessing the degree of influence of individual elements on its formation and developing a plan of organizational and technical measures to reduce costs.

The following nomenclature of costing items is used as a standard grouping:

Raw materials and materials.

Purchased semi-finished products, components, services of cooperative enterprises.

Returnable waste.

Fuel and energy for technological purposes.

Basic wage for production workers.

Additional wages for production workers.

Social insurance contributions.

Expenses for preparation and development of production.

Wear and tear of tools and devices for specific purposes and other special expenses.

Expenses for maintenance and operation of equipment.

Shop expenses.

General plant expenses.

Marriage losses.

14.Other production costs.

15. Non-production expenses.

Costs for basic materials, purchased components and semi-finished products, fuel, energy for technological purposes are established according to consumption rates and corresponding prices, taking into account transportation costs.

Costs for direct wages of production workers are calculated on the basis of the standardized labor intensity of products and established piece rates.

The amount of additional wages is established on the basis of a coefficient characterizing the ratio of the total additional wages to the tariff fund.

Insurance deductions are set according to the tariff. Costs for maintaining and operating equipment are determined various methods: in proportion to the basic wages of the main production workers, by direct recalculation, in proportion to the coefficient of machine hours, that is, based on the cost of 1 hour of machine operation, conventionally taken as the base.

Shop and general plant expenses are established based on cost estimates and by allocating costs per unit of production.

Other production costs are determined on the basis of special calculations and, as a rule, are included in the cost of the relevant products. If it is difficult to use the direct valuation method, they are distributed among individual products in proportion to their production costs without taking into account other production costs.

Shop expenses include wages of the shop management staff, depreciation, costs of maintenance and routine repairs of buildings, structures, and equipment public purpose, for rationalization and invention, labor protection, etc.

As a rule, shop expenses are distributed between individual products in proportion to the sum of the basic wages of production workers and the costs of maintaining and operating the equipment.

General plant expenses are the costs of managing an enterprise (plant), maintaining general plant personnel, and costs for general plant needs of the enterprise. These include: wages of plant management personnel with social insurance contributions, business travel expenses, office and postal and telegraph expenses, depreciation and repairs of buildings and structures for general plant purposes.

Costs, according to the method of attributing them per unit of production, can be direct and indirect.

Direct costs are expenses strictly for the intended purpose. They are included in the unit cost of production using the direct valuation method.

Indirect costs cannot be attributed to the production of a specific product, since they are related to the work of the workshop or enterprise as a whole. They are distributed among various products in proportion to one or another conventional meter, most often in proportion to the wages of the main production workers.

In accordance with their economic content, costs for costing items are divided into basic and overhead. The main costs directly related to the manufacture of products, overhead costs for organization, management, technical preparation of production, etc.

According to the degree of dependence on changes in production volume, costs are divided into proportional (conditionally variable) and disproportionate (conditionally constant).

Conditionally variable costs change in proportion to the growth of production volume (raw materials, materials, fuel consumption, energy for technological purposes, etc.). Their value is influenced not only by the volume of production, but also by the specific consumption of material and labor resources. Taking into account the influence of various factors on conditionally variable costs, the following possible situations are distinguished:

a) semi-variable costs change in proportion to the increase or decrease in production volume;

b) when introducing achievements of scientific and technological progress, a reduction in material and labor costs. For example, as a result of the introduction of more productive but expensive equipment, wage savings per unit of production are achieved, but specific depreciation increases. At the same time, overexpenditure on depreciation is covered by savings on wages and semi-variable costs are reduced;

c) an increase in semi-variable costs may be a consequence of an increase in the quality of products, an increase in the size of workpieces, an increase in prices for materials, fuel, energy, and labor costs.

Conditionally fixed costs do not change significantly when production volume changes (costs for lighting, heating, depreciation of buildings and structures, etc.).

The estimated level of costs is calculated on the basis of planned calculations, which are current and future. Current ones include standard and estimated calculations. Standard costing is prepared for all types of products production program Based on current standards, the estimate is for newly developed types of products or products not provided for in the plan. Planned costings include all costs for a product according to planned standards, ensuring the fulfillment of profit and profitability targets. They are important because they determine the total planned costs for commercial products.

Ways to reduce costs

The volume of production, with a constant cost of material and labor resources, increases only as a result of a decrease in costs. The development of a plan of organizational and technical measures for the use of internal production reserves is based on the results of an analysis of their sources and factors influencing the technical economic indicators. The most important sources of reserves include reducing material costs and increasing labor productivity. Of the variety of factors influencing technical and economic indicators, the enlarged groups include: a decrease in the technical level of production, an improvement in the organization of production and labor, a change in the volume and structure of the range of products, an increase in the share of cooperative supplies, etc.

Reducing material intensity, or material costs, is one of the most important sources of economic development. Material of improved quality, rolled products that meet the requirements of dimensional characteristics, professional growth of workers - all these factors contribute to reducing the cost of products and achieving savings, the value of which can be calculated by the formula:

E m = (H o * C o / K mo - H 1 * C 1 / K m1) * Q

where E m - savings in current production costs for raw materials, materials, fuel;

N 1, N o - material consumption rates before and after the event;

C o, C 1 - unit price of raw materials, material, fuel before and after the event;

K mo, K m1 - coefficient of use of material resources before and after the event;

Q is the annual production volume.

Labor productivity, that is, its effectiveness and efficiency, is measured by labor intensity (time spent on producing a unit of product) and output (the number of products produced over a certain period of time). As a result of reduced labor intensity, savings are achieved by reducing labor costs, taking into account additional wages and social insurance contributions per unit of production.

Savings on depreciation charges can be achieved as a result of improved use of equipment operating time.

Factors influencing technical and economic indicators are combined into larger groups.

1. Increasing the technical level is the process of improving the technical base, the increase in the level of which is achieved as a result of:

improving means of labor (introduction of progressive technology, increasing the share of improved equipment), objects of labor (use of advanced types of raw materials, materials, energy resources);

rational use of raw materials;

mechanization and automation production processes.

2. Improving the organization of production and labor. This group of factors influences the reduction of costs as a result of specialization of production, improvement of labor organization and production management, improvement of logistics and living conditions, effective use workers' time, reducing unnecessary costs.

An increase in production volume makes it possible to reduce semi-fixed costs.

Costs are reduced by reducing current production costs per unit of production before and after organizational and technical measures.

Saving material resources

Increased efficiency industrial production largely depends on the level of use of material, labor and financial resources. An analysis of the structure of material costs shows that a decrease in the material intensity of industrial products can have a more significant impact on reducing costs compared to a decrease in capital intensity.

Material intensity of products refers to one of the most important indicators use of raw materials and materials. Material intensity is an economic category that reflects the costs of past labor and the efficiency of using material resources in the production process. Material costs can be presented both in physical and in value terms.

The consumption of raw materials and supplies is one of the factors influencing the growth of production volume.

The cost of consumed material is reduced as a result of a reduction in the specific consumption of materials per unit of production, which is directly related to a decrease in the working capital standard. Material consumption of products has a direct impact on dimensions inventories and the cost of standardized working capital. It has great importance for financial condition industrial enterprise.

Organizational and technical measures for the rational use of material resources provide for increased requirements for the fleet of capital equipment, technology, skill level, quality, marketing service, etc.

The development of the regulatory framework is the most important direction in planning material resources. The basis of planning is a system of norms. The rate of consumption of material resources is understood as the maximum allowable costs of a certain range of materials for the production of a unit of product under specific organizational and technical conditions, taking into account the implementation of scientific and technical progress achievements.

Rationing applies to all types of direct costs, including waste and inevitable losses of raw materials and supplies, as soon as scientifically based consumption rates in all areas of industrial consumption ensure increased efficiency in the use of material resources.

In a market economy, when developing a regulatory framework, a commodity producer must provide for the market’s reaction to changes in prices; therefore, when forming standards, he is guided, first of all, by his own benefit, which can only be achieved if the savings from the introduction of more advanced materials in value terms will be greater difference in prices before and after the event. In other words, the reduction in the consumption rate in physical terms when using more advanced material resources should not exceed their cost per unit of production before the event. Progressive standards for the consumption of material resources are formed taking into account the technical parameters of the product and are the basis for saving material resources. Savings are determined by comparing progressive standards with actual ones.

Standards for the consumption of material resources are constantly adjusted in accordance with changes in production conditions.

1.2 Pricing

cost profit profitability pricing

One of the most important economic levers for increasing production efficiency is price, which has a direct impact on production, distribution, exchange and consumption.

Price is the monetary expression of the value of a product, an economic category that allows one to indirectly measure the socially necessary labor time spent on the production of a product.

In commodity relations, price acts as a link between producer and consumer, that is, it is a mechanism that ensures balance between supply and demand, and, consequently, between price and value.

Depending on the nature of the serviced turnover, there are three main types of prices for industrial products.

The wholesale price of an enterprise is a price that provides for reimbursement of current production costs and profit. Based on this price, the following are determined: revenue from sales of products as the product of price by quantity and profit per unit of product as the difference between the wholesale price and its cost.

The selling price of the enterprise is formed on the basis of the wholesale price of the enterprise and the additional inclusion of value added tax in the price.

Retail price is the final price at which goods consumer consumption and some tools and objects of labor are sold through the trading network, and reflects the process of increasing socially necessary costs at all stages of production and sale of goods.

Scheme 1. Formation of prices for industrial products

Price structure and pricing for the manufacturer’s products

Prices for engineering products are set by the enterprise independently based on market conditions under the influence of demand, supply, quality and consumer properties products, i.e. they are free.

Manufacturer's price - wholesale for production and technical products and selling price for consumer products

(C pr) -- includes:

production and distribution costs excluding value added tax on purchased materials and services (3);

profit of the manufacturer (P);

value added tax (VAT);

excise tax (A) for excisable products.

Thus,

C pr =I + P + VAT + A.

The manufacturer agrees on a free selling (wholesale) price with the buyer on an equal basis in a separate protocol or agreement. The buyer's consent can also be expressed in a telephone message, fax, etc.

If the buyer is an intermediary, wholesaler and/or retailer, then the selling price of engineering products for the final consumer (Pr) increases by the amount of the trade markup established by these intermediaries (N t):

C r = C pr + N t.

A manufacturing enterprise can influence the establishment of the selling price of engineering products for the end consumer (and therefore influence the competitiveness of the product in terms of price and sales volume) only if it organizes:

own sales network;

selling your products on consignment terms;

selection of intermediaries and stipulate the terms of delivery of products.

Restrictions on freedom of pricing for engineering products are imposed by law Russian Federation to reduce monopolistic activity on commodity markets. These restrictions apply to those machine-building enterprises that have a market share of more than 35% of a certain product and conduct monopolistic activities. Such enterprises are registered in a special register of the State Antimonopoly Committee. For them it is applied government regulation setting prices:

fixed price;

price limit;

maximum markup (coefficient) of price changes;

the maximum level of profitability and the size of the trade markup.

Only one of these methods can be used. The last of these methods is considered the most common.

Thus, the price set by the manufacturer depends on the following factors:

enterprise costs;

expected sales volumes determined by the competitiveness of the company's products, market share and total demand;

the number of intermediaries and the size of their traditional trade margins;

desired profit margins for the manufacturer.

The complex mutually influencing and non-deterministic influence of the listed factors forces machine-building enterprise use a set of pricing methods for your products.

Pricing methods are divided into two groups: those based on the costs of development, production and sales of products; built taking into account the demand for the company's products.

Prices for engineering products for the first group are determined by:

1) based on average costs and profits. Depending on the
goals of the enterprise, the level of profit can be set to the minimum acceptable for the enterprise: at the industry average level or the level of the target profit from the expected sales volume;

2) based on the break-even point of production of specific engineering products with a known expected sales volume.

Both methods give an error in inaccurately determining the expected sales volume, but are widely used by enterprises to set a minimum price level.

For the second group (taking into account demand), the price is set by:

along the demand volume curve for a specific end consumer product depending on the selling price. We will install and
the desired sales volume for the enterprise; the sales price is determined using the demand curve. Excluding traditional ones from this price
intermediaries' markups, you can also calculate the price of the enterprise
for these products;

based on the price of similar products available
in the market, the competitiveness of the enterprise's products and similar products and the desired market share that the enterprise wants to obtain. Calculations are carried out in accordance with the methodology for assessing the competitiveness of products;

based on the economic efficiency of using the enterprise’s products end consumer. Efficiency is assessed by the size of the buyer's additional profit when he uses the enterprise's products instead of the existing ones or by the payback period for the buyer's investment in the purchase of the enterprise's products.

The methods of the second and third groups allow the enterprise to set the maximum acceptable price level for its products.

The integrated use of the listed pricing methods allows the company to establish an acceptable price range for its product. Within this range, a specific price is set based on the goals of the enterprise: maximum profit, desired market share, or maintaining the existing position.

1.3 Profit, all economic content, types and methods of determination

The industrial production process is based on the interaction of three main elements: fixed capital, working capital and labor. The use of means of production by workers in the material sphere ensures the production of industrial products. Comparison of the final result of the economic activity of an industrial enterprise (effect) with the costs of living and social labor to achieve it reflects the efficiency of industrial production.

The effect, or final result, is characterized by various cost and physical indicators, for example, the volume of production, profit, savings on individual cost elements, and overall savings from reducing product costs.

All costs associated with achieving the effect are divided into current and one-time ones. Current costs include payment of living labor, the cost of consumed material resources, depreciation, costs of maintaining fixed capital in working condition (repair costs) and other expenses included in the full cost of industrial products. One-time costs are costs advanced for the expanded reproduction of fixed capital.

The level of production efficiency is established using a system of specific and general indicators. Particular indicators include labor productivity, capital intensity (capital intensity), material intensity of products, etc.

Labor productivity is assessed as the ratio of the cost of industrial output in the next year to the cost of output in the previous year. An increase in labor productivity will be observed when this ratio exceeds one.

The material intensity of a product is the cost of material costs related to the cost price or the cost of gross output.

Capital intensity of production is the cost of fixed capital per 1 ruble of the value of gross output. Specific capital intensity of production is the cost of fixed capital per unit of production output.

TO general indicators include profit and profitability.

Profit - final financial results entrepreneurial activity. Under market conditions, this is a transformed form of surplus value. Profit accounting allows you to determine how efficiently business activities are conducted. When generating profit, all aspects of the economic activity of an industrial enterprise are taken into account: the level of use of fixed capital, machinery, equipment, technologies, organization of production and labor. The absolute value of profit reflects the results of reducing costs and increasing the volume of products sold.

Sales of products are one of the indicators of planning, evaluation of the economic activities of an industrial enterprise and the main source of income and budget. Cash, arriving at the company's current account for sold products, are called sales revenue. The enterprises are reimbursed from the proceeds from the sale of products production costs for spent material values, a depreciation fund is formed in accordance with the norms of depreciation charges. The remainder is net profit, or gross income. If we exclude wages from net profit, taking into account social security contributions, as well as value added tax and excise taxes, then we can determine the profit of the enterprise. Profit from the sale of commercial products is the main form of accumulation of an industrial enterprise.

An industrial enterprise mainly sells products at enterprise wholesale prices. All profits from sales go to them. When selling commercial products at wholesale industrial prices, enterprises contribute part of the profit to the state budget in the form of value added tax and excise tax (a type of indirect tax on goods mainly of mass consumption). Value added tax is defined as the product of the value of gross output and the excise tax rate. The results of economic activities are also assessed by balance sheet (total) and net profit.

Balance sheet profit includes, in addition to profit from sales, profit from auxiliary and service industries not directly related to the main production activities of the industrial enterprise, profit from equity participation in joint ventures, rental of property, various dividends, as well as income and losses from other business operations ( for example, penalties, fines, penalties paid or received in connection with violation of business contracts). The total amount of non-operating losses includes losses from the liquidation of incompletely depreciated fixed capital. The balance sheet profit also takes into account income tax benefits.

The balance sheet of an industrial enterprise distinguishes between gross and net profit.

Gross profit is the difference between income and expenses before taxes. Gross profit takes into account the proceeds from the sale of fixed capital and other property of an industrial enterprise. Proceeds from the sale of property are determined as the difference between its liquidation value C l and the residual value C o, adjusted for the inflation index K INF:

P VAL = (C L - C O) K INF

Net profit (NP) is that part of the profit that remains at the disposal of the enterprise after paying taxes established by law. The net profit of the enterprise is used for its own economic purposes.

Gross profit (GP) is distributed in two directions: the main part is transferred to the budget, the remaining part is used by the enterprise to meet its own needs, provided for by the financial plan.

Priority payments to the budget include:

income tax in accordance with the law of the Russian Federation “On income tax of enterprises and organizations” - N pr,

value added tax - VAT;

excise taxes - N akts,

Property tax - N im

Then net profit:

PP = VP - (N pr + VAT + N akts + N im) - K

where K is interest on bank loans.

The profit remaining at the disposal of the enterprise is distributed:

For an insurance stock or reserve fund formed in case of unforeseen disruptions in the production process;

In the production development fund, which includes a depreciation fund and part of the net profit (advancement of measures to expand, reconstruct and improve production, purchase of new equipment, introduction of advanced technology);

To the fund social development production;

To the material incentive fund (stimulating enterprise employees);

On bank loan interest, which is deducted from profits to repay bank loans, implementation of measures for the development and production new products and so on.

1.4 Profitability and factors influencing its increase

To assess the efficiency of an enterprise, it is necessary to compare profit and the production assets with which it was created. This is profitability.

Profitability - profitability, profitability of an enterprise is an indicator of economic efficiency of an industrial enterprise, which reflects the final results of economic activity. It is calculated as the ratio of book profit to average annual cost fixed capital and standardized working capital. There are two types of profitability: profitability calculated on the basis of balance sheet (total) profit, and profitability calculated on the basis of net profit.

When setting prices for industrial products, the profitability of individual products can be used, which is calculated as the ratio of profit to cost.

The profitability indicator is interconnected with all indicators of production efficiency, in particular with the cost of production, the capital intensity of products and the speed of turnover of working capital.

The amount of profitability calculated from balance sheet profit is influenced by three main factors: profit growth, the level of use of fixed capital and normalized working capital. The influence of each factor is expressed as follows:

Profit may increase as a result of an increase in production volume, an increase in the share of products with more high profitability, reducing production costs, increasing wholesale prices, while improving the quality of products.

The range of products produced has a direct impact on profits. When the assortment structure changes in the direction of increasing the share of products with higher profitability, an additional increase in profit is ensured.

Among the factors influencing profit growth, the leading role belongs to the reduction in product costs. The choice of ways to reduce current production costs is based on an analysis of the cost structure. For material-intensive industries, the most characteristic is saving material resources, for labor-intensive industries - poor labor productivity, for capital-intensive industries - improving the use of fixed capital, for energy-intensive industries - saving fuel and electricity.

When producing products of higher quality, operating costs most often increase. However, by selling these products at higher prices, profits may also increase.

Profitability is an indicator characterizing the use of fixed capital, therefore its level is greatly influenced by the cost of fixed capital and the level of its use. A decrease in the average annual cost of fixed capital ensures an increase in profitability due to an increase in specific profit per ruble of fixed capital and a reduction in depreciation charges per unit of production.

In a market economy, increasing the efficiency of an industrial enterprise is inextricably linked with increased intensification, which makes it possible to exclude the possibility of a declarative approach and focus on real mechanisms for organizing production.

In industry, the planned regulation of production intensification takes into account the following factors:

increase in labor productivity;

improving the use of capital investments, basic production assets and working capital;

reducing the material consumption of products;

Improvement of production management.

1.5 Tax policy

Tax policy is an integral part of the economic policy of the state, which is based on a set of legal legislative acts that establish the types of taxes, the procedure for their collection and regulation.

Taxes are mandatory payments that serve as the main source of state budgetary funds and local authorities management. The essence of the tax is the withdrawal of part of the gross domestic product in the form of a mandatory contribution.

In the economic mechanism, taxes perform certain functions: regulatory, stimulating, distribution and fiscal.

The regulatory role is aimed at streamlining market relations and manifests itself in the economic sphere in the form of a budgetary-credit and chain mechanism.

The stimulating function is implemented through a system of benefits and is aimed at introducing the achievements of scientific and technical progress, developing production, selling goods abroad, importing captains, etc.

The distribution function is to redistribute taxes to socially equalize the standard of living of the population.

The fiscal (budget) function ensures the collection of funds for the formation of the budget of the state's financial resources.

According to the method of establishment, taxation can be direct and indirect, which makes it possible to transfer them to the consumer.

Direct taxes are divided into real and personal. Real taxes include taxes on land, fishing, etc. Personal taxes include income tax, profit tax, tax on income from monetary capital, resource payments, and property tax.

Income tax is the main type of direct tax that is levied on the income or profit of an enterprise, organization, legal entities and goes to the revenue side of the budget.

Income tax is an integral part of the tax system of the Russian Federation. It is set as a percentage (tax rate), is part of the balance sheet profit and serves as a source of redistribution of national income.

The property tax of an enterprise on the balance sheet is a combination of fixed capital, intangible assets, inventories and costs. Cannot exceed 20% of the value of the taxable property.

Indirect taxes are taxes on goods and services that are paid in the form of price surcharges and tariffs. These include: excise taxes, value added tax, customs duties, taxes on transactions with securities.

Excise taxes are applied mainly to consumer goods and services of private entrepreneurs and organizations.

Value added tax is most suitable for market conditions and is calculated on the basis of the income received by the enterprise at all stages of the production process and circulation.

Proportional, progressive and regressive taxation

Taxation can be proportional, progressive or regressive. This means that the tax rate (i.e., the percentage the tax makes of income) stays the same, rises, or falls as income increases. Let's look at the first two cases using the example of income tax.

With proportional taxation, the tax rate is the same for all income levels. This means that with a tax rate of 12%, a cleaner who receives 10 thousand rubles a year pays 1200 rubles. tax, and a bank employee who receives 100 thousand rubles - 12 thousand rubles. tax

With progressive taxation, the higher the income level, the higher the tax rate. Let's assume that in our previous example the tax rates are determined as follows: for income below 20 thousand rubles. per year - 12%, and from income exceeding 20 thousand rubles. per year - 20%. Then the cleaning lady will pay the same 1,200 rubles, but the bank employee will pay 20,000 x 0.12 + (100,000 - 20,000) x 0.20 = 2,400 + 16,000 = 18,400 rubles.

The idea of progressive taxation is based on the idea that the marginal utility and therefore the value of money for a rich person is less than for a poor person, and therefore it is fair to charge him a higher percentage of the tax.

Finally, oddly enough, taxes can be regressive, that is, the higher a person’s income, the smaller percentage of their income they pay. True, this applies not to direct, but to indirect taxes, which are paid not as a percentage of income, but in the form of the same amount of money for each buyer. Let’s assume that our cleaning lady and bank employee are passionate dog lovers and buy ten cans of “Chappie” food per month for their pets at a price of 20 rubles. per jar. Let us further assume that in the retail price of “Chappie” 10% (i.e. 2 rubles) is excise tax. Then it turns out that for a year the cleaner pays excise tax on dog food in the amount of 2 rubles * 10 * 12 = 240 rubles. (2.4% of his income), and a bank employee is also 240 rubles (0.24% of his income).

1.6 Remuneration of employees

Remuneration of workers is the price of labor resources involved in the production process, to a greater extent it is determined by the quantity and quality of labor expended, but market factors play a significant role - labor supply and availability; the current specific market conditions, territorial aspects, legislative norms, etc.

Tariff system of remuneration

The tariff system is a set of state standards through which differentiation and regulation of wages for various groups of workers are carried out, depending on the complexity and working conditions, characteristics and economic significance of individual industries and regions of the country. The main elements of the tariff system are the Unified Tariff and Qualification Directory, the tariff schedule, tariff rates, and tariff coefficients.

The Unified Tariff and Qualification Directory is intended for tariffication of workers, classification of work by category and distribution of workers by profession and category. It contains detailed production characteristics of various types of work, indicating what the worker must know and what he must be able to do.

The tariff rate determines the amount of remuneration for a worker per unit of time (hour, shift, month).

The tariff schedule serves to establish the ratios in the remuneration of workers depending on their qualifications. Each category is assigned certain tariff coefficients, showing how many times tariff rate of this category is higher than the rate of the 1st category.

Main characteristics tariff schedule are shown in diagram 2.

Diagram 2. Main characteristics of the tariff schedule

K - tariff coefficients

The range shows how many times the wages for the highest level of a given grid exceed the level of wages for the 1st category.

Inter-category relationships characterize the degree of increase in wages with an increase in the tariff category.

Forms and systems of remuneration

There are two main forms of wages: time-based and piecework.

With time-based wages, the amount of wages is set depending on the amount of time worked (in hours or days) and the tariff rate (hourly or daily) or the established salary.

With piecework wages, the amount of wages is determined depending on the quantity of products (work, services) produced and the prices per unit of product (work, services).

Prices are calculated in accordance with the tariff rate corresponding to the category of this type of work, and with the established standard of time (production):

R SD = H T.ST N VR or R SD = H T.ST. /N EXT

where CH T.ST. - hourly tariff rate for the category of this type of work;

N VR - standard time for completing a unit of work, hours;

N VYR - production rate per unit of time.

Piece-rate and time-based wage systems are shown in Diagram 3.

There are a number of conditions under which it is advisable to use one or another form of remuneration.

Thus, the piecework form of remuneration is used if:

There are quantitative indicators that directly depend on a specific employee;

It is possible to accurately record the volume of work performed;

workers at a particular site can increase output or the volume of work performed;

there is a possibility technical standardization labor.

Piece payment is not recommended if its use leads to a deterioration in the quality of products and equipment maintenance, violation of technological conditions and safety requirements, or excessive consumption of raw materials.

The time-based form of remuneration is applied under the following conditions:

The production process is strictly regulated;

The functions of the worker are reduced to monitoring the progress of the technological process;

An increase in product output may lead to defects or deterioration in its quality;

Flow and conveyor types of production operate in a strictly specified rhythm.

1.7 Capital investments

Capital investments - investments in fixed capital (fixed assets), including costs for new construction, expansion, reconstruction and technical re-equipment of existing enterprises, purchase of machinery, equipment, tools, inventory, design and survey work and other costs.

The concept of “investment” is broader than the concept of “capital investment”. Investments include both real and portfolio investments. Real investments - investments in the main and working capital. Portfolio investments - investments in securities and assets of other enterprises.

The efficiency of using capital investments largely depends on their structure. The following types of capital investment structures are distinguished: technological, reproductive, sectoral and territorial.

The technological structure of capital investments is the composition of the costs for the construction of any facility and their share in the total estimated cost.

The technological structure of capital investments has the most significant impact on the efficiency of their use. Improving this structure consists of increasing the share of machinery and equipment in the estimated cost of the project to an optimal level. In essence, the technological structure of capital investments forms the relationship between the active and passive parts of the fixed production assets of the future enterprise. An increase in the share of machinery and equipment, that is, the active part of the fixed production assets of the future enterprise, helps to increase the production capacity of the enterprise, and, consequently, capital investments per unit of production are reduced. Economic efficiency is also achieved by increasing the level of mechanization of labor and work.

The reproductive structure of capital investments also has a significant impact on the efficiency of their use.

The reproductive structure of capital investments is understood as their distribution and ratio in the total estimated cost according to the forms of reproduction of fixed production assets. It is calculated what share of capital investments in their total value is allocated to: new construction, reconstruction and technical re-equipment of existing production, expansion of existing production, modernization.

Improving the reproductive structure consists of increasing the share of capital investments allocated to the reconstruction and technical re-equipment of existing production. Theory and practice indicate that reconstruction and technical re-equipment of production is much more profitable than new construction for many reasons: firstly, the commissioning period for additional production capacity is reduced; secondly, specific capital investments are significantly reduced.

Capital investments play an extremely important role in the economy of the country and any enterprise, as they are the basis for:

Systematic renewal of the enterprise's fixed production assets and implementation of the policy of expanded reproduction;

Accelerating scientific and technological progress and improving product quality;

Structural adjustment social production and balanced development of all sectors of the national economy;

In the reporting year, ore production at the mine amounted to 1,850 thousand tons. For the planned year it is planned to increase production to 1980 thousand tons. The cost of 1 ton of ore in the reporting year is 98 UAH 30 kopecks, including conditionally fixed costs of 44 UAH 50 kopecks.
Define:
1. Reducing the cost of ore due to increased production volume (in%)
2. Cost of 1 ton of ore in the planning year

A comment.
Thanks to the teachers for replacing “rubles” with hryvnias, but... this was the cost of ore mining around the 80s of the 20th century. That is, the task has been preserved “since the times of Soviet power.” It was worth at least taking an interest in the real figures in the mining industry.

The task, again, is simply on the student’s ability to count in a column. Requires knowledge within 6th grade high school and a general understanding of the variable cost/fixed cost principle. So, approximately 9th grade. In extreme cases, it will be suitable for a technical school.

It should be noted that the author of the problem understands the term “cost” as the full cost of marketable products. Because under other assumptions, the problem simply cannot be solved, since we are talking exclusively about ore production, but not a word about sales. And in " real life“Semi-fixed costs will be written off not on extracted, but on sold products! For some reason, university teachers forget about such “little things.”

An economist should at least think about the level of growth semi-fixed costs based on inflation data and expectations of wage growth, etc.

Solution.
We define conditionally variable expenses.
98.30 - 44.50 = 53.80 hryvnia per ton

We determine the level of conditionally fixed costs.
44.50 * 1,850 = 82,325 thousand hryvnia

Determining the level of semi-variable expenses
53.80 * 1,980 = 106,524 thousand hryvnia

Total production costs will be
82,325 + 106,524 = 188,849 thousand hryvnia

Planned cost per ton of marketable products (see comment)
188,849 / 1,980 = 95.38 hryvnia per ton

Decline planned cost marketable products due to increased production volumes will be:
(98,30 - 95,38) / 98,30 * 100% = 2,97%

Answer: 1) 2,97% 2) 95,38

In the planning period, material cost rates and planned prices for its purchase change. These changes are characterized by the following data:

Determine the overall reduction in material costs in the planning period in absolute and percentage terms.

Solution.

To produce one item for each of the products in the base year.

Costs for one product A in the base year = 0.9*184=165.6 UAH.

Costs for one product B in the base year = 0.15*198=29.7 UAH.

Costs for one product B in the base year = 1.5*172=258 UAH.

Let's find production costs all products in the base year.

Costs for products A = 400 * 165.6 = 66240 UAH.

Costs for products B = 1200 * 29.7 = 35640 UAH.

Costs for products B = 800*258=206400 UAH.

Let's find the costs of material resources to produce one item for each product in the plan year.

Costs for one product A in the planning year = 0.8 * 191 = 152.8 UAH.

Costs for one product B in the planning year = 0.10 * 202 = 20.2 UAH.

Costs for one product B in the planning year = 1.4 * 175 = 245 UAH.

Let's find production costs about all products in the planning year.

Costs for products A = 400*152.8=61120 UAH.

Costs for product B = 1200 * 20.2 = 24240 UAH.

Costs for product B = 800*245 = 196,000 UAH.

In the planning period in value terms for each product.

Reducing costs for products A = 66240-61120 = 5120 UAH.

Reducing costs for products B = 35640-24240 = 11400 UAH.

Reducing costs for products B = 206400-196000 = 10400 UAH.

Find a reduction in material costs in the planning period in relative terms for each product.

Cost reduction for products A = 61120/66240 = 0.9227

1-0,9227= 0,0773

Resource costs decreased by 7.73%

Reduced costs for products B = 24240/35640 = 0.6801

1-0,6801= 0,3199

Resource costs decreased by 31.99%

Reduced costs for products B = 196000/206400 = 0.9496

1-0,9496= 0,0504

Resource costs decreased by 5.04%

Find the cost reduction for all products in the planning period in value terms.

Cost reduction for all products = (66240+35640+206400)-(61120+24240+196000)=308280-281360=26920 UAH.

Let's find the cost reduction in relative terms and for all products in the planning period.

Cost reduction in relative terms = 281360/308280 = 0.9127

Resource costs decreased by 8.7%

Answer: total costs for production of products decreased by 26,920 UAH. in the planning period. In relative terms, the decrease was 8.7%. The most effective was the reduction in costs for product B. The savings amounted to 11,400 UAH.

The Interval enterprise produces products B and D. In the planning year, the company's managers are tasked with reducing the cost of production for one of the products in such a way that the greatest cost savings are achieved. Product output in the planned year remains unchanged.

Determine and justify for which product the cost should be reduced. Set prices for products that the enterprise produces and determine the profit of the enterprise in the planning year. Data for calculations are given in the table.

CALCULATION OF COST INDICATORS

PRODUCTS.

CALCULATION OF COST REDUCTION.

METHODOLOGICAL INSTRUCTIONS

FOR PRACTICAL LESSON No. 6

By academic discipline

"ECONOMICS OF ORGANIZATION"

for part-time students

getting an education

specialty 2 – 45 02 01 – “Postal communications”

Vitebsk 2016

Compiled by S.P. Kukisheva

Reviewed and approved at a branch meeting

Departments of E&U

Head Phil. Departments _____________ A.P. Toothless

Purpose of the lesson: Mastering the methodology for calculating the cost of a unit of production, calculating the cost of production, reducing the cost of a unit of production and saving costs from reducing the cost of a unit of production.

Literature:

1. Economics of an organization (enterprise). Workshop: textbook. allowance / O. V. Volodko, R. N. Grabar, T. V. Zglyuy; under. ed. O. V. Volodko. – Minsk: Higher School, 2015. – 271 p.

2. Enterprise economics: answers to exam questions/ E. S. Rusak, E. I. Sapyolkina. – Minsk: tetralit, 2014. – 144 p.

3. Enterprise Economics: textbook. manual / L. N. Nekhorosheva, N. B. Antonova, L. V. Grintsevich [and others]; under. ed. Doctor of Economics sciences, prof. L. N. Nekhorosheva. – Minsk:, 2008. – 719 p.

4. Enterprise economics: tutorial/ E. V. Krum. – 2nd ed., revised. - Minsk: TetraSystems, 2013. – 192 p.

5. Enterprise economics: textbook. / N. L. Nekhorosheva and others, under the general editorship of N. L., Nekhorosheva. - 3rd edition - Mn.: graduate School 2012 - 383 pp.

Methodological support: Individual tasks, methodological instructions for their implementation.

Technical support: Microcalculators.

Homework :

1. Classification of costs for production and sales of products

2. Methodology for determining the costs of production and sales of products.

3. Reveal the essence of each cost element that forms the cost of products (works, services) of a communications organization, give examples.

4. Characterize the factors and reserves for reducing the cost of products (works, services) of the organization.

The report must contain:

1. Conditions and initial data of tasks

2. Calculations and necessary explanations for them, units of measurement, conclusions. Make calculations with an accuracy of 0.1

Control questions:

1. How is it calculated and what does product costing show?

2. How is the cost of one hundred rubles of revenue calculated? What is the economic meaning of this indicator?

3. Give the cost elements that form the cost of products (works, services) of a communications organization.

4. Describe the structure of the cost of products (works, services) of a communications organization.

5. List the indicators for reducing the cost of production and sales of products (works, services).

Guidelines on implementation

practical task

The amount of costs for the production and sale of products, expressed in monetary form, forms a financial and economic indicator commercial organization, which is called the cost of production. The economic meaning of the indicator: how many rubles of current expenses were required to generate one hundred rubles of revenue.

The cost per unit of production in communications organizations is determined by the formula

where C is the cost per unit of production (one hundred rubles of revenue), rub.;

Z – costs of production and sales of products, rub.;

B – revenue from sales of products, rub.

Calculation of the cost per unit of production is determined by the formula:

C i = Z i × 100 / V, (2)

where C i is the cost of one hundred rubles of revenue for the i-th cost element, rub.;

B – revenue from sales of products (works, services), rub.

The percentage reduction in unit cost of production (one hundred rubles of revenue) in the planned year is calculated using the formula:

(3)

where C PL is the cost of one hundred rubles of revenue according to the plan, rub.;

WITH TEK - the cost of one hundred rubles of revenue in the current year, rub.

Costs can be grouped into economic homogeneous elements:

a) “material costs”: includes the cost of materials and spare parts, all types of fuel and energy;

b) “labor costs”.

For calculation, we determine the wage fund (WF) using the formula

, (4)

Where Payroll- wage fund for employees in the planned year, million rubles.

– average number remaining employees in the planned year, people;

t– number of months in the planning period.

c) “contributions for social needs” are calculated in the amount of 34% of the planned wage fund;

d) “depreciation deductions” - the amount of deductions for the complete restoration of the operating system;

d) “other costs”.

Analysis of the structure and calculation of the cost of products (works, services) allows us to find reserves to reduce costs. The amount of cost savings for the production and sale of products (works, services) in the planned year, obtained by reducing the cost of a unit of production (one hundred rubles of revenue) can be determined by the formula

, (5)

Where E

Zpl– costs according to the plan, million rubles;

Zusl– conditional costs, million rubles.

(6)

Where Zusl– notional amount of costs, million rubles;

Stack- cost per unit of production (one hundred rubles of revenue) in the current year, rubles;

Vpl– revenue in the planned year, million rubles.

Cost savings (or overspending) in the report compared to the plan:

, (7)

Where E- cost savings on production and sales of products (works, services), million rubles;

3 ISSUE– actual costs incurred for the production and sale of products (works, services), million rubles;

Z USL– conditional costs for the production and sale of products (works, services), calculated according to the planned cost and actual revenue, million rubles.

Notional amount of costs in the report compared to the plan:

, (8)

Where Z USL- notional amount of costs, million rubles;

With submarine– cost per unit of production (one hundred rubles of revenue) according to plan, rub.

IN ISSUE– actual realized revenue, million rubles.

Problem 1

Determine the cost per unit of production (one hundred rubles of revenue) based on the following data:.

1. Labor costs - 410510.4 million rubles.

2. Material costs - 91840.4 million rubles.

3. Depreciation charges - 86295.4 million rubles.

4. Other costs - 98810.6 million rubles.

5. Revenue of the organization - 1125100.1 million rubles.

Explain the economic meaning of the calculated indicator

Problem 2

Calculate the cost estimate for each cost element based on the following data:

1. Labor costs - 21689.3 million rubles.

2. Contributions for social needs - determine

3. Depreciation charges - 18442.1 million rubles.

4. Material costs - 13428.9 million rubles.

5. Other costs - 9632.6 million rubles.

6. Revenue from sales of products (works, services) - 74152.4 million rubles.

Determine the nature of production. Explain the economic meaning of the calculated indicator

Problem 3

Plan the cost per unit of production and the % reduction in the cost of the organization. Draw conclusions

Initial data:

1. Current year:

Revenue from sales of products (works, services) - 2850 million rubles

Depreciation charges - 766 million rubles.

Specific gravity depreciation accounts for 32% of the total costs.

2. Planned year:

Revenue from sales of products (works, services) 3140 million rubles.

Production and sales costs increased by 3.6%

Problem 4

Determine the percentage reduction in unit cost of production in the planned year compared to the current year. The source data is in Table 1.

Table 1 - Initial data

Problem 5

Determine the percentage reduction in the unit cost of production (one hundred rubles of revenue) and the amount of cost savings obtained by reducing the cost of a unit of production (one hundred rubles of revenue). Initial data:

Revenue from sales of products (works, services) 617.3 million rubles.

Labor costs – 123 million rubles. The share of labor costs is 23% in the total costs of production and sales of products (works, services).

2. Execution of the plan:

Revenue from sales of products (works, services) 672.8 million rubles.

Costs for production and sales of products (work, services) increased compared to plan by 4.4%.

Problem 6

Calculate the amount of cost savings for production and sales of products by reducing the unit cost of production.

Table 1 – Initial data

Related information.

Effective ways to reduce production costs

Algorithms for calculating the overall influence of various cost reduction factors on its dynamics

Determination of economic results from reducing production costs

The size of the sales margin and the possible sales volume directly depend on the size of the cost price. In market conditions, a company cannot form the selling price of its products by simply adding the required sales margin to the production cost, but is forced to limit the maximum selling price to the average market price level.

A competitive advantage will always be with those manufacturers whose production costs are lower than those of their competitors. Conversely, companies with the highest production costs will always have difficulty selling their products and financial stability, because their small sales margin will not allow them to generate income sufficient to cover all costs and make a profit. Based on this, we can say that the main goal of reducing the cost of production is to maintain the company’s competitiveness in the sales market and ensure the profit margin it needs for development.

Increasing production volumes is the most obvious and effective way to reduce production costs. This is due to the fact that all production costs of a company can be classified as variable or fixed.

Variable costs change in a certain proportion along with the dynamics of production volume: production increases - costs also increase, production decreases - costs fall.

Typical variable costs are the consumption of raw materials and materials for production, wages of production workers, energy consumption during the operation of production equipment.

Fixed costs depend little on the dynamics of production; they are necessary regardless of the volume of products produced in reporting period(depreciation of production equipment, repair and maintenance costs production premises, energy consumption for general shop needs, etc.).

The greatest effect is achieved by minimizing direct production costs - the cost of energy resources during the operation of production equipment, the cost of remuneration of production workers and the cost of maintaining and repairing production fixed assets.

The share of raw materials costs in the workshop cost of most manufacturing companies is quite large (usually from 50 to 80%). In addition, the purchase price of raw materials and materials, in addition to the prices for purchasing them from suppliers, also includes the costs of delivery from the supplier’s warehouse to the buyer’s warehouse. Typically, the cost of purchasing raw materials and supplies is reduced in two ways:

reduce the average price of purchasing raw materials from suppliers;

minimize transportation costs for the delivery of raw materials purchased from suppliers.

To reduce the cost of purchasing raw materials from suppliers, a company can use several methods in parallel - searching for more profitable price offers on the market, the use of discounts and bonus programs from existing suppliers, as well as procurement cooperation with friendly companies (under an agency agreement or joint venture agreement).

Technological losses are irrecoverable waste of raw materials and materials that are generated during the production process, reconfiguration and adjustment of production equipment, as well as during the repair and testing of the functionality of this equipment. The reasons for production defects are insufficient qualifications of personnel, inappropriate quality of raw materials and materials, technical problems in the operation of equipment.

This method, of course, requires much more preliminary analysis of the situation and is more labor-intensive than others, since losses and unnecessary costs as a result of ineffective processes cannot be identified simply on the basis of data from production reports.

At the same time, the positive effect of reducing production costs as a result of optimizing production processes may well be significant and even superior to other methods. In addition, if as a result of this work the company’s process efficiency actually increases, then it almost always leads to additional cost reductions in other ways.

Product output, units

Shop expenses

Expenses of auxiliary production

General production expenses

Production cost

Manufacturing cost per unit

Calculation of reduction in production costs when increasing production scales

Each company has a different ratio of semi-variable and semi-fixed costs in the total cost due to the peculiarities technological cycle production, organizational structure and business process chain.

But in any case, in order to predict the effect of reducing product costs from increasing its output, it is necessary to first analyze the company’s costs and calculate their dynamics in relation to production dynamics.

Table 1.1 shows the calculation of the production cost of the Alpha company for the production of 1000 units of product.

Table 1.1

Calculation of production costs per 1000 units. products

Expenditures	Cost share		Amount of costs per 1000 units. products
Expenditures	Conditional variables	Conditionally permanent	Total	Conditional variables	Conditionally permanent
Raw materials
Payroll of workers
Deductions from the payroll of workers

Deductions from payroll engineers
Energy resources of production equipment

Depreciation of fixed assets
Inventory and household needs
Material costs
Total shop expenses

General production expenses
Total production cost

As you can see, the company’s workshop costs for production are 78% variable, and 22% constant in relation to the dynamics of product output.

The production cost of production, taking into account the influence of the cost structure of auxiliary production and general production costs, reduces the share of variable costs to 67% and increases the share of fixed costs to 33%.

We project the current ratio of variable and fixed costs to increase production volumes by 25%, i.e. up to 1250 units of production. In this case, variable costs should also increase by 25%, and fixed costs should remain the same amount as when producing 1000 units of product.

We calculate the amount of increase in production costs, divide it by the increased number of units of production and compare the resulting cost of one unit with a similar indicator of the actual production volume (Table 1.2).

Table 1.2

Dynamics of production costs during production expansion

So, with the current structure of variable and fixed production costs, an increase in output by 25% will lead to a reduction in the cost of production of one unit of production by 6.5% (from 2500 rubles to 2336 rubles).

A. A. Grebennikov,
Chief Economist of Rezon Group of Companies

The material is published partially. You can read it in full in the magazine

It might be useful to read: