home > Cheating wife > Formula for calculating the cost of production. Other Controllable and uncontrollable expenses


Formula for calculating the cost of production. Other Controllable and uncontrollable expenses




Problem 1

The workshop produced 200 pieces. products A and 400 pcs. products B. Make an estimate of production costs for the workshop and calculate the cost of each type of product.

Initial data, thousand rubles, are given in the table:

Indicators

Total

For products

1. Wages of production workers

2. Basic materials

3. Salary of administrative and managerial

Personnel

4. Wages of auxiliary workers

5. Building depreciation

6. Electrical energy for technological purposes

7. Electrical energy for workshop lighting

8. Equipment depreciation

9. Other costs

Solution

In order to draw up an estimate of production costs, it is necessary to sum up costs that are homogeneous in economic content in accordance with the items of the cost estimate.

1. In the article “material costs” we reflect the cost of basic materials and the cost of electrical energy:

MOH= 200 + 100 + 40 = 340 thousand rubles.

2. The item “labor costs” will represent the wages of production workers and administrative and managerial personnel:

Salary= 200 + 80 + 80 = 360 thousand rubles.

3. The item “depreciation” will reflect the total depreciation of the cost of the building and equipment:

A= 60 + 160 = 220 thousand rubles.

4. We will transfer the amount of other costs without changes:

PZ= 200 thousand rubles.

Total total costs according to the estimate will be:

340 + 360 + 220 + 200 = 1,120 thousand rubles.

The cost estimate sum gives the total costs of the department, but does not make it possible to determine the cost of each type of product. To do this you need to make a calculation. Lines 3–5, 7–9 of the table with the initial data reflect indirect costs that need to be distributed between the two types of products. Let's distribute them in proportion to the direct costs reflected in lines 1, 2, 6. To do this, multiply the indirect costs for each type of product by the following coefficients:

a) for product A

K A = (120 + 80 + 40) / (200 + 140 + 100) = 0,55;

b) for product B

K B = (80 + 60 + 60) / (200 + 140 + 100) = 0,45.

We place the calculation results in a table, the rows of which represent costing items:

Costing item

Costs, thousand rubles

Total

Product A

Product B

1. Wages of production workers

2. Basic materials

3. Electrical energy for technological

Goals

4. General production costs (amount

Lines 3–5, 7–9 of the original table)

Total costs

1 120

5 069

Per unit of production

3,07

1,265

Problem 2

The annual production at the enterprise was 10,000 units. Cost per unit of production, rub.:

Raw materials

Auxiliary materials

Fuel and energy

Wages of production workers

Contributions for social needs

General production expenses

General running costs

Business expenses

Total

Product price – 100 rubles/piece.

Calculate: critical output; unit cost of production with an increase in annual output to 12,000 units.

Solution

The first step in solving this problem is to divide costs into fixed and variable parts. It is advisable to include the variable part as the costs of raw materials, materials, technological fuel and energy, wages of production workers with contributions for social needs (if a piece-rate form of remuneration is used) and commercial expenses:

sleep= 40 + 0.5 + 15 + 10 + 3.6 + 2.2 = 71.3 rub.

We will include all other costs as a constant part, and we will determine their amount based on the entire output:

POI= (4.5 + 4.2) × 10,000 = 87,000 rub.

Knowing the fixed and variable costs, we will calculate the critical output:

In kr= 87,000 / (100 – 71.3) = 3,032 pcs.

With such a critical release, the enterprise is insured against losses even with a significant drop in sales volumes.

Using division into fixed and variable costs, we calculate the cost per unit of production as output increases. We assume that fixed costs do not change. Therefore, with an increase in output, only variable costs will increase:

PI= 71.3 × 12,000 = 855,600 rub.

The sum of fixed and variable costs will give us gross costs for increased output, and when divided by production volume, we obtain the cost per unit of production:

With= (87,000 + 855,600) / 12,000 = 78.55 rub.

Problem 3

When creating the enterprise, its owner invested 200 thousand rubles. The production process is carried out in a building that he rented out before organizing the enterprise. The rent was 50 thousand rubles/year. Before the organization of the enterprise, its founder was a hired manager with an annual salary of 100 thousand rubles.

The activities of the established enterprise are characterized by the following indicators:

Indicators

Meaning

Production volume, units

10 000

Price (excluding VAT), rub./unit.

1 000

Average annual cost of fixed assets, thousand rubles.

Average working capital balances, thousand rubles.

Costs, thousand rubles:

material

on wages of employees

amount of accrued depreciation

other

Income from the sale of excess property, thousand rubles.

Interest paid for the loan, thousand rubles.

Taxes paid from profits, %

Rate on time deposits, %

Calculate: profit from product sales, gross profit (before tax), net profit; profitability of the enterprise (production); product profitability. Justify the answer to the question about the advisability of creating your own enterprise (calculate economic profit).

Solution

Let's calculate the profit from product sales:

Etc= 1,000 × 10,000 – (250,000 + 150,000 + 160,000 + 140,000) =

300,000 thousand rubles.

Let's determine gross profit:

P shaft= 300 + 50 – 10 = 340 thousand rubles.

Let's calculate the net profit:

P h= 340 – 340 × 0.24 = 258.4 thousand rubles.

The profitability of the enterprise will be

R o= 300 / (600 + 200) × 100 = 37.5%.

Product profitability

R p= 300 / 700 × 100 = 43%.

Economic profit is calculated as accounting profit minus internal costs, namely: interest on a time deposit that could be received on invested funds; rent; lost wages of the owner of the enterprise. Thus, the economic profit will be

258.4 – 200 × 0.18 – 50 – 100 = 72.4 thousand rubles.

Calculating the cost of production is a complex calculation procedure. In an enterprise, this is the responsibility of accountants, who must calculate expected income, taking into account all possible costs of the enterprise.

Product cost - main definitions

Cost is the current expenses of an enterprise, expressed in monetary form, aimed at the production and sale of goods.

Cost is an economic category that reflects the production and economic activities of a company and shows how much financial resources are spent on the manufacture and sale of products. The profit of the enterprise directly depends on the cost, and the lower it is, the higher the profitability.

Types and types of cost

The cost is:

  1. Full (medium)- implies the totality of all expenses; commercial costs for the manufacture of products and the purchase of equipment are also taken into account.
    The costs of creating a business are usually divided into periods during which they must be repaid. Gradually, in equal shares, they are added to general production costs. In this way, the average cost per unit of production is formed.
  2. Limit– is directly dependent on the quantity of goods produced and reflects the cost of each additional unit of production. Shows how effective further expansion of production will be.

The type of cost depends on what area of ​​the business the owner wants to control:

What is the cost structure

The cost consists of the following items:

  • Raw materials which is necessary for production.
  • Some businesses require calculation energy resources(various types of fuel).
  • Expenses for equipment and machinery necessary for the functioning of the enterprise.
  • Staff salaries, as well as payment of all payments and taxes.
  • General production expenses(office rent, advertising, etc.).
  • Expenses for social events.
  • Costs associated with depreciation fixed assets.
  • Administrative expenses.
  • Payment for the activities of third parties.

Also, when calculating the cost, it is customary to take into account production costs.

Production volume and cost: is there a connection?

The cost of production directly depends on the quantity of goods produced.

Let’s say you need to purchase a package of tea that costs 50 rubles.

The journey to the store takes half an hour.

Your expenses will be:

  • We’ll value an hour of your time at 60 rubles;
  • Your travel expenses will be 15 rubles.

The ownership formula is:

Cost = (price of goods + expenses) / (quantity of goods purchased) = (60 + 50 + 15) / 1 = 125 rubles

If you decide to purchase 4 packs of tea, then the cost of the product will be (4 * 50 + 60 + 15) / 4 = 68.75 rubles

The more products you purchase, the lower the cost, which, in turn, reduces the selling price of the product.

Thus, due to the large volume of products, larger firms may not be afraid of competition from such strong enterprises.

Methods for forming production costs

The most common way to determine cost is the calculation method, with which it is possible to calculate the cost of producing a unit of sold products.

It is best to calculate using the comparable controlled price method, which is set based on the cost of services provided by competing firms.

Classification of expenses

The classification of costs is based on the assigned task related to business management (calculate the cost and profit of products sold, and so on).

  • By adding the cost of the finished product to the cost, all expenses are usually divided into two types:
  1. Direct- those that are added in an exact or single way to the cost of goods manufactured by the company. Often these are the costs of necessary raw materials and supplies, and workers' wages.
  2. Indirect– represent overhead costs and relate to the costing object using the distribution method according to the methodology established at the enterprise.

These include the following costs:

  1. Commercial;
  2. General economic;
  3. General production.
  • Depending on the volume of products produced, costs are:
  1. Permanent- costs that do not depend on the volume of goods produced, but they are indicated per unit of production and change with the level of business activity.
  2. Variables– costs that are influenced by production or sales volume. A unit of production does not change the amount of costs.
  • According to significance for a particular case, costs are:
  1. Relevant– costs depending on the decisions made.
  2. Irrelevant– costs that are not related to the decisions made.

Cost calculation methods

There are several different ways to calculate the cost of a product. They are used depending on the nature of the work, services or products produced.

  • Completeness of adding expenses to the cost price.

There are two types of production costs:

  1. Full– all expenses of the enterprise are taken into account.
  2. Truncated- refers to the unit cost of variable costs.

The constant part of overhead costs and other expenses is written off to reduce profits at the end of the established period without distribution to the goods produced.

With this calculation method, the cost is influenced by both variable and fixed costs. The price is calculated by adding the required profitability to the cost.

  • Actual and standard costs are calculated based on expenses incurred by the enterprise. Standard cost makes it possible to keep under control the costs of various resources and, in case of deviation from the norm, take all necessary actions in a timely manner.

The actual cost per unit of manufactured goods is determined after calculating all costs.

The method is characterized by its low efficiency.

  • Depending on the object of cost accounting, the following methods are distinguished:
  1. Transverse– used by enterprises of serial and flow production, when during the manufacturing process the product goes through several stages of processing.
  2. Process-by-process- is typical for the mining industry.

Formation of cost at the enterprise

Determining the cost of manufactured products is the task of an accountant. This process is very important and complex. In this case, it is customary to divide costs into direct and indirect.

There are expenses that are indicated as direct in accounting, but as indirect in tax accounting.

All expenses for the production of products and their sales are included in the cost price. Expenses related to taxation are usually rationed.

Cost grouping

To prepare an accounting report, it is necessary to group expenses by economic elements:

  • Material costs;
  • Payments of social needs;
  • Employees' salaries;
  • Other expenses (payments, contributions to insurance funds).

When calculating costing, they use grouping of costs by costing items, due to which the cost of a unit of output is calculated.

  • Expenses for production materials and services;
  • Employees' salaries;
  • Costs of preparing production for operation;
  • General production and general business expenses;
  • Production costs;
  • Other expenses.

Cost: formula for calculating total cost

Cost is the sum of all costs of production.

In order to get the full cost of a product or service, you need to add up all the costs associated with production and sales.

To do this, use the formula:

PS = PRS + RR

  • Production cost of the product PRS calculated based on production costs (depreciation, wages, material costs, social benefits).
  • Costs of selling goods RR(packaging, storage, transportation, advertising).

Unit cost of production calculation formula

Enterprises that produce only one type of product can calculate the cost per unit of manufactured goods using a simple calculation method.

The price per unit of manufactured goods is determined by dividing the sum of all expenses for a specified period by the number of products manufactured during this time.

Product cost calculation excel formulas

There are special Excel programs that can be used to calculate product costs. You enter the required data and receive Excel formulas.

Your task is to enter all the numbers correctly; the program will carry out all the calculations automatically and according to all the rules. All indicators are calculated using formulas. Data processing does not take much time.

Positive aspects of the program:

  • The program works in different modes (automatic and manual);
  • Correct work with “Returnable waste”;
  • Suitable for medium and small businesses.
  • Negative aspects of the program:
  • Limited amount of information processed;
  • Support for only one resource type specification is available.

Cost shows how much it cost the company to manufacture the product. It has a certain structure and is calculated using formulas.

In production, accountants are involved in calculating costs, selecting a suitable method for this.

1. Concept and classification of costs.

2. Types of production costs.

3. Cost planning methods.

All enterprise costs can be divided into three main areas:

Capital costs, i.e. investment costs (for the reproduction of fixed assets and the increase in working capital) are associated with the expansion of production and the increase in current assets.

Costs associated with current activities attributable to the cost of production (costs of production, sales of goods, works, services) are fully reimbursed after the completion of the circulation of funds from proceeds from sales of products.

Costs for social and cultural events (maintenance of social facilities (canteens, sanatoriums, kindergartens, etc.), investment costs for non-productive needs).

The need to regulate the system of attributing costs to cost is due to the fact that gross profit, taxable profit, and income tax are calculated on the basis of cost. In this regard, all costs included in the cost of production are divided into costs taken into account for profit tax purposes in their full amount, and costs that are taken into account within the established standards, for example, the cost of paying interest on a bank loan, travel expenses, expenses for advertising.

All costs of production and sales of products constitute their full cost. The total cost, in accordance with regulatory provisions, is considered the same for enterprises of all forms of ownership.

Table 2 - Classification of costs attributable to the cost of products, works, services

Signs of classification Types of costs
Economic content Material, labor, monetary
Making decisions Alternative, imputed
Cost direction Industrial, commercial
Dependence on production volume (sales) Constants and Variables
Method of distribution between types of products Direct and indirect
Process connection Basic and invoices
Cost elements Material costs; Labor costs Social contributions Depreciation
Expenditures Raw materials and materials Returnable waste (subtracted) Purchased products, semi-finished products, production services of third-party organizations Fuel and energy for technological purposes Wages of production workers Deductions for social needs Expenses for preparation and development of production General production expenses General business expenses Losses from defects Commercial expenses
Aggregation degree Single element and complex
Frequency of occurrence Permanent and one-time
Use in control system Forecast, planned, actual
Degree of regulation Standardized, non-standardized

Types of cost:

Production cost. Includes only costs associated with primary production. At the same time, from the total amount of production costs, costs attributed to non-production accounts (the cost of capital construction work that was performed for one’s own enterprise, transport services that were provided to third parties, etc.) are excluded. Changes in balances of deferred expenses and changes in the cost of balances of work in progress are also taken into account. An increase in these costs reduces the cost of marketable products, a decrease increases it.

Full cost is the production cost And non-production expenses.

Cost of products sold. The difference between the total cost and the cost of goods sold is equal to the balance of unsold goods in the warehouse at the end and beginning of the period.

The composition of balances at the end and beginning of the planning period differs in amount; they are also not the same for different methods of planning revenue from sales of products and costs.

Depending on the accounting time, there are two ways to calculate cost planning:

At the time of sale - receipt of money to the current account (at the enterprise's cash desk) for shipped products - payment method;

At the time of sale - shipment of products and presentation of payment documents to the buyer - accrual method.

First method of calculation.

Costs are taken into account when money is received into the current account (cash). At the same time, the balances of unsold products at the beginning of the planning period include the following elements: finished products in the warehouse, goods shipped, the payment period for which has not yet arrived, goods shipped and not paid on time, goods in safekeeping with buyers. As part of the balances at the end of the planning period, only finished products in the warehouse and goods shipped, the payment period for which has not yet arrived, are taken into account. Goods shipped To unpaid on time, and goods in custody of the consumer are a violation of payment discipline and therefore are not planned.

When determining the balances of unsold products at the end of the planning period, they proceed from one-day production at production cost and the stock norm in days (according to the data of the previous period). The stock norm in days for finished product balances in the warehouse is the number of days during which the products are in the warehouse, i.e. time required for selection, assembly, packaging of finished products.

The stock norm for goods for which payment is not due, the stock norm in days corresponds to the document flow period, i.e. the time required for payment documents to travel from the supplier's bank to the buyer's bank and back.

Second calculation method– (by shipment) balances reflect finished products in the warehouse.

The main cost planning document is the production cost estimate.

Table 3 – Cost estimate for production and sales of products

№ Name of cost elements Amount, thousand rubles
1. Material costs (less returnable waste), including: raw materials purchased semi-finished products fuel energy
2. Labor costs
3. Contributions for social needs, including to: Social Insurance Fund of the Russian Federation Pension Fund Compulsory Medical Insurance Fund
4. Depreciation
5. Other costs
6. Total production costs
7. Costs written off to non-production accounts
8. Increase (-), decrease (+) in balances of deferred expenses
9. Increase (-), decrease (+) of work in progress balances
10. Production cost of commercial products
11. Non-production expenses, including costs for: Packaging Advertising Transport Other expenses
12. Full cost of commercial products

Methods of cost planning (cost calculation)

normative method – for each product, the consumption rate of a specific material per unit of production is established; then, by multiplying the norm by the number of internal products, the standard consumption for actual output is determined; Then this standard consumption is compared with the actual consumption and the percentage of savings or overexpenditure is determined. After this, adjusting the standard consumption of material by the percentage obtained, the actual consumption for specific products is established:

Pi – actual consumption of materials for product of type i;

Pf – actual consumption of materials for the entire production;

Di – number of manufactured products of type i;

Pнi – standard consumption of materials for product of type i;

Days – number of products produced.

Example. The actual consumption of materials for the production of two products was 12,500 kg. The output of products A amounted to 850 pieces. with a consumption rate of materials of 6 kg and products B - 620 pcs. with a material consumption rate of 7 kg. Determine the actual consumption, kg, for each product.

A: Rf = (12500*850*6)/(850*6+620*7)=6753

B: Rf = (12500*620*7)/(850*6+620*7)=5747

Check: 6753+5747 = 12500 kg

coefficient method – the formula is used

, Where

Qi – consumption of energy resources for technological purposes;

Ki – content coefficient (representing the ratio of material consumption for each product)

Waste materials are divided into two groups:

1. irrevocable – fumes, dust, etc. (not subject to assessment)

2. returnable - trimmings, shavings that can be used (evaluated at the price of possible use)

The quantity and cost of returnable waste between individual types of products are distributed directly, and if not possible, in proportion to the quantity or cost of materials.

In an unstable economic situation (inflation increases costs, and the effective demand of consumers does not allow the price to increase).

Determining the required volume of output and sales of products, at which the payback of variable and fixed costs is achieved - the break-even point. The excess of sales revenue over variable costs - marginal profit (coverage amount) is an intermediate financial result of the enterprise's activities and includes the funds necessary to cover fixed costs and generate profit. Fixed costs do not change when production output increases or decreases to a certain limit, only their relative value per unit of output changes, variable costs change in proportion to changes in output volume, i.e. the level of production and marketing activity is a factor influencing the cost of a unit of production.

By changing the ratio between fixed and variable costs, you can optimize the amount of profit - the effect of operating (production) leverage. The action of the lever operation is manifested in the fact that any change in revenue from sales of products always generates a change in profit. This effect is caused by varying degrees of influence of the dynamics of fixed and variable costs as part of the cost of production on the formation of the financial results of the enterprise when the volume of production changes. In practice, to determine the strength of operating leverage, the ratio of gross margin and profit is used:

In other words, operating leverage represents the potential ability to influence profits by changing the cost structure and production volume:

The main cost indicators of the enterprise are:

1) Absolute amount of IR determined by summing expenses for all items. This indicator characterizes how much it costs a particular enterprise to promote goods to the buyer. The absolute amount of IO is closely related to and depends on the absolute amount of ORT.

2) IO level characterizes the amount of costs per 100 rubles. ORT, or HC IO treatment in the total volume of ORT.

3) Cost-return characterizes ORT received for 100 rubles. expenses incurred.

4) Profitability of AI characterizes the amount of profit received per 100 rubles. expenses incurred.

5) The amount of relative savings (-) or overexpenditure (+) of the IR

In the process of carrying out production, economic and financial activities, enterprises incur certain expenses. The object of study is expenses that can be measured in monetary terms, which is why they are called monetary or financial.

An enterprise's expenses are recognized as a decrease in economic benefits as a result of the disposal of cash, other property and the occurrence of liabilities, leading to a decrease in capital.

All cash costs of an enterprise are grouped according to three criteria.

· expenses associated with making a profit;

· expenses not related to making a profit;

· forced expenses.

· Costs associated with making a profit include

· costs of production and sales of products (works, services)

· investments.

Costs for the production and sale of products (works, services) are expenses associated with the creation of goods (products, works, services), as a result of the sale of which the enterprise will receive a financial result in the form of profit or loss.

The composition of these costs is as follows:

· material costs, i.e. the cost of material resources consumed in the process of production of marketable products, works, services.

· labor costs and social insurance contributions;

· costs associated with managing the production process; the cost of non-current assets used in the production process (fixed assets, intangible assets), reimbursed in the form of depreciation. Investments are capital investments, the purpose of which is to expand the volume of one’s own production, as well as to generate income in the financial and stock markets.

Expenses not related to making a profit are expenses for consumption, social support for workers, charity and other humanitarian purposes. Such expenses support the public reputation of the enterprise, contribute to the creation of a favorable social climate in the team, and ultimately contribute to increased productivity and quality of work.

Compulsory expenses are taxes and tax payments, social insurance contributions, expenses for compulsory personal and property insurance, the creation of mandatory reserves, and economic sanctions.

1. According to the accounting principle, expenses are classified into:

· expenses for ordinary activities;

· other expenses.

Expenses for ordinary activities are expenses associated with the manufacture and sale of products, the acquisition and sale of goods, as well as expenses the implementation of which is associated with the performance of work and the provision of services. This also includes administrative and commercial expenses.

Other expenses include:

· related to the provision for a fee for temporary use (temporary possession and use) of the organization’s assets;

· related to the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property;

related to participation in the authorized capital of other organizations

· related to the sale, disposal and other write-off of fixed assets and other assets other than cash (except foreign currency), goods, products;

· interest paid by an organization for providing it with funds (credits, borrowings) for use;

· related to payment for services provided by credit institutions;

· fines, penalties, penalties for violation of contract terms;

· compensation for losses caused by the organization;

· losses of previous years recognized in the reporting year;

· the amount of receivables for which the statute of limitations has expired, and other debts that are unrealistic for collection;

· exchange differences;

· the amount of depreciation of assets (except for non-current assets);

· other non-operating expenses.

Other expenses also include expenses that arise as a consequence of emergency circumstances of economic activity (natural disaster, fire, accident, nationalization of property, etc.).

Based on this classification, the Profit and Loss Statement is prepared.

Costs for core activities are grouped by homogeneity:

· material costs;

· labor costs;

· contributions for social needs (social tax);

· depreciation;

· other costs.

Based on this classification, an estimate of the costs of production and sales of products is drawn up. The classification of cost items is developed by the enterprise independently.

2. In relation to production volume, costs are divided into fixed and variable.

Fixed costs are those that do not depend on the volume of production.

They are possible even when the enterprise is idle or has just been organized. Such costs include, for example, rent for leased fixed assets, depreciation of own fixed assets, salaries of administration and service personnel, utilities, postal and telegraph services, taxes and others. Such costs are also called “period costs,” meaning that they do not depend on how many products are produced, but only on the fact that a certain period of time for which payments are calculated has ended.

Variable costs depend on output: they increase with growth and decrease with decrease in output. These costs are for raw materials, materials, components and semi-finished products, fuel and energy, for technological purposes, salaries of key workers, for repairs and maintenance of equipment. Such costs are also called “product costs,” meaning that they are directly related to the production of new products (works, services).

Since cost management is one of the main tasks of intra-company management, for this purpose the highest classification criterion is classification by cost centers depending on the organizational division of the enterprise. This division provides for the appointment of responsible department heads. The classification of cost centers should be so broad that for each division it would be possible to determine only one basic indicator that would take into account the workload of a given structural division and at the same time reflect the dependence of costs on output.

Classification by cost objects is carried out depending on the goods produced by the enterprise. services, work for which these costs fall. The classification is based on a card file of the enterprise's products, a cost object - each product, type of service, type of work intended for implementation. In serial continuous production, as well as in the manufacture of products according to individual orders, the order becomes a cost object. Based on this classification, a calculation of the total cost of production is made.

3. According to the method of attribution to the cost of objects, costs are divided into direct and indirect.

Direct costs include those that can be directly attributed to the unit cost of a product (for example, the materials from which specific products are made). Indirect costs include costs that cannot be correlated with specific types of products at the time of their occurrence. Such expenses are preliminarily accumulated in separate accounts, then, at the end of the reporting period, they are distributed between types of products in proportion to the selected base (for example, the basic wages of workers, or direct material costs).

The classification allows the use of cost management methods, which are divided into administrative and economic. Administrative methods can prevent unreasonable, unauthorized expenses, theft, and abuse. Economic methods of cost management include planning and budgeting.

  • What is work like and how to evaluate it?
  • Which needs are material and which are spiritual?
  • What are the roles of producer and consumer in the economy?
  • How are their economic interests interconnected?

You dream of a new bicycle, and your sister wants to buy a piano. Many of your classmates would like to have the latest communication device, a sports trainer. Is production capable of meeting the diverse individual needs of people?

What and how to produce

The purpose of economics, as you already know, is to satisfy human needs. The means to achieve this goal is production. In the production process, both objective economic goods (food, clothing, furniture, cars, houses, books, etc.) and services (showing films, service in restaurants, repairing shoes, furniture, computers, etc.) are created. )

A well-known truth says: society cannot stop producing because it cannot stop consuming. Therefore, the economy is aimed at expanding production and its efficient organization.

What do producers need to decide to produce an economic good?

They usually take into account the following: the type of product, the attractiveness of the product for the consumer, the quantity or volume of products, the resources necessary for its production, manufacturing technology, production efficiency (usefulness of the result, profitability), etc.

Until the 20th century single production dominated. In the last century, serial and flow (mass) production began to develop. Due to this, the opportunities for achieving the main goal of the economy have significantly expanded. Huge industrial enterprises appeared, and the level of people's well-being increased significantly. This process was determined not only by the development of science and technology, but also by a pattern identified by economists: with an increase in production volumes, production costs may decrease. After all, the more products an enterprise produces with available resources, the cheaper on average each unit of goods will cost.

For example, a printing house using one press and the labor of five workers produced 1,000 books per month. The following month, having improved technology, saved materials, and more rationally organized the work of workers, the printing house increased its output to 1,500 books. The increase in production volumes occurred with the same labor (number of employees) and capital (machines and equipment) resources. The cost of one book has decreased, as the cost of its production has decreased.

Large enterprises, reducing the costs of producing goods, made them cheaper and more accessible. What are production costs and how do they affect production results?

Production costs

The sum of all expenses for the production (production) of goods or provision of services constitutes production costs. The valuation of production costs reflects the economic indicator of production costs. This indicator includes, for example, the cost of raw materials, fees for the use of electricity and heat, and employee salaries.

There are general, fixed and variable costs. Total producer costs are the costs of acquiring all the resources necessary to produce a certain amount of product. They represent the sum of fixed and variable costs. As the quantity of goods produced changes, different costs behave differently. Some grow, while others remain unchanged.

Fixed costs are those that do not change depending on changes in production volume. These include, for example, rent for premises and wages for managers. These payments are made even when the company does not produce anything.

Variables are costs whose value varies depending on the volume of output. These include costs for raw materials, electricity, transport, piecework wages for workers, i.e. payment in accordance with the quantity of products produced.

Variable costs are controllable by the manufacturer, but fixed costs are not. Therefore, you have to calculate and choose how many workers you need to attract, what raw materials and in what quantities to use, where to locate production in order to reduce transportation costs. A rational manufacturer strives to look for options for combining production resources in which its costs will be minimal.

The manufacturer strives to find ways to organize production that help it effectively use resources and reduce costs: economical and careful use of resources, the introduction of technical innovations and new technologies, improving the skills of workers, improving labor organization.

    New technologies help manufacturers rationally use resources and increase productivity.

Modern production increasingly needs to process huge amounts of information using a computer. According to the US Department of Labor, of the 54 specialties that will experience rapid growth in the next decade, only 8 do not require knowledge of information technology. New “intelligent” technology is an important tool for increasing labor productivity, understanding complex production problems and making quick decisions.

Today, many of your peers already have knowledge in this area and feel confident when working with a computer.

    Give examples of the use of information technology in the educational process to help students make their learning more interesting and effective.

The pressing problem for Russia is energy saving. The need to solve it is dictated by the lack of natural gas and electrical capacity during the onset of frost, and the high share of energy consumption in production. At the same time, our country is participating in the global fight against greenhouse gas emissions into the atmosphere.

Energy-saving technologies play a major role in the rational use of energy resources. Their use in transport, industry, and heat supply brings economic benefits - a significant reduction in costs associated with high energy costs. For example, according to experts, the introduction of energy-saving lighting technologies can reduce energy costs by up to 8-10 times.

    Find out from various sources (Internet, newspapers, magazines) about ways to save energy resources, give your own examples. Suggest ways to use energy-saving technologies in school facilities.

Another way to efficiently use resources and reduce production costs is to improve the division of labor.

Division of labor in manufacturing is the division of large tasks into several small ones so that each worker performs one or more small operations.

People have long understood the importance of division of labor for production efficiency. Let us recall, for example, what significance the emergence of manufactures had for the economy.

Is it profitable to produce everything?

The decision of what to produce is based on a rational motive - you need to produce something that can be sold at a profit. What does it mean?

The manufacturer tries to organize the production of such a product in such a way that, after its sale, he receives revenue that will not only reimburse his expenses, but also provide additional funds. This is profit.

Profit is the excess of proceeds from the sale of goods over the total costs of their production and sale.

The amount of profit shows how profitable the activities of the enterprise are. Let's make a comparison. After selling the products, the dairy plant received revenue of 40 million rubles, while production costs amounted to 34 million rubles. After selling the products, the plant for the production of electric lamps received revenue of 12 million rubles, and the costs of their production amounted to 14 million rubles. Think about which enterprise’s activities are effective (profitable), and which are unprofitable (unprofitable).

Profit is the driving force behind a manufacturer's activities. Interested in making more profits, he strives to expand production and reduce costs.

Profit is a natural source of funds for the development of the enterprise itself and the economy as a whole. An operating enterprise gives part of its income to the state (in the form of taxes) for the development of the country.

Let's check ourselves

  1. What is the role of the division of labor in the development of production?
  2. How to make production profitable?
  3. How can you reduce production costs?

In the classroom and at home

  1. What types of costs (variable or constant) include the following: payment for the use of office telephones, piecework wages for workers, rental of warehouse space, payment for staff uniforms, payment for the delivery of raw materials and supplies?
  2. Which of the following statements do you consider true?
    1. Labor productivity increases if the number of workers increases.
    2. The growth of labor productivity is influenced by the improvement of production technologies.
    3. Labor productivity depends on the skill level of workers.
    4. Labor productivity decreases as a result of rising product prices.
  3. Find out on the Internet what alternative energy sources are. Do they have a future?
  4. One craftswoman knitted a woolen blanket and sold it for 500 rubles. She spent 5 skeins of wool for 60 rubles. per skein. Another craftswoman made a lace tablecloth and sold it for 700 rubles. She spent 300 rubles on thread. and for beads for decoration 120 rub. How much profit did each craftswoman receive? Explain why its sizes differ.
  5. Dunno decided to become a poet and began to compose one poem after another. He got into the role so much that on Monday he composed two poems about the difficulties of poetic work, spending a whole 2 hours on it. On Tuesday things got more fun, and he composed three poems in 1 hour. Wednesday passed in creative throes; things were moving along, but not too quickly. However, by evening there were already six poems on the table, which took 4 hours. On Thursday nothing was written, because on that day Dunno read his works to the residents of the Flower City. Friday gave another poem, which took only half an hour. On what day was Dunno's productivity the highest?

Learning to predict the success of your business

You and your friend decided to earn money for your summer vacation. Having assessed your abilities and interests, you have settled on several options for earning money: distributing advertisements, making picture frames, delivering newspapers and magazines to your home from kiosks. The choice is yours.

  • the amount of initial capital, i.e. the amount of money you have (it can be borrowed from your parents for a while);
  • the need for a product (service) of possible consumers;
  • the amount of total costs for the production of goods or provision of services;
  • the amount of planned revenue and profit.

If you have thought through everything carefully and in one of the options your planned costs turn out to be less than the expected revenue, get down to business, there is a basis for success.

But first, let's get acquainted with some of the thoughts of G. Ford. He wrote: “The basic principles of our production are:

Don't be afraid of the future and respect the past. He who is afraid of the future, that is, of failures, limits the range of his activities. Failures only give you a reason to start again and smarter...

Put work for the common good above profit. Without profit, no business can survive. Essentially, there is nothing wrong with profit. A well-run enterprise, while bringing great benefits, should and will bring great income. But profitability should result from useful work, and not lie at its basis.

Producing does not mean buying cheap and selling high. It rather means buying raw materials at reasonable prices and converting them, at as little expense as possible, into a good product, which is then distributed to consumers.”