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The concept and structure of the company's costs. Centers and cost structure

Firm An organization that owns one or more businesses and uses resources to produce a good or service for profit.

Costs- the company's costs associated with the production and sale of products. Variants of classification of production costs are diverse. Let's start by distinguishing between explicit and implicit costs

Explicit (external) costs- these are cash payments for resources received from outside (deliveries of materials, repairs, etc.). External (explicit) costs are the company's opportunity costs for the purchase of raw materials, equipment, transport, energy "from the outside", that is, from suppliers that are not part of the enterprise, which the company chooses from many others. These costs are reflected in the financial statements.

Implicit (internal) costs are the costs associated with the use by the firm of its own (internal) resources. Unlike explicit costs, these costs are not paid. They are hidden, acting as imputed (or opportunity) costs. own resources enterprises used in production. Opportunity cost is the amount of money that can be obtained at the most profitable of all possible ways resource use. Internal implicit) costs are the opportunity costs for own and independently used resource.

Element of internal economic costs there can be any lost income from the use of one's own resource. Lost wages are taken into account when using their own labor, human resources, lost rent (rent) - when using their own land resources; lost interest - when using your own machines, equipment, etc.; a normal profit is an estimate of one's entrepreneurial talent. Accounting for internal costs is especially important in small businesses.

The sum of explicit and implicit production costs is what economists call economic costs.

Direct costs are those costs that can be fully attributed to a product or service. These include: the cost of raw materials and materials used in the production and sale of goods and services; wages of workers (piecework) directly involved in the production of goods; other direct costs (all costs that are somehow directly related to the product)
Indirect (overhead) costs are costs that are not directly related to a particular product, but relate to the company as a whole. They include: the cost of maintaining the administrative apparatus; rent; depreciation; interest on a loan, etc.
All costs of the enterprise that are associated with the production and marketing of products can be divided into fixed and variable.
Fixed costs(FC)- these are production costs, the value of which does not change with an increase in the volume of output (payment for the company's accountants, rental payments, depreciation).

Variable Costs (VC)- represent costs, the value of which varies depending on the volume of production (expenses for materials, raw materials, transport services).

The sum of constants and variable costs called total (or cumulative) gross costs
Total costs (TC) - the total costs of the firm, equal to the sum of its fixed and variable costs, are determined by the formula:

Total costs increase as the volume of production increases. To measure the cost per unit of production, the concept of average costs (AC) (average fixed, average variable costs) is used.

Average (gross) cost (AC) is the total cost of production per unit of output: AC = TC / Q

Average fixed cost (AFC) is the total fixed cost per unit of output. They are determined by dividing fixed costs (FC) by the corresponding quantity (volume) of output:

AFC = FC / Q Since total fixed costs do not change, then when divided by an increasing volume of production, average fixed costs will fall as more output is produced, because a fixed amount of costs is distributed over more and more units of production. Conversely, if output is reduced, average fixed costs will rise.

Average Variable Cost (AVC) is the total variable cost per unit of output. They are determined by dividing the variable costs by the corresponding amount of output:

AVC = TC / Q Average variable costs first fall, reaching their minimum, then begin to rise. In addition to these costs, for market analysis it is necessary to know marginal cost.

Marginal cost (MC) is the cost associated with producing an additional unit of output. Marginal costs, unlike averages, are calculated as the difference between 2 adjacent gross costs. Marginal cost indicates how much a firm will incur if it produces one more unit of output. And at the same time, what can save if you refuse to release this last unit. For all its importance, marginal cost (MC) in economic analysis the role of average costs is high).

Depending on the time spent on changing the amount of resources used in production, there are short-term and long-term periods in the activities of the company.

short term- this is a period of time too short for the enterprise to change its production capacity, i.e. the size of the enterprise. V short term different kinds costs are either fixed or variable.

Long term- this is a period of time long enough for the firm to change the amount of resources used, including the size of the enterprise.

V long term Since all factors of production are variable and there is no average fixed cost, average variable cost is equal to average total cost.

The effect of a change in the scale of production on the volume of output is called economies of scale. The economies of scale can be permanent, positive or negative.

The positive effect is that with an increase in production volumes, production costs are reduced.

Negative effect - with an increase in production, costs increase.

Constant effect - costs do not change.

The optimal size of the enterprise is when the benefits of scale are fully realized, and the costs are minimal.

Each enterprise, before starting production of products, determines how much income it can receive. The amount of income of an enterprise depends on two indicators: the price of products and the costs (costs) for its production.

Production costs are costs associated with the production and circulation of goods, i.e. costs necessary for the implementation of the production process and the sale of products (works, services).

In economic theory, many scholars believe that costs can be divided into:

costs of society - a set of socially necessary labor costs for the production of one type of product with an average level of production ( average performance and intensity of labor, the average level of technology and technology, etc.);

enterprise costs - the sum of the costs of a particular enterprise for production and sale a certain kind goods.

V last years in modern economic literature, many economists divide costs into internal (implicit) and external (explicit).

Internal (implicit) costs are costs equal to cash payments that can be received by an enterprise for independently using its own economic resources, including entrepreneurship.

These costs (alternative) are not always clearly visible, but it is advisable to take them into account when making management decisions. Opportunity costs are expressed in the value of other goods that could be produced with the most profitable of all possible directions of using the same resources. Implicit are the costs of using the resources owned by of this enterprise. So, for the owner of capital, implicit costs can be expressed by the profit that he could receive by investing his capital not in “his own”, but in some other business. Internal costs are unpaid costs, the opportunity cost of own resources used in a given production.

External (explicit) costs are costs incurred by an enterprise by paying for economic resources belonging to external entities that do not belong to the owners of the enterprise (firm). Cash costs for wages, purchase of raw materials and supplies, depreciation of fixed assets, payment of transportation costs and others are the obvious costs of the enterprise. Since they are calculated on the basis of financial statements, they are called accounting. Accounting (actual) costs are the real costs of the enterprise associated with the direct implementation of production and commercial activities.

Economic costs are a combination of explicit and implicit costs.

The total cost of production of a particular type of product consists of many types of costs, which are usually divided into two large groups: fixed and variable (Table 11.1).

1. Fixed costs are costs that do not depend on the volume of output, and their value does not change depending on changes in the volume of production. They arise when production has not yet begun. So, before the start

Table 11.1

The structure of economic production costs

production activities the enterprise must have at its disposal such factors of production as a building, machinery, equipment. These include rents, administrative expenses, depreciation of fixed assets, insurance premiums, travel expenses and etc.

Variable costs (VC) are costs that change depending on the volume of production. These include the cost of purchased basic and auxiliary materials, the cost of energy, fuel, wages basic workers, transport services, maintenance of most of the firm's personnel, etc. When no output is produced, variable costs are zero, but as output increases, they increase again.

Gross costs (TC) is the sum of fixed and variable costs at each specific level of production (Table 11.1).

In real economic practice, gross costs with an increase in production volumes initially grow rapidly, then their growth rates decrease, so the curve of constant and, consequently, variable costs looks like that shown in Fig. 11.1.

It is interesting for the manufacturer to know the value not so much of the total costs as of the average, since a decrease in the average costs may be hidden behind the increase in the total costs. Average costs (ATS) are equal to the quotient from dividing the total costs by the volume of products:

Marginal costs show how many times it will cost a firm to increase its output per unit.

Marginal cost decisively influences a firm's choice of output. It is an indicator that a firm can influence. For each level of production, there is a special, distinct value.

In the short run, fixed costs do not affect the level of marginal costs - the latter are influenced only by variable costs. In the long run, marginal cost can either increase or remain unchanged or decrease (depending on economies of scale and other factors).

Minimal state intervention in the economy.

CHARACTERISTICS OF THE MARKET ECONOMY

ESSENCE AND GOALS OF STATE REGULATION OF MARKET ECONOMY.

Ticket 8

Market economy - it economic system, based on the principles of free enterprise, the diversity of forms of ownership of the means of production, market pricing, contractual relations between economic entities, limited state intervention in economic activity. It is inherent in socio-economic systems where there are commodity-money relations.

Having emerged many centuries ago, the market economy has reached a high level of development, has become civilized and socially limited.

The main features of a market economy:

The basis of the economy is private ownership of the means of production;

Variety of forms of ownership and management; Free competition; Market pricing mechanism;

Self-regulation of the market economy Contractual relations between business entities;

Main advantages:

Stimulates high production efficiency;

Fairly distributes income according to the results of work;

Does not require a large control apparatus, etc.

Main disadvantages:

Strengthens social inequality;

Causes instability in the economy;

Indifferent to the damage that business can cause to people and nature, etc.

The market economy of free competition developed in the 18th century, but a significant part of its elements entered the modern market economy.

The main features of the market economy of free competition:

private ownership of economic resources;

a market mechanism for regulating the economy based on free competition;

a large number of independent sellers and buyers of each product.

The modern market economy (modern capitalism) turned out to be the most flexible, it is able to rebuild and adapt to changing internal and external conditions. Its main features:

variety of forms of ownership;

development of scientific and technological progress;

active influence of the state on the development of the national economy.

2. ECONOMIC CONTENT OF COSTS.

Production costs are costs associated with the production and circulation of goods, i.e. the costs necessary for the implementation of the production process and the sale of products.

In economic theory, many scholars believe that costs can be divided into:

costs of society - a set of social necessary costs labor for the production of one type of product at an average level of production (average productivity and labor intensity, average level of technology and technology, etc.);

enterprise costs - the sum of the costs of a particular enterprise for the production and sale of a certain type of product.

In recent years, in modern economic literature, many academic economists divide costs into internal (implicit) and external (explicit).

Internal (implicit) costs are costs equal to cash payments that can be received by an enterprise for independently using its own economic resources, including entrepreneurship. These (alternative) costs are not always clearly visible, but it is advisable to take them into account when making managerial decisions. Opportunity costs are expressed in the value of other goods that could be produced with the most profitable of all possible directions of using the same resources. Implicit are the costs of using resources owned by the enterprise. So, for the owner of capital, implicit costs can be expressed by the profit that he could receive by investing his capital not in “his own”, but in some other business. Internal costs are unpaid costs, the opportunity cost of own resources used in a given production.

Economic costs are a combination of explicit and implicit costs.

The total cost of producing a particular type of product consists of many types of costs, which are usually divided into two large groups: fixed and variable.

1. Fixed costs (FC) - These are costs that do not depend on the volume of output, and their value does not change depending on changes in the volume of production. They arise when production has not yet begun. So, before the start of production activities, the enterprise must have at its disposal such factors of production as a building, machinery, equipment. These include rent, administrative and management expenses, depreciation of fixed assets, insurance premiums, travel expenses, etc.

2. Variable Costs (VC) are costs that vary with the volume of production. These include the cost of purchased basic and auxiliary materials, energy costs, wages of key workers, transportation services, maintenance of the firm's staff, etc. When no output is produced, variable costs are zero, but as output increases, they increase again.

3.Gross costs (TC)- the sum of fixed and variable costs at each specific level of production.

In a real household In practice, gross costs with an increase in production volumes initially grow rapidly, then their growth rates decrease, so the curve of fixed and variable costs looks like the one shown in Fig. 11.1.

It is interesting for the manufacturer to know the value not so much of the total costs as of the average, since a decrease in the average costs may be hidden behind the increase in the total costs.

Average costs (ATS) are equal to the quotient from dividing the total costs by the volume of products:

Marginal cost (MC) is defined as extra. production costs of each new additional unit of production:

Marginal cost measures how many times it will cost a firm to increase output per unit.

Marginal cost decisively influences a firm's choice of output. It is an indicator that a firm can influence. For each level of production, there is a special, distinct value.

The total amount of economic costs incurred by an economic entity for the production of a particular type of product consists of many types of costs, which are usually divided into two large groups: fixed and variable (Table 1). This is a classification of costs according to elasticity to the volume of activity.

Table No. 1. The structure of economic production costs

1. Fixed costs (PC) - costs, the value of which in the short term does not change with an increase or decrease in production, i.e. they do not depend on the volume of output. They arise when production has not yet begun. So, before the start economic activity- the enterprise must have at its disposal such factors of production as a building, machinery, equipment.

2. Variable costs (CS) - costs, the value of which varies depending on the increase or decrease in production volume, i.e. they depend on the volume of output. These include the cost of purchased basic and auxiliary materials, the cost of electricity, fuel, the wages of the main workers, transportation services, the maintenance of most of the firm's personnel, etc. When no output is produced, variable costs are zero, but as output increases, they increase again.

V initial period production, variable costs rise at a faster rate than output. As the optimal size of production is reached, relative savings occur.

3. Gross costs (TC)-is the sum of fixed and variable costs at each specific level of production.

In practice, when analyzing costs, their distribution depending on production volumes allows:

Conduct break-even analysis and product mix;

Analyze the change in profitability with changes in the conditions of activity and sales;

Assess the level of entrepreneurial risk;

Optimize the volume of activities, profits and costs, taking into account demand.

Cost classification

To understand the essence of costs, their role in production activities and the mechanisms of influence on the institution of costs, it is necessary to explore the diversity of their types. It is the classification of existing costs that reflects their functions and purpose. In addition, costs as a complex economic phenomenon cannot be characterized from the standpoint of any one classification.

The classification of enterprise costs is carried out according to various criteria, here the cost item, the behavior of costs at different time intervals, the assignment of costs in relation to the enterprise management system matter.

In essence, costs are divided into two main types - current and non-recurring. Current costs are associated with the purchase of goods, their transportation, storage and sale, maintenance of the material and technical base, and the maintenance of personnel. Current costs of commercial activities are called distribution costs. They are present everywhere where commercial activity is carried out, that is, in industry, when it comes to supply and distribution costs, in wholesale and retail etc. In other words, these are the costs of material, monetary and labor resources industrial organizations or trade enterprises when bringing goods from the producer to the consumer.

One-time costs (investments) are one-time costs that do not occur periodically. They are associated with the construction, reconstruction or acquisition of objects, machines, mechanisms and equipment, intangible assets, etc.

Economists use several approaches to the interpretation of costs and their analysis. For a long time, the fundamental theory of costs was the theory developed by Karl Marx, which considers costs from the standpoint of labor theory cost. By economic nature, he divided all distribution costs into pure and additional.

The net distribution costs include a part of the costs associated with the purchase and sale of goods, i.e. is the maintenance cost sales agents, expenses for promotional activities, for monitoring and accounting for the circulation process, losses, etc. Net distribution costs do not increase the cost of goods and are reimbursed after the sale of goods from profit.

Additional (heterogeneous) distribution costs are the costs associated with the continuation of the production process in the sphere of circulation. Additional distribution costs are the costs of packaging and packaging products, transportation of goods, and the transformation of the production range into consumer. This type of costs is close to production costs and, entering into the cost of goods, increases the latter. Additional distribution costs are reimbursed after the sale of goods from the amount of proceeds received.

The Marxist theory of distribution costs in modern conditions has lost its practical significance, since the author did not take into account the market situation, abstracted from the problem of price fluctuations around value, etc.

Modern economic theory uses other approaches to interpreting costs. First of all, it should be noted that in a significant part of the work considered economic category"production costs", however, it should be understood in a broad sense, since we are talking about the costs used for production and sales activities. Explaining the essence of production costs, the authors illustrate the theory of the issue with examples from the activities of both industrial and commercial enterprises. Many economists have abandoned the use of the terms "distribution costs" and "production costs", replacing them with the terms "company costs", "company costs" or shorter ones - "costs", "costs".

It seems appropriate to the author, speaking about the terminology in the theory of costs, to pay attention to the opinion of Kondrashova V.K. and Isaeva O.G. activity of the enterprise: possible, productive, unproductive, for inaction, for the creation of capital, for its use. In their work, economists also substantiate the importance of classifying costs in their study: “to reveal, show the multidimensionality, variety of signs and types of costs, their nature - this means to see, understand what was previously unknown and remained invisible, uncertain, unused, unmanifested. Completeness of costs as a basic principle - this is the significance and novelty of the work on the classification of costs" [Ibid.].

So, below we will consider the classification of the cost system in order to determine them, isolate them from the production process, further analyze and find the most optimal options managing these costs.

1. Role in the management system:

· production costs(associated with the manufacture of goods, the activities of the enterprise);

non-production (general company) costs (associated with the sale, promotion of products to the consumer).

2. Attitude to the production (technological, commercial) process:

Basic expenses (costs without which products will not be manufactured, for example, the cost of workers' wages, the cost of materials that are part of the product, etc.);

overhead costs (usually these are indirect, complex costs, they contribute to best process production and sale of products, but products can be manufactured without these costs (for example, the cost of salaries of management personnel).

3. Method of reference to the cost price (cost intensity):

direct costs (determined exactly for a given volume of production, for example, the cost of wages for workers, the cost of materials);

Indirect (indirect) costs (usually these are overhead, complex costs, they are distributed by type of product, volume, workshop in proportion to the selected (specified in the instructions) distribution base (buyer).

4. Ability to be covered by the plan:

Planned (normalized) costs;

unplanned costs.

5. Expediency of spending resources:

productive (useful) costs;

Unproductive (useless, unnecessary, idle) costs.

6. Composition of costs:

single-element (homogeneous costs, for example, only for salaries);

complex (Costs that are complex in composition, usually these are overhead, indirect costs or complex cost items: general workshop, general factory).

7. By the obligation of compensation

Returnable (costs returned from income, such are the bulk of the costs);

Sunk costs (costs that can never be profitable, pay off, for example, costs in unfinished and unnecessary construction);

8. According to the degree of restriction

· limited (costs on which the maximum value is set, for example, a limit on electricity, on wages);

normalized (there is a set amount of costs, for example, for wages in hours, tariff rates);

9. By types of markets

market costs finished products;

labor market costs

· costs of the markets of industrial resources;

costs financial market, securities market

10. Cost center (responsibility centers). The costs of commercial activities are divided into areas of activity (for example, logistics, sales) and by the relevant organizational and structural units - enterprises (production or trade type).

11. Specific types of costs

On this basis, separate cost items (distribution costs) are distinguished, the totality of which makes up their nomenclature. For industrial enterprises the nomenclature of costs for commercial activities has not been developed, while for trade and Catering In Russia, a single nomenclature is currently established, including 14 cost items.

The nomenclature of distribution costs is a set of costs in the context of individual items. The list of articles of distribution costs is established by the enterprise independently in accordance with paragraph 4 of article 252 of the Tax Code of the Russian Federation. In this case, it is possible to use the nomenclature from the main articles recommended Guidelines accounting for costs included in distribution and production costs, and financial results at trade and public catering establishments approved by Roskomtorg and the Russian Ministry of Finance. The distribution costs include the following items:

· fare;

labor costs;

contributions to insurance funds;

Expenses for rent and maintenance of buildings, structures, premises, equipment and inventory;

depreciation of fixed assets;

expenses for the repair of fixed assets;

wear and tear of sanitary and special clothing, table linen, dishes, appliances;

· the cost of fuel, gas and electricity for production purposes;

expenses for storage, underworking, sorting and packaging of goods;

loss of goods and technological waste;

the cost of packaging;

· other expenses.

An enterprise can reduce by combining individual items, or expand by highlighting individual items from other expenses, the range of distribution costs. When constructing the accounting nomenclature of expense items, the features of the economic and financial activities of the enterprise are taken into account.

Russian entrepreneurs in their activities use a significant part of the considered classifications, but, unlike their foreign counterparts, they do not apply the division into fixed and variable costs enough to manage costs.

The costs of circulation of commercial intermediary organizations have been studied in sufficient detail, methods for managing them have been developed and are being applied in practice. Few studies focus on business costs manufacturing enterprises. Procurement costs and distribution costs have been studied mostly in isolation, with more attention paid to the problem of identifying and optimizing marketing costs.

One of the reasons for the current situation is the underestimation of the role of commodity-money relations in production activities up to the transition of Russia to market economy, lack of due attention to the problem of cost optimization, the study of their economic nature. In this regard, the basis, the experience of cost management at domestic enterprises in comparison with foreign business is only being accumulated and comprehended. This experience is yet to become the basis for scientific developments, innovations in the field of cost management.

It is also necessary to single out the types of costs, the consideration of which in economic science began not so long ago. The author considers it necessary to dwell on logistical costs, as well as transaction costs.

Logistic costs are also called marketing costs. Since logistics deals with the management and optimization of material, financial and information flows, based on the application modern technologies, progressive economic solutions, logistics costs are the costs aimed at achieving these goals. This type of costs should be distinguished and separated from the costs of commercial activities, tk. the use of the term "logistics costs" can only be applied to costs arising from the development of new products, marketing research, fulfillment of tasks for the rational organization of loading and unloading operations, transportation, the functioning of the coordinating service. At the same time, the use of methods and levers of marketing and logistics can qualitatively change the structure and amount of costs for commercial activities.

Logistics costs include:

Procurement costs (costs for placing an order, concluding a contract, etc.);

Stock maintenance costs (costs for warehousing of products, rental payments);

Losses due to lack of goods (costs due to non-fulfillment of the order, the cost of lost sales, costs due to the loss of the customer);

Transport costs (losses on the process of transporting products).

Transaction costs are the most important concept of institutional economics. Institutional economics studies the behavior of participants economic activity, factors influencing the conclusion of contracts. Thus, transaction costs are the costs that arise in connection with the conclusion of agreements by business entities, this is “the value of resources (money, time, labor, etc.) spent on planning, adaptation and ensuring control over the fulfillment of obligations undertaken by individuals in the process of alienation and the appropriation of property rights and freedoms accepted in society.

According to Dalman K., the following transaction costs are distinguished:

costs of obtaining and analyzing information data;

costs of negotiation and decision-making;

control costs;

· the costs of legal protection of the performance of the contract by the use of the market.

Without understanding the essence of transaction costs, it is impossible to understand the operation of the economic system.

advanced cost labor resource

Any company, before starting production, must clearly understand how much profit it can count on. To do this, she will study the demand and determine at what price the products will be sold, and compare the estimated income with the costs to be incurred.

Figure 1. Cost structure of firms

Explicit and alternative (imputed) costs

Consider the costs of a firm in the production and marketing of goods and services. First of all, let us pay attention to the explicit and alternative (imputed) costs, since both are taken into account by the firm in its activities. The explicit ones include all the costs of the firm to pay for the factors of production used. The classical factors of production are labor, land (natural resources) and capital. Modern economists tend to single out entrepreneurial ability as a special factor. One way or another, all the explicit costs of the firm ultimately come down to reimbursement of the factors of production used. This includes remuneration for labor in the form of wages, land - in the form of rent, capital - in the form of expenses on fixed and circulating assets, as well as payment for the entrepreneurial abilities of the organizers of production and sales. The sum of all explicit costs acts as the cost of production, and the difference between the market price and the cost as profit.

However, the amount of production costs, if they include only explicit costs, may be underestimated, and the profit, accordingly, will be overestimated. For a more accurate picture, so that the firm's decision to start or develop production was justified, costs should include not only explicit, but also implicit (imputed, alternative) costs.

Opportunity costs (opportunity cost) of the use of resources owned by the firm are called. These costs are not included in the firm's payments to other organizations or individuals. For example, the owner of the land does not pay rent, however, cultivating the land on his own, thereby refuses to lease it and from the additional income that arises in connection with this. An employee doing individual activity, is not hired by the factory and does not receive wages there. Finally, an entrepreneur who has invested his money in production cannot put it in a bank and receive loan (bank) interest.

Taking into account not only explicit, but also opportunity costs allows a more accurate assessment of the firm's profit. Economic profit is defined as the difference between gross income and all (explicit and alternative) costs.

Direct and indirect costs

The division of costs into explicit and alternative is one of their possible classifications. There are other types of classification, such as dividing costs into direct and indirect (overhead), fixed and variable.

Direct costs are costs that can be attributed specifically to a specific cost object in an economically feasible manner. These include:

* the cost of raw materials and materials used in the production and sale of goods and services;

* wages of workers (piecework) directly involved in the production of goods;

* other direct costs (all costs that are in one way or another directly related to the product).

Indirect (overhead) costs are costs that are not directly related to a particular product, but relate to the firm as a whole. These include:

* the cost of maintaining the administrative apparatus;

* rent;

* depreciation;

* interest on a loan, etc.

Fixed and variable costs.

The criterion for dividing costs into fixed and variable costs is their dependence on the volume of production.

For the purposes of pricing and management of this process, the most important is the division of costs depending on their dynamics when the volume of production changes into constant and variable.

Constants (FC) are called costs, the value of which does not depend on the volume of production and remains unchanged in a certain range of production scales. By their economic essence, fixed costs create conditions for the implementation of the target activities of the enterprise, they objectively exist even if the enterprise does not produce products, and change when the conditions of production change (commissioning additional equipment, construction of new buildings) or when prices change. Fixed costs include rental costs, depreciation of fixed assets, a fixed part of the salary of administrative and managerial personnel with deductions for social needs, the cost of maintaining and maintaining buildings and equipment, etc.

Variables (VC) are costs, the amount of which depends on the volume of production. By their economic nature, the variables represent the costs of the actual implementation of the target activity for which the enterprise was created: they arise when the enterprise produces products, and the larger the scale of production, the greater their total amount. Variables include the cost of raw materials, materials, components, fuel and electricity, wages with social deductions for key production workers, sales costs, etc.

Part of the costs of the enterprise is mixed, that is, it contains elements of both fixed and variable costs. An example of mixed costs is payroll costs telephone connection: subscription fee constant, and the cost of long-distance calls fluctuates. Mixed costs need to be divided into fixed and variable by introducing an appropriate accounting system, but in practice they are most often subdivided using various statistical techniques.

The importance of dividing costs into fixed and variable is explained by the fact that in market conditions due to changes in market conditions, a situation often arises when an enterprise is forced to reduce or expand the volume of production and sales of products. Fluctuations in the scale of production and trading activities significantly affect the level of the average cost of production and, as a result, the amount of profit. This is due to the fact that the cost price includes variable and fixed costs, and when the volume of production changes, the value of fixed costs per unit of production changes, as a result of which the cost price fluctuates, and with an increase in production and sales, the cost price of the product decreases due to the decreasing part of the fixed costs. unit costs.

The concept and structure of the company's costs. Centers and cost structure

Cost classification

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