The costs of the enterprise are mainly aimed at the production and sale of products, reproduction of funds and working capital, the development of the labor collective in the field of socialization, and so on. Of course, the largest cost of the enterprise is the production of products. The expenses of the enterprise are also spent on the sale of products, which includes advertising, transportation, storage and packaging of the product. However, production costs may go not only to the production and its implementation. These may be immediate costs. These include work with agriculture, urban improvement, activities in cultural and domestic industries, participation in the activities of other organizations.
Types of enterprise costs
Types of production costs can be grouped according to the characteristics they possess.
So, the costs of the enterprise are divided:
1. Deductions for social needs.
2. Material costs.
3. Depreciation of funds.
4. Expenses for the payment of wages.
These types of costs of the enterprise are united by the sign of including the cost of production by elements.
5. Representation expenses.
6. Interest on the loan.
7. Advertising costs.
8. Travel expenses.
9. The cost of training.
The listed types of costs of the enterprise are combined by the sign of mixed costs.
10. Costs of losses for external reasons.
11. Costs of canceled orders, production without products.
12. Costs and expenses.
13. Canned production costs.
14. Losses from operations with containers.
15. Losses from non-recoverable debts.
16. Sanctions for breach of contract.
17. Losses from emergency situations.
18. Doubtful settlement debts.
19. Losses associated with loss from natural disasters.
20. Losses from operations of previous years.
These types of costs of the enterprise are based on the principle of profit and loss.
21. Costs of free services provided to educational institutions.
22. “Mixed costs” above the established norm.
23. Maintenance of cultural facilities, assistance in the improvement of the city.
24. Expenses for payment of interest on an overdue loan.
24. Income brought by securities.
25. Additional leave, financial assistance, pension benefits, gifts.
26. Local taxes.
The listed types of costs of the enterprise relate to the principle of net profit.
Types of costs are also classified depending on the methods and goals:
1. By role in the manufacturing process.
2. By economic elements.
3. By the nature of the relationship with the changed volume of production.
4. At the place of origin and purpose.
5. By the method of allocation to the cost of various types of products.
By type of expense, costs are divided into:
1. Costs of calculation items (raw materials for production, energy and fuel for technology, workshop costs, additional wages, factory expenses and the like).
2. The costs of economic elements (auxiliary materials, electricity, social insurance, fuel, and so on).
In turn, the costs of economic elements are divided into:
1. Material costs (the largest share of production costs is from 60 to 90%).
2. Contributions to social needs (payments to the state employment fund, pension fund, expenses for medical and social insurance).
3. Labor costs (include not only the basic payment of wages, but also a bonus, compensatory payments, various allowances)
4. Depreciation of funds (when depreciation of fixed assets means of production are deducted for their full recovery).
5. Other costs (fees, taxes, remuneration, training and retraining, etc.).
Production costs include the maintenance of funds in working condition, maintenance, maintenance, operation of vehicles and equipment, etc.