The concept of costs allows you to characterize the amount of funds and resources that are used during the business of the enterprise for the considered time period. The availability of information of this kind makes it possible to perform many functions. For example, the determination of the value of manufactured goods and rendered services can be attributed to them; determination of rationality of distribution of resources between departments and divisions; making assessments that characterize the efficiency and effectiveness of production processes. In addition, such events allow us to consider the importance of performers and customers during the certification of their participation in the organization’s profits.
Classification
All costs of the enterprise can be divided into several areas, which differ depending on the intention to use the information received. According to the first, the results of economic activities of the organization can be identified by the impact on the established cost of production. Distinguish between indirect and direct costs. This allows you to analyze the impact of invested funds on the production process, as well as its payback.
Indirect costs
They are considered as related to the direct work of the organization as a whole or by one of the units. An important difference in this category is that they cannot be attributed to any one type of product. These traditionally attribute to labor costs, depreciation costs, heat supply costs . The above feature allows us to conclude that the method of distribution of this type of expenses should be indicated in the accounting policy of the enterprise.
Direct costs
These are costs that are interconnected with the conduct of any particular type of work or the production of a certain type of product. Their value is necessarily taken into account in the cost of goods. They rightly include the costs of raw materials; electricity and fuel costs; purchase of semi-finished products and finished products; depreciation for equipment; remuneration of workers with all necessary insurance contributions. Direct costs are an important part of accounting for investments. Consequently, the distribution of this value between the released products is indispensable. The most important in the formation of the size of such financial resources can be considered the timely finding of correspondences between manufactured goods and expenses, which are direct costs. This distribution must be made in accordance with established standards, which must be previously developed by employees of the relevant departments of the organization. However, in some cases, situations may arise in which the same materials will be used either on several pieces of equipment or in two or more production cycles. Then the distribution of the cost should be made in proportion to the size of the costs.