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Pricing - Erukhimovich IL

1. Production costs, costs of the enterprise

Price - this is one of the most difficult economic categories. For proper understanding it is necessary to have an idea of ​​what lies behind the price, the objective economic laws which affect the processes of pricing and price movement.

Price is the monetary expression of the value of the goods and the cost of each individual product - is embodied and materialized in it social labor. In monetary terms, of social labor costs constitute the cost of production, which are always present regardless of the social form of production. It is important to clarify who bears the costs.

From the viewpoint of society the costs of production are complete, ie. E. The socially necessary, labor costs.

From the standpoint of enterprises in production costs only include the cost of raw materials, fuel and energy, depreciation of fixed assets, payroll. In other words, the company includes the cost of the cost of socially necessary labor in the production of goods and therefore lower costs society by the amount of the surplus product.

In real economic life of the individual costs of individual companies may deviate from the level of socially necessary labor costs if they exceed this level, it means that the company is unprofitable. In a market economy, unprofitable enterprises and firms go bankrupt, and in a planned - are subsidized by the state. Enterprises, where labor costs are lower than the socially necessary, enriched. If the costs of the enterprise are at the level of socially necessary labor, it only reimburses the expenses, without being able to accumulate funds for the development of production and improve the social situation of its employees.

1.1. Cost of products. The concept, the economic substance

Company costs are in the form of production costs.

Production costs allocated from the total of its value as a special economic category, because every company regardless of ownership must compensate them spent resources within the cost, to be able to operate smoothly.

Businesses (firms) involved in production activities, determine the cost of production, and firms engaged in marketing, logistics, trade and intermediary activity, - distribution costs.

In almost all countries of the world concrete composition of costs that can be attributed to the cost of production and circulation regulated by law. This is due to the tax system and the need to distinguish between the expenses of the enterprise (company) for reimbursement sources (included in the cost of production and, consequently, are compensated by the price of it, and compensated from the profits remaining at the disposal of the enterprise after payment of taxes and other obligatory payments ).

In Ukraine, the Regulations on the composition of production costs (turnover) in enterprises and organizations.

Resolution of the Cabinet of Ministers of Ukraine № 473 of 26/04/96 approved the "Model Regulations on industrial planning, accounting and calculation of cost of goods (works, services)" [9]. It establishes common principles for the formation of the cost of production for the enterprises of Ukraine, regardless of ownership.

What is the cost price? It is expressed in monetary terms the current expenses of the enterprise for the production and marketing of products, works and services.

Since the cost of only reflects the current costs of production and sales of products (works, services), then this is fundamentally different from the one-time capital investments (investments), creating fixed assets. This means that due to cost can not restock, create resources.

Cost of production is a general indicator, which reflects the state of the art and the level of organization of production, rational, economically sound management of the enterprise.

For planning, accounting and analysis of economic activity, identify the sources of cost reduction and forecasting costs are classified into groups according to a certain sign.

In determining the cost of production as a whole on the enterprise (company), they are grouped according to economic content, t. E., Each specific grouping brings together the costs, regardless of where and for what purpose they are made.

The following cost items are Under this classification:

• material costs (excluding the cost of current waste);

• labor costs;

• deductions for social events;

• depreciation of fixed assets;

• other expenses.

Tangible costs include the cost of:

• Raw materials, which are purchased from foreign companies and organizations, and are part of the manufactured products, forming its basis, or are a necessary component in the production of goods (works, services);

• purchased materials, components and semi-finished products which are used in the production of goods (works, services) to ensure the normal process, subject to installation or additional processing at a given enterprise, used for packing products or other industrial or economic needs, as well as spare parts for the repair of equipment, tools, fixtures, equipment, devices, laboratory equipment and other means of labor, which do not relate to the basic production assets;

• acquired from foreign enterprises and the fuel and energy organizations of all types spent on technological and other production needs of the enterprise (company);

• Works and production services that are performed by foreign enterprises or structural divisions of the enterprise, and not belong to the core business.

For labor costs include:

• wages of workers for the work performed, calculated according to tariff rates, official salaries and travel rates in accordance with accepted at the enterprise (company) systems of remuneration;

• allowances and additional payments to tariff rates and salaries in the amount stipulated by the legislation;

• payment in accordance with the current legislation of annual holidays, compensation of employees under the age of 18 years, while maintaining the length of their working day, the payment time associated with the performance of public duties, and a medical examination;

• one-off compensation for years of service in accordance with applicable law;

• payment in accordance with the current legislation educational leave to employees who are studying at the evening and correspondence courses from schools, vocational and higher educational institutions, graduate in absentia;

• other costs, which according to the established order are included in labor costs.

For contributions to the social activities are compulsory charges on standards established by the legislation on the state social insurance, pension fund and unemployment on the labor costs of employees engaged in the production of the relevant products (works, services). The amount of allocations for financing measures to implement the Law of Ukraine "On the status and social protection of citizens affected by the Chernobyl disaster" as defined by established norms of labor costs.

Depreciation of fixed assets includes the amount of depreciation on the full restoration of fixed assets, computed from their carrying value on the duly approved standards, including accelerated depreciation of their active part.

For other costs include: payment of interest for short-term loans; payments on obligatory insurance of property of an enterprise, part of the production assets; payment for the performance of banking services in accordance with the agreements concluded commercial and commission operations with payment documents; taxes, fees and other mandatory payments stipulated by the legislation; payment services and other costs, which are included in the cost of goods (works, services), but do not belong to the previously listed costs.

This grouping is used for the preparation of cost estimates for the whole company (the company) as well as for the calculation of business plans of companies and is reported in the amount covering all expenses of the period, regardless of the fact that some of them may not be directly related to activity on production.

To determine the actual amount of costs for production, t. E. Costs, totals the total cost of production are adjusted based on special calculations and accounting data.

As a result of these adjustments is obtained monetary estimation the cost of commercial products of the enterprise as the total cost, which after rearranging economic elements by object costing can be distributed between different types of commercial products, which in turn allows the basis of data on individual types of issue volumes commodity output to calculate the unit cost of each type.