PRACTICAL LESSON No. 17
Calculation of cost indicatorsproduction programorganizations (enterprises).
The student must:
know:
a list of the main technical and economic indicators (TEI) of the enterprise’s operation;
cost indicators of the enterprise's production program;
be able to:
calculate cost indicators of the production program.
Guidelines
A list of the main technical and economic indicators of the enterprise’s operation is contained in the production program.
Under production program enterprise is understood as a scientifically based plan for the volume, nomenclature, range and quality of products, developed on the basis of concluded contracts or on the basis of marketing research of the sales market and approved at the enterprise by the relevant body.
The production program consists of the following sections:
Planned target for volume, nomenclature and range of products.
Planned target for the quality of products.
Plan for specialization and cooperation.
The basis for the development of a production program is the results of marketing research, a portfolio of orders, availability production capacity and resources in the enterprise.
The production program is characterized by qualitative, natural and cost indicators, qualitative and quantitative.
Natural and cost indicators are determined planned releaseproducts. In the production program, this indicator is indicated both in value and in physical terms. Natural meters depend on the specifics of the product (nomenclature 1 and assortment 2), so it can be indicated in linear meters, m 3, pieces, kg, tons, sections and other units, as well as in conventional units.
The list of quality indicators includes indicators such as: grade, brand, content of useful components, the share of products that meets and exceeds international standards, the share of export products, the most important technical parameters of manufactured products.
Quantitative (volume) indicators include volumes of commercial, gross, sold and net products.
The volume of commercial and sold products is shown in the current wholesale prices of the enterprise, in comparable prices and in the prices of the reporting period. Products sent for export are shown in convertible currency with subsequent conversion into rubles in accordance with the current exchange rate. Such a cost estimate is necessary not only for planning a production program, but also for analyzing its implementation.
Commercial products- this is a product intended for external sales, it serves as the basis for calculating gross and sold products and includes:
the cost of finished products intended for external sales;
the cost of work and services of a production nature, performed or provided to third-party organizations, as well as for non-industrial farms and organizations of their own enterprise.
the cost of semi-finished products of own production and products of auxiliary workshops (tools, fixtures, equipment) intended for external sales;
the cost of semi-finished products and products for supply to your capital construction and non-industrial farms of your enterprise;
the cost of non-standard equipment (as well as devices, etc.) for general purposes of its production, included in the fixed assets of the enterprise or sold externally;
IN general view to determine volume of commercial products (TP) you can use the formula:
- cost of finished products (services, works) intended for external sales, rubles;
U store– cost of services provided to third parties, rub.
-
cost of finished products for the needs of capital construction and non-industrial economy of your enterprise, rubles;
- the cost of semi-finished products of its production and products of auxiliary and subsidiary farms intended for external sales, rubles;
- cost of fixed assets of own production, rub.
Marketable products in most industries are determined using the factory method, i.e. the volume of commercial products does not include the cost of finished products, semi-finished products manufactured by the enterprise for its own needs; The exception is some food industry enterprises.
Commodity output for finished products is planned at the current prices of the enterprise. According to the report, it is calculated in prices actually in effect in the reporting year; Also in the report, marketable products are determined in comparable (unchanged as of a certain date) prices of the enterprise.
Gross output- this is the total volume of work planned for execution or completed regardless of the location of the consumer and the degree of readiness of the product, i.e. This is the cost of the overall result of the enterprise's production activities for a certain period of time.
Gross output (VP) calculated by factory method in two ways:
Volume of gross output is calculated as the difference between gross and intra-factory turnover:
Where
- gross turnover 1;
-
intra-factory turnover 2;
Gross output differs from marketable products by the amount of change in the balances of work in progress at the beginning and end of the planning period and is calculated as the sum of marketable products (TP) and the difference between the balances of work in progress, semi-finished products and tools of their production at the end and at the beginning of the planning period.
With this method of calculation volume of gross output (VP) determined by the formula:
TP – cost of marketable products for the period of time under consideration, rub.;
WIP N And WIP TO- the cost of work in progress at the end and beginning of the period, respectively, 1, rub.;
And 
- the cost of semi-finished products, special tools, devices of own manufacture, intended for the enterprise’s own production and technical needs, at the end and
at the beginning of the period, rub.,
Gross output is calculated in current prices and comparable prices, those. unchanged for specific date, enterprise prices.
Products sold characterizes the cost of products that entered the market in a given period and, depending on the accounting policy of the enterprise, have already been paid or are subject to payment by consumers. Sales of products are one of the main indicators by which the results of an enterprise's production activities are assessed.
In accounting, products shipped and delivered by the customer on site and products sold are distinguished. In this case, the moment of implementation is considered to be receipt cash to the supplier's bank account. An enterprise can choose one of the accounting policy options: determine profit either by the difference between the cost and the cost of shipped products (i.e., until the customer actually pays for them), or after the customer pays for the shipped products. The company has no right to change its accounting policy during the year.
Volume of products sold (RP) determined by the formula:
Where: 
And
- the cost of the balances of unsold products at the beginning of the 1st and the end of the 2nd period, respectively, rub.
Volume clean products (PE) can be determined from the expression
Where MOH - material costs for the production of commercial products in the period under review, rubles;
Amotr– the amount of accrued depreciation for the same period, rub.
The technical and economic performance indicators of the enterprise (TEI) should also include balance sheet and net profit, profitability of the enterprise and individual species products, production capacity utilization rate, indicators characterizing the quality of products; indicators of the use of fixed assets (funds), including equipment; indicators of turnover of working capital and efficiency of use of objects of labor (material productivity, material utilization rates), indicators of labor productivity and other indicators. In each sector of the national economy, as well as in individual industries, a list of TEP is established taking into account the specifics of production at a particular enterprise.
1Product range – name (list) of products (works, services) to be produced.
2 Product range - variety of these products (by type, type, grade, size, etc.) in terms of nomenclature.
1Gross turnover - this is the cost of the entire volume of products produced over a certain period by all workshops of the enterprise, regardless of whether it was used this product within the enterprise for further processing or was sold externally.
2Intra-factory turnover - this is the cost of products produced by some and consumed by other workshops during the same period of time.
1 Work in progress - these are products that have not gone through all stages of the production chain according to technological process its manufacture. These are products unfinished by production: blanks, parts, semi-finished products located at workplaces, control, transportation, in workshop storerooms in the form of stocks, as well as products that have not yet been accepted by the quality control department and have not been delivered to the warehouse of finished products. In WIP completed but not accepted by the customer works and services are included. WIP also includes the balances of unfulfilled production orders and the balances of semi-finished products of own production. Materials and semi-finished products in production are classified as work in progress provided that they have already been processed.
The expected balances of work in progress at the beginning of the planning year in the shops are determined from reporting data based on inventory. Changes in work in progress balances are taken into account only at enterprises with long-term (at least 2 months) production cycle and in enterprises where work in progress is large in volume and can change dramatically over time. In mechanical engineering, changes in the remains of tools and devices are also taken into account.
1 The composition of the balance of unsold products at the beginning of the year includes:
finished products in the warehouse, including shipped goods, the documents for which have not been transferred to the bank; shipped goods for which payment was not due; shipped goods not paid for on time by the buyer; goods in safe custody of the buyer.
2 At the end of the year, the balance of unsold products are taken into account only for finished products in the warehouse and shipped goods for which payment is not due.
Gross output is the cost of the overall result of the enterprise’s production activities for a certain period of time. Gross output differs from marketable output by the amount of change in work in progress balances at the beginning and end of the planning period.
Changes in work in progress balances are taken into account only at enterprises with a long (at least two months) production cycle and at enterprises where work in progress is large in volume and can change sharply over time. In mechanical engineering, changes in the remains of tools and devices are also taken into account.
Gross output (GP) is calculated using the factory method in two ways.
Firstly, what is the difference between gross and intra-factory turnover:
VP = V O -V N,
where В о – gross turnover; Vn – intra-factory turnover.
Gross turnover – this is the cost of the entire volume of products produced over a certain period by all workshops of the enterprise, regardless of whether these products were used within the enterprise for further processing or were sold externally.
Intra-factory turnover – This is the cost of products produced by some and consumed by other workshops during the same period of time.
Secondly, gross output is determined) as the sum of marketable products (TP) and the difference in the balances of work in progress (tools, devices) at the beginning and end of the planning period:
VP = TP + (N n - N k),
where N n and N k is the value of work in progress balances at the beginning and end of a given period.
Work in progress – unfinished products: blanks, parts, semi-finished products located at workplaces, control, transportation, in workshop storerooms in the form of stocks, as well as products not accepted by the quality control department and not delivered to the warehouse of finished products.
Work in progress is accounted for at cost. To convert work in progress balances into wholesale prices, two methods are used: I) according to the degree of readiness of work in progress based on the ratio of the labor intensity of work already completed and the labor intensity of the finished product; 2) according to coefficients characterizing the ratio of the cost of finished products in wholesale prices and the actual cost of the same products.
The expected balances of work in progress at the beginning of the planning year in the shops are determined from reporting data based on inventory.
At the end of the planning year, the standard for the balance of work in progress (N k) is calculated using the formula
N k = N day ´ C ´ T c ´ K r ,
Where N day – daily production output in physical terms;
T c – duration of the production cycle, days;
C – production cost, rub.;
Кг – readiness factor of work in progress.
The readiness ratio of work in progress is determined according to the methodology outlined above - by labor intensity or cost.
Gross output is calculated in current comparable prices, i.e. enterprise prices that are unchanged on a certain date. Using this indicator, the dynamics of total production volume, the dynamics of capital productivity and other indicators of production efficiency are determined.
Products sold characterizes the cost of the volume of products supplied to the market in a given period and subject to payment by consumers.
The cost of products sold is defined as the cost of finished products intended for delivery and payable in the planning period, semi-finished products of own production and industrial work intended for external sales (including major “repairs of own equipment and vehicles, carried out by industrial production personnel), as well as the cost of selling products and performing work for its capital construction and other non-industrial enterprises on the balance sheet of the enterprise.
Cash receipts associated with the disposal of fixed assets, tangible current and intangible assets, the sale value of foreign currency assets, securities are not included in the proceeds from the sale of products, but are considered as income or losses and are taken into account when determining the total (balance sheet) profit.
The volume of products sold is calculated based on current prices without value added tax, excise taxes, trade and sales discounts (for exported products - without export tariffs). Products sold for industrial works and services, semi-finished products of own production are determined on the basis of factory contract prices and tariffs.
The volume of products sold (RP) according to the plan is determined by the formula
RP = O n + TP – O k,
where TP is the volume of marketable products according to the plan;
O N and O K – balances of unsold products at the beginning and end of the planning period.
The balance of unsold products at the beginning of the year includes:
Finished products in the warehouse, including shipped goods, the documents for which have not been transferred to the bank;
Shipped goods for which payment is not due;
Shipped goods not paid for on time by the buyer;
Goods are in safe custody of the buyer.
At the end of the year, the balance of unsold products is taken into account only for finished products in the warehouse and shipped goods for which payment has not yet arrived.
All components of sold products are calculated in selling prices: balances at the beginning of the year - in current prices of the period preceding the planned one; marketable products and balances of unsold products at the end of the period - in prices of the planned year.
In accounting it stands out products shipped and delivered locally by the customer and products sold, in this case, the moment of sale is considered to be the receipt of funds into the supplier’s bank account. An enterprise can choose one of the accounting policy options: determine profit either by the difference between the cost and the cost of shipped products (i.e., until the customer actually pays for them), or only after the customer pays for physically shipped products. The company has no right to change its accounting policy during the year.
Based on the volume of products sold, its total cost and profit from sales are calculated.
A number of enterprises plan and evaluate activities based on net production, which is determined by subtracting material costs and the amount of depreciation of fixed assets from marketable products, which in market conditions corresponds to the concept of “gross income.”
. Gross output- is the cost of the overall result of the enterprise’s production activities for a certain period. Gross output differs from commodity output by the amount of change in the balances of work in progress at the beginning and end of the planning period. Changes in work in progress balances are taken into account only at enterprises with a long (at least two months) production cycle and at enterprises where work in progress is large in volume and can change sharply over time. In mechanical engineering, the change in the remains of tools is also taken into account.
. Gross output (GPR) calculated using the factory method in two ways
Firstly, what is the difference between gross and intra-factory turnover:
. Gross turnover - This is the cost of all products produced over a certain period by all workshops of the enterprise, regardless of whether these products were used within the enterprise for further processing or were sold externally. Intra-factory turnover is the cost of products produced by one and consumed by other workshops during the same period.
Secondly gross output is defined as the amount of marketable products (TP) and the difference in the balances of work in progress (tools, fixtures) at the beginning and end of the planning period:
. Work in progress - unfinished products: blanks, parts, semi-finished products located at workplaces, control, transportation, in warehouses in stock, as well as products not accepted by the technical control department and not delivered to the finished products warehouse.
Work in progress is accounted for at cost. To recalculate the balances of work in progress into wholesale prices, two methods are used: 1) according to the degree of readiness of the work in progress based on the ratio of the labor intensity of the work performed and the labor intensity of the finished product, 2) according to coefficients that characterize the ratio of the cost of finished goods in wholesale prices and the actual production of those the same products. The expected balances of work in progress at the beginning of the planning year in the shops are determined by reporting data based on the inventory standard at the end of the planning year. Remains in work in progress (N k) calculated by the formula:
Gross output is calculated in current comparable prices, i.e. enterprise prices that are unchanged on a certain date. Using this indicator, the dynamics of total production volume, capital productivity and other indicators of production efficiency are determined.
. Products sold- products that entered the market in a given period and are payable by consumers. The cost of products sold is defined as the cost of finished products intended for delivery and payable in the planning period, semi-finished products of own production and industrial work intended for external sales (including major renovation equipment and vehicles of the enterprise are carried out by industrial production personnel), as well as the cost of products sold and work performed for its own capital construction and other non-industrial enterprises on the balance sheet of the enterprise. Cash receipts associated with the disposal of fixed assets, tangible current and intangible assets, the sale value of foreign currency values, securities are not included in the revenue from the sale of products, but are considered as income or losses and are taken into account when determining the total (balance sheet) profit.
The volume of products sold is calculated on the basis of current prices without value added tax, excise taxes, trade and sales discounts (for products that are exported - without export tariffs) realism of organized products, which includes works and services of an industrial nature, semi-finished products of own production is determined on the basis factory contract prices and tariffs. Volume of products sold (RP) according to the plan is determined by the formula:
The balances of unsold products at the beginning of the year include:
o finished products in the warehouse (in particular, shipped goods, the documents for which have not been transferred to the bank);
o shipped goods for which payment is not due;
o shipped goods not paid for on time by the buyer;
o goods in safe custody of the buyer
At the end of the year, the balance of unsold products is determined only for finished products in the warehouse and shipped goods for which payment is not due
All components of sold products are calculated in selling prices: balances at the beginning of the year - in current prices of the period, before the planned one; marketable products and balances of unsold products at the end of the period - at the prices of the planned fate.
Any commercial structure is engaged in making a profit. In any case, this wording is very often found in statutory documents legal entities. Profit is calculated as the difference between income received and costs. The economic analysis system contains different indicators, on the basis of which the current activities of the company are monitored. They are natural and calculated. These indicators include gross output, labor productivity, and many others.
Companies that produce goods need to maintain constant On the one hand, they must have information about the quality of goods produced by competitors. About what requirements and wishes are expressed by consumers. On the other hand, it is necessary to be aware of the technical policies pursued by suppliers of raw materials, materials and components. Replacing any component in a complex technical product can affect its performance and cost. And such an indicator as gross output is always the subject of consideration by managers and technical specialists.
Focusing on the company's management, it develops for a certain period. Once upon a time, under the conditions of planned economic management, such programs were drawn up for five years. At the same time, the five-year plan was expanded into annual tasks. Today there is no common approach, and each enterprise organizes its activities in its own way. It often happens that it is necessary to “throw out a test batch of products onto the market.” These could be TVs or washing machines, or cars. All costs associated with the production of this batch are accounted for separately. And such an indicator as gross output, among other things.
Involved in the production of technically complex products large number various services and specialists. From design to packaging of the finished product. In order for a washing machine to make life easier for many hundreds of thousands of people, designers and logisticians show their intellectual abilities and capabilities modern technologies. Materials and components are delivered to assembly lines from different parts of the world. And all this multitude is subject to strict accounting. After all, gross output is the sum of all finished products that are transferred to the warehouse, and those that are still in the production process. It should be clarified that the account is maintained in monetary terms.
Experienced economists and managers are usually interested in two or three indicators when making assessments. After all, gross output, the formula of which is very simple, can general outline characterize the profitability of the company. It also shows the quality of management. At high quality management and an appropriate level of technological culture, gross output should be equal to marketable output. In other words, if materials and components were procured for the production of, say, two hundred washing machines, then after their final assembly there should not be a single unused part left in the warehouse.
Of course, in real conditions only leading companies in their production sector achieve such results. As practice shows, when assembling washing machines, logistics specialists make an excess supply of particularly complex components. For example, to produce ten cars they order eleven electric motors. Such a reserve of 10% of the required volume is considered quite normal. However, it is reflected in the reporting documents as a freeze working capital. There are no more plans to produce washing machines of this type, and the extra motor will have to be written off as losses.