What is the cost estimate based on? Preparation of cost estimates for the production of products (classification of costs by economic elements)

Management decision-making by management and managers of various levels of an economic entity is facilitated by the selection of various classification signs of costs and analysis based on them. To determine the structure of costs for the production of products of an economic entity allows the division of costs into cost elements.

Composition of costs by elements

By elements, the costs are divided into the following categories, presented in the table.

Table. Classification of costs by economic elements

For example, as can be seen from the table, the element “labor costs” reflects compensatory payments to employees of the enterprise, which take into account a certain mode of work or special working conditions. These include payments for:

• the time when an employee of an economic entity combined professions;
• the time when an employee of an economic entity worked at night;
• time when an employee of an economic entity performed work that was overtime, etc.

Grouping costs by elements allows you to determine the cost structure. It is the same for all sectors of the economy and makes it possible to determine how much and what funds are spent, regardless of where they are produced and what they are spent on. This grouping is used to estimate production costs.

Cost elements are similar (homogeneous) costs of economic entities incurred by them in the production and sale of products.

Consumed resources (in monetary terms) in the production and sale of products of an economic entity are collected in homogeneous types, called elements.

When classifying costs by elements, costs are collected and grouped in value terms for all costs incurred by an economic entity. Based on these data, the cost of specific types of products will then be calculated.

Purpose of cost classification by economic elements

This classification is useful in the following cases:

• when the planning of the production activity of an economic entity is carried out;
• when the cost estimates are generated;
• when planning and determining how much resources will be needed;
• when an analysis of the financial activity of an economic entity is carried out.

Elements of production costs are grouped on a homogeneous basis, the cost of production.

Grouping costs by economic elements reflected in cost estimate for the production and sale of products(works, services). It collects costs according to the generality of the economic content, according to their natural purpose. Thus, the element “Payment” shows the entire wage fund of the enterprise, regardless of which category of workers it is intended for: production workers, employees or junior service personnel. Depreciation of fixed assets also reflects the total amount of accrued depreciation from all types of fixed assets of the enterprise: machines on which products are manufactured; all types of industrial buildings, including plant management; trucks and cars, etc. The list of elements of the estimate characterizes the composition of costs according to their economic purpose. The cost estimate for the production and sale of products (works, services) is given in Table. one.

The estimate collects the total amount of resources used in the production process - "Total production costs". From this amount, costs not related to the production of products (works and services in the non-productive sphere, deferred expenses, etc.) are deducted and determined production cost of gross output. If we take into account (add or subtract) the change in the balance of work in progress in the cost of gross output, then we determine production cost of a product. After adding to it a group of non-production costs associated with the sale of products and the deduction of funds to higher organizations, we obtain the full cost of commodity - products. The estimate plans the result from the production and sale of products - profit or loss. All indicators of the estimate have a quarterly breakdown

The classification of costs by economic elements is important for the enterprise. The estimated cost breakdown allows you to determine the total amount of various types of resources consumed by the enterprise. The estimate reflects the costs of resources purchased from outside and paid to suppliers. The costs planned in the estimate provide for all the needs of the enterprise related to the production and sale of products, the creation of backlogs of work in progress, the provision of auxiliary production, service, auxiliary and side farms.

On the basis of the estimate, the sections of the production and financial plan of the enterprise are linked: for material and technical supply, for labor, the need for working capital is determined, etc. All types of business plans are based primarily on cost estimates. Economic relations of the enterprise with suppliers of resources, with financial and credit institutions are formed using estimates of production costs.

Table 1

Estimated costs for the production and sale of products for 200_

At the same time, on the basis of the estimated section, it is impossible to determine the specific direction and place of use of costs (production process, maintenance of the workshop, maintenance of plant management, etc.), which does not allow analyzing the efficiency of using costs, revealing reserves for their reduction. And most importantly, on the basis of the elements of the estimate, it is impossible to determine the cost per unit of output in the context of the entire range, as well as each item, group, type. These tasks are solved by cost classification according to the calculation items.

economic element is called the primary, homogeneous type of costs for the production and sale of products, which at the enterprise level cannot be divided into its component parts.

In the economy of the enterprise, it is customary to distinguish the following economic elements:

1. Material costs (excluding returnable waste):

Raw material costs;

For spare parts for repairs;

Components;

Fuel and energy costs from outside;

Services of third-party organizations of a production nature;

2. Labor costs, including payments to employees of the organization in cash and in kind; incentive bonuses and allowances; compensation payments; bonuses and lump-sum incentive payments, as well as the costs associated with the maintenance of the employee, provided for by the contract.

3. Deductions for social needs (pension fund, social insurance fund, health insurance fund).

4. Depreciation of fixed assets.

5. Other expenses.

The classification by economic elements is the same for all enterprises, regardless of their size and industry. The allocation of economic elements is necessary to establish planned and actual costs for the enterprise as a whole, as well as to determine the wage fund, the volume of purchased material resources, the amount of depreciation, etc. .

The classification is based on the principle of economic homogeneity of costs, regardless of their place of origin and direction. The division of costs by elements allows you to determine all costs for the production and sale of products and reflect them in the cost estimate for production.

Cost estimate- a complete summary of the costs of the enterprise for the production and sale of products for a certain calendar period (year, quarter), compiled by economic elements of costs.
The cost estimate is compiled according to typical elements: raw materials and basic materials, returnable waste (subtracted); auxiliary materials, fuel and energy from outside; basic and additional wages; social security contributions and other expenses.
The cost estimate is calculated by direct summation of individual economic elements and estimates of complex costs or estimates of individual divisions of enterprises; it excludes the secondary accounting of products of own production for own production needs. The cost estimate takes into account the costs of changing the balance of work in progress, capital construction, major repairs, etc.

The cost estimate allows you to determine the total need of the enterprise for financial resources, the amount of material costs, to carry out calculations on the balance of income and expenses of the enterprise for the planned period.
Cost estimates and product costing are closely related, contain the same costs, but take them into account on different grounds. With the help of costing, the cost of a unit of production is determined, and according to the estimate - the cost of commercial and gross output of the enterprise.

For what purposes is the classification of costs by cost items used. What costs form the incomplete production and full production cost of production.

To control the composition of costs at the places of their commission, it is necessary to know not only what was spent in the production process, but also for what purposes these costs were incurred, i.e. take into account the costs in areas, in relation to the technological process. Such accounting allows you to analyze the cost of its components and for some types of products, to establish the volume of costs of individual structural units. The solution of these problems is carried out by applying the classification of costs by costing items. The list of costing items, their composition and methods of distribution by type of product are determined in accordance with industry guidelines, based on the characteristics of the technology and organization of production by the enterprise itself.

By way of inclusion in the cost price finished products all costs are divided into direct and indirect. Direct costs can be accurately and uniquely attributed to the cost of manufactured products or other object of calculation. As a rule, direct costs include the costs of raw materials and materials used to manufacture products, as well as the cost of wages for the main production personnel.

Indirect costs, which are often also referred to as overheads, cannot be economically justified to be associated with a specific accounting object. These costs include general production, general business and commercial costs. They relate to the object of calculation (cost carrier) by distribution in accordance with the methodology and distribution base accepted at the enterprise.

Enterprises in the course of their activities, carried out on the basis of commercial calculation and self-financing, make material and monetary costs for the production and sale of products, for the expanded reproduction of fixed assets and working capital, for the social development of their teams and operating expenses. The totality of these costs forms the gross costs of the enterprise.

Gross costs of production and circulation (gross costs)- this is a set of any costs of an enterprise in monetary, tangible and intangible forms, carried out as compensation for the cost of goods (works, services) that are acquired (manufactured) by such an enterprise for their subsequent use in their own economic activities. Gross expenses include the amounts of any expenses incurred by the enterprise in connection with the preparation, organization, production, sale of products (works, services) and labor protection. The largest share in the gross expenses of the enterprise is occupied by the costs of production of products (works, services). They consist of the monetary expression of the costs associated with the use of fixed assets, raw materials, materials, fuel, energy, labor, etc. In addition to the costs of producing products (works, services), enterprises incur costs for its sale, i.e. expenses. These include: the cost of tare and packaging of products in warehouses of finished products, transportation costs, commission fees, deductions to sales organizations, advertising expenses and other sales expenses. Thus, based on the role in the financial management system of the enterprise, gross expenses can be classified into production and non-production expenses.

The firm, investing in factors of production, uses them to produce competitive products.

Monetary expression of the use of economic resources of the firm for the production and sale of products or the provision of services is called production costs or the cost of services.

Cost of products (services) is the total cost of the enterprise for the production and sale of products, the costs associated with the provision of services. The cost price reflects all the costs of living and materialized labor made by the company in the form of expenses of raw materials, material, fuel and energy resources, depreciation of fixed assets, and wages. The cost includes direct material and labor costs, as well as overhead costs for the management and maintenance of the firm. The cost of production is a synthetic concept that summarizes in value form the total costs of the enterprise for the consumed means of production, wages and payments for services to third parties for the manufacture, transportation and sale of products (Scheme 15).

The specific composition of costs is regulated by law, as this is due to the peculiarities of the tax system and the need to distinguish the company's costs by sources of reimbursement.

The cost price quantitatively and qualitatively differs from cost.

The cost and its monetary expression - the price, quantitatively higher than the cost.

In economic essence, the cost price is close to the accounting costs of production and differs significantly from the economic costs of production. Cost reduction - the basis of price reduction, and therefore the basis of competitiveness, is a major source of profit growth.

The traditional policy of the company is usually to assign a selling price for each product above cost. The difference is the profit. But in market conditions, when a company needs to take into account the extreme differentiation of the production and marketing process, recognize the usefulness of forecasting, the growing importance of developing an industrial and commercial strategy, the concept of cost has become more complex, and therefore the concept of “costs” is preferred to it today.

The costs of social labor for the production and sale of products in our society constitute the social costs of production, which reflect price this product.

• the cost of spent means of production (in the form of depreciation);
• consumed objects of labor (in the form of raw materials, materials, fuel, etc.);
• the value of the product created by labor for itself (in the form of wages);
• the value of the product created by labor for society (in the form of the net income of society, expressed in two main forms: profit and tax).

Cost price on the other hand, it is a part of the social costs of production, expressed in monetary form, which is made up of the costs of the enterprise for the production and marketing of products and services for industrial purposes.

Thus, the difference between the value and the cost of production is that the value includes, in addition to the past (reified), all the living (necessary) labor expended on its production, while the cost, apart from past labor, includes only a part of the living.

Numerous costs that form the cost of production, in the practice of planning and accounting for content and purpose, are classified according to:

• economic elements;
• costing items.

The list of these elements and articles is the composition of the cost of production.

Structure the cost of production is the ratio of these elements and articles to each other, expressed as a percentage of the total.

Grouping by economic elements used to determine and maintain the optimal ratio between homogeneous economic costs, living and embodied labor, the ratio of consumed resources, linking and interconnecting various sections of the business plan, when compiling material balances, normalizing working capital, developing budgets, etc.

In accordance with the cost structure, industries are divided into:

material-intensive, the cost of which is dominated by the cost of raw materials and materials (for example, light, food industry);

labor intensive, if the cost price is dominated by wages (for example, the coal industry, some branches of engineering, for example, instrument making);

energy intensive if energy costs dominate (e.g. aluminum industry)

capital-intensive, if the cost price has a high share of depreciation (for example, the oil industry).

But such a division is rather arbitrary and may change over time.

Structure the cost price is closely related to the nature of the production of a given industry and depends on:

• the level of automation and mechanization of production, i.e. an increase in this level causes an increase in labor productivity, which causes a decrease in the share of wages and an increase in the share of material costs;
• specialization and mass production;
• cooperation of enterprises;
• geographic location of the enterprise.

Economic elements of costs- these are economically homogeneous, more indivisible, non-split costs, reflect the distribution of costs, regardless of the form of use in the production of a particular type of product and the location of these costs.

Costing articles, on the contrary, consist of economically heterogeneous costs. Each costing item includes all economic cost elements.

Grouping costs by cost by item costing allows you to identify a specific object and place of implementation of costs, determine the unit cost of production, profit, profitability of products and production.

1. Raw materials and basic materials (purchased components and semi-finished products), auxiliary materials, fuel from outside, energy from outside.

2. Wages of all employees - labor costs.

3. Deductions: for state social insurance;

• for health insurance;
• on compulsory property insurance;
• interest on short-term bank loans.

4. Depreciation;

5. Other cash expenses.

1. Raw materials and basic materials minus suitable waste, auxiliary materials, fuel for technological purposes, energy for technological purposes.
2. Wages of workers in the main production, payroll.
3. Expenses for the maintenance and operation of equipment.
4. Costs for preparation and development of production.
5. Payments for compulsory property insurance.
6. Interest deductions for short-term bank loans.
7. Depreciation.
8. Other cash expenses.
9. Depreciation deductions for the full restoration of fixed production assets.

10. Shop expenses

total shop cost

9. General factory costs- losses from marriage, other

total production cost

10. Non-production(business) expenses

full (commercial) cost

Classification of production costs - this is the dismemberment and association into separate groups of various costs for the production of homogeneous according to a certain attribute. The cost of production on the scale of an industry is determined by a huge number of different costs, reducing them into a few groups is a prerequisite for planning and accounting for the cost of industrial products.

The classification of production costs is necessary to determine the cost structure; calculation of the cost of individual units of production or production operations; determination of costs for individual workshops and production sites.

Depending on the nature of participation in the production process, costs are grouped into production and non-production.

To production include all types of costs associated in one way or another with the process of manufacturing products.

non-production Expenses include expenses for the sale of products: for packaging, packaging, delivery of products to the station (pier) of departure and others, as well as deductions for scientific and technical work, expenses for technical propaganda, training, and the like.

Grouping costs by economic elements reflects their distribution according to economic content, regardless of the form of their use for the production of a particular type of product and the place of implementation of these costs. This grouping of costs is used in the preparation of estimates for production costs and is used in planning cost reduction, compiling material balances, and normalizing working capital.

Grouping costs by costing items reflects their composition depending on the direction of expenditure (direct production or maintenance of it) and the place of origin (main production, auxiliary services, servicing farms). This grouping is used when calculating the cost of production, to determine the planned and actual cost of production, to determine the planned and actual cost of certain types of manufactured products, both for the enterprise as a whole and for individual workshops.

Feature of the cost estimate on production lies in the fact that each of its elements contains all the corresponding costs, regardless of where and how these costs are incurred within the enterprise. The estimate includes all the costs of the main and auxiliary production, including the costs associated with the development of new industries (new products), which are subject to reimbursement from the fund for the development of new equipment.

The preparation of a cost estimate for an enterprise begins with the development of shop estimates and, first of all, estimates of auxiliary shops. This is due to the fact that the production estimate of any main workshop cannot be completed if the costs of the auxiliary workshops that provide it with a service are not previously determined.

It is impossible to compile a factory-wide cost estimate by simply summing shop estimates, since in this case it will include recurring amounts in the form of intra-factory turnover.

Why is it needed grouping by calculation items? In order to achieve great results with less cost, it is not enough to know the cost structure (cost structure). We must also calculate or, as they say in such cases, calculate the cost of individual types of production, individual products. This is necessary so that the planned value of the costs for the production of products (planned cost) is known within the enterprise. At product costing an estimate of shop expenses is drawn up (for each shop separately) and an estimate of general factory expenses.

Knowing the total amount of shop expenses and the annual amount of the basic salary of production workers of a given shop, it is possible to determine the rate of shop expenses. To do this, you need to divide the amount of shop expenses by the amount of the basic salary and multiply by 100.

The norm of general factory expenses is determined in the same way as the norm of shop expenses, only instead of the amount of shop expenses, the amount of general factory expenses is taken, and instead of the salary of the production workers of the shop, the main salary of production workers as a whole for the enterprise is taken.

According to the method of attributing costs to the cost price products when costing products, they are grouped into direct and indirect.

Direct- these are costs directly related to the manufacture of products and attributed to their individual types or orders. These include: materials, fuel, energy, wages and more. Indirect- these are the costs associated with the operation of the workshop or the enterprise as a whole. Therefore, they cannot be directly attributed to the cost of individual products. These costs are distributed among the products indirectly according to some conditional feature. These include: expenses for the maintenance and operation of equipment, workshop and general factory expenses.

On the basis of relation to the production process costs are divided into main and invoices. The main costs are the costs directly related to the process of manufacturing products, the performance of work and the provision of services to the side and for internal plant needs. These include: materials, fuel, energy, wages and more.

Overhead costs are the costs of the enterprise associated with the organization, management of production, as well as all non-manufacturing and non-manufacturing costs and losses.

According to the degree of dependence on the growth of production volumes costs are divided into proportional(conditional variables) and disproportionate(conditionally constant).

To proportional includes costs that are directly related to the volume of production. These may include the cost of raw materials and basic materials, basic wages and more. To disproportionate(fixed) include costs, the absolute value of which does not change or changes slightly when the volume of production changes (expenses for heating and lighting premises, wages of shop and administrative and managerial personnel, depreciation charges, etc.).

Depending on the degree of generalization(legalization) costs are divided into simple (elementary) and complex (complex).

Simple article costs cost estimates consist of one economic element (raw materials, wages, social security contributions, etc.). Complex Articles(expenses for the maintenance and operation of equipment, workshop expenses, general factory expenses, etc.) consist of several economically heterogeneous, but having the same production purpose, elements.

Depending on the time of occurrence and attribution on the cost of costs are divided into costs: the current period; future periods and future expenses.

Under Current Period Expenses refers to the costs associated with the production and sale of products of this period.

For future expenses include those that, although they arise in a given period, are subject to attribution to the cost of certain types of products within a specified period. These are the costs of developing new types of products produced at the cost of production costs, start-up costs, and so on.

Depending on the type of product, its complexity, the type and nature of the organization of production at industrial enterprises, the following basic methods of accounting and actual cost calculation products: normative; across; ostentatious, detailed.

Standard method of accounting, the most important elements of which are the timely detection of deviations from the norms and the accounting for changes in the norms, is a method that allows you to effectively use accounting data for the operational management of an enterprise. The standard accounting method is used, as a rule, in the mass and serial production of various and complex products, consisting of a large number of parts and assemblies (at sewing, shoe, knitwear, furniture and other enterprises). The normative method of accounting for production costs allows you to timely identify and establish the reasons for the deviation of actual costs from the current norms of basic costs and cost estimates for production maintenance and management. With the normative method, a systematic accounting of changes in existing norms should be carried out. This record is kept on the basis of notices of changes in the norms and is used to clarify normative calculations.

The basis for calculating the actual cost of manufactured products with the standard accounting method is standard costing(normative costing), compiled on the basis of cost rates in force at the beginning of the month. These cost estimates are used to determine the actual cost of production, evaluate scrap, work in progress (during inventories) and in economic analysis. Normative cost estimates are compiled for all types of products manufactured by the enterprise. In the manufacture of certain types of products in various versions, the standard cost is determined for each version separately. The actual cost of production is calculated by adding to the standard cost or subtracting from it the deviations from the norms and changes in the norms identified in the reporting period. When compiling normative and reporting calculations, a single nomenclature of expense items should be used.

The progressive method of accounting is used at enterprises with mass products that are homogeneous in terms of the source material and the nature of processing, in which physicochemical and thermal production processes predominate, and the transformation of raw materials into finished products under conditions of a continuous and, as a rule, a short technological process or a series of sequential production processes , each of which or a group of which constitute separate independent stages (phases, stages) of production. The progressive method of accounting is also used in industries with the integrated use of raw materials.

With the progressive method of accounting, production costs are taken into account in each workshop (processing stage, phase, stage), including, as a rule, the cost of semi-finished products manufactured in the previous workshop. In this regard, the cost of production of each subsequent workshop is made up of the costs incurred by it and the cost of semi-finished products.

Order-based cost accounting method for the production and calculation of the cost of production is used in individual and small-scale production of complex products, as well as in the production of experimental, experimental, repair and other work. For individual and small-scale production, the use of this method should be combined with the use of the main elements of regulatory accounting.

The actual cost of a unit of products or work is determined after the order is completed by dividing the amount of costs by the number of products (products) manufactured under this order. When delivering products (products) to the customer or to the warehouse in parts before the end of the order as a whole, the delivered products (products) are estimated at the planned or actual cost of similar products that were produced earlier, taking into account changes in their design, technology and production conditions.

At detailed method of cost accounting for production can be carried out both by semi-finished and non-semi-finished methods. The conditions for the use of one or another option are established in industry instructions. At non-semi-finished option, the costs for the manufacture of parts, semi-finished products and assemblies are taken into account by workshops in the expense items section. By semi-finished In this way, the cost of semi-finished products of own production is formed when they are transferred from workshop to workshop, and the costs of their manufacture are taken into account by workshops in the complex item “Semi-finished products of own production”.

The cost of production is an integral part of the price of goods, and, as a rule, for the most part, therefore, cost reduction serves as the basis for reducing prices for goods as the required quantity of these goods is accumulated.

Reducing the cost of production increases the profit of the enterprise, and hence those funds that are formed from profits and are used to improve working conditions, pay bonuses, and so on.

The main ways to reduce the cost of production are:

• reducing the cost of raw materials, materials, fuel per unit of product;
• careful attitude to machines, mechanisms. Their modernization allows to reduce the costs associated with their use;
• increase in labor productivity, which especially affects the general shop and general factory costs per unit of output;
• reduction of general shop and general production costs by improving the management structure, mechanization of management work.

1. Factors that improve the use of labor resources (fixed assets);
2. Factors that improve the use of objects of labor (working capital);
3. Factors that improve the use of labor itself;
4. Factors that improve the organization of production, labor and management.

Economic evaluation of cost reduction is based on the calculation of the following indicators:

• Estimate of production costs (according to economic elements of costs);
• The cost of all marketable products (according to costing items);
• Unit cost of the most important products according to costing items;
• The cost of 1 ruble of marketable products. The lower this indicator, the lower the cost, the more profit from the implementation of the TP, the higher the profitability.
• Cost reduction per 1 ruble of marketable products.

Production estimate- these are the costs of the enterprise associated with its main activities for a certain period, regardless of whether they are attributed to the cost of production or not. Cost estimates are compiled for economically homogeneous elements (table 10.1)

Table 10.1 - Grouping costs by economic elements

The grouping of costs by economic elements is used in the preparation of estimates of production costs for an enterprise, workshops or other management objects. It quantitatively reflects how much and what costs will be or actually incurred. But it does not show the purpose of production costs, their relationship with the results of production. This shortcoming can be eliminated by regrouping production costs according to costing cost items.

The cost structure should be understood as the share of various types of costs in the cost of production. The cost structure depends on the characteristics of production (in which industry the production is related, type of production, geographical location, etc.).
The procedure for developing a production estimate may be different from the planning stage, the state of the information base and the size of the enterprise.

test questions

1. What is the cost of production.
2. What economic elements are included in the estimate, what caused this grouping.
3. Name the types of production costs.

Literature

Prodius Yu.I. "Enterprise Economics": Textbook. - Kharkov: Odyssey LLC. – 2005.- 416 p.

The economics of business: Podruchnik / Zag.red. S.F. Pokropivny. - View. 2nd, revised. that additional – K.: KNEU, 2005.- 528 p., il. Enterprise Economics: A textbook for universities / ed. prof. V.Ya. Gorfinkel, prof. V.A. Shvandar. - 2nd ed., revised. and additional - M .: Banks and stock exchanges: UNITI, 2000.- 742 p.

Topic 10.2 Content and calculation of cost items.

2. Methodology for calculating the main costing items.

3. Classification of production costs.

4. Ways and factors to reduce the cost of production.

1. Essence and methods of calculation.
The calculation of the cost of manufacturing a unit of output or performing a certain amount of work is called costing.
Calculation is needed to solve a number of economic problems: justifying product prices, calculating the profitability of production, analyzing the costs of producing identical products at different enterprises, determining the economic efficiency of various organizational and technical measures, etc.

Enterprises make planned and actual cost estimates. The first are calculated according to the planned cost rates, the second - for their actual level.
A variety of planned cost estimates are design estimates, which are developed for one-time orders, new types of products based on project resource consumption rates.
At enterprises in various industries, costing has its own characteristics, which are due to the nature of products, raw materials, and technological processes. These features imply: the definition of the object of calculation and the choice of calculation units, the definition of costing items of losses and the methodology for their calculation. The object of calculation is determined by the nature of the product and the type of production. The objects of calculation at the enterprise include: main, products; services and works. The main object of calculation is finished products that are supplied outside the enterprise.
For each calculation object, a calculation unit is selected - a unit of its quantitative measurement (quantity in pieces, mass, area, volume). For example, the object of calculation is wire, the calculation unit is one ton, respectively, electricity is one kilowatt-hour, etc.

In the world practice of management, different methods of costing are used, which is due to the different purpose of costing, the type of production and the traditions of internal company management. The most commonly used costing for full and partial costs.
For the use of the full cost calculation method, all types of expenses related to the production and sale of products are included in the calculation. This method is traditional for domestic manufacturing enterprises.

In other countries, the partial costing method is relatively widely used, that is, not all costs for the production and marketing of products are included in the calculation. Part of the indirect costs are not included in the cost of individual products, they are directly subtracted from the revenue for a certain period when determining profit. The classic method of partial cost calculation is the so-called "direct-cost" method, when only direct costs are included in the cost of individual products, while indirect costs are charged for a certain period.

The breadth of the product range of the enterprise and the specifics of production significantly affect the calculation methods. The most accurate and methodologically simple is costing in single-product production. The cost of a unit of production is calculated by dividing the total costs for a certain period by the number of products produced. However, multi-product production prevails in the domestic production sectors of the economy. Under these conditions, the calculation becomes noticeably more complicated and less accurate, since the problem of the correct distribution of indirect costs arises.

During costing, costs are grouped into costing items, the range of which depends on the characteristics of production.
In ferrous metallurgy, production costs are distributed according to the following costing items:

1. Raw materials and materials.
2. Purchased semi-finished products and components of third-party enterprises.
3. Returnable waste (deductible).
4. Fuel and energy for technological purposes.
5. Basic wages of basic workers.
6. Additional wages of the main workers.
7. Social security contributions.
8. Maintenance and operation of machinery and equipment.
9. General production costs.
10. Administrative expenses (general expenses).
11.Vitrati for sale.
12. Other expenses.

The sum of the first eight articles is technological, nine - production, and all articles - full cost.