The main profit indicators in the accounting system at the enterprise are: profit from sale, profit from sales, gross profit, profit before tax and net profit.
The profits that the enterprise receives the resulte of realization of products of own production, called profit from the sale of goods or services. In this case, the indicator is calculated as the difference between the revenue and cost of goods sold. The complete formula can be represented as follows: PRP = C ? V P - SRP = V P ? (C - Sep), where PRP – profit from sales, C – price per unit of output, V p – sales, PSA – total cost of goods sold, Sep – full cost per unit of output.
If the company sells goods or services (not generating them), in this case we talk about net profit, which can be calculated as the difference between gross income and costs (upravlencheskie + commercial). The full formula is as follows: Prodag = – SRP – KR – UR, where Prodej – profits from sales – revenues from sales of products, PSA ? full cost of sales, CU – commercial costs, the UR – administrative expenses.
Gross profit is calculated as the difference between the sales proceeds and the full cost of goods sold..
To get the value of profit before tax (PDO), you need to Prodaj add other revenues and subtract other expenses. Calculating Pdon, the organization shall pay the necessary taxes and net profits. The latter is the source of payment of founders ' income and formation of the own capital of the enterprise.
Do not confuse the category "income" and "profit". In the first case we are talking about the economic benefits to expenses.
Advice 2: How to calculate cost of goods sold
Under cost understand the cost of production including the cost of its production. The costs considered labor, materials, raw materials, etc. the cost Calculation allows to determine the costs per unit of production in monetary form.
The generally accepted algorithm of calculation of cost of the sold product looks like. First you need to determine the costs that vary in proportion to output-i.e. variable cost per unit of manufactured products. To do this, find the product of the norms of expenses for the cost of their acquisition. Then summarize the remaining costs for the period and divide them into specific types of products. It can be the cost of repair of equipment for the maintenance of buildings, depreciation, costs of administration.
At the moment there are several types of costing: opredeleny, order, process and standard. Western economists often use for calculation methods such as target costing, direct costing, and others.
For specific industries using different methods. So for the major industries related to the processing of raw materials often used opredeleny method, the essence of which is that direct costs are accounted for not by types of products, and the limits of (certain phases of the manufacture of products), and, for example, custom method considers the costs based on production orders.
Western methods allow to take into account the cost of products at the design stage. So, the method is target costing builds upon the concept of target cost. In this case, the cost is the difference of prices and profits. The price refers to the market value of the product, which is advantageously determined with the help of marketing research. But under a profit - the desired size of profits. Thus, the cost is no longer just a standard value, and the value sought by the company in order to be competitive.
Advice 3: How to calculate profit before tax
The main goal of any organization is obtaining the maximum possible profit. To this end, the company produces, sells and minimizes costs. When the firm sells the produced good, with total revenue is called gross income. The profit, accordingly, the difference between gross income and production costs.
You will need
- Definition of variables and constant costs.
To calculate the profit prior to taxation, is necessary from the total amount of total revenue subtract the amount spent on the production.
However, production costs can be explicit and implicit. When we subtract from total revenue explicit costs, which are external, the result is an accounting profit. Accounting profit of the organization describes the result of the organization's activities for a certain period of time. But explicit and implicit costs may not always be permanent. To obtain the value of economic profits, accounting profit, subtract the internal costs and the cost of business resources.
The value of the economic profit shows the perspective of the organization's activities and future results, so calculated profit before tax. The cost of the entrepreneurial resources show the amount of the profit share, which depends on the capabilities of the Manager production.
The production process of education and income passes 2 stages. In the first phase, the money invested in the production, products are made. That is involved 2 factors – capital and labor. This creates new value and wealth created a profit. To calculate the new value, calculate the difference between the cost of goods manufactured and the amount of purchased raw materials. The cost of the finished product includes cost of production and the new value.
From gross income, the organization is covered by the rent, interest on loans, etc. the result is only a net profit.
In the second stage the profit will be realized. The profit of the manufacturer is equal to the difference between the price of products and cost. Cost of sales consists of total production costs, and the profit obtained from the difference between cost and price.
The cost may also vary depending on the cost of production. To calculate profit in the short term, industries need to determine the variable and fixed costs. When calculating profit in the long term, be aware that any costs are variable.
A manufacturer must not sell their products at a price below its cost.
Do not forget that the cost of production includes the payment of wages to employees.