Advice 1: How to calculate the costs

Any budding entrepreneur interested in how much it will cost the opening of a business, especially if it is associated with the release and production. On how well will be costed in production, will depend on further activity of the enterprise.
How to calculate the costs
Instruction
1
To begin to determine the extent to which you will provide services or produce products. You should clearly know that this month you will produce, for example, 200 pieces of product or provide a service to 200 people.
2
Now calculate the variable cost (costs that change based on the amount of service or output), it is necessary:
To calculate the cost of materials (cost of raw materials, which will be buying for the manufacture of products). The cost of raw materials required for production of unit of product is multiplied by the volume of the planned issue. If you provide a service, in this case, you will not have this costs.
3
The cost of labor. Decide how many people will you have to work to meet the production plan or service plan, and how much salary you pay them.
4
Deductions on social needs. As a rule, contributions to the social security Fund and insurance Fund. The percentage of a probe into the transactions.
5
Now you need to calculate the costs are constant (they are not associated with volume of rendering of services or manufacturing of goods). They consist of General production and General business expenses (include expenses for rent, depreciation of purchased equipment and fixed assets, etc.), commercial expenses (advertising costs and delivery of the goods to the consumer – if it's there).
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All amounts, variable and fixed costs need to be added. This will be your cost of producing and manufacturing products.

Advice 2 : How to calculate fixed costs

Regular recognized cost, size and the number of which is not changed for a minimum period of time regardless of sales volume. Such costs include salaries of management personnel, payment of rents, the maintenance of production facilities, payments to creditors, and transport costs.
How to calculate fixed costs
You will need
  • calculator
  • Notepad and pen
  • a complete list of expenses of the enterprise with the specified amount of the cost
Instruction
1
Calculate the constant costs of the enterprise for a specified period of time. Let the trading organisation sells the goods. Then her constant costs are equal
FC = U + A + K + T where
– Salary administrative staff (112 thousand),
And payments for rent (50 thousand rubles),
To payments on accounts payable, for example, the purchase of the first batch of the product (158 thousand),
T – transportation costs associated with delivery of the product (190 thousand).
Then FC = 112 + 50 + 158 + 190 = 510 thousand rubles.This amount must be paid trade organization to the relevant authorities or suppliers. Even if the organization are unable to consider the amount of time to sell the goods, 510 thousand rubles it must pay.
2
Divide the resulting amount by the number of sold goods.For example, sales organization is able to sell in this period, 55 thousand pieces of goods. Then its average constant costs can be calculated as follows:
FC = 510 / 55 = 9.3 rubles per unit of the product sold.Constant costs do not depend on the volume of sales. In the case of zero realization of the permanent costs continue to be equated with mandatory spending and payments. The larger the sales volume, the lower the figure the fixed costs. Accordingly, a decrease in the volume of realized goods , the constant costs per unit of output will increase, which will naturally lead to higher prices for these products. The reason is that a larger quantity of the product sold distributes a common constant value. That is why constant costs primarily included in cost of goods to cover the mandatory expenses of the organization.

Advice 3 : How to calculate variable costs

Variables are recognized as coststhat depend directly on the amount of the calculated production. Variables costs will depend on the cost of raw materials, and the cost of electrical energy, and the amount of wages paid.
How to calculate variable costs
You will need
  • calculator
  • Notepad and pen
  • a complete list of expenses of the enterprise with the specified amount of the cost
Instruction
1
Add up all the costs of enterprises that directly depend on the production volume. For example, variable costs of trade organization that implements a consumer products include:
PP – the volume of products purchased from suppliers. Expressed in rubles. Let trade organization has purchased goods from suppliers in the amount of 158 thousand rubles.
EE – the cost of electrical energy. Let trade organization 3 monthly pay 500 rubles for electricity.
Z – the salary of sellers, which depend on the quantity sold of their product. Let to retailers, the average payroll amounted to 160 thousand rubles.Hence, the variable costs of trade organization will be:
VC = PP + EE + S = 158+3,5+160 = 321,5 thousand rubles.
2
Divide the resulting sum of the variable costs on the volume of products sold. This figure can be found in the balance of trade organization. The amount of goods sold in the above example will be expressed in a quantitative dimension, that is the piece. Let a sales organization able to realize 10 500 pieces of goods. The variables costs based on the number of goods sold equal to:
VC = 321,5 / 10,5 = 30 rubles per unit of the product sold.Thus, the calculation of variable costs is made not only by adding up the expenditures for the purchase and sale of goods, but also by dividing the amount received per unit of product. Variables costs with the increase of the sold quantity of goods decrease, which may indicate the effectiveness of the organization. Depending on the type of activity of the company variables costs and their types can change, be added to the above example (the costs of raw materials, water, one-time transportation of products and other costs of the organization).

Advice 4 : How to calculate fixed costs

In production there are costs that remain the same and in hundreds, and tens of thousands of dollars in profits. They do not depend on the volume of output. They are called fixed costs. How to calculate fixed costs?
How to calculate fixed costs
Instruction
1
Determine the formula for calculating fixed costs. It calculated the fixed costs for all organizations. The formula is equal to the ratio of all fixed costs to the entire value of the implemented works and services, multiplied by the base income from the sale of works and services.
2
Count all fixed costs. These include: advertising costs, both internal and external; administrative costs, i.e. salaries of top managers, the maintenance of official vehicles, content departments of accounting, marketing, etc. expenses depreciation of non-current assets, the costs of the use of different databases of information, for example, postal or accounting.
3
Count in non-current assets charges for depreciation of fixed assets such as land, capital expenditure on land improvement, buildings, constructions, transmission devices, machinery and equipment, etc. and don't forget about the library funds, natural resources, objects of rent and capital investment in facilities that are not commissioned.
4
Swipe counting the entire cost of the realized works and services. This will include revenues from basic sales or services provided, for example, a hairdresser and work performed, for example, construction companies.
5
Calculate basic income from realization of works and services. Basic income is a conditional return for the month in terms of value per unit of physical indicator. Please note that services related to "appliances", have a common physical characteristic, and services "non-domestic" character, for example, the delivery of housing and the carriage of passengers, have their own physical characteristics.
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Substitute the data obtained in the formula and will receive fixed costs.

Advice 5 : How to calculate production costs

Costs of production and the subsequent realization of the produced goods, represent the total consumption of all the necessary factors of production (materials, fixed assets, raw materials, energy, fuel, labor). Generally, costs must be expressed in monetary form.
How to calculate production costs
Instruction
1
Total costs can be calculated as the sum of fixed and variable costs of the firm. They represent the amount of funds that were spent on the production.
2
To calculate the average costs is the total costs divided by number of issued products. This is the gross cost required per unit of output.
3
In turn, economic or opportunity costs represent the economic costs incurred by the company in its activities. The composition of these costs included: resources acquired by the organization, its internal resources, normal profit, which is seen by the entrepreneur as the value of some compensation for the risks in the business.
4
That is why economic costs businessman imposes on him as obligations to compensate them through the price in the first place, and if he fails, he will be forced to leave the market in any other sphere of production.
5
There are other accounting costs that involve cash expenditures made by the company with the aim of acquiring the necessary factors of production on the side. While accounting costs are always less than economic, because they take into account only the actual costs expended on the purchase of outside suppliers of necessary resources, legally existing and in explicit form, which will be the basis for the compilation of accounting.
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In turn, accounting costs are composed of: direct and indirect costs. Direct costs consist of costs spent on production. Indirect costs include all costs without which the company simply wouldn't be able to function overhead, interest paid to banks depreciation.
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Opportunity costs - all the money spent on the production of those goods that the company produce will not, as it uses resources in the production of this product. Thus, opportunity cost is all the cost of missed opportunities. To find the alternative costs, it is necessary from the economic costs of accounting to deduct costs.

Advice 6 : What costs are variable

All costs are divided into fixed and variable. The first company is always, even if in any period it does not produce goods, not provide services and does not sell anything. The second depends on the number of products, fulfilled orders and completed goods.
What costs are variable
Instruction
1
Variable costs include raw materials, materials and components used for the production of the final product. For example, for clothing for such costs will be charged the cost of fabric, thread, buttons, etc. If the company produces nothing, but is engaged in trade, variable costs will include the cost purchased for resale of goods.
2
Any commercial organization will bear the cost of remuneration and related payments to the Pension Fund and the social insurance Fund. Some of them can be attributed to variable costs. For example, the salary of workers employed in the production, or the wages of sales managers if they receive a percentage of the number of products sold. Many employees receive fixed salaries, regardless of the success and profitability of the company in certain months. For example, an accounting service is tax and accounting even if the organization suffered losses. Therefore, the salary of accounting refers to fixed costs.
3
For production requires special equipment. If its value exceeds 40 thousand rubles, it is included in the company's costs are not a lump sum when you purchase, via monthly depreciation charges throughout the useful life. Amortization of production equipment refers to the variable costs of the company. The cost of other fixed assets not directly related to the production and sale of goods are included in fixed costs.
4
Work machines production plant needs electricity or another power source. Such costs also apply to variables.
5
Some costs may increase in proportion to volume of output. For example, if 1 sewing dresses out of 1 m of cloth, the production of 10 products you will need, respectively, 10 m of material. Also, variable costs can be regressive and progressive. In the first case, the costs are growing slower than production volume, the second faster.
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An example of a regressive variable costs could be the salary of the workers. Suppose a worker receives a fixed salary. Then when you increase the production plan for the production of products with 10 units to 11, the production volume will increase by 10% and variable costs, labor costs will remain the same.
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