You will need
- - Data on volume of output in natural units
- - Accounting data about the costs of materials and components, tooling wages, fuel and energy resources for the period.
Based on the documents on the write-off of raw materials, acts of performance of work or services performed by auxiliary units or outside organizations, determine the amount of material expenses for production of products or services over the period. Of material costs exclude the amount of the return of waste.
Determine the amount of labor costs, which consists of piecework and hourly wage of production workers and service staff, bonuses, allowances and bonuses, contributions to social insurance funds.
Determine the cost of electricity, water and fuel used for technological needs, on the basis of actual consumption and purchase price.
Determine the amount of transportation and procurement costs and costs for packaging.
Add all the above amounts, you determine the total variable costs for all manufactured products for the period. Knowing the amount of manufactured products by dividing the sum of variable costs per unit of output. The critical level of variable costs per unit of product calculate according to the formula C–PZ/V, where C – the price of the product, PZ – fixed costs, V is the volume of output in natural units.
In terms of taxes, fees and other obligatory payments, the amount of which depends on the volume of production, reducing variable costs is only possible with changes in legislation.
The decrease in variable costs will cause the growth of labor productivity, reducing the number of employees the main and auxiliary production, a decrease in the supply of raw materials and finished products, economical use of materials, use of energy saving technological processes, implementation of advanced control schemes.