Instruction

1

Define the calculation type in the calculation. Hoping the planned

**costing**, allocate the costs of production and each unit of output in the planned period. Over a period of time can take a year, quarter or month. When the standard cost estimate in the calculation, consider the norms of equipment productivity, labor costs, energy, fuel – everything that is expected with the introduction of innovations into production. Consider the calculation of the standard cost estimate when determining the cost of production in the future.2

Normative

**costing**as planned, expect to advance, prior to the manufacture of products, provision of services. Rules of execution of works here, consider the current without the introduction of new technological developments. Note that the modified standard cost estimate must be recalculated over time (month, quarter, or year) - it depends on the frequency of introduction of organizational and technical changes that have occurred as a result of lower cost of products.3

If you want the count calculation for the reporting period, to compare the results obtained with the plan, use the accounting

**calculation**. Count the total of actually spent funds and the volume of output and rendered services. Determine the actual cost of the finished product, compare it with the planned, identify cost savings or overruns.Note

To get a more accurate result when calculating consider more existing costs: material costs (raw materials), components, acquired from the semi-finished products, outsourced services, cost of fuel and electricity, costs of labour and so on.

Useful advice

Accounting cost estimate for use in the case where it is necessary to control the execution of tasks to reduce production costs or increase production with the lowest possible cost, and to identify the dynamics of development of enterprise activity.

# Advice 2: How to calculate productivity

**Productivity**

**of labor**is one of the main performance indicators of any organization. And, of course, for every Manager it is important to know how effective are his staff.

Instruction

1

First decide how you are going to consider the performance

**of the work**: using the output of products per unit time (direct measure) or through increased labor intensity (the inverse value).2

Rate of output production per unit of time count as follows:

The volume of goods produced, divide by the cost

The volume of goods produced, divide by the cost

**of labor**(or time spent on the production of these products). The result is the average output of products per unit cost**of labor**.3

The increased complexity of the products count as follows: cost

**of labor**(or the time of production) divide by the volume of production. Get the cost**of labour**per unit of production, i.e. labor input.4

Next, decide what method you calculate the productivity

**of labor**: natural labor or money.5

Natural method use to determine the amount of production and production (in tons, units, square or cubic metres, etc.). For example: your firm for one month produced 50000 pieces of nails. You have 50 people working. Output per worker will be 50,000 units divided by 50 people – 1,000/person.

6

The labour method of volume production measured in normo-hours. This method is not very convenient for small and medium businesses.

7

Choose the cost method if your company produces heterogeneous products.

In this method, all volumes and types of goods are expressed in money single indicator - in rubles. To do this, multiply the volume of each product at wholesale prices. The production also count in monetary terms. For example, your Atelier sewed 500 dresses for the price of 1000 rubles, and 300 costumes for the price of 2500 rubles. The number of dressmakers in the Studio is 100 people.

Output = (500pcs. ?1000 RUB + 300 PCs ? 2500 RUB) /100 people =12500 RUB/person.

In this method, all volumes and types of goods are expressed in money single indicator - in rubles. To do this, multiply the volume of each product at wholesale prices. The production also count in monetary terms. For example, your Atelier sewed 500 dresses for the price of 1000 rubles, and 300 costumes for the price of 2500 rubles. The number of dressmakers in the Studio is 100 people.

Output = (500pcs. ?1000 RUB + 300 PCs ? 2500 RUB) /100 people =12500 RUB/person.

8

And the last thing we pay attention: productivity

**of labor**– the value of the variable. And it depends not only from your employees but from you. The better the conditions**of labour**, the stronger the motivation, the performance will be higher. Good luck with the business!# Advice 3: How to calculate costing of services

If you decide to do business, for example, to open a Barber shop or computer shop you will need to make

**the costing****of services**. Well-written estimate will help you not only to set the right prices, but also the right to execute all documents.You will need

- - the price of consumables;
- - the amount of payments to staff.

Instruction

1

First calculate the cost of materials. This is the most obvious, but it is actually not a simple item of expenditure. Keep in mind not only direct costs – the paint for hair (for the hairdresser), cleaning supplies (for domestic services), printing paper (photo Studio), gasoline (for transportation), etc., but also indirect, for example, removable filters for washing machines or the cartridge for printer, repair and maintenance of the car.

2

If you bought equipment for work such as computers, printers, hair clippers, vacuum cleaners, vehicle, then calculate depreciation. To do this, think about or find out exactly (in accounting statements) the life of the product and divide the price by the time in which the technique is justified. You can calculate depreciation in other ways, depending on the characteristics of your work.

3

Calculate the total and additional wages, including bonuses, deductions and other deductions, including deductions for social insurance and accident insurance.

4

Add up all the resulting amount – the cost of materials, depreciation, wages and deductions for social. insurance and take from this amount 20%. It will be your overhead costs.

5

From this amount, calculate 50% and take the sum for General expenses. Find out the total cost of adding all the amount received.

6

Add to the cost another 50% to get the planned savings. In General, you have come to the wholesale price. Increase it by another 50% and you will get the retail price. Also, don't forget about the VAT.

7

Keep in mind that all expenses you expect for a certain number of services provided over a period of time. To obtain the price of the service provided at a time, divide the total amount by the estimated quantity of such services over the estimated period of time.