In the process of production in the enterprisethere are costs that do not directly relate to a particular expenditure object. They are classified as general production expenses. In addition to the costs for the management of shops (divisions, sections) of main and auxiliary industries, they include those for operation and maintenance of general purpose machinery and equipment.
General production expenses include:
1. Costs for production management:
- the salary of the apparatus of management of sites, shops, structural divisions;
- deductions for medical insurance, social activities;
- for the payment of official business trips for workers of plots and shops.
2. Amortization of fixed and intangible assets of local and shop appointments.
3. Expenses for maintenance of general production assets:
- repair and operation;
- operating lease;
4. Expenses for organization of production and improvement of production technology:
- wages of employees;
- deductions to social funds;
- Expenditures designed to improve products, improve its reliability and other performance characteristics;
- payment for services and work of outside organizations.
5.Costs intended for the maintenance of industrial premises (lighting, heating, drainage and water supply, other utilities) and the production process (wages of general production personnel, deductions for medical insurance and social activities).
6. Costs for safety technology, technological control, environmental protection and labor.
7. Other costs:
- shortage of unfinished production, from spoilage and loss of material values;
- expenses for the movement of materials, raw materials within the enterprise;
- payment of downtime.
The distribution of general production costs hassome features. Since these costs are attributed to indirect costs, it is economically expedient to distribute them and adhere to such a notion as normal capacity. This term means the expected average volume of productive activity achieved under the condition of normal activity for several operating cycles or years. At the same time, the planned volume of production maintenance is taken into account. The normal power is determined by the organization itself. General production costs are calculated based on the normative capacity. They are divided into variables and constants. The company determines the composition and list of these indicators independently.
Variable costs are the costs of managing andMaintenance of production, changing in proportion to adjustments in production volumes. They are distributed to all cost objects using the selected distribution base (production volumes, wages, hours of work) based on the actual capacity of the enterprise in the reporting period. Thus, they are fully included in the cost of production.
Constant costs are the costs of managing andmaintenance of production, which are fairly stable (despite changes in production volumes). They are allocated to cost objects using a special database (production volumes, wages, hours of work), based on the calculated normal capacity of the enterprise. Undistributed fixed costs are included in the cost price of the products produced during the period when they arose. The difference between the actual constant expenditure and the amount calculated from the normal production capacity is included in the cost of products sold. In the presence of several shops or divisions at the enterprise, general production expenses are distributed in their section.
Accounting for general production costs is based on:
- the selected cost allocation base;
- calculated normal power;
- the total planned value of general production expenses, with their breakdown into constants and variables.
Accounting for them is carried out in the account 25 "General production expenses".