Articles uniting indirect expenses call complex. The sum of all factor cost makes production prime cost of a product. The sum of all factor and indirect cost gives prime cost of the realized production.
The increase in a share of depreciation both in expenses, and in the cost of production speaks about decrease in capital productivity. Reduction of specific weight of costs of energy testifies to decrease in power consumption of production, however consumption of fuel increased that testifies to violation of balance on fuel and energy.
Indirect expenses are expenses on repair and the maintenance of cars and the equipment, general production and general running, business expenses. All these expenses can be included in prime cost of a product only an indirect way, by means of conditional calculations, for example in proportion to compensation of production workers.
Decrease in prime cost can happen at creation of automated control systems, use of the COMPUTER, improvement and modernization of the existing equipment and technology. Expenses and as a result of complex use of raw materials, use of economic substitutes, full use of waste in production decrease. The big reserve conceals in itself and improvement of production, decrease in its material capacity and labor input, weight reduction of cars and the equipment, reduction of overall dimensions, etc.
For the analysis of level of prime cost at various enterprises or its dynamics for the different periods of time of costs of production have to be led to one volume. Prime cost of a unit of production (accounting) shows costs of the enterprise of production and realization of a concrete type of production counting on one physical unit. Accounting of prime cost is widely used in pricing, cost accounting, planning and the comparative analysis.
One of features of the considered group consists that its some articles are complex, including expenses of both live, and last work. General production and general running costs concern to them, in particular; expenses according to the contents and operation of cars and the equipment.
Full prime cost is the sum of the expenses connected with production (production prime cost), and expenses on its realization (business expenses). Business expenses include costs of packing, storage, loading, transportation and advertizing.
Indicators of Sf and S'f differ among themselves only thanks to discrepancy of volumes and structures of products (q1 and qpl), and indicators of prime cost of a unit of production of each look (Zpl) and level of selling prices (rpl) in them coincide.
The statistics of product cost is guided by data of accounting which tasks are determination of total amount of expenses, their group by types and calculation of prime cost of a unit of production.
On the basis of group of expenses on economic elements it is possible to characterize structure of product cost. In various industries it is not identical as reflects specific features of production and different technical equipment of separate branches.
Indirect labor expenses are the salary paid to the ancillary workers, workers occupied with service of the equipment, to storekeepers, office workers, etc. They include also time of idle times of the main production workers and cost of overtime works;
On a way of reference on production. Very often at calculation of product cost it is impossible to define precisely, in what degree these or those expenses can be carried on this or that type of production. In this regard all expenses of the enterprise are subdivided on direct and indirect.
The main expenses are directly connected with process of production of production, in particular, expenses of raw materials, the main materials and accessories, fuel and energy, a salary of production workers, etc. These expenses, as a rule, are conditionally – variables: their total value is connected with the volume of the made production and is approximately proportional to it.
Increase of a technological level of production. This introduction of new, progressive technology, mechanization and automation of productions; improvement of use and application of new types of raw materials and materials; change of a design and technical characteristics of products; the other factors raising a technological level of production.