Scribd Logo
Importer

Bienvenue sur Scribd !

  • Production Cost: What What Costs Costs? How To ? How To Compute Compute Them Them? ?

    Transféré par

    Sergiu Dragulin
    13 vues6 pages
    The document discusses the computation of production costs. It states that production costs are comprised of raw material costs, manufacturing costs, and other indirect costs. Total costs equal production costs plus distribution costs. Revenue is calculated as price minus total costs. It also explains how to classify costs as fixed or variable, direct or indirect, and provides examples of different types of costs that need to be considered like purchase costs, transport costs, energy costs, salaries, taxes, and depreciation.

    Description originale:

    Prodution Cost

    Titre original

    Prodution Cost

    Copyright

    © © All Rights Reserved

    Formats disponibles

    PDF, TXT ou lisez en ligne sur Scribd

    Avez-vous trouvé ce document utile ?

    Ce contenu est-il inapproprié ?

    Signaler ce document
    The document discusses the computation of production costs. It states that production costs are comprised of raw material costs, manufacturing costs, and other indirect costs. Total costs equal production costs plus distribution costs. Revenue is calculated as price minus total costs. It also explains how to classify costs as fixed or variable, direct or indirect, and provides examples of different types of costs that need to be considered like purchase costs, transport costs, energy costs, salaries, taxes, and depreciation.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    13 vues6 pages

    Production Cost: What What Costs Costs? How To ? How To Compute Compute Them Them? ?

    Transféré par

    Sergiu Dragulin
    The document discusses the computation of production costs. It states that production costs are comprised of raw material costs, manufacturing costs, and other indirect costs. Total costs equal production costs plus distribution costs. Revenue is calculated as price minus total costs. It also explains how to classify costs as fixed or variable, direct or indirect, and provides examples of different types of costs that need to be considered like purchase costs, transport costs, energy costs, salaries, taxes, and depreciation.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 6

    12/9/2014

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    PRODUCTION COST

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    What costs?
    costs? How to compute them?
    them?
    From suppliers

    To clients

    PURCHASE COSTS = PURCHASE PRICE + TRASNSPORT TAXES


    PRODUCTION COSTS = RAW MATERIALS COSTS + MANUFACTURING +
    OTHER COSTS (INDIRECT)
    TOTAL COSTS = PRODUCTION COST + DISTRIBUTION COSTS

    REVENUE = PRICE TOTAL COST

    12/9/2014

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    We compute COSTS for:


    1. REVENUE COMPUTATIONS
    - what revenue, when, etc
    2. RESPONSABILITIES
    - production management
    3. PRICE ESTABLISHEMENT
    4 STOCKS EVALUATION
    5. DECISION MAKING PROCESS
    (self production or patent selling)

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    Total cost
    = sum of all expanses (direct or indirect) for the final
    product:
    - purchase price of all raw materials/ components;
    - transport cost;
    - cost of consumed energy;
    - salaries;
    - social and fiscal taxes;
    - tools depreciation cost ;
    - overheads (regia);
    - publicity cots, advertising, distribution, research, travel,
    etc.

    12/9/2014

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    FIXED AND VARIABLE COSTS


    a) FIXED COSTS
    independent on produced quantities and selling volume.
    depreciation of materials,
    part of the building and tools costs (hiring, buying),
    insurrances, taxes, hiring costs,
    part of salaries, etc.

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    b) VARIABLES COSTS
    linked to production activity;
    all costs proportional to this activity:
    Example: use of raw materials, poundage fees, etc.
    Costs that are not proportional to production:
    Example: consumed energy, phone, transport fees, etc

    12/9/2014

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    c) Flexible budget
    January

    February

    March

    April

    Activity
    Fixed costs
    Variable costs
    Total costs

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    d) Unitary costs
    January

    February

    March

    April

    Activity
    Fixed costs
    Variable costs
    Total costs

    0.5 euro/km

    12

    12/9/2014

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    Direct and indirect costs


    a) Direct costs
    Directly related to the product, without doubt.

    b) Indirect costs
    They have to be redistributed to become part of the product cost

    Variables costs are almost always direct ones.


    Fixed costs are sometimes indirect ones.

    15

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    Other costs

    Complementary costs
    (stock)

    Recycling costs

    17

    12/9/2014

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    Example - production cost

    Sl.dr.ing. Camelia STANCIU, Universitatea POLITEHNICA Bucuresti

    Classification of costs
    Costs classification
    On the process

    direct

    Cd

    indirect

    Ci

    On the production volume V in a time T

    variables

    Cv

    fixed

    CF

    Ct=Cv+CF

    Ct=V(Cd+Ci)

    Cv=kv.V
    CF=kt.T

    Total cost

    Ct

    Inovare i transfer tehnologic 2008 - 2009

    Vous aimerez peut-être aussi