Planning production costs is an important economic technique that allows you to reduce its final price

Planning production costs is one of the economic actions, quite often used in today's market. It is carried out with one main goal - to reveal the reserves of cost reduction in production. When carrying out calculations, progressive indicators of similar enterprises of the industry are taken as a basis. This allows you to determine the optimal cost price.

The planning of the cost of production is based on technical and economic calculations to determine the production costs and costs of selling the entire range and each product separately. There is an established list of factors that affect the reduction in the cost price. Among them, improved production, improving the use of natural sources, the establishment of production and labor processes, improving production, changing the location, volume and structure of production.

If an enterprise manufactures one type of products, the dynamics and level of production costs of the enterprise is determined on the basis of the level of the cost price of this product. If the enterprise produces a large range of products, then the cost of production is planned in terms of a ruble of commodity output. The value of the cost per ruble of commodity output is calculated as the ratio of production costs to commodity output to the value of production calculated using wholesale prices established by the enterprise. The indicator obtained in this way helps determine the level of profitability.

Product cost planning is carried out on the basis of planned production indicators. Then the actual volume of output is recalculated according to the planned indicators of the cost price and compared with the cost per ruble of output.
When calculating the planned and actual production costs, it is necessary to take into account only production costs, expenses that are not directly or indirectly related to the production of products should not be taken into account. An example of such costs can be, for example, the costs of maintaining auxiliary farms.

In planned calculations of the cost price it is impossible to include such expense items as marriage or unproductive expenses. Exceptions are glass, ceramic, vacuum, thermal, foundry, optical and canning industries. And the percentage of marriage, which can be put into the cost, is brought and approved by a higher authority.

The cost price is one of the most important indicators determining the economic efficiency of production. The more the processes at the enterprise are optimized, the lower the actual cost and, accordingly, the higher the profit of the enterprise. Enterprise profit planning is an important part in the planning of the enterprise, which is closely related to the calculation of the planned cost price. One of the reserves of profit growth is the reduction in the cost of production. Profit is calculated by subtracting from the amount of revenue from selling the cost of sales.

Profit planning is carried out according to several types: the sale of fixed assets; The sale of other goods and services; Realization of property rights and other property; Planning sales of the main products produced by the enterprise; Profit from non-operating transactions; Profit from payment for services rendered and work performed.

At the enterprise two types of calculation of the planned profit are most often used - through the analytical method or by the direct account method, which is the most common in enterprises.