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Abstract of the qualification work

Content

Introduction

Formation and development of market infrastructure in Ukraine to radically change the economic, informational and legal environment of the operation of enterprises, the nature of their business. The main financial results of the company - it is a gain, which is the foundation and source of funds for its further development. You can increase profits by increasing production volumes or prices of products (works, services) of the products. However, this is not always possible or practical. Therefore, in the development of the company in the face of major economic constraints increase financial performance is directly related to lower costs.

Virtually every enterprise opportunities exist to reduce costs to a rational level that allows to achieve the economic growth performance, increase competitiveness.

Manufacturing activity is associated with the risk of investments in this sector. To minimize this risk, need strict control of the production process, a detailed account of it and to identify factors that affect the process of production and costs required to implement it. Therefore, for each company the industry is an important in-depth analysis of the costs and effective management to achieve high economic results. The clear construction cost accounting in accordance with the changes in its organization and management techniques, enhances the role of accounting as the primary means of obtaining reliable information to make economically sound decisions and risk prevention in the industrial and economic activities of enterprises in the system of taxation in the balance sheet, income statement, various financial accounting, etc..

Appropriate cost management in all areas of the company and is of great importance and value to all places of occurrence and cost centers.

1.The economic essence of costs

Costs in the economic activity of the enterprise is one of the main problems of theoretical and practical nature. However, despite this, the study of the meaning of "cost" and "cost reduction" in historical aspect is not sufficiently disclosed, and therefore need to examine its economic costs sut.Sohodni considering large number of domestic and foreign scholars and scientists. Among them are such as: AS Borodkin, FF Butynets, B. Valuev, A. Gerasimov, S. Goals, Z. Hutsaylyuk, Z. Zadorozhnyy, GG Kireytsev, YD Krupka, M. Kuzhelnyy, AM Kuz'minskii, VA Lastowecky, VG Linnik, BM Litvin, O. Oleinik, MS Pushkar, V. Sopko, ID Fahrion, MG Chumatchenko, S. Shkaraban. They conduct research on theoretical and practical aspects of cost accounting, in particular, examine the concept and classification of costs, methods of accounting, cost reduction, consistent tax and accounting, audit procedures cost effectiveness of cost management, while considering them in a variety of industries. [9]

All expenses of the enterprise can be considered in terms of economic costs (due to costs - internal and external) and accounting costs (external costs the company money). [1]

In accordance with Regulation (Standard) 16 "costs" (P (S) 16) under reducing expenditures realize economic benefits as a result of disposals of assets or increase in liabilities that result in decrease in equity (except for the reduction of capital contributions from owners) .[2] P (S) 16 defines the methodological principles of formation of accounting information on the costs of the enterprise and its disclosure in the financial statements. The provisions of this Policy (Standard) used by enterprises, organizations and other legal entities regardless of ownership.

Costs are expensed certain period of time with the recognition of income for which they are made. If costs can not be directly linked to income availability, they are recognized as an expense of the period in which they were made. Costs that are not directly linked to income availability, recognized as an expense of the period in which they were made.

If an asset provides reception of economic benefits over several periods, the costs recognized by the systematic distribution of its value (eg, in the form of depreciation ") between the respective reporting periods. [3]

2. Classification of costs

Fuel companies can be classified according to various criteria. Classification of costs required to determine the cost of production and according to pricing to determine the cost of production, ie local costs.

Depending on the species of all costs can be divided into two groups: the costs arising in the normal course of activities and costs incurred in the course of an activity. In turn, costs incurred in the ordinary course of business can be divided into consumption by operating (primary and other) activity, investment and financing activities. [10]

All costs of the company, according to P (S) 16 "Expenses", P (S) 3, "INCOME STATEMENT, P (S) 15" Revenue "group by function — for production (production cost of goods, works, services), operational (administrative (general business) costs, costs of sales, other operating expenses) and other expenses of (financial costs, loss of equity, extraordinary expenses and other costs), as well as economic elements: material costs, costs labor, social contribu-tions, depreciation, and other operating expenses (pic.1). [2]

Pic.1 Classification of costs according to P (S) 3"Income Statement"

Depending on the degree of homogeneity of the costs are divided into simple (element) and integrated. Simple (element) — it costs homogeneous economic content (raw materials, basic materials, wages). Complete costs heterogeneous in composition, they cover several economic elements (cost of maintenance and operation of machinery, overhead, loss of marriage, etc.)

For economic role in shaping the production costs are divided into basic expenses and overhead: the basic costs directly attributable to the manufacturing process of products and form their main material content. This is the cost of raw materials, basic materials, fuel and energy, manufacturing, wages of production workers. With overhead costs are necessary conditions for the operation of its organization, management, services (overhead costs).

By way of computing for certain production costs are divided into direct and indirect. Direct costs directly attributed to the cost of production of a specific product and can be designed for its unit directly (materials, fuel, wages). Indirect costs associated with the manufacture of various products, in this case can not directly calculate the cost of certain products (overhead costs, maintenance and operation of machinery, etc.). Indirect costs are allocated to individual products in proportion to the defined framework. Growth of direct costs in total increases accuracy calculation unit costs. Depending on the amount due to the production costs are divided into fixed and variable. Fixed costs —these are the absolute value of which at the present time by changing the output to a certain extent does not change. When significant changes in output, effect of changes in production and organizational structure of the company, the amount of fixed costs abrupt changes, then it again remains constant. This is the cost of maintenance and operation of buildings, shop management, rent. For fixed costs also include costs that vary only slightly due to changes in production, so they are called conditional permanent. Variable costs — these costs, the value of which at the present time depends on the output. In turn, divided into variable costs are proportional, progressive and regressive. [7]

Proportional variable costs change in direct proportion to the volume of production (constant of proportionality is unity). This is the cost of raw materials, basic materials, components, piece-wages. [8] Progressive increase in variable costs relatively greater proportion than output (proportionality factor greater than one). These include the costs of piece-progressive labor. Regressive variable costs change in a relatively smaller proportion than production (proportionality factor less than unity). These costs include operating costs of machinery and equipment, repair, tools and more. The division of costs into fixed and variable enables to quantify the dependence of various expenses from changes in production and sales during the planning, choice of possible solutions. Depending on the time of consumption may be ongoing, one-time, future. Current expenditures are made daily in this period, disposable — a one-off costs that made no more than once a month. Future costs — costs that are reserved funds in the budget and statute (vacation pay, seasonal costs, etc.).

3. Performance Indicators Company formation costs

The objects of the enterprise cost analysis are the following indicators:

1)production cost of manufactured products, services and the works as a whole and for the expenditure of the enterprise and its departments; 2) operating costs by cost element; 3) administrative costs; 4) cost of sales; 5) costs of financial, investment, tax, emergencies, dividends, losses; 6) the cost of one hryvnia net income; 7) Cost of sales (goods and services) and other assets; 8) individual items and expense items; 9) value: cost -> Net income -> profit. [10]

With this in mind, the main objective of economic analysis in cost - modeling the optimal balance between consumer value (net income) of an object costs and expenses for its formation. This goal can be achieved and the following conditions:

1. use value (net income) cost object increases and costs are reduced its creation; 2. use value (net income) cost object increases an the cost of its creation do not change; 3. use value (net income) cost object increases higher rate than the cost of its creation; 4. use value (net income) cost object does not change, and costs are reduced its creation; 5. use value (net income) reduced cost object slower than the loss of his s creation. [6]

Economic analysis of company's expenses on existing reserves to ensure the above conditions begin to change the characteristics of the production unit cost and expenses for the following parameters [3]:

1. The level of planned (expected) changes in unit costs products. 2. Absolute change in unit cost for the planned calculations (as cheaper or more expensive the plan will be manufacturing production in the reporting period compared to last). 3. The expected size of the economy (additional) costs as a result of changes in production costs. 4. Level dynamics of the actual unit cost. 5. Absolute change in unit cost in the reporting period compared to the previous (baseline). 6. The size of the actual additional cost savings as a result of changes production costs in dynamics. 7. The execution plan for the unit cost. 8. Absolute change in unit cost compared to plan. 9. The size of the actual additional cost savings compared to plan. [5]

When managing costs using a number of the following parameters:

Gross margin (profit margin);

Break-even point (the threshold of profitability) — is a sales, which the company is able to recoup their costs are not gaining a profit. Stock financial strength, which indicates what percentage of the company can reduce the volume of production and sales, not to start getting losses. The impact of operating leverage, which indicates the percentage change in income when changing revenue from sales by one percent. [11]

Effect of financial liverydzhu — a figure that reflects the level of profit generated by additional equity under conditions of varying particle leverage.

To evaluate the effectiveness of building costs in the company there is a system of economic indicators: production cost coverage ratio shows the gross output generated by the company 1 UAH., operating expenses; the coverage ratio of fixed costs, as net income the company generates 1 UAH., fixed costs; return ratio of production costs, which costs are borne by the company to get 1 UAH., gross output; the coverage ratio of realized production costs, how much net income the company generates 1 UAH.. production costs; return ratio of fixed costs fixed costs, which is the company to get 1 UAH., net income, the coverage ratio of administrative costs, how much net income the company generates 1 USD. administrative costs; return ratio of administrative costs, administrative costs which the company is to get 1 UAH., net income; the coefficient of performance of variable costs, as gross an enterprise 1 UAH.,variable costs; factor the cost of sales, as net income generates UAH., cost of sales.

The above parameters can be set to how efficiently and effectively the company conducts its financial and economic activities. [3]

Conclusions

Identification and use of factors of saving resources, reducing costs is the responsibility of each employee, especially specialists and managers at all levels. Under certain organizational and technical solutions are developed and Conditions allowances of all kinds of resources: raw materials, main and auxiliary materials, energy, labor and so on.

Cost management should be in all areas of the company and is of great importance and value to all the places of origin and cost centers.

Precise construction accounting costs in response to changes taking place in its organization and technology management, enhances the role of accounting as a primary means of obtaining accurate information to make economically sound decisions and risk warnings in the industrial and business enterprises in the system of taxation in the balance sheet, income statement, various financial reports and more.

The division of costs of production for a short period of constant and variable is the starting point for the definition of the law of diminishing returns, the marginal product or performance. According to this law, from a certain point, successive additions of units of variable inputs (eg, labor) to permanent, fixed resources (eg capital) gives the amount of the surplus product that decreases per each additional unit of variable resource. Thus, when a certain amount of equipment production will grow slower if more workers will be involved in its maintenance.

Fuel companies can be classified according to various criteria. Classification of costs required to determine the cost of production and according to pricing to determine the cost of production, ie local costs. Great value classification of costs in managing them and especially for costing products for various management needs Since management decisions are usually focused on the future, especially the leadership of the information about the expected costs and revenues.

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