Any production is connected with application of various resources: natural, economic, information, labor, etc. For simplification of the general calculation their expenses transfer to a monetary form and subdivide into constants and variables. To define variable costs, it is necessary to take only those resources which are consumed in proportion to production volume into account.
Instruction
1. The total costs connected with production of goods divide into constants and variables. The first represent the size which does not change depending on production volume, the second – on the contrary, grow together with quantity of commodity units. Expenses on raw materials and initial materials, the equipment and consumed by it energy/fuel, the earned payment and so forth belong to them.
2. The size of variable costs not always changes in direct ratio to production volume. In certain cases it lags behind for various reasons. For example, difference in the salary of different shifts. On growth rates distinguish proportional, regressive and variable and progressive and variable expenses.
3. Proceeding from the name, rates of change of proportional expenses and increase in the output coincide. Treat this type of costs: purchase of raw materials, materials, semi-finished products, price-work compensation of the main working structure, expenses on the most part of energy/fuel, acquisition of a container and creation of packing.
4. The percent of growth of regressive variable costs is less than gain of quantity of the goods ready to realization. For example, at increase in the outputs by 5%, they can grow only by 3%. Here it is possible to carry expenses on urgent repair of the equipment, tools or transport, purchase of auxiliary materials (lubricant, cooling liquid and so forth), movements of semi-finished products and finished products in the enterprise and also bonus payments.
5. The slowed-down dynamics of regressive costs is connected with their intermediate role. They can be considered how a transitional link between proportional and constant expenses, at the same time extent of regression can be various. For this reason it is necessary to use special indicators, so-called variators which usually matter from 1 to 10 (from 10 to 100%) and are installed separately for concrete item of expenditure.
6. Progressive variable costs increase quicker than production volume. Surcharges for night shifts or work on holidays, overtime, payments of the minimum contents belong to them during idle times in work, etc. In other words, such expenses appear when there is a violation of a production cycle or an overload of own capacities in connection with too big order.