Classification of enterprise costs.

The concept and classification of the company's costs currently play an important role in its activities. Costs that are directly related to production, as well as the sale of finished products can be considered as costs or assets. Costs are costs that do not bring economic benefits in the future. The concept of costs and their classification is used at all levels of management, as well as the cost of production, and all sources of funding are constantly identified .

Classification of costs of the enterprise occurs on 3 grounds. The first - the costs, which are closely related to the extraction of profits. This includes costs not only for production, but also for the implementation of services, works, products, as well as investments. Costs for the sale and production of various products are called costs that are directly related to the creation of the goods, and after its sale the enterprise will come to a financial result in the form of a loss or profit. Investments are nothing more than capital investments, their goal is to maximize production volumes and, of course, to extract revenues in the stock and financial markets.

The second group is expenses that are not related to the extraction of any profit. It is about the costs of social support for employees, consumption, charity and other humanitarian purposes.

The third group is compulsory expenses. We are talking about tax payments and taxes. Deductions for social insurance, economic sanctions and so on.

At the time of writing the Loss and Profit Report, the classification of costs of an enterprise looks like this:

- expenses for ordinary activities. They are connected first with the manufacture, and then with the sale of products, with the sale and purchase of various goods. In addition, they include the costs that are incurred during the provision of all kinds of services and performance of work.

- operating expenses. This group is associated with the provision for temporary use for a fee of the enterprise's assets, rights that arise from patents and other intellectual property. This includes expenses related to participation in various authorized capitals of other organizations, as well as interest paid by the enterprise for the use of funds for its use.

- Non-operating expenses. These include penalties, fines, penalties for various breaches of contract terms, exchange rate differences, past years' losses, and so on.

- extraordinary expenses. They are the consequences of a natural disaster, a fire accident and other emergency circumstances.

Classification of the costs of an enterprise for the production of its products, as well as its implementation is as follows:

- material costs ;

--costs, which are closely related to the management of the entire production process;

- the cost of paying labor;

- the value of non-current assets that were used in the production process.

Classification of the costs of an enterprise in relation to the total volume of production divides them into permanent ones (their magnitude does not depend on the volume of production) and variables (costs for materials, fuel, raw materials, energy, maintenance and repair of equipment). The latter costs directly depend on the growth of output.

There is also a classification of the costs of the enterprise by how they are charged to the cost of the objects. In this case we are talking about direct and indirect costs. The latter costs can not be correlated in any particular kind of products, in contrast to the first group.

There are also such costs as complex and elementary expenses. Elementary represent a whole set of costs, not taking into account where they originated. A complex is accurately shown to the place of origin, as well as the cause.