What costs are classified as fixed costs? Variable, fixed and semi-fixed costs

Semi-fixed costs - part of the production costs, the value of which on the pre-tyi within certain limits does not depend on the volume of production (work performed, services rendered). Therefore, with an increase in production volumes the value of U.-p.r. (per unit of products, works, services) decreases accordingly, and with a reduction in production, it increases.

In builds, production to U.-p.r. up to 50% of overhead costs can be attributed to: administrative and household. expenses, depreciation of temporary buildings and structures, taken into account as part of overhead expenses, expenses for the maintenance of fire and guard guards, for the improvement of construction sites, cultural events, building maintenance, laboratories, testing materials and structures, rationalization and standardization of labor, labor protection and safety, and some others. can be considered about 1% of the cost of materials, mainly procurement and storage costs, approximately 15% of the cost of operating machines and mechanisms.

In economic calculations efficiency, the savings of U.-p.r. are taken into account if the increase in the volume of construction and installation works was the result of a reduction in the duration of their implementation. If the reduction in the duration of the construction of the facility is achieved due to the development and application of a more economical design solution that reduces the volume and estimated cost of work compared to the replaced one, then the savings of U.-p.r. at builds, the organization is not formed and therefore is not subject to accounting.

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Depending on how the value of certain types of expenses changes with a change in the volume of production (sales) of products (works, services), all types of expenses can be divided into conditionally variable and conditionally constant.

Conditionally variable (proportional) (note) costs change in proportion to the change in the volume of production (sales), and their level remains practically unchanged in the unit cost of production (works, services).

Variable expenses include:

The cost of the main materials used in production;

Consumption of energy carriers (electricity, fuel, etc.) for the production of products (for the operation of machine tools, machines, other production equipment);

Wages of the main workers with piecework wages and taxes calculated from the wage fund of such workers;

Most customs payments ( customs duty, excises, VAT);

Fare;

Taxes, fees and deductions calculated from revenue (gross income).

As a rule, conditionally variable costs are the so-called direct costs.

The value of semi-fixed (disproportionate) costs practically does not depend on the dynamics of the volume of production (sales), and therefore, with a change in the volume of production (sales), the level of semi-fixed costs in the cost of a unit of production (work, services) changes: with an increase in the volume of production (implementation), the amount (share) of these costs decreases, and with a decrease in production volume, it increases.

TO semi-fixed expenses usually include:

Depreciation of fixed assets and intangible assets;

Expenses for rent and maintenance of office, production and warehouse premises;

Leasing payments;

Expenses for the repair of fixed assets;

Expenses for heating, lighting of premises;

Wages of administrative and management personnel and personnel with time wages, as well as taxes calculated from the wage fund of such personnel;

Costs associated with the management and organization of production;

Payment for certain types of services of third-party organizations (banking, telephone services);

Some fixed taxes (for example, land) included in the cost of products (works, services).

semi-fixed expenses tend to be indirect costs.

It is more profitable for an organization to have the smallest possible amount of fixed costs per unit of output (works, services), which is achieved with the maximum possible volume of production (sales) with the available number of machinery and equipment, production areas, human (labor) resources. In the event of a decrease in the volume of production (sales), the amount of conditionally variable costs (for the organization as a whole) is reduced in proportion to such a decrease, but the amount of conditionally fixed costs is not. As a result, there is an increase specific gravity cost in the selling price of products, which means a decrease in the share of profit (respectively, the income of the organization) in this price.

In the activity of any enterprise, the adoption of correct management decisions is based on the analysis of its performance indicators. One of the objectives of such an analysis is to reduce production costs, and, consequently, increase the profitability of the business.

Fixed and variable costs, their accounting is an integral part of not only the calculation of the cost of production, but also the analysis of the success of the enterprise as a whole.

The correct analysis of these articles allows you to make effective management decisions that have a significant impact on profits. For the purposes of analysis, in computer programs at enterprises, it is convenient to provide for automatic separation of costs into fixed and variable based on primary documents, in accordance with the principle adopted by the organization. This information is very important for determining the "break-even point" of the business, as well as assessing the profitability various kinds products.

variable costs

to variable costs include costs that are constant per unit of output, but their total amount is proportional to the volume of output. These include the cost of raw materials, Consumables, energy resources involved in the main production, salary of the main production staff(together with accruals) and cost transport services. These costs are directly related to the cost of production. In value terms, variable costs change when the price of goods or services changes. Unit variable costs, for example, for raw materials in the physical dimension, may decrease with an increase in production volumes due, for example, to a decrease in losses or costs for energy resources and transport.

Variable costs are either direct or indirect. If, for example, the enterprise produces bread, then the cost of flour is a direct variable cost, which increases in direct proportion to the volume of bread produced. Direct variable costs may decrease with the improvement of the technological process, the introduction of new technologies. However, if the plant refines oil and as a result receives in one technological process, for example, gasoline, ethylene and fuel oil, then the cost of oil for the production of ethylene will be variable, but indirect. Indirect variable costs in this case, it is usually taken into account in proportion to the physical volumes of production. So, for example, if during the processing of 100 tons of oil, 50 tons of gasoline, 20 tons of fuel oil and 20 tons of ethylene are obtained (10 tons are losses or waste), then the cost of 1.111 tons of oil (20 tons of ethylene + 2.22 tons of waste) is attributed to the production of one ton of ethylene /20 tons of ethylene). This is due to the fact that in a proportional calculation, 20 tons of ethylene account for 2.22 tons of waste. But sometimes all the waste is attributed to one product. For calculations, data from technological regulations are used, and for analysis, actual results for the previous period.

The division into direct and indirect variable costs is conditional and depends on the nature of the business.

Thus, the cost of gasoline for the transportation of raw materials during oil refining is indirect, and for transport company direct, since they are directly proportional to the volume of traffic. The wages of production personnel with accruals are classified as variable costs with piecework wages. However, with time wages, these costs are conditionally variable. When calculating the cost of production, planned costs per unit of production are used, and in the analysis, actual costs, which may differ from planned costs, both upwards and downwards. Depreciation of fixed assets of production, referred to a unit of output, is also a variable cost. But this relative value is used only when calculating the cost of various types of products, since depreciation charges, in themselves, are fixed costs / costs.

This division is based on the economic sense of the costs that the entrepreneur incurs in the course of his activities. Some costs - fixed costs do not depend on the volume of production and sales, others - variable costs directly depend on the volume of production and sales of products, goods, services. However, in real life fixed and variable costs are not immutable, they are constantly changing in the process entrepreneurial activity. Therefore, in economics, they are usually considered as conditionally fixed and conditionally variable costs. In this material, we will try to give examples and explain why they are considered.

Conditionally fixed and conditionally variable costs: definition.

Conditionally fixed costs - these are costs that are not related to the volume of production and sales of products, goods, services, in the process of entrepreneurial activity changing both in quantitative and qualitative state. Fixed costs can be converted to variable. We wrote about this in.

Conditionally variable costs - these are costs that are directly related to the volume of production and sales of products, changing throughout the life of the entrepreneur and in quantity and in their quality and composition.

Conditionally fixed and conditionally variable costs: examples of conditionally fixed costs.

In the article, we have given examples of such costs in detail, now we will show examples of changes in fixed and variable costs and explain why they are essentially conditionally fixed and conditionally variable costs.

1. Fixed costs in the form of rent when renting an office may change during the course of the entrepreneur's activities. They can increase or decrease quantitatively - the cost of rent rises or falls, or the leased area changes. They can also change structurally: an entrepreneur bought a rented office or bought his premises elsewhere. Quantitatively, they may decrease, because now the entrepreneur is charged depreciation, and it is lower than rental payments. They can also change structurally: an entrepreneur took out a loan to purchase his premises, and now the total amount of fixed costs for maintaining the premises may remain the same, and the structure is part of the depreciation deductions, and part of the interest on the loan.
2. The salary of the accounting department is a fixed cost. Over time, the amount of wage costs may increase (expansion of staff due to an increase in operations, types of activities), it may also decrease - the transfer of accounting to a specialized organization to.
3. tax payments. There are taxes that are also related to fixed costs: property tax, UST from the wages of administrative staff, UTII. The amounts of these taxes may also change during the course of business. The amount of property tax may increase due to an increase in the value of property (acquisition of new property, revaluation of value), due to an increase in tax rates. It may decrease (sale of property, revaluation). The amounts of other taxes related to fixed costs may also change. The transition to outsourcing accounting services does not imply payroll, therefore, UST will also not be charged.
4. Fixed costs can be changed by converting them to variables. For example, when an enterprise manufactures products and produces some of the components in-house. With a decrease in the volume of orders, it is more profitable to find a third-party manufacturer and receive components from it, thereby removing part of the fixed costs in the form of depreciation of equipment, its maintenance, depreciation of premises by selling it or renting it out. In this case, the cost of supplied components will be considered fully variable costs.

Conditionally fixed and conditionally variable costs: examples of conditionally variable costs.

1. Variable costs in the form of material costs in the production of products (raw materials, materials, components) are considered conditionally variable costs. They also change during activity. Changes may occur:
   – due to price changes (an increase in the price of a supplier due to inflation, a decrease in price due to a change in a supplier with more loyal conditions),
   – due to a change in technology (the use of less expensive types of raw materials and materials, the use of cheap substitutes),
   - due to a change in the production itself (previously purchased components on the side, the enterprise can start producing on its own. In this case, part of the variable costs will turn into fixed costs in the form of equipment depreciation, the salary of foremen and the salary of workers, part of the costs will remain variable in the form of costs for raw materials and materials.
2. Variable costs in the form of piecework wages. Such costs change in quantity, as well as in connection with a change in the conditions of payments: an increase or decrease in norms, the application of new payments stimulating labor productivity. Increase or reduction of staff, etc. That is, the size of variable costs changes throughout the life of the enterprise.
3. Variable costs in the form of interest payments to sales managers. Such costs are also constantly in the mode of change, as the amount of remuneration varies depending on sales volumes. Changes may also apply to the very terms of payment of remuneration (interest). When a certain volume of sales is reached, interest can rise or fall, as a result, variable costs will change both quantitatively and qualitatively.

Examples given conditionally fixed and conditionally variable costs clearly show why the costs are considered contingent. In the process of entrepreneurial activity, the entrepreneur tries to influence profit: reduce costs and increase income, at the same time, the market and the external environment also influence the entrepreneur. As a result of such activities, costs are constantly changing under the influence of various factors, therefore they are considered to be conditionally fixed and conditionally variable costs.

variable costs increase or decrease in proportion to the volume of production (services, turnover), i.e. depend on the business activity of the organization. Variable nature can have both production and non-production costs. Examples of production variable costs are direct material costs, direct labor costs, costs of auxiliary materials and purchased semi-finished products.

Variable costs characterize the cost of the product itself, all other (fixed costs) - the cost of the enterprise itself. The market is not interested in the value of the enterprise, it is interested in the value of the product.

Aggregate variable costs have a linear dependence on the indicator of business activity of the enterprise, and variable costs per unit of output are a constant value.

Production costs that remain virtually unchanged during the reporting period do not depend on the business activity of the enterprise and are called fixed production costs. Even when the volume of production (sales) changes, they do not change. Examples of fixed production costs are the cost of renting production space, depreciation of fixed assets for production purposes.

Fixed costs are the costs of renting premises, security, depreciation, etc. Fixed costs per unit of output are reduced in steps. Total fixed costs are constant and do not depend on the volume of business activity, but may change under the influence of other factors. For example, if prices rise, total fixed costs also rise.

In real life, it is extremely rare to find costs that are inherently exclusively fixed or variable. Economic phenomena and the costs associated with them are much more complex in terms of maintenance, and therefore in most cases the costs are conditionally variable (or conditionally constant). In this case, a change in the organization's business activity is also accompanied by a change in costs, but unlike variable costs, the dependence is not direct. Conditionally variable (conditionally fixed) costs contain both variable and fixed components. An example is the payment for the use of a telephone, consisting of a fixed subscription fee (a fixed part) and a payment for long-distance calls (a variable term).

Therefore, any costs in a general form can be represented by the formula

where Y is the total costs, rub.;

a - their constant part, independent of production volumes, rub.;

b - variable costs per unit of output (cost response factor), rub.;

X is an indicator that characterizes the business activity of the organization (volume of production, services rendered, turnover, etc.) in natural units of measurement.

Costs taken into account and not taken into account in estimates. The process of making a managerial decision involves comparing several alternative options with each other in order to choose the best one. The indicators compared in this case can be divided into two groups: the first remain unchanged for all alternative options, the second vary depending on the decision made. When a large number of alternatives are considered, which differ from each other in many respects, the decision-making process becomes more complicated. Therefore, it is advisable to compare not all indicators with each other, but only indicators of the second group, i.e. those that vary from variant to variant. These costs - which distinguish one alternative from another - are often referred to in management accounting as relevant. They are taken into account when making decisions. The indicators of the first group, on the contrary, are not taken into account in the assessments.

Sunk costs. These are past costs that no other alternative is able to correct. In other words, these previously incurred costs cannot be changed by any management decisions. Sunk costs are not taken into account when making decisions. However, the costs not always taken into account in the assessments are irretrievable.

Conditionally fixed and conditionally variable costs

In general, all types of costs can be divided into two main categories: fixed (conditionally fixed) and variable (conditionally variable). According to the legislation of the Russian Federation, the concept of fixed and variable costs is present in paragraph 1 of Article 318 of the Tax Code of the Russian Federation.

Semi-fixed costs(English) total fixed costs) - an element of the break-even point model, which is the costs that do not depend on the size of the volume of output, as opposed to variable costs, which add up to total costs.

In simple words are expenses that remain relatively constant over a budget period, regardless of changes in sales volumes. Examples are: management expenses, expenses for rent and maintenance of buildings, depreciation of fixed assets, expenses for their repair, time wages, on-farm deductions, etc. In reality, these expenses are not permanent in the literal sense of the word. They increase as the scale increases. economic activity(for example, with the advent of new products, businesses, branches) at a slower rate than sales growth, or grow in leaps and bounds. Therefore, they are called conditionally constant.

This type of cost largely overlaps with overhead, or indirect costs associated with the main production, but not directly related to it.

Detailed examples of semi-fixed costs:

• Interest obligations during the normal operation of the enterprise and maintaining the volume of borrowed funds, a certain amount must be paid for their use, regardless of the volume of production, however, if the volume of production is so low that the enterprise is preparing for bankruptcy , these costs can be neglected and interest payments can be stopped
• Enterprise property taxes , since its value is quite stable, are also mostly fixed costs, however, you can sell property to another company and rent it from it (form leasing ), thereby reducing property tax payments
• depreciation deductions with a linear method of accrual (evenly for the entire period of use of the property) according to the chosen accounting policy, which, however, can be changed
• Payment guards, watchmen , despite the fact that it can be reduced with a decrease in the number of employees and a decrease in the load on checkpoints , remains even when the company is idle, if it wants to keep its property
• Payment rent depending on the type of production, the duration of the contract and the possibility of concluding a sublease agreement, it can act as a variable cost
• Salary management personnel in the conditions of the normal functioning of the enterprise is independent of the volume of production, however, with the accompanying restructuring of the enterprise layoffs ineffective managers can also be reduced.

Variable (conditionally variable) costs(English) variable costs) are expenses that change in direct proportion in accordance with an increase or decrease in the total turnover (sales proceeds). These costs are associated with the operations of the enterprise for the purchase and delivery of products to consumers. This includes: the cost of purchased goods, raw materials, components, some processing costs (for example, electricity), transportation costs, piecework wages, interest on loans and borrowings, etc. They are called conditional variables because the direct proportional dependence on sales volume actually exists only in a certain period. The share of these expenses may change in some period (suppliers will raise prices, the rate of inflation of selling prices may not coincide with the rate of inflation of these costs, etc.).

The main sign by which you can determine whether costs are variable is their disappearance when production is stopped.

Examples of Variable Costs

In accordance with IFRS standards, there are two groups of variable costs: production variable direct costs and production variable indirect costs.

Production variable direct costs- these are expenses that can be attributed directly to the cost of specific products on the basis of primary accounting data.

Production variable indirect costs- these are expenses that are directly dependent or almost directly dependent on changes in the volume of activities, however, due to the technological features of production, they cannot or are not economically feasible to be directly attributed to manufactured products.

Examples direct variables costs are:

• The cost of raw materials and basic materials;
• Energy and fuel costs;
• The wages of workers engaged in the production of products, with accruals on it.

Examples indirect variables costs are the costs of raw materials in complex production. For example, when processing raw materials - hard coal– produces coke, gas, benzene, coal tar, ammonia. When milk is separated, skimmed milk and cream are obtained. In these examples, it is possible to divide the costs of raw materials by types of products only indirectly.

Break even (BEP - break even point) - the minimum volume of production and sales of products at which costs will be offset by income, and in the production and sale of each subsequent unit of production, the enterprise begins to make a profit. The break-even point can be determined in units of production, in monetary terms, or taking into account the expected profit margin.

Break-even point in monetary terms- such a minimum amount of income at which all costs are fully paid off (the profit is equal to zero).

BEP= * Sales proceeds

Or what is the same BEP= = *P (see below for a breakdown of the values)

Revenue and expenses must refer to the same time period (month, quarter, six months, year). The break-even point will characterize the minimum allowable sales volume for the same period.

Let's look at the example of a company. Cost analysis will help you visualize the BEP:

Break-even sales volume - 800 / (2600-1560) * 2600 \u003d 2000 rubles. per month. The actual sales volume is 2600 rubles/month. exceeds the break-even point, this is a good result for this company.

The break-even point is almost the only indicator about which one can say: “The lower the better. The less you need to sell to start making a profit, the less likely you are to go bankrupt.

Break-even point in units of production- such a minimum quantity of products at which the income from the sale of this product completely covers all the costs of its production.

Those. it is important to know not only the minimum allowable revenue from sales in general, but also the necessary contribution that each product should bring to the total profit box - that is, the minimum required number of sales of each type of product. To do this, the break-even point is calculated in physical terms:

VER = or VER = =

The formula works flawlessly if the company produces only one type of product. In reality, such enterprises are rare. For companies with a large range of production, there is a problem of spacing total value fixed costs for certain products.

Fig.1. Classic CVP Analysis of Cost, Profit and Sales Behavior

Additionally:

BEP (break even point) - break even,

TFC (total fixed costs) - the value of fixed costs,

VC(unit variable cost) - the value of variable costs per unit of output,

P (unit sale price) - the cost of a unit of production (realization),

C(unit contribution margin) - profit per unit of production without taking into account the share of fixed costs (the difference between the cost of production (P) and variable costs per unit of output (VC)).

CVP-analysis (from the English costs, volume, profit - expenses, volume, profit) - analysis according to the "costs-volume-profit" scheme, control element financial result through the breakeven point.

overhead costs- the costs of doing business that cannot be directly related to the production of a particular product and therefore are distributed in a certain way among the costs of all manufactured goods

Indirect costs- costs that, unlike direct ones, cannot be directly attributed to the manufacture of products. These include, for example, administrative and management costs, staff development costs, costs in the production infrastructure, costs in social sphere; they are distributed among various products in proportion to a reasonable base: wages production workers, the cost of materials used, the volume of work performed.

Depreciation deductions- an objective economic process of transferring the value of fixed assets as they wear out to a product or service produced with their help.