concept and application
cost structure is the ratio of articles in the mass, and the ratio of fixed and variable costs, the business produces.Most often, the share of expenditure expressed as a percentage of their total amount. cost structure can be seen as part of a single unit of a product, service, several units, consignment, may also be considered within a particular geographic region or time period.This category is used as a tool for determining the price, if the pricing strategy of the enterprise is based on it, and is also used to optimize costs, improve control over them.Structure and types of cost are different in different sectors of production.It is influenced by many factors.This form of organization of production, its technical and technological level, the nature of the location, the type of manufactured products and features for its implementation, the types of resources used.
cost structure. Key elements
main elements or groups of elements of cost are:
- fixed assets;
- costs of wages and deductions from it;
- electricity and fuel.
in the cost of production of goods and services depending on their type and nature of production may dominate certain elements.As a result, production can be:
- material-(when spending more materials and material values);
- consuming (where the bulk of the funds spent on salaries of employees);
- energy intensive (where a lot of wasted energy and fuel);
- capital ratio (in the production of goods and services spent a lot of depreciation of fixed assets).
variable and fixed costs
Division of costs into fixed and variable means that there is a fixed amount of expenses in a given period of time (the wages of workers, administrative expenses, rents, etc..) And the cost, size,which can be changed (the cost of raw materials and others.).In order to accurately cost structure was identified, it is necessary to determine cost value of each of the costs incurred in the production of goods or services.Then you need to identify the key elements of the structure, divide them into groups.
Dynamics of the cost price Mosty
This concept is used to analyze.It is necessary to continuously optimize the costs of production of goods and services.Analyzing the costs, the manufacturer may reduce one or another of the article, thereby reducing the manufacturing cost, and hence increasing the competitiveness of their products.The dynamics of the cost structure - is changing the balance of species and groups spending in their total weight.An analysis of this category allows the manufacturer to follow the process of optimization of production and gives an opportunity to talk about its effectiveness.It also makes it possible to take appropriate measures to adjust all of its components.