Concept and classification of costs of the enterprise.

Clear delineation of costs depending on their economic use is a defining moment in the practice of the company. At all levels of government by grouping costs, formed production costs are determined by funding sources.

Company’s costs are divided into three types:
costs of production and sales, which form its cost. These are the current costs to be defrayed from the proceeds from sales of products in the circuit of working capital;
costs of expansion and renovation of production. Typically, this large one-time investment of a capital nature for the new or upgraded products. They extend the applicable factors of production, increase the authorized capital. Costs consist of investments in fixed assets, increase in standard working capital costs on the formation of additional manpower for the new production. These costs have special funding sources: a sinking fund, the profit issue of securities, credit, etc.;
expenditure on social and cultural, housing and household and other similar business needs. They are not directly related to production and are funded from special funds that are generated mainly from the distributable profits.

Costs of production and sale of goods (works, services) are classified by a number of grounds:
for her role in the production process are classified into main and overhead;
by way of inclusion in the cost of production costs can be divided into direct and indirect;
Depending on the cost of changes in output, they are divided into fixed and variable;
on ways of recording and grouping of costs are classified into simple and complex, that is, to gather in groups on a functional role in the production process or the place of implementation costs;
on terms used in the production of different operating costs and non-recurring.

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