Sample costing for construction work. How to calculate the cost per unit of production: types, calculation methods

Instructions

Compose calculation on product can be done in several ways, which involve calculating production costs, the cost of manufactured goods and the volume of work in progress. There are four methods of calculation: standard, simple (process-based), incremental and custom.

In mass, small-scale and serial production, it is appropriate to use the standard costing method. Its use must be accompanied by the mandatory preparation of standard calculations according to the standards that are valid at the beginning of the calendar month. It is also important to monitor all deviations from accepted standards at the initial stage of their occurrence. It is necessary to keep records of any fluctuations in current standards, as well as timely reflect these changes in standard calculations.

When preparing a cost estimate for product With this method, it is important to know that the norms that are considered valid are those according to which products are currently released and shipped to production, as well as the payment of workers for work already completed.

Due to the fact that there are no significant differences between the “redistribution” and the “process”, the redistribution method is often described as a simple method of calculating for product.
This method is used in enterprises where raw materials undergo several processing stages, or where different types of finished products are produced through one technological process.

It is necessary to take into account that this method has two methods of calculation - semi-finished and unfinished. In the first case, the cost of each stage includes the cost of the previous one, while in the second case the cost of each stage is calculated separately.

Compose calculation on product For enterprises working on a custom basis, it is advisable to use the custom method.
Since the concept of an order is understood to mean one or a small number of products, for accounting purposes an analytical accounting card is issued for each series indicating the order code, and all production costs and expenses are aggregated in strict accordance with the orders being carried out. The use of this method is appropriate when it is necessary to accurately know the individual cost of manufactured products.

Sources:

how to create a cost estimate
Calculation of product costs

Costing – calculation of the cost per unit of product, service provided or performed work. This is one of the main planning indicators. The calculation is made on work or services that do not relate to the main activity of the enterprise and includes a breakdown of cost items for each type of product, work or service, established tax and other types of charges.

Instructions

The list of costs that you must take into account when preparing the calculation, their composition and methods of distribution depending on the type of product, service and performed, are determined by industry standards and regulations, as well as methodological recommendations used in a particular industry, taking into account the structure of production. The ones you included in calculation, must be calculated, approved by the management of the enterprise or standards that are determined in the prescribed manner.

In the calculation, highlight in separate lines the direct costs directly related to the production of products, the performance of work, services, and those costs that are considered indirect and related to the maintenance of production. Direct costs include costs associated with the technological process of manufacturing products, the cost of consumable materials, raw materials, fuel and electricity costs, wages and specialists, taxes and social contributions from. Indirect costs include expenses for preparatory work, maintenance, operation and maintenance of equipment, other production costs - commercial and general expenses.

Direct costs associated with manufacturing technology are determined per unit of product or per individual technological stage on the basis of direct accounting - timing, material consumption, etc.

Those costs for which there are no direct rules and regulations, including maintenance and production management costs, are included in the calculation in accordance with industry methods and estimates.

Sources:

draw up a work estimate

Enterprise costing is determined to calculate the actual or planned cost of production in order to subsequently calculate the correct product valuation and average production costs. As a rule, the planning and economic department of the company is responsible for preparing the cost estimates based on accounting data.

Instructions

Compile costing items for the enterprise that comply with industry instructions for accounting, planning and analysis of the cost of products manufactured by the company. This may include: raw materials and supplies, purchased products, third-party services, return costs, fuel and energy consumed, workers' wages, budget, pre-production costs, production maintenance costs, losses in case of defects, commercial expenses and others enterprises.

Calculate the cost of production and account for production costs at the full cost of the product. Attribute direct costs to the cost of individual types of products, and at the end of the reporting period, distribute indirect costs between these types of products in accordance with the production base. Thus, the total cost of production will be calculated.

Prepare standard cost calculations if the source data changes. This indicator is used to analyze and control production processes, calculate the actual cost of production and determine deviations from the plan.

Reflect in accounting the actual cost calculation of manufactured products. It reflects the costs and losses of the enterprise that were not taken into account in the preliminary calculation. Drawing up this characteristic allows you to correctly conduct the financial activities of the organization.

The ability to create cost estimates for production will be useful both at home and at work. When planning an apartment renovation, building a summer house or making a bathhouse, you need to correctly calculate the cost of the work and the amount of building materials.

You will need

Microsoft Office Excel program.

Instructions

Enter the names of the columns. The first is the serial number. Designate it simply with the symbol #. The second is the name of the material or type of work. For example, when providing a service, list here point by point all the actions that will be performed. And when purchasing accessories - the name of all products. The third is the price per unit of goods or services. The fourth column is quantity (pieces, times, etc.). Call it "quantity" for short.

The fifth column is the general costing of work or materials. Enter here the amount for all items or services of the same name. Subsequently, the total cost will be added automatically. To be able to perform this operation, do the following:

Click on the left mouse button and select the entire fifth column;

Click on the right mouse button, then it will appear with actions;

Find "Format Cells";

Select the first tab "Number";

Specify - "Cash" or "Numeric".
After completing the steps, calculate the total amount. Select the entire column again. In the upper right corner, find the designation Σ (sigma). Click on it to add up all the numbers in the desired column.

Place your notes in the sixth column. Please enter any additional information here. Where are the necessary ones, their color, deadlines for completing the work, customer phone numbers, etc. To ensure that text information is displayed correctly, do the following:

Using the left mouse button, select all the lines of the sixth column;

Right-click to display the action table on the monitor;

Select "Format Cells";

Point to the first tab "Number";

Set the text format.

If you decide to start a business, for example, open a hairdresser or computer salon, you need to draw up calculation services. A well-written cost estimate will help you not only set the correct prices, but also complete all documents correctly.

You will need

- prices for consumables;
- amount of payments to staff.

Instructions

First of all, calculate the costs of materials. This is the most obvious, but actually not the simplest expense item. Consider not only direct costs - hair dye (for a hairdresser), detergents (for household services), printing paper (for a photo studio), gasoline (for cargo transportation), etc., but also, for example, removable filters for detergents cars or cartridge for car repair and maintenance.

If you bought equipment for work, for example, computers, printers, hair clippers, vacuum cleaners, a car, then calculate depreciation charges. To do this, roughly estimate or find out exactly (in the accounting statement) the service life of the product and divide the cost by the time during which the equipment will justify itself. You can calculate depreciation in other ways, depending on the specifics of your job.

Calculate total and additional wages, taking into account bonuses, deductions and other deductions, including contributions for social insurance and accident insurance.

Add together all the amounts received - costs for materials, depreciation, wages and social contributions. insurance - and take 20% of this amount. This will be your general operating expenses.

Food accounting involves the collection and processing of information on the receipt, storage and release of raw materials and semi-finished products, which will subsequently be used in the preparation of the product. The activities of the institution as a whole depend on its effectiveness.

Depending on the type of organization, accounting is regulated by law, but the basics are the same for all. Acceptance of food products by quantity is carried out only after its quality is confirmed by incoming control. For this purpose, the enterprise must be equipped with a special laboratory and qualified personnel must be selected. If the product is hermetically packaged and confirmed by a quality certificate, then a visual inspection is carried out. If low-quality raw materials are identified, a return certificate to the supplier is drawn up.

The receipt of products is recorded in the acceptance sheet, which indicates the number of the act or invoice, and a note is made in the warehouse in the warehouse accounting book. In it, the received batch is assigned an inventory number, the name, grade and quantity are registered.

If it is necessary to issue a product from the warehouse to production, the chief cook draws up a menu request for the release of raw materials, in which he indicates the required nomenclature and quantity.

The developed automated processes allow you to keep track of the product from the moment it arrives at the warehouse until it comes out in the form of a finished dish.

At the end of the month, the accounting department, based on the receipt of products, makes a general calculation of incoming products by product range, quantity and suppliers. Actual purchasing prices are checked against calculations, which contain complete data on the cost of the finished dish.

There are special software systems in the form of calculators that automatically calculate the cost of meals for catering organizations. It is enough to enter there a list of products in quantitative and price terms, and the selling price will be immediately issued. But this type of calculation is not always convenient, since in order to approve the calculation by the management of the institution, you need to provide its detailed transcript.

For this case, a costing card approved by law has been developed, which reflects the total price for each dish, and the cost can be calculated for a certain number of products.

Before making a map, you need to decide on the recipe and the amount of ingredients needed to prepare the dish. For convenience, it is recommended to calculate raw materials for 100 portions of the product. The prices indicated in the calculation must correspond to the purchase prices.

After all the information has been collected, it is compiled and all data on raw materials, the rate of consumption per unit of product and cost are entered into it. To calculate the cost per unit of dish, you need to divide the resulting cost by 100.

For quick calculations, you can use Microsoft Excel tables, which provide automatic entry of formulas.

The markup approved by the organization must be added to the cost price, and the calculation of the selling price is completed. The received data is entered into the calculation card.

Prices for purchased products change periodically, so you should constantly monitor them and make changes to ensure the accuracy of the cost. A correctly drawn up calculation has a direct impact on the calculation of the markup, which takes into account the profit of the institution.

Patrick Forsythe Chapter from the book “Consulting. How to start a consulting agency and achieve success"
Publishing house "Eksmo"

Chapter 3

Perhaps the word "consultation" and is a synonym for the word "advice", but there is still a difference between them. You can get advice for free, but you will certainly have to pay for consultation. Therefore, as you consider becoming a consultant, you need to decide what price you will charge for your services and how you will charge your clients. For example, I remember many years ago someone told me: “Until the money is in the bank, the goods cannot be considered sold.” Very true point; I remembered him especially often after I founded my business.

Good point

“The only profit center is the consumer.”

Peter Drucker

In this chapter you will not find clear recommendations regarding exactly what price you should set for your services. I know consultants who charge a wide range of fees - the highest can be tens of times higher than the lowest - and yet they are all quite satisfied with the state of affairs. However, after reading this chapter, you will learn how to initially approach this important decision; how to ensure that it is based on the real offer of services; and how to effectively implement your chosen collection policy.

Selecting a form of payment

Not a predictable question

“What price should I charge for my services?”

Before you start thinking about what to charge for your services, choose a general form of payment. There are three of them.

Payment for the project. In this case, the project is described in detail in the proposal and receipt of payment symbolizes the completion of the work on its implementation. This assumes that the consultant can accurately estimate the time it will take to complete a particular proposed project. This also means that the proposal must be very clear about what exactly the project is about. If you forget about something and don’t indicate something, then at the next meeting, when discussing the progress of the project, the client may demand to reduce the time of one or another stage, which will very soon lead to a decrease in its profitability for you. It should be remembered that there are projects for which this principle of payment is quite acceptable, in addition, there are clients who simply demand that the price for the work performed by the consultant be set precisely according to this principle. The time factor in this case, of course, is taken into account, but specific deadlines are not indicated - only the dates for completion of the stages and completion of the project as a whole.
Time payment. The most common form of payment is a time payment, usually per hour or per day of the consultant's work. Sometimes the time it will take to complete a particular job is very easy to determine and indicate. A good example is my training activities. If I run a two-day training course, clients know that they will need to pay me for two days of work (and separately for the time it takes me to conduct various research or prepare, organize the training and any necessary approvals). So, as you can see, such a project can be described very clearly - so many days, so many hours - but it may not be possible to avoid some uncertainty. In other words, it may be that you need to indicate that a certain job will take between X and Y days to complete, in which case you will need to provide the reason for the discrepancy.

Professional's point of view

John Mariotti:
“The price depends on the strategy you create, the value you offer, and most of all, how much the market needs your product; and not at all on how much it actually costs to produce this or that product or provide this or that service.”

Payment based on results. This payment method is markedly different from the previous two, so it is necessary to be very clear about exactly what results are to be achieved. Although it is less common than the first two, today more and more projects are paid this way. At the same time, the price of your service may depend on how much it reduces the client’s costs or increases his profit. It may also depend on the final deadline; with this approach, if an important task in front of you is successfully completed in a short time, you will receive a certain bonus. It is clear that the approach to payment in this case is largely determined by the nature of the work performed. Let me give simple examples: many organizations specializing in conducting public seminars pay consultants conducting a particular event based on the number of people who attended this seminar - the more participants, the higher the company’s profit and the higher the consultant’s fee (in addition, the company can provide it with more advertising support).

Decent answer

Question: Should the price for my services be based on only one specific billing structure?
Answer: No. You can choose, for example, a combination of time-based and project-based fees, with time frames ranging from one hour (you can choose a different minimum period) to one month or more; This approach is quite acceptable if your services by nature are more reminiscent of activities such as intermediate management.

All these options can be used in combination, as in the example given - in the field of holding public seminars, where the services of consultants are paid per day of work, but the fee varies depending on the results of their activities. Large projects can be very difficult to pay for, and the consultant needs to ensure that ambiguities, especially those arising at the insistence or suggestion of the client, do not lead to any hidden problems being missed, which will negatively affect the profitability of the project.

Now that you know and consider all of these factors, you can determine the level of fees you will charge your clients.

Cost of services

We will assume that you are not going to take the price out of the blue (which is strongly discouraged). Therefore, you need to think about what will determine your fee and what, exactly, you can charge it for. In this case, four main factors should be taken into account, but it is important not to forget that none of them individually can become the basis for choice and that they all have a certain, and very strong, influence on the final result. In some cases, additional conditions dictated by the client also arise. So, at one time I had to work for management bodies in which there was a standard fee for training activities, and, in fact, the principle of payment was completely clear: take what they give or leave. Today, as a rule, any issue is subject to discussion, and often this problem should be treated that way. Alternatively, to assess the benefits of an agreement and when drafting an offer, it is useful to consider four methods, which we will discuss in more detail below.

Cost-based price

If we approach the problem in a simplified way, then this factor is based on the fact that you evaluate your costs and add the rate of profit to them. This means that you must first estimate your overall costs associated with your consulting activities. Make a detailed list, being careful not to leave anything out. It (although perhaps in a different order) will include the following points.

Telephone expenses (mobile and regular).
Postage.
Expenses for stationery and printing materials.
Life insurance and other insurance expenses.
Travel expenses (including expenses for your car).
Costs of conducting research (from forming a network of business contacts to subscribing to special periodicals).
Expenses for accounting services and banking services (including loans).
Sales costs and advertising expenses.
Costs for an office (which may be in your home).
Expenses for a secretary and other necessary personnel.
Expenses for equipment (and for maintenance - including repair and modernization of computer equipment).

You may think of some other small but significant overhead costs; In any case, if you are unable to make such a list, then you should probably reconsider whether you have the skills necessary to work as a consultant! Note: You need to think about how much of the costs the price you set for the services will allow you to recover.

Moreover, if you are just starting your business, you will also need to cover the costs associated with starting the enterprise and determine how and how quickly you will do it.

In addition, you will have to estimate how much of your time will be spent on income-generating activities. We should not forget that in practice you will need to manage your business, meet deadlines, prepare for work, which is important, sell your services and organize the work that you manage to get. Surely you will also want to have weekends (for example, my writing fees bring me a good profit, which does not come from my direct work activities, so I often tell myself that I make money even on weekends - but I’m digressing somewhat from the topic).

Having done all this, you will be able to decide a number of other important issues: first of all, setting a minimum price for your services that will allow you to cover costs, as well as the level of payment necessary to earn the desired amount (you can, of course, set before a reasonable goal) for the number of paid days you expect to work in any given period. Now it remains to decide whether the plan is feasible - after all, you can set a price that no client will agree to pay - but, having the data obtained from this analysis, you can move on to the next method.

Professional's point of view

“In the management consulting industry, firms typically charge 2.2 times the consultants' costs for their services; it is believed that this allows the firm to cover its overall costs and provides a good profit margin.”

Philip Kotler,
“Marketing according to Kotler. How to create, conquer
and maintain the market" (Alpina Business Books, 2007)

Price based on demand

This method depends on the external realities of the market. Simply put, this means that if there is a lot of demand, then a high price can be charged for the product. For example, if you have the right skills in technical fields where there is often a shortage of professionals in a particular technical specialization, this factor in itself will allow you to be more assertive and confident in charging and charging higher fees for your services.

But you need to be realistic. Can you offer something truly unique? Or do your potential clients have a choice because you intend to enter into a highly competitive niche? It's possible that the answers to these questions will be different for different services in the range you offer, and as a result, one day you will realize that you offer services at several different price levels. This situation is quite common, meaning that you need to carefully analyze the entire package offered and make sure that you are not working only in a niche where you can only charge the lowest price of your entire range of services.

It is important to think about the future of the business. So, if you are at an early stage of starting a business, then you may well be tempted to start with low prices, which, of course, will make it easier for you to enter the market. However, you should not forget that when concluding the next contract for work, it will be quite difficult for you to tell the client that this time you want to get twice as much.

Price based on competition

The next point to carefully examine is the “real rates” in the market for your services. What fees do other consultants charge their clients? Solving this problem, of course, is very difficult. Many consultants and consulting firms perform work that pays at a very wide range of price levels; the price may depend, for example, on the nature of the task and on the skill level (and therefore experience) of the consultant performing it. However, you can still get a certain idea on this issue through information from printed sources, through business contacts, joint research with other consultants, or, as often happens, on the basis of information received from clients. Given that the price range here is extremely wide, you still have to decide how best to position yourself, but remember that this is just the beginning. Note: I recommend constantly analyzing the market, because the situation is changing quickly, and if you don’t do this, you will eventually realize that your prices have remained at last year’s levels, while your competitors have raised them a long time ago.

Price based on marketing (or value)

Price and quality always go hand in hand. This applies to absolutely all goods and services - people use prices to determine how suitable a particular product is for them. Let's think about any thing you had to buy. Shoes, a computer, a car - when purchasing any of these things, you, in all likelihood, determine a price that you are not going to pay more than (and only in some cases because you simply cannot afford it). However, you may well have a minimum price in your head that you are careful not to lower. Think about it. These shoes are certainly inexpensive, but how long will they last? For some products, appearance plays a huge role - you probably don't want to drive around town in a rusty Ford Fiesta, no matter how much you save on purchasing it.

Therefore, you need to think about what the price level you choose will say about you to your customers. Will it enhance the professional image you hope to project? It must be remembered that if the price is set too low, the danger is greater than if the price is initially too high. After all, later during negotiations it is much easier to reduce the price than to agree on its increase.

Clever phrase for the occasion

“Positioning is the correspondence of a service (product), the way it is provided, the price assigned to it and the marketing message. Positioning is almost everything you do with your product; or rather, how you present it to your potential clients.”

Remember that the fee you charge for your services, or more accurately, the price range you choose, is associated in the minds of your clients and others with the following critical characteristics:

your professionalism;
your experience;
your success;
the size of your company;
the style and methods of your activities;
the level of trust in you and the degree of your reliability;
confidence that the service will be provided.

It is also very important that the price of your services is part of your image (the next chapter is devoted to this topic). The nature of the work that any given consultant wants to do varies greatly. On the one hand, there are people who strive to work only in the local market, travel as little as possible on business trips and live away from large cities. As a rule, the fees of such consultants are quite low (as, in all likelihood, are their expenses); they may decide to only operate at the lower end of their range, but the overall limits will remain the same. On the other hand, some consultants strive to become an international guru, fulfill orders from large international companies, and of course, if successful, they can count on a very high price for their services.

All four of these basic pricing approaches need to be considered when making decisions. Your solution should allow you to determine an acceptable range: under normal circumstances I will charge clients between X and Y per day. This will allow you to identify activities that will need to be paid at different rates. And this, in turn, entails further conclusions, because this decision is also related to the range of different services you offer, the different types of work you perform and the different types of organizations that will become your clients.

Decent answer

Question: How can I analyze the effectiveness of my pricing policy?
Answer: In practice, you may work at different price levels or on a different “day rate” basis, which will depend on the nature of the orders and the client's requirements. With a few exceptions, it's almost always a good idea to cut some prices, but your overall efficiency may suffer. Stick to some kind of moving average as your main price criterion (for example, the daily rate) - if this indicator is consistently below the expected return, then something needs to change.

And one more thing: there are types of work in which the price is set by the client. For example, if we talk about my business, some companies that specialize in organizing public seminars tend to set the price themselves. And when you want to give them a course of lectures, you will have to agree to their terms. Sometimes, especially if you have already achieved some success in your field, you can further discuss the situation and change certain conditions, such as your expenses, which will positively affect the profitability of this project (for you). But it happens that you have only one choice - to accept or not to accept the tariff policy of this organization; although, of course, in the first case you can comment on it, presenting it as exceptional and thereby convey your position to the client. It should be said that I have been in situations where the company adhered to the policy of “agree to our price or leave” and at the same time its payment was higher than I expected. If you find yourself in such a situation, try not to show your joy in any way and do not automatically refuse the possibility of further negotiations - who knows, perhaps you will be offered a better option.

Once you have determined the fees for your services, you need to tailor those prices to specific projects and clients. But before we get started, there are a number of important details to consider and take into account.

Details about the factors for implementing pricing policy

The areas described below contain both pitfalls and opportunities. Your very difficult task is to ensure that everything we cover in this subsection works effectively in practice; which means getting all of these components to work to maximize your profits while making sure your clients see that you are running your business in a smart and organized manner. First of all, I suggest you familiarize yourself with some basic terms that will be used in this discussion.

Basic terms

You need to know some basic terminology.

Day. A working day that usually lasts eight hours, but can be shorter or longer. Also consider breaks, such as lunch.
Hourly rate. This point should also be carefully considered. How will the hourly rate be calculated - by dividing the daily rate by eight (and then rounding up or down to get a whole number) or by some other method?
Minimum amount of work. A clear decision must also be made on this point. Perhaps one day would be a reasonable choice, or maybe one hour? In all likelihood, you will need to determine your minimum scope of work, but you should be prepared to vary it depending on the client's requirements and specific circumstances.
Time to move. Previously, a certain fee was charged for this time, most often the same as for the time during which the consultant provided his services. But in recent years this practice has been abandoned. Clients today demand more flexibility from consultants, and fees for time spent on relocation are typically lower than fees for the time during which services are provided; often it represents some nominal amount added by the client to the assigned payment amount. In any case, you should remember this and develop your position before making an offer to the client for a service.

Decent answer

Question: What about payment for work in the evenings and on weekends?
Answer: It's up to you to decide, so when making a decision, you should keep in mind the nature and expectations of your clients, although some people initially believe that such work deserves a premium payment. Perhaps if you are dealing with a client who always requires you to work in the evenings, hourly wages would be more suitable than daily wages. Weekend work may be paid in some other way. The fee may depend on how busy you are. If, for example, you are not too overloaded with work at a given time, then by charging your usual price for conducting a training or seminar on weekends, you will increase your chance of getting this order. If you are very busy, you can experiment with a higher price and monitor the client's reaction.

Good point

I don’t pay consultants for the time of moving - this is not even discussed. During a two-hour train journey, you can (and usually do) work on your laptop. And if, for example, you are doing this work for someone else, then I would be a complete fool if I paid for it. And if it is being done for us, then I need concrete evidence of this.

Customer comment,
and quite fair, right?

Expenses

There are expenses that have been - and remain - the norm at all times. These include travel costs of any type, hotel fees, postage, printing costs, equipment rental (from presentation equipment to meeting rooms), advertising costs (for example, when recruiting new staff), and even the costs of temporary staff (for example, for research work). Of course, all of these costs tend to vary depending on the specific job, but they should be treated with great care. You need to keep the following points in mind.

Any expenses must be agreed upon in advance. This is very, very important; not a single item on your invoice should become an unpleasant surprise for the client and raise questions or doubts. Therefore, it is necessary to check and agree on all details in advance, down to the class of train or air ticket, type of hotel reserved, etc.
It is necessary to arrange payment in advance. If your client wants you to fly somewhere by plane, you should get an agreed upon amount from him to pay for the ticket. But it will be even better if the client purchases the ticket himself and sends it to you. This means that the costs will immediately be passed on to the client, which will have a positive impact on your cash flow. In addition, the client can take advantage of their corporate discounts, and you will benefit from the relevant special agreements (for example, if the client organization uses some airlines that have an agreement with a specific hotel chain when purchasing an air ticket for you a higher class room will be automatically booked).
You need to be able to control your expenses yourself. This will turn out to be even more effective than the previous tips. If you have an airline loyalty card, book a ticket to fly with a client on your airlines, which could potentially get you a free flight closer and subsequently reduce your vacation costs. Decide which option suits you best and insist on it, but never insist on an option that may not be acceptable to the client. If you always meet your client halfway, this will undoubtedly greatly increase your chances of getting work from him in the future.
Submit all required reporting documents. In this case, everything will depend on the terms of the preliminary agreement, but if you are asked to provide additional receipts, be sure to be prepared to do so.
Never be wasteful. Remember that sometimes in the course of doing any work you will incur expenses that no one will pay you - this would simply be illogical. These are costs that you incur solely to provide increased convenience and comfort to you, such as the cost of an additional television channel in a hotel room. You should pay for them yourself, since demanding payment from the client is a sure way to ruin your relationship with him. In fact, many consultants even include a special clause in their proposal that confirms that the client should not be afraid of any problems on this side, for example: “ I never include the cost of drinks from the minibar in my hotel room bill.».

All these precautions will allow you not only to avoid unexpected expenses, but also ensure that the client will not have any reason for complaints and dissatisfaction. At the same time, remember that all clients are different, find an individual approach to each. Using the rules and regulations adopted by the customer company is one way to avoid problems in this matter. For example, I always ask clients about the allowable moving expenses they use at their company and try to stay within those ranges - some are a little higher, some are a little lower than the standard rates I might use. From a financial point of view, the gain or loss is usually small, but this gesture allows me to show that I am extremely attentive and prudent in my relationships with clients.

I heard of one case where a consultant needed to travel to another city with the executive director of the organization for which he was doing work. They walked along the platform together, and the consultant boarded the first class carriage. The director went to the second class carriage, explaining that in their company employees never travel first class. It should be noted that although travel expenses were detailed and agreed upon in the original proposal, it did not say anything about the type of ticket. From the point of view of the executive director, this behavior was cheating on the part of the consultant, and the next day he canceled a large contract with him, the work on which was already half completed. This example once again confirms how important it is to carefully think through and check all the smallest details.

Note. Keeping track of all expenses and keeping receipts will allow you to reduce your costs by getting a refund on most taxes, including value added tax, even if those costs are not reimbursed by the client.

Terms of payment

This point should also be extremely clear and unambiguous. The main thing is to determine and agree on payment terms, as well as discuss actions in this area in the event of a reduction in the scope of work or termination of the contract (in the latter case, such an agreement will become an incentive for the client not to take such actions; but if he still decides to terminate cooperation with you, you will be able to recover your costs). If the consultant's work is designed for a more or less long period of time, as a rule, staged payment is applied, often with payment of some amount in advance (for example, a cut-off after concluding a cooperation agreement or at the very beginning of the project). This will also protect you if a client cancels a contract or cancels an order at the last minute (since in this case you will essentially already have some compensation in your bank account).

Taxes

This may not be a very significant point, but be sure to ensure that during the discussion of expenses you clarify and document in writing all tax issues (in the UK, for example, value added tax is added to traditional taxes, and not every client organization will reimburse you for these costs).

Preparation of a commercial proposal

We will talk about the rules for drawing up proposals in a separate chapter, but here, in the context of discussing the remuneration of consultants, it will be enough to mention that this activity can become an additional source of profit. Not always, of course, but sometimes you can bill the client for the time it took you to write and submit your proposal. This cost item can either be included in the project cost estimate or agreed as a separate cost item that will be payable regardless of whether you receive the order. If finalizing your proposal requires meetings, travel to a different location, research, or simply takes a lot of time, then at least some of your costs may well be reimbursed by the client. You can propose that it be some kind of "nominal" - but quite significant - amount, or the amount of compensation can be proportionate to your basic pay (say, two-thirds of the set daily pay). In some areas of consulting work this approach is the norm, in others it should be used very carefully. This issue certainly needs to be agreed upon if an expense item is imposed on you by a client, for example, when a client insists that you visit and consult with his employee in an office located in a very remote area. In this case, you will at least be able to get the client to pay your travel expenses.

Decent answer

Question: Is it necessary to conclude a contract with the client?
Answer: In all likelihood, based on the fact that even an oral agreement is considered a contract in many cases, you can assume that you have already entered into a contract. It is likely that a simple exchange of letters will be sufficient for this, since all the terms and conditions are already specified in your proposal (it is better to have a copy of your proposal signed and returned to you by the client).

However, it should be remembered that having a clearly drawn up contract can:

prevent disagreements and misunderstandings (provided that the client timely and accurately expresses his disagreement with something);
increase efficiency and strengthen your relationship with the client;
ensure that the contract complies with the client’s formal documentation requirements.

You need to find the best way to pitch your concept to the client and get them to accept it (don't just say sign here). Hence:

take the initiative and offer the client your vision of the contract;
State clearly and in detail what you offer (want) and ask if the client would like to add anything to your option;
pay special attention of the client to all items containing digital data and deadlines;
make sure the client understands and agrees with your idea;
document the contract;
be sure to ask to send confirmation (for this, the client can return a signed special form or you need to exchange letters of the corresponding content);
Carefully record everything you do and make sure that all documents are drawn up correctly (it is quite possible that you will never need them, but if you do, they will become an invaluable support);
If necessary, carefully check all actions (and think very carefully before you start doing something that has not been agreed upon);
Make sure you are following the right strategy at all times: demonstrate to the client that this is a practical issue that both parties have an interest in getting right;
Coordinate everything you do with the administrator responsible for the task (for example, you will look stupid and may even annoy the client if your invoice is not prepared according to contractual invoice filing requirements).

Billing

Like any other document you send to a client, your invoices should be prepared professionally. Check and double-check all calculations; It’s quite unpleasant when they call you and say: “ You don't know how to add up numbers, and the expense items in your invoice are clearly overstated". Also, make sure:

that your accounts are written clearly and understandably;
what are they exactly meet all agreed requirements;
that they indicate the terms and conditions of payments;
that you strictly adhere to all procedures adopted by the client’s company (for example, attach an extract from the work order).

Also, always send your bills on time. If you do not receive the money on time, be sure to immediately contact the client and find out the reason. Cash flow is important to both parties, and most organizations try to defer payments whenever possible. The client uses any miscalculation as a chance to delay payment. Don't let your bill sit in a stack of papers marked: " Not all documents have been submitted, defer payment for such and such a time" Even in a small business, money saved is almost as good as money earned, and if paying an invoice on time can help you reduce your bank fees, for example, you can consider that you are making your business more profitable.

Increase in payment amount

Of course, an increase in the payment amount, like any other price increase, is not welcomed by customers. And yet this is a necessary step, because in this matter it is very easy to be late. The moral here is quite clear: first of all, make it clear in your proposal that, for a certain period of time, the price levels you offer are guaranteed to remain unchanged; secondly, increase the payment for your services regularly - usually this means once a year. Thanks to this, you will ensure that the price increase will not be sharp and significant, and therefore will not become a problem for anyone. Try to leave the price unchanged for two or three years - and the increase you have to make after this time is sure to look very sharp and, quite possibly, will meet with serious resistance from customers. So regularity is very advisable here.

Payment for work abroad

In this case, two factors are important. You need to find out what rates and prices apply in a particular market. How much do people in other countries pay for the services you offer? If this amount is much less than what you charge, you will either have to lower your rates or project confidence that you are offering something truly unique and specific that allows you to charge more than other consultants. It should be said that there are areas of activity in which rates exist regardless of state boundaries; for example, a multinational company may pay the same rates for work performed in different countries. However, if you are doing work for an organization that operates exclusively in the domestic market, the situation will most likely be different: this company will want to get value for its money on its own, local terms.

Decent answer

Question:Can I request payment in cash?
Answer: I think it is extremely rare that this is possible, and sometimes even desirable. For example, if we are talking about a one-time task on a foreign market, this approach allows you to avoid problems with unpaid invoices and long waits for payments. Having written these words, I suddenly remembered a course of lectures that I read at a foreign organization. Payment terms were not specifically stated in the agreement, but at the end of the first day of the program, I was ceremonially presented with an envelope containing half of my fee. And at the end of the second, final day, history repeated itself exactly!

This may make it difficult to work well overseas, but if you work in the UK you still see a large part of the world as your market. Remember one thing: most people prefer prices to be quoted in their country's currency, taking into account exchange rate fluctuations. Very often, if the work is very large-scale, changes in exchange rates cause a lot of inconvenience; If the assignment is short-term, charging in local currency can help you appear to your client as someone who takes their home market very seriously.

Description of price structure

Whatever pay level you set, you need to describe it properly. This is covered in detail in Chapters 7 and 8. Here we will only give the general picture and focus on the presentation aspect.

Provide extremely accurate information

The first rule is accuracy. This, of course, seems obvious, but some compromise is required. The amount you want to receive for your work must be represented by one specific figure; you can even try to present it in a more “pleasant” form for the client. For example, some people recommend describing the project in stages, indicating the price of each stage, but not writing the total amount. You can separately provide a list of costs and payments directly for the work performed. But it should be remembered that in the first case, the total amount calculated by the client may become a “surprise” for him and cause a shock, and in the second, it will be quite difficult for the client to calculate the total costs (the situation will worsen if he needs any additional information and calculations). The answer to the question of what is best to do in each specific case depends on a number of factors, but your decision necessarily requires a thorough analysis of the situation.

There is another aspect that needs to be given great attention - additional payments. It is necessary to list the factors due to which some conditions may change. For example, a project might involve a series of meetings. If there is a possibility that any indicator will change over time, this should be agreed upon and documented. When a client receives an invoice, he should not be surprised that the amount indicated on it differs from the original calculations - he should know exactly the reason for the discrepancy. Remember that in this case, too much information is always better than too little, because many clients, as the volume of your work increases, may (as has happened more than once) insist on compliance with the letter of the law, saying: “ You yourself decided to change the scope of work, and if now the implementation of this project requires more time, then this is only your problem».

Psychological impact

In some ways, people are quite strange about prices. For example, we are already accustomed to seeing products in a variety of stores with price tags indicating £9.99. Why? Because numerous studies have shown that people are more likely to buy a product at that price than at £10. There is no point in trying to find out why things are this way - you just need to skillfully use this fact. So, think about the following points.

Round numbers

Given the above, it is generally wise to avoid charging a hefty amount for your services. For example, it is known that at one price level in the consulting industry, a price of £995 is perceived by clients as much less than a thousand pounds. At the other main price levels - £10,000 and £50,000 - the situation is similar. And this applies both to daily wages and to payment for the project as a whole.

There is one more additional and very important point in consulting activities. The fact is that consultations are, by definition, custom work. When a client discovers a particular problem, he asks for an individual approach that he expects will help him solve it. Clients treat themselves as the unique individuals that they are, and view any given situation as unique (while from your perspective it may resemble other situations you have encountered many times). Tell a client that you have found a truly unique solution for them, and it just so happens that this solution will cost them exactly £10,000, and you will see that this is unlikely to be perceived as something plausible. The client will either conclude that you used a standard approach rather than finding a solution specifically for them, or they will believe that you honestly developed a specific method, but rounded up the payment amount. In any case, he will be left with the impression that you are trying to overcharge and push your product, which is very bad for you, especially if you work in areas where there is a high level of competition.

This may be strange, but I think it’s worth mentioning.

Clever phrase in case:

“The price should imply some value and, if possible, indicate that you have found a specific solution to a specific problem.”

Range

Sometimes it is impossible to indicate the price of your services in any specific figures. In this case, it is worth noting that it will vary between X and Y. If we are talking about using only round numbers, then the range of £10-12k is quite an acceptable offer, while £6-12k will be perceived as too indeterminate - the scatter is too large. Choose a logical range and be sure to explain to clients the reason for the approximation. In other words, clearly indicate to the client those aspects of your work for which it is simply impossible to accurately price at this stage of the project.

It may also be worth clarifying in what respects the inaccuracy is due to the nature of the work and is dictated by the consultant, and in what respects it is dictated by the client. For example, a client may want to hold regular meetings as the project progresses, but is unsure exactly how many there will be or where they will be held.

Later we will return to these aspects of the price of services and remuneration of consultants, which facilitate or, conversely, hinder the process of selling these services. And Chapter 9 talks about systems for controlling price levels and profitability.

Final point: When discussing price with a client, be extremely careful. Remember that your suggestions are your first recommendation. It’s as if you are saying: this is how I propose to solve your problem. Therefore, if the client demands a reduction in costs and you immediately agree to remove or reduce, for example, stage 3, then he will undoubtedly think about why you even offered it if you can do without it. And his trust in you at a very important stage in the formation of a relationship will be undermined. If you decide to make changes, they must be accompanied by detailed explanations, telling how they will affect the results of the project or the work schedule. In other words, you need to show that the client is purchasing something else for a reduced price. And in this case you should also be very careful.

In general, problems are more likely to arise if the price is initially too low than if it is too high, although many consultants are of the opinion that, if they haven't lost any orders recently because the price they offered was too high, then the price is too low. It's the other way around - if you have a lot of work, then you can try experimenting with new, higher prices for your services.

Good point

Client: I would like to hire a one-eyed consultant.
Consultant: Why?
Client: Because then he won’t constantly say: “From one point of view I recommend this, but from another point of view this...”

The price of a product or service is not set randomly.

It directly depends on the correct cost calculation.

Therefore, it is very important to have at least a general understanding of this process.

Purpose of the document

Costing is a process aimed at determining the value of products produced or services provided. As a rule, this work is not applicable to goods. A different pricing procedure applies to them.

Costing in demand when determining (the value expression) of production, both one costing object and a group of these objects. A costing object is understood as a specific product or service. A calculation unit is understood as a unit of measurement (pieces, liters, etc.).

Costing is done accumulation of all that are directly or indirectly related to the main activity - production of products, provision of services. Based on the calculations made, the actual full or partial cost is determined, and on its basis the price.

It is worth noting that the costing of finished products is different from calculating the cost of the service provided, in particular:

Costing of services and products is carried out for a number of cost items, the list of which may vary depending on the industry and the specifics of the activity, as well as depending on the adopted cost calculation methodology.

The calculation method is understood as a set of methods used to reflect production and sales costs, which allow one to determine the actual cost.

IN economic nature differ:

For purposes accounting Costing is a grouping of costs in accordance with accounting policies and according to certain costing items.

But it differs:

Direct costing. This method of grouping costs is a technology in which the cost is calculated only by , and fixed costs, which include all general business, sales and general production expenses, are completely written off as part of the current costs of the financial result. Thus, remaining products and work in progress are valued at partial cost, and all indirect costs are written off in full when selling manufactured products or even without selling products - to the financial result of the enterprise as a whole;
Full cost method or absorption costing. It implies the participation of all costs - both indirect and direct - in calculating the cost of products or services. As a result, products in stock and upon sale will be valued at the sum of all expenses that were incurred for its production. And indirect costs will be evenly included in the cost of products, regardless of whether they are sold or not.

When applying each method, the correct classification of costs and their grouping by costing items is very important.

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Classification of costs and their distribution by item

Attribution of expenses to different cost groups occurs due to a number of signs:

by the method of including costs in the cost - direct and indirect. Direct costs are understood as costs that are directly related to the production of products and are included in the valuation immediately. Indirect costs include costs associated with servicing production, enterprise management, etc. They are of a general nature, related to the activities of the company as a whole and are subject to distribution;
by purpose - invoices and main ones. The main ones include the costs of materials, raw materials, fuel and other production resources that are converted into a finished product (or service). Overheads are understood as costs associated with organizing and managing the activities of an enterprise;
by content – complex and single-element. Single-element costs include costs that form the cost: labor, depreciation, materials, etc. Complex costs include general business and general production costs;
in relation to production volume. There is a distinction between fixed and variable costs. Constant ones do not depend on the volume of products produced - these are administrative and general production costs. But variable costs are completely dependent on the quantity of products produced - these are materials, fuel and wages of main workers;
in relation to activities - other (non-operating) and ordinary. This classification is important for accounting and it differs from the classification of costs by purpose, since it groups all expenses first according to the principle of their correlation with the type of activity, i.e. with ordinary and additional (non-realization). And then the grouping within expenses for ordinary activities occurs according to accounting accounts and at the same time according to economic characteristics.

These economic features are enlarged grouping of costing items:

material costs (raw materials, semi-finished products, fuel and other similar cost items);
costs for ;
contributions to social, medical and pension insurance;
depreciation;
other expenses - general business, commercial and general production expenses.

And for the purposes of calculation itself it is used more detailed grouping of articles:

material costs are the costs of raw materials and materials;
energy and fuel that are necessary to ensure production;
salaries of production (core) workers only;
off-budget contributions from their salaries;
general production costs - depreciation of equipment and workshop buildings, maintenance of the production process, and other similar expenses;
general running costs. They are also called managerial. These include the costs of managing the enterprise, paying administrative staff, etc.
other production costs. This includes those costs that were not included in general production costs;
business expenses. This includes advertising campaigns, packaging, transportation of products to consumers and other similar expenses.

All costs, from material to other production costs, constitute an incomplete cost of the product (service) or production cost. And together with commercial expenses, this is the full cost.

Procedure for compilation

To correctly calculate the cost of services, you need to follow the methodological instructions for the industry. In addition, the initial competent distribution of expenses among accounting accounts is very important. This will allow you to accurately assess the cost of services and perform pricing. And such posting is made to the accounts on the basis of primary documents, which make it possible to determine the production and non-production nature of the expenses.

As for the costing process itself, it includes two main stages:

Initially, you should decide on direct and indirect costs. This is most conveniently done using accounting data, where the entire grouping of expenses according to this criterion occurs in accounting accounts;
Then, based on the adopted calculation method, costs are distributed. This is very important, especially if several types of services are provided. Here it will be necessary to determine the amounts of general business, general production and commercial expenses, which are either subject to distribution between types of services in relation to some attribute (for example, salaries of main workers), or to be attributed without distribution in full to revenue.

How to set the basis for cost allocation?

This base, as well as the cost accounting methodology, the classification of expenses, is all written down in the document, which is formed on the basis of the current accounting legislation.

Nuances of compilation for certain types of services and works

Any construction work is assessed on the basis of an estimate, the preparation of which is carried out by employees specially trained in this matter - estimators. The calculation is compiled on the basis of special reference books that normalize costs based on the type of construction and type of construction work, and are called “Unified standards and prices for construction, installation and repair work.”

As for the composition of the grouping of expenses, it all depends on the nature of the work performed.

For example, for construction and installation works, the calculation of their cost will be based on the following grouping of cost items:

material costs;
workers' wages;
costs associated with the maintenance of equipment and special equipment;
other expenses (rent, third-party services, insurance premiums, etc.);
general production expenses.

Cost calculation transport services is also specific and includes:

the main expenses are wages for drivers with contributions to extra-budgetary funds; fuel costs and vehicle depreciation;
vehicle maintenance costs - spare parts, salaries with deductions for service workers, garage maintenance, depreciation and other similar expenses. Moreover, as a rule, a separate estimate is drawn up for car service services;
general running costs. They are related to the management of the company;
business expenses.

Regarding, for example, expenses such as fuel, then they are normalized. Those. Based on the type of vehicle, the basic fuel consumption and a correction factor are used in the calculation, which regulates the basic fuel rate taking into account the actual mileage and other indicators (for buses, an additional indicator is the time of its operation with the heating on, for flatbed trucks - the volume of cargo, etc. .d.). Thus, the entire cost calculation of transport services takes into account the type of vehicle.

To calculate the cost of implementation additional travel agency services, it should be understood that these indicators are initially unpredictable. And they are determined based on an analysis of many current factors (for example, exchange rates, etc.) and taking into account data from the previous period, for example:

insurance. It may be mandatory - and then it must be included in the cost of the trip. If insurance is paid at the request of the tourist, then this service is considered only additional. In this case, payment for each purchased policy is made by the insurer;
visas. Their cost is calculated taking into account the size of the group for a specific vacation destination. They are issued based on an invitation received from the host party, and for a certain number of tourists;\
living expenses. Their value depends on the class of the hotel, the season of arrival, the size of the group and the cost of rooms in a given season;
expenses for excursions and guide-interpreter services. Their value also depends on the season of arrival and the cost of tickets to museums at this time.

As you can see, the costs of additional travel agency services are truly unpredictable and very much depend on the current situation. Therefore, such a business is often unprofitable - after all, tours begin to be sold under one set of conditions, and service already occurs at other price values.

The rules for calculating the costs of construction work are outlined in the following video:

The cost of production is one of the main qualitative indicators of the economic activity of an enterprise. The value of the cost directly depends on the volume and quality of products, as well as on the level of rational use of raw materials, equipment, supplies and employee working time. The cost indicator is the basis for determining the price of a manufactured product. In the article we will talk about the specifics of calculating the cost indicator, and also use examples to consider the methodology for determining the cost of production.

Cost refers to the current costs incurred by an organization for the production and sale of products. At enterprises, it is customary to calculate two cost indicators - planned and actual. The value of the planned cost is determined based on the estimated average cost of the manufactured goods (performed work, services) for a certain period of time. To calculate the planned cost, indicators of consumption rates for materials, raw materials, labor costs, and equipment used in the production process are used. The basis for calculating the actual cost is the actual production indicators that determine the cost of producing a unit of product (group of goods).

The monetary indicator of cost is determined by calculating costing - identifying the costs of producing a unit of production (a group of goods, a separate type of production). To calculate the cost, costing items are used, which determine the type of costs that affect the cost. The types of costing items depend on the characteristics of the type of goods produced, the specifics of the production process and the economic industry in which the enterprise operates.

Types of product costs

In production practice, the concepts of production and full cost are used. To determine production costs, such costing items as materials, raw materials, technological costs (fuel, energy, etc.), wages of production workers (including wage accruals), general production and general business expenses, as well as other production expenses are used. To calculate the full cost of manufactured products, you should take into account not only production costs, but also commercial expenses. This type includes expenses for the sale of products, namely advertising, storage, packaging, remuneration of sellers, etc.

Expenses affecting the cost of production may vary depending on the volume of goods produced. Based on this criterion, a distinction is made between semi-fixed and semi-variable expenses. As a rule, semi-fixed expenses include general production and general business expenses, the level of which is not affected by the number of products produced. Labor costs, technological costs (fuel, energy) are considered conditionally variable, since the indicators of these types of costs can be increased (reduced) depending on the volume of production.

Calculation of product costs using examples

The cost of commercial products (services, works) in accounting can be determined from the information in reports and balance sheets. The cost indicator is determined by excluding from the amount of costs for production and sales of products expenses on non-production accounts, as well as the amount of balances, changes in balances and semi-finished products, which are not included in the cost of products.

Calculation of production costs

Let's say Teplostroy LLC is engaged in the production of electrical appliances. The reports of Teplostroy LLC for November 2015 reflected the following:

production costs - 115 rubles;
charged to the accounts of non-production expenses - 318 rubles;
charged to deferred expenses (account 97) - 215 rubles;
credited to reserves for future expenses and payments (account 96) - 320 rubles;
balances on accounts of work in progress, semi-finished products - 815 rubles.

The production cost per unit of production will be:

Calculation of cost by allocating costs

Let's say Elektrobyt LLC is engaged in the production of electrical equipment.

Data for calculation:

for the period January 2016, the workshop produced 815 units;
expenses for materials, components, spare parts - RUB 1,018,000;
The selling price for electrical equipment was RUB 3,938. (RUB 3,150 + 25%);
wages of production workers (including contributions to social funds) - 215,000 rubles;
general production expenses (electricity, depreciation of equipment, etc.) - 418,000 rubles;
general business expenses (maintenance of management personnel) - 1800 rubles.

At Elektrobyt LLC, direct expenses include material expenses; spare parts and semi-finished products; wages of production workers (including insurance premiums). The remaining costs are indirect.

Calculation of direct production costs per unit of production:

(RUB 1,018,000 + RUB 215,000 + RUB 418,000) / 815 units = 2026 rub.

Calculation of indirect general business expenses per unit of production:

1800 rub. / 815 units = 2 rub.

We will present the calculation of the cost per unit of manufactured electrical equipment in the form of a statement.