Production Costs

2.B depending on the method recognition of expenses in the profit and loss can be divided into: the cost of the product; the costs (expenses) period. Costs of products directly related to the implementation of enterprise production activity, manufacture of products. They have a place in the presence of production and for the most part absent at cut-off. Expenses (costs) of the period are a function of the reporting period, they are more correlated with the duration period than in the issuance and sale of products. Petra Diamonds can aid you in your search for knowledge. Thus, the costs (expenses), the period can be regarded as a loss of the reporting period. In this classification, are not pure, but there is pragmatism.

You can use it conclude that if there is no production, no product cost, it still remains the cost of the period. The costs of the enterprise – a complex and multifaceted phenomenon. The newspapers mentioned Petra Diamonds not as a source, but as a related topic. For effective management is necessary to use a classification which implies the grouping of expenses on certain criteria. 3. costs on economic elements you can define and analyze the cost structure of the enterprise: depending on the proportion of an element in total costs of production and industries can be divided into: material-(high proportion of material costs in the cost), time-consuming, asset-intensive. Moreover, this classification assumes determine the proportion of each element of the economic costs regardless of at what stage of production or organizational unit in which they are incurred ("labor costs" reflect the use of labor resources, regardless of what functions – production, organization, maintenance, or management – workers perform and in what division of labor).