The cost of depreciation of the companys

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Each type allows you to estimate costs for a certain stage of production, and the full cost is the basis for calculating the price. Types may differ by the object of calculation. Gross output may be assessed, in which case the costs of its production for a certain calculation period are taken, or sold goods in this case, the costs of its sale are added. Marginal cost shows how much money is needed to produce one unit of goods or provide a service. Additionally, planned, estimated, actual, and standard cost are distinguished in order to analyze, plan, and evaluate.

Structure All cash expenses that ensure the functioning of the business are included in the cost price. Each company defines the list of expenses and accounting policies in any form. In different areas, expense items may malaysia telegram data differ significantly. Direct expenses include production cost of raw materials, payment for utilities, inventory, special clothing, etc. funds for staff maintenance wages, staff motivation bonuses, allowances, vacation pay, severance pay, and staff reductions social contributions payments to pension and health insurance funds, payment for sick leave, industrial injuries or occupational diseases depreciation costs are the division of the cost of structures, transport, equipment.

Machines for a certain period creation of a depreciation fund other expenses loans, purchase of patents, writeoff of intangible assets, losses, debts, changes in exchange rates, property, contributions to charitable organizations, sponsorship in organizing sports and entertainment events, accidents fire, earthquake and other disasters, theft. Other expenses include rent for the premises. In addition to direct costs, there are also indirect costs. Their additional name is nonproduction costs. They are not directly related to the manufacturing process, but still participate in the formation of the cost price. Indirect costs include commercial packaging materials.