# Advice 1: How to calculate the costs

Any budding entrepreneur interested in how much it will cost the opening of a business, especially if it is associated with the release and production. On how well will be costed in production, will depend on further activity of the enterprise.
Instruction
1
To begin to determine the extent to which you will provide services or produce products. You should clearly know that this month you will produce, for example, 200 pieces of product or provide a service to 200 people.
2
Now calculate the variable cost (costs that change based on the amount of service or output), it is necessary:
To calculate the cost of materials (cost of raw materials, which will be buying for the manufacture of products). The cost of raw materials required for production of unit of product is multiplied by the volume of the planned issue. If you provide a service, in this case, you will not have this costs.
3
The cost of labor. Decide how many people will you have to work to meet the production plan or service plan, and how much salary you pay them.
4
Deductions on social needs. As a rule, contributions to the social security Fund and insurance Fund. The percentage of a probe into the transactions.
5
Now you need to calculate the costs are constant (they are not associated with volume of rendering of services or manufacturing of goods). They consist of General production and General business expenses (include expenses for rent, depreciation of purchased equipment and fixed assets, etc.), commercial expenses (advertising costs and delivery of the goods to the consumer – if it's there).
6
All amounts, variable and fixed costs need to be added. This will be your cost of producing and manufacturing products.

Commercial expenses are expenses on the shipment and sale of goods. However, their calculation and manner of recognition depends not only on the activity of the company, but also from the accounting policies. In this regard, there are several options for accounting for such costs in the cost of production.
Instruction
1
Determine the commercial expenditure of the company which carries out industrial activity. These include the cost of: packing and packaging of goods in warehouses; delivery of production to dispatch station; loading into trucks, wagons, ships and other vehicles; fees of intermediary firms; public expenditure; advertising and other similar needs of the company.
2
Make a list of the business expenses of the enterprise, which is engaged in trading activities. In this case, taking into account costs of labor, transportation of goods, rent, maintenance of premises, storage of products, advertising, public and other costs of the firm.
3
Reflect the commercial costs of the organization engaged in the processing and harvesting of agricultural products. These include obsesively costs, the cost of maintaining foster and procurement centers, as well as for the maintenance of poultry and livestock on the bases.
4
Consider all commercial expenses on the debit of account 44 "selling Expenses" in correspondence with account 10 "Materials", 11 "Animals on cultivation," the account 45 "the Goods shipped" account 76 "Settlements with debtors and creditors", etc. Accumulated amounts written off to debit of account 90 "Sales" in full or in proportion to the volume of goods sold.
5
Form and approve accounting policy for the calculation and reflection of business expenses. It should be noted that if these costs are recognised in full, the company is obliged to distribute them in certain types of costs established by the instruction on application of chart of accounts.
6
Calculate commercial costs as the turnover of the debit of sub-account 90 "Cost of sales" and credit of account 44. Reflect the result in row 030 of the profit and loss account in form 2.
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