The cost of goods and services always consists of certain costs, which are divided into separate groups depending on the purpose. The costs sent to the maintenance of the workshops of the main production are called general production, and the costs not involved in the manufacture of products are considered general business.
The role of general business expenses in the formation of the value of goods
A production line cannot exist separately from economic services, since the finished product needs to be stored, packaged and sold somewhere. In this regard, production is overgrown with various auxiliary departments, for the maintenance of which general business expenses are directed.
In turn, costs that are not involved in the production process can be divided into commercial and management.
Where do business expenses come from?
General business expenses associated with the sale, transportation and packaging of products, it is necessary to accumulate in the accounts of commercial costs. They also include commission fees that are paid to counterparties, advertising companies, hospitality expenses.
Amounts of business expenses are constantly under the scrutiny of economic and accounting services. The profitability of the company and the final cost of the goods sold depend on how well the economic mechanism is organized.
Who creates management expenses
Household expenses aimed at the maintenance of the administrative and managerial apparatus, as well as depreciation of non-productive assets, rent, legal and accounting advice relate to the management section.
When forming such a group of costs, the main difficulty is to separate production costs from non-production costs as correctly as possible. For example, if we consider the wages of employees, the amount of accruals due to the head of the workshop should relate to production, and the salary of the storekeeper should be related to general economic expenses. Such a thorough analysis is carried out on all costly items.
Management expenses are included in the cost in proportion to various groups of goods. Such a distribution system helps to most accurately reflect the real cost of a product and is a kind of leverage in the matter of reducing prices.
Cost analysis to reduce costs
General expenses are indirect and relate to conditionally constant amounts. In the process of economic activity, economic services constantly monitor changes in costs and analyze the reasons for the decrease or growth of such indicators. Quite often, the increase in costs is associated with the expansion of the range of main production. In order to calculate how much the costly items change due to production growth, economists use a calculated coefficient, which is established empirically and reflects the degree of dependence.
General expenses, account 26
In the plan of accounts of accounting, a special account is provided on which all business expenses not related to production are accumulated. At the beginning of the period, account 26 does not have a balance, since at the end of the month it closes and all amounts are distributed to the main production.
If the goods are manufactured in several stages, then additional sub-accounts are opened to account 26, on which data is collected for each workshop individually.Accounting for general business expenses is based on the primary documentation provided by production managers.
The role of general expenses in taxation
Household expenses in the direct and indirect sense participate in the taxation of the enterprise. Supervisory authorities closely monitor cost items that reduce the tax base.
According to the legislation, general business expenses must be taken into account in the period in which they were incurred. Service companies can fully write off costs in the current period without additional allocation. An important point is that all expenses must be economically justified and confirmed by documents.
In the event of a document flow violation, the tax authorities may declare the costs invalid and charge additional income tax. The validity of the generated cost is checked in accordance with the list of eligible costs, which is fixed by law. In case of doubt about the reliability of the contractual relationship and the submitted documents, the tax inspectorate may initiate a counter audit.
