To achieve a consistent and optimal use in the analysis of unit prices (APU), it is necessary to break down the cost by its members, which are given in the general balance diagram of a work.
The general work balance diagram presupposes the start, which can be a research project, a construction project or a service.
Given that the analysis of a cost is, in a generic way, the evaluation of a certain process, its characteristics will be:
The cost analysis is: dynamic specific approximate can be done inductively or deductively
The cost is preceded by previous costs and this in turn is an integral of subsequent costs
The APU cannot be separated from the accounting, since this is the registry, control and information of the operations carried out; that is, it turns out to be obtaining the financial information; likewise, currently accounting is not understood as a set of facts referring to the past, but in many cases it foresees situations, its information being consistent, so it turns out to be an effective help to the Administration, with economic sense, of Hence, it is necessary to know and accept the definitions it indicates, such as accounting terms.
Indirect cost.- Those expenses that cannot be applied to a specific product.
Direct cost.- Those expenses that have application to a certain product.
The unit price analysis, in the fair evaluation of the production process, so that, to the extent of the intervention of the unit prices, the product is made nationally or internationally, whether it is a project, construction, research or service, aware of the responsibility that implies as links of that chain that without diminishing its quality, must produce fair benefits and, therefore, healthy developments at the person, family, company and country level.
It is perhaps the most reliable instrument for determining the Replacement Cost. The analysis consists of breaking down into three (3) large groups, MATERIALS, EQUIPMENT AND LABOR (In addition to adding the Costs
Administrative and Business Profit).
The most important thing in a Unit Price Analysis is to fix the PERFORMANCE of the work, that is, the amount of work that will be executed in a day or by the unit of measurement. This parameter is the most important since all the terms will gravitate to this concept since the UNIT divided for each item is the Cost divided by the Performance.
It is necessary to be careful in determining the factor that includes Social Benefits, Seniority, Unemployment, Holidays, Holidays, etc., this data depends in Venezuela generally on the Collective Contract signed by the Federation of Construction Workers and the Chamber of Industry of the Construction and is expressed as a percentage that must increase the Unit Value of the Labor Force.
Inventory Costs
CHARACTERISTICS AND VALUATION SYSTEMS OF GOODS INVENTORIES
Understanding the concept, characteristics and foundations of inventory valuation systems can be very useful for the company, since it is these that really set the point of production that can be had in a period. The financial administrator must have the pertinent information that allows him to make decisions about the management that should be given to this item of the organizational asset.
PERIODIC INVENTORY SYSTEM
Through this system, merchants determine the value of merchandise stocks by performing a physical count on a periodic basis, which is called the initial or final inventory as the case may be.
Initial inventory: It is the detailed and meticulous list of the merchandise stocks that a company has when starting its activities, after doing a physical count.
Final inventory: It is the inventory ratio at the end of an accounting period.
PERMANENT INVENTORY SYSTEM
Through this system the company knows the value of the merchandise in stock at any time, without the need to carry out a physical count, because the movements of purchase and sale of merchandise are recorded directly at the time of carrying out the transaction at its price. of cost. Companies that adopt this type of system must carry a merchandise assistant called "Kardex", which records each item that is bought or sold. The addition and subtraction of all operations in a period results in the final balance of merchandise.
Comment: Companies that are required by law to file a tax return must use the permanent inventory system.
INVENTORY VALUATION METHODS
- Valuation by specific identification Valuation at standard cost Valuation at cost price
METHODS FOR SETTING THE COST
- Average method 2. PEPS method 3. UEPS or LIFO method
weighted or FIFO
APPLICATION OF THE METHODS
Quantity Unit cost Total value
Initial inventory 10 pcs. Bs. 10,000 Bs. 100,000
Shopping 30 pcs. Bs. 15,000 Bs. 450,000
Total quantity 40 pcs. Bs. 550,000
Sales period 35 Unid.
Final inventory 5 pcs.
- Weighted average method 2. PEPS or FIFO method
Total value = Bs. 550,000 = Bs. 13,750 ending inventory value per = 5 pcs. * $ 15,000 = $ 75,000 The final inventory is valued at the cost of the last merchandise purchased
Total quantity 40
The average value of the cost per item is Bs. 13,750
The ending inventory value = 5 pcs. * Bs. 13,750 = Bs. 68,750
The final inventory is valued at the average cost of the merchandise in stock.
- UEPS or LIFO method
Ending inventory value per = 5 pcs. * $ 10,000 = $ 50,000
The final inventory is valued at the cost of the first merchandise in stock.
- Final analysis
Average Bs. 68,750
PEPS Bs. 75,000
UEPS Bs. 50,000
When analyzing the three methods, it can be concluded that the lowest valuation is obtained with the UEPS, the highest with the PEPS and an intermediate valuation with the average.
Cost optimization
Budgets and accurate cost information provide a metric that can be used to calculate:
Customer satisfaction
A report that compares actual and budgeted costs is Examples a useful metric for evaluating performance
Consider whether a certain change was implemented within the budget
Comparing performance with organizational plans is one of the first steps in optimizing performance, this phase uses information gathered by calculating costs.
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