Costs of circulation in the turnover of the enterprise

Considering the organization of the workflow in any enterprise, it is impossible to ignore such an important moment as the costs of circulation. What is it and what does this item of expenditure include?

First of all, these are any costs at the enterprise, which in one way or another are connected with the circulation of goods. These include the costs that are required for the maintenance of the building, the payment of administrative and warehouse staff, the cost of transportation (delivery and transportation of goods), etc.

The movement of goods requires costs that are associated with its delivery, sale and storage. Such expenses are simply necessary in order to bring the goods to the consumer. Therefore, the costs of circulation are rightfully considered to be the most important and qualitative indicator, which determines the degree of effective work of each trade enterprise.

Undoubtedly, the main task of economists is to minimize any costs to the enterprise. Effective management methods are introduced into the workflow and various business plans are developed that significantly reduce the company's expenses and increase turnover.

The costs of circulation must be taken into account at all stages of pricing. In the cost of production, usually include sales costs, and the retail price includes the costs of wholesale.

It is not possible to consider the internal costs of trade enterprises and organizations that are reimbursed from the profit remaining at the disposal of the organization. Also, costs for losses from natural disasters and other expenses that are not related to the traditional circulation of goods should be provided, such monetary losses do not relate to the item of circulation costs.

Conditionally, the costs of circulation in trade are divided into two groups: additional and clean. The costs associated with the organization of the purchase and sale process, as well as the costs of maintaining administrative and management personnel, are attributable to net costs. Additional - this is the costs that are required to continue the production process, here you can include packing and packing of goods, as well as converting the production assortment into a commercial one.

We can confidently say that the quality of work of any trade organization determines the level of circulation costs - the quantitative ratio of the amount of expenditure to the value of turnover, which is expressed in percent. If the work of the trading organization is well planned and organized, its level of costs will be minimal, and vice versa.

In production, as a rule, there are 2 categories of costs, similarly classify the costs of circulation, dividing into two groups: by economic elements and by cost items.

Such a division is standard and mandatory for all trade organizations and includes the following elements: deduction for social needs, material costs, depreciation of fixed assets, labor costs and other costs. However, such a classification does not allow to fully assess and analyze the main costs and costs of production, so it is necessary to conduct more detailed analysis and accounting for individual items. This makes it possible to identify the most significant costs and determine the structure of the cost item, as well as to provide an objective assessment of the decisions taken by the management apparatus.

Analyzing the factors that could affect the magnitude and level of distribution costs, it can be determined that the structure and volume of trade turnover, the increase and decrease in retail prices, labor productivity, the dynamics of rates and tariffs for services (communication, transport, rent and Etc.). Moreover, we can safely say that the enterprise, as a rule, has significant financial reserves that allow it to withstand changes in turnover indicators and a decrease in gross income, which do not threaten the activities and solvency of the firm.