STRUKTURA TROŠKOVA PROIZVODNJE

Every production process or process of providing services carries along certain expenses which can be explained with various forms of costs. Costs are the value of production factors that were used. Costs are divided according to (1) origin (material, labor costs, cost of fixed assets), (2) source (main natural species, other natural species), (3) structure complexity (simple, complex), (4) production volume level (fixed and variable). The total costs consist of costs that are permanent (fixed) and variable costs that vary depending on the production volume level. Average costs are the total cost per unit of production. In order to be competitive in the market, entrepreneurs are trying to reduce costs and often hire cost managers. Cost management highlights operating costs in order to outperform competitors in production of products and services with lowest cost. Using the example of the company Modus d.o.o. we will show the structure of total costs and analyze cost movements in the period from year 2015. to 2016.