Table of Contents
Definition of manufacturing costs
The production costs are the measure of value for the valuation of assets and economic goods that are operationally related. A distinction can be made between the following legal bases:
What are manufacturing costs tax law?
According to tax law, production costs are expenses that arise from the consumption of goods and the use of services for the production of a product. (§ 6 EStG). This means that the business concept of costs is not assumed here, that is imputed costs includes as an additional cost.
According to commercial law, production costs are expenses that arise from the consumption of goods and the use of services for the production of an asset, its expansion or for a significant improvement beyond its original condition (Section 255 (2) HGB).
Manufacturing costs in fixed assets
Fixed assets are valued under commercial law in accordance with Section 253 (1) of the German Commercial Code (HGB) at acquisition or production costs.
In contrast to the acquisition costs, the approaches to the production costs are controversial in some respects. That depends on the much-criticized method of the Surcharge calculation together, the calculation scheme.
General administrative costs, expenses for social institutions, for voluntary social benefits and for company pension schemes can be included in the production costs. Distribution costs may not be included in the production costs.