125 AMERICAN Journal of Public Diplomacy and International Studies www. grnjournal.us AMERICAN Journal of Public Diplomacy and International Studies Volume 01, Issue 07, 2023 ISSN (E): 2993-2157 Costs Included in Product Production and Factors Affecting Them Sobirov O. O PhD, Associate professor, Department of Accounting and Auditing, Namangan Institute of Engineering and Technology Odilov H. M Independent researcher Abstract: In this article, we will talk about the production of the product input costs and their types, rational and efficient use of available resources in production, as well as some important issues that affect the cost of the product passed. Also, scientific proposals and practical recommendations have been developed to reduce the cost of manufactured products using modern innovative methods in product cost calculation. Keywords: Cost, capital, production, financial position, productivity, product type, labor force, expenses, cost of sales, income, economic growth, economic entity, responsibility centers. Introduction. Today, when the world economy is rapidly developing, it is important for any enterprise engaged in any production activity to plan the directions of spending its funds. When analyzing product production costs, first of all, it is considered necessary to determine the impact of changes in production volume on total costs and on the product unit. The organization and management of this activity is mainly important for the rational use of available resources, systematic adoption of management decisions on saving funds, and overall efficiency and economic growth of the business entity. Strict implementation of cost control in production serves as a guarantee of achieving the main goals set by the management of the business entity. Material and method. The costs incurred in the processes related to the production of products in economic entities in our republic are based on the Regulation of the Cabinet of Ministers of the Republic of Uzbekistan on February 5, 1999 No. 54 “On the composition of costs of production and sale of products (work, services) and formation of financial results” regulated. In our country, many economists have conducted many studies on improving the calculation of the cost of production. The main goal of these studies is to identify modern calculation methods and thereby reduce the cost. It is appropriate to recognize the scientific researches of A. Pardayev, M. Pardayev, A. Karimov, A. Avlokulov, N. Rizaev, O. Sobirov, among the leading economists of our country who are conducting research in this direction. 126 AMERICAN Journal of Public Diplomacy and International Studies www. grnjournal.us Analysis. Today, modern methods of product cost calculation are widely used in our country. The main goal is to reduce the cost. Production costs are divided into fixed and variable costs. Variable costs change in direct proportion to the level of production activity. This is due to the fact that the variable costs per unit of output are constant. Total variable costs are directly related to product volume, while variable costs per product volume are constant. Fixed costs remain constant over a period of time for different scales of production. But as the scale of production changes, their share per unit of product changes. As production volume increases, the amount of fixed costs does not change, but the cost per unit of output decreases. In practice, fixed costs are not always the same for all levels of production. For a comparative, long period of time measured in years, all costs are variable. Also, a large expansion of the level of activity leads to an increase in all categories of expenses. For a short period of time, costs are variable or constant depending on changes in the level of production. The shorter the time period, the more likely it is that certain costs will be fixed. Conclusion. Based on the above opinions, we believe that it is appropriate to implement the following tasks to reduce the cost of the product: 1. Preventing the occurrence of unusable products in the production process; 2. Advance forecasting of factors that negatively affect product price reduction and development of measures to eliminate it; 3. Identification of external risks associated with imported raw materials that lead to an increase in the cost of the product; 4. Reducing the cost of the product by localizing the raw materials in the manufactured products; 5. By developing a system of effective use of labor resources, opportunities to increase product quality and reduce costs are created. In place of the final conclusion, it should be noted that for the development of any sector of the economy, it is necessary to have accurate and reliable information, because based on this information, it will be possible to assess the overall state of the enterprise and make correct conclusions. For this, accounting is very important. References. 1. Sobirov Otabek Olimjonovich. The Cost Of Forming A Management Account In Business Entities. Journal of Pharmaceutical Negative Results. DOI: 10.47750/pnr. 2022. 13.S07-537. 4295-4298. 2. Sobirov O. Directions for improving Management accounting in business entities. journal of management value & ethics.Oct-Dec.20 Vol.10 No.04 SJIF 7.201 & GIF 0.626. INDIA. 2020. 5-8 b 3. Собиров О.О. Бошқарув ҳисобининг моҳияти ва уни ташкил этишда харажатларнинг ўрни. Scientific Journal of “Internatsional Finance & Accounting” -ТМИ. Тошкент. 2022 йил август. Issue 4. ISSN:2181-1016. 4. O.O.Sobirov., M.Karimova. “Problems of Effective use of Key Equipment in Enterprises”. “International journal of Formal Education”. Volume: 2 Issue: 6. Jun – 2023 ISSN: 2720- 6874. 127 AMERICAN Journal of Public Diplomacy and International Studies www. grnjournal.us 5. Otabek Olimjonovich Sobirov. Improment of management accounting methodology in economic entities. Scientific Journal of “International Finance & Accounting” ТМИ. Issue 2, April 2023. ISSN: 2181-1016 6. Sobirov O.O. Improvement of management accounting in economic entities. - Abstract of Doctor of Philosophy (PhD) Dissertation on Economic Sciences. Tashkent. TMI. 2022 year. 7. Sobirov O.O., Uzoqboyev R. “Important issues of ensuring the financial stability of small business and business subjects”. “International journal of Formal Education”. Volume: 2 Issue: 6 | Jun – 2023 ISSN: 2720-6874. 8. O.O.Sobirov., J.Alibyev. “Issues of Ensuring the Profitability of Enterprises”. “International journal of Formal Education”. Volume: 2 Issue: 6 | Jun – 2023 ISSN: 2720-6874. 9. Собиров О.О. «Хўжалик юритувчи субъектларда бошқарув ҳисобини такомиллаштириш йўналишлари». Илмий монография. Наманган-2023 йил. УЎК: 657 (075.8). КБК: 65.052.2. ISBN:978-9943-5945-8-6. 10. Sobirov O. Product Development Cost Factors Affecting Reduction. American journal of Diplomacy and International Studies. Volume 01, issure 07, 2023 ISSN (E):2993-2157. www.grnjournal.us http://www.grnjournal.us/