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Production Costs

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Production costs are expenses incurred in the construction and maintenance of a building. They form an underlying for the valuation of assets and assets. In addition to direct material costs, the individual production costs also include the special production costs as well as material overheads, production overheads and depreciation of fixed assets. There are set limits that prevent the costs from becoming too high. For the material costs an exact number must be given, as well as the exact costs. In the case of real estate, the costs of construction include earthworks, electricity, water, gas and wastewater payments to builders, construction permit costs, wages for architects and structural engineers, outdoor facilities, roadworks costs, construction site removal, gardening, fencing costs, sewage works Rents for machinery and equipment, extensions, costs for the construction inspection and demolition costs. Maintenance includes measures required for maintenance, inspection, restoration, repair, maintenance of a condition, technical renewal, cleaning of the property, both internally and externally. These measures are necessary due to weathering, wear and aging of the property .

If the property is in good condition, it has a higher value. The owner is responsible for his property and its maintenance. Modernization is improvement, quality is quality and, unlike repair, it is not necessary. But they usually increase the value of a property. Renovation measures are the damage remedy. The difference to a repair is that the damage must be repaired before it can be repaired and renewed. When inspecting buildings, the current state of the building is checked and checked. Maintenance is a measure that preserves the actual and original condition of a building. A building or property is a immovable object. The word real comes from the Latin, from in-mobilis and means immovable. A property can be purchased, it can also be rented for living. You become the owner of a property through a purchase contract certified by the notary and the entry in the land register . There are private and public real estate. The definition of individual measures for buildings is important for a balance sheet preparation, because the calculation of the production costs plays a major role in the balance sheet and its preparation. The production costs are regulated by the HGB and the income tax guidelines.

 

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