Investment costs - is the total cost that are linked with the implementation of business projects.
Their types and composition vary depending upon the particular project.
Types of investments
Construction cost is the sum of all costscompany directed to its normal functioning. The amount of investment costs in proportion to the impact on the profitability of the project. Accordingly, the lower cost, the more revenue.
In general, the cost of species distinguish real (kapitaloobrazuyuschie) and financial investments.
As objects of real investment mayspeak fixed assets, real estate, stocks, assets, R & D, investment in staff (training and development). It is important to note that investment in professional development of employees and new developments can be attributed to investments only in investment projects.
Capital investments can be spent on new construction and expansion, renovation or upgrading of enterprises.
The objects of financial investments may make securities (stocks, bonds, etc.), Deposits, foreign currency, precious metals, etc.
There are gross and private investmentexpenses. Gross - is the amount of real investment over a certain period. These costs shall be covered by own funds (depreciation, profit), borrowed (by issue of shares) or borrowing (loans and bonds). Net investment in contrast to the gross be reduced by the amount of depreciation.
The composition of the investment costs
The composition of the investment costs include the mainand net working capital. Skip to main capital includes the cost of infrastructure and capital assets. To clean - the cost of maintaining the stability of production, they are also called operating costs.
To classify the costs of direct,indirect, explicit (implicit) and are not reimbursable. Direct costs are directly related to the implementation of investment projects. This, in particular, the cost of purchasing and commissioning of the equipment, transportation and installation of products or raw materials.
Indirect costs associated with the creation of the externalfavorable conditions for the organization of production. This, for example, legal, accounting software design, payment of contractors' services. Accounting for these costs reduce the profitability of the project.
Implicit or hidden costs arise with an excess of production assets, which are not involved in generating income.
If the costs were not taken into account in the investment project, they are not reimbursed. For example, it costs to develop a business plan or market research.
The composition of costs at kapitaloobrazuyuschih and financial investment is different. In the first case, there are the following types of expenses:
- Preparation of project dokumentatsii-
- Permitting, litsenziy-
- Acquisition and construction nedvizhimosti-
- Purchase of equipment, its delivery, installation and putting into operation Non
- Required tax payments and customs poshliny-
- Other expenses - for example, the connection to the power grid.
In the implementation of the financial investmentcosts, are included in the cost of purchasing securities, transaction costs (spreads and commissions), the promotion manager's personal account, tax payments. Also, the investor may experience costs associated with the acquisition of market intelligence, advisory services for payment.