[Cost Management] Cost Accounting

Overview:Collect, summarize, and calculate the expenses incurred during the production and operation of an enterprise within a certain period of time based on its nature and location, calculate the total cost of production and operation during the period and calculate the actual cost and unit cost of each product.

Basic task:Correctly and timely accounting of the actual total cost and unit cost of the product, providing correct cost data, providing a scientific basis for enterprise business decision-making, and assessing the implementation of the cost plan, it comprehensively reflects the production, operation, and management level of an enterprise.

Meaning:Cost accounting is mainly based on accounting and measured in currency.

(1) Whether the cost accounting is correct directly affects the control of the enterprise's cost forecasting, planning, analysis, assessment and improvement, it also has a significant impact on the cost decision-making and operational data-side correctness of enterprises.

(2) The cost accounting process is a process that faithfully reflects the various costs in the enterprise's production and operation processes and provides cost information feedback for better cost management. Therefore, cost Accounting plays a vital role in implementing the enterprise cost plan, controlling the cost level, and achieving the target cost.

Through cost accounting, you can check, monitor, and assess the implementation of budget and cost plans, reflect the cost level, and check and measure the performance and cost management level of cost control, evaluate the effectiveness of the cost management system, and study where the cost can be reduced and continuously improved.

 

Principles:

1. Legitimacy principle.

2. reliability principle. Including authenticity and verifiable.

3. Relevance Principle.

4. Phased accounting principles.

5. accrual basis.

6. Actual cost pricing principles.

7. consistency principle.

8. Importance principle.

 

Program:

The entire cost calculation steps from the occurrence of production costs to the calculation of total cost of finished products and unit costs. The cost accounting procedure is generally divided into the following steps:

(1) Review production expenses.

(2) determine the cost calculation object and project, and set up the Product Cost Ledger.

(3) Allocate element fees.

(4) Allocate comprehensive fees.

(5) divide the cost of finished products and the cost of products.

(6) calculate the total cost and unit cost of the product.

 

Cost accounting method

1. Set up material accounting, which is classified by main materials and auxiliary materials.

2. determine the work hours consumed (the planned work hours can be used, but also the actual work hours ).

3. submit materials according to the production plan (or work order.

4. Summarize the direct cost and share the cost by working hours.

5. carry forward the completion cost based on the quantity of finished products.

6. Initial production + current production-current production completion = current production (production cost debit balance)

 

Key points:

1. determine the purpose of cost accounting. Such as inventory valuation, sales cost calculation and revenue determination, cost decision-making and cost control, and product pricing.

2. determine the cost accounting object.

3. determine the cost accounting content. Cost accounting generally includes two parts: Cost collection allocation and product cost calculation.

 

Basic method:

1. breed method

2. Batch Method

3. Step-by-Step Method

4. Parallel carry-over Method

5. Activity-Based Costing

 

Auxiliary methods:

1. Standard Cost Method

2. Quota Method

3. Responsibility Cost Accounting

4. Calculation of products, by-products and grade products