What are the basic methods of product costing

The basic methods of costing are: 1, variety method. Product varieties as a costing object of a costing method. 2, batch method. To product batch as a costing object of a costing method. 3, step-by-step method. To product production stages, "steps" as the costing object, a method of calculating costs. Variety method of costing objects: product varieties. In practice, you can "varieties of method" under the cost of the object of alternative applications for: product categories, product varieties, product variety specifications.

Variety method in practice, the application of the main points are: "varieties" as the object to open the production cost ledger, costing sheets; costing period is generally used "accounting period"; "varieties" as the object of pooling and collection. "for the object of the collection and allocation of costs; to" varieties "as the main object of cost analysis. Variety method is suitable for large quantities of large, single-step production enterprises. Such as power generation, extractive industries, management only requires the assessment of the final product of the enterprise.

Batch method cost object: batch method is a very broad costing method, in practice, there are "batch number", "batch" definition. Can be determined in accordance with the following ways to determine the cost of objects: product varieties, inventory accounting in the batch of the actual valuation method under the "batch", production batch, pharmaceutical and other enterprises of the product "batch number", customer orders - that is, in accordance with customer orders to calculate the cost of goods and services, the cost of goods and services. -The method of calculating costs according to customer orders, other enterprises need and customize the "batch".

Step-by-step cost object: step-by-step method under the "step" is also broad, in practice, there are rich, flexible and diverse specific connotations and application of the step-by-step method under the "step" in the practical application, can be defined as follows The meaning of "step": department - that is, the calculation and assessment of "departmental costs", workshop, process, specific production, processing stages, work centers, and the arbitrary combination of the above.