Traditional Culture Encyclopedia - Traditional culture - What are the characteristics of manufacturing costing?
What are the characteristics of manufacturing costing?
The production and operation process of the enterprise, but also the costs incurred, the process of cost formation. Costing, that is, the actual occurrence of various costs of information processing. We calculate the cost, always calculate the cost of a specific object. The size of enterprises are large and small, the nature of the business and the project is different, so how to organize the calculation of costs, how to determine the cost of the object, can only be specific analysis of specific problems, depending on the actual situation. And an enterprise incurred a variety of costs, the process of manufacturing an object is closely coordinated by various departments, various factors of production, after many links to the final formation. Therefore, the record categorization and distribution of various production costs incurred by the enterprise, is - a more complex work. However, no matter which type of enterprise, no matter what cost calculation, the basic principles of costing, general principles and basic procedures are **** the same. In general, costing should comply with the following requirements:
1. Reasonably determine the costing object. The so-called costing object, is the object of cost collection. Or the object of cost attribution. Costing, must first determine the costing object. If the costing object to determine the inaccurate or inappropriate, will greatly increase the difficulty of costing, the calculated cost can not meet the needs of business management, and even can not complete the task of costing.
How to determine the object of costing? Generally speaking, the object of costing is a variety of consumption of beneficiaries, that is, the consumption of a variety of inputs after the formation of outputs, is "manufacturing" activities to achieve direct results, that is, "product". Such as factory production of industrial products, farm production of food, school training of students, cultural and artistic organizations to produce films, television dramas, performances, etc., are a "product", are the object of costing.
2. Properly determine the costing period. The so-called costing period, that is, how often to calculate the cost. Theoretically, the product costing period should be consistent with the production cycle of the product. But this situation is only suitable for the enterprise production process for a batch (pieces) after a batch (pieces), that is, the first batch (pieces) completed and then produce the second batch (pieces) of the situation. In fact, most of the modern enterprise production in the form of assembly line, not one batch after another batch of production, but constantly put into production, constantly completed, continuous, can not distinguish between before and after the batch. In this case, the cost by batch is obviously very difficult, only artificially divided costing period (generally one month as a costing period), costing is feasible.
3. The correct choice of costing methods. As the enterprise situation varies greatly, the cost of the specific calculation method can not have a unified model. After people's long-term practice, the formation of several commonly used costing methods, namely, variety method, batch method and step-by-step method.
Appropriately determine the object of costing is not an easy task. Because of the size of the enterprise, the form of production organization and different technical characteristics, the object of costing will be different. For example, some enterprises only produce the final product, while some enterprises in addition to the production of final products, but also produce a variety of semi-finished products. Some enterprises use mass production, while others use small-lot production, or even single-piece production, and so on.
If the enterprise's products are not batch production, and only one step, generally can be directly to the product varieties as the object of costing, this method is called variety method. If the product production is mainly by batch production, the batch as the object of costing, this method is called batch method.
If the production of products to be divided into a number of steps, in the middle of the semi-finished products, and the product is a continuous mass production or high-volume production, the semi-finished products of each step and the final product as the object of costing, this method is known as step-by-step,:
4. Reasonable set of cost items. In order to more comprehensive and systematic reflection of the cost of products consumed, so that costing can provide a relatively rich information, in the calculation of product cost, not only to calculate the total cost of the product and the unit cost, but also to the total cost of the use of classified by purpose, in order to reflect the composition and structure of the cost of the product. In this way, it is easy for us to control the cost, but also easy for us to analyze the economic efficiency of the product production problems and assessment and evaluation of the production sector-
In the calculation of product cost, the cost is generally divided into three items, that is: ① direct materials; ② direct labor; ③ manufacturing costs. Some enterprises are relatively large, the production process is more complex, the cost items are divided into more detailed. If the size of the unit is very small, the production process is also very simple, can only: divided into two items, namely: ① material costs; ② other costs.
5. Reasonable selection of cost allocation criteria: the production process is often more complex, a cost incurred, its use is often more than one, the production of more than one kind of product, the object of costing is more than one. In this way, a cost incurred, often can not be directly, all recorded in the detailed accounts reflecting a particular object, but the need to allocate this cost between several objects.
So, which object should bear the cost of a little more, which object should bear the cost of a little less? The principle of distribution is: "who consumes, who pays", or "who benefits, who pays". However, it is difficult to make a precise allocation of costs, and it is equally difficult to accurately measure the consumption (benefit) of costs incurred by certain objects. In making specific allocations of costs, certain criteria are generally chosen for allocation. For example, material costs can generally be allocated on the basis of the weight, volume or quota consumption of the product, labor costs can be allocated on the basis of man-hours and so on. Selection of allocation criteria exists a certain degree of subjectivity, but should choose a more objective, scientific criteria for the allocation of costs, so that a more realistic reflection of the actual consumption of certain objects. In addition, once a certain criterion has been selected, it should not be changed easily, otherwise the principle of consistency will be violated. Because of the different allocation criteria will also artificially cause the calculated costs are not the same;
Two, product costing methods
We know that different enterprises, their production processes have different characteristics, and their cost management requirements are also different. This has a great impact on the specific methods of costing. That is to say, only according to the characteristics of the enterprise production and cost management of different requirements, choose a different costing method, in order to correctly calculate the product cost.
(I) the main types of production and cost management requirements
Different enterprises. According to the production process and production organization, can be divided into different types:
1. According to the characteristics of the production process, can be divided into:
1) single-step production: also called simple production, refers to the production of technically uninterrupted, non-step production. Such as power generation, casting, extractive industries. ② multi-step production, also known as complex production, refers to the technology can be interrupted, composed of a number of steps of production. If these steps in order, can not co-exist, can not be reversed, to the last step to complete the production of finished products, this production is called continuous complex production. Such as textile, metallurgy, paper, etc.. If these steps do not exist in time succession, can be carried out at the same time, each step produces a different spare parts, and then assembled into a finished product, this production is called assembly complex production. Such as machinery, electrical appliances, ships, etc.:
2. According to the characteristics of the production organization, can be divided into: ① mass production. It refers to the continuous and repeated production of the same varieties and specifications of the production of products. This kind of production is generally less varieties, production is more stable. Such as power generation, coal mining, metallurgy and so on. Mass production of products generally single stable demand, demand for large quantities. ② batch production; it refers to the pre-determined batch and a limited number of production. This type of production is characterized by a large number of varieties or specifications, and is organized in batches of production in turn. This kind of production organization is the main form of modern enterprise production. (iii) One-piece production. It is according to the order, according to each product to organize production. This form of production organization is not common. Mainly applies to some large and complex products. Such as heavy machinery, shipbuilding, special equipment and so on.
Different enterprises, cost management requirements are not exactly the same. For example, some companies only require the calculation of the cost of finished products, while some companies not only to calculate the cost of finished products. But also to calculate the cost of each step of the semi-finished products. Some companies require monthly costing, while some companies may only require a batch of products after the completion of the cost calculation. Different cost management requirements is also a factor affecting the choice of costing method.
(B) the determination of product costing method
Different enterprises, due to the production process, production organization, and cost management requirements are different, the costing method is not the same. The difference between different costing methods is mainly in three aspects: First, the costing object is different. Second, the costing period is different. Third, the production costs in finished goods and semi-finished products in the distribution of different situations. Commonly used costing methods are mainly varieties, batch method and step-by-step method.
1. Variety method; variety method is to product varieties as the costing object to aggregate production costs, a method of calculating product costs. Because the variety method does not need to calculate the cost by batch, and do not need to calculate the cost of semi-finished products by step, so this costing method is relatively simple. Variety method is mainly applicable to large-volume single-step production enterprises. Such as power generation, extraction, etc. Or small enterprises that do not require the costing of semi-finished products, such as small cement, brick-making, etc., although they are multi-step production. The variety method is generally calculated on a regular monthly basis, and does not require the allocation of production costs between finished and semi-finished products.
2. Batch method. The batch method is also known as the order method. Is a product batch or order as a costing object to the production costs, a method of calculating product costs. Batch method is mainly applicable to single pieces and small batches of multi-step production. Such as heavy machine tools, ships, precision instruments and special equipment, etc. The costing period of the batch method is not fixed, generally a production cycle (i.e., from production to completion of the entire period) as a costing period for regular calculation of product costs. Since there are no finished products at the time of completion and no products in progress at the time of completion, finished products and products in progress will not co-exist at the same time, and thus there is no need to allocate production costs between finished products and finished cattle.
3. step-by-step method. The step-by-step method is a method of calculating the cost of a product, according to the production of the product steps to collect production costs. The step-by-step method is applicable to large quantities or large quantities of multi-step production. Such as machinery, textiles, paper and so on. Step-by-step method due to the production of large quantities, often at a certain time that has been completed: the finished product, and unfinished products and semi-finished products, it is not possible to wait for the completion of all products and then calculate the cost. Therefore, the step-by-step method is generally a regular monthly costing, and to allocate production costs between finished and semi-finished products.
Three, the correct delineation of the boundaries of the various costs
1. The correct delineation of the boundaries of the cost of products included in the cost of products and not included in the cost of products, to determine the scope of the cost of expenses. There are many items of costs incurred by the enterprise, according to who benefits (or who consumes), the principle of who bears the burden, where the production process consumes a variety of materials, labor and other costs should be included in the cost of production. Otherwise, it can not be included in the cost of production. Such as the payment of various late fees, compensation, donations, sponsorships, etc. should be included in non-operating expenses. Payment of dividends should be included in profit sharing. Administrative expenses, financial expenses, etc. should not be included in the cost of production, but should be included in the period expenses.
2. Correctly delineate the boundaries of each month's expenses. According to the principle of phasing, in order to reflect and assess the cost of expenditure in a timely manner, the need for regular monthly costing. According to the accrual principle, the costs incurred should be allocated to the relevant month according to the principle of benefit. Expenses incurred in the current month but to be borne by the following months should be recognized as amortized expenses. (ii) Expenses incurred in the current month that should be borne by previous months should be charged to the "Accruals" account because the expenses have been anticipated and recorded in the "Accruals" account in the previous months. Expenses incurred in the current month should be charged to the current month's expenses, regardless of whether they have been paid or not.
3. Correctly delineate the boundaries of product costs and period expenses. In the enterprise incurred a variety of expenses, all should be charged to the month by the current month's expenses, should be further distinguished between product costs and the boundaries of the period costs. Where the costs incurred in the production of products, belonging to the cost of products, should be recorded in the "production costs" account, product completion and then transferred to the "finished goods" account. Sales and then transferred to the "cost of goods sold" account, the end of the period to carry forward the profit for the year. Where in the non-production areas of management costs, selling costs and finance costs are period costs, *** processing method is relatively simple, at the end of the period all transferred to the "profit for the year" account, a reduction in profit and loss for the period.
4. Correctly divided into different products cost boundaries. If the enterprise only produces a product, then all production costs are the cost of this product. But the general enterprise are more than one product, it is necessary to the full cost of production in the distribution of several products, where it can be clearly identified by which products should be borne by the cost, should be directly into the cost of the product. Where the cost of several products *** with the same burden, it is necessary to use the appropriate criteria (according to the principle of who benefits, who bears the burden) for distribution. The final costing out of the various products.
5. The correct division of completed products and the cost of products in the boundary. Through the previous step we have calculated the total cost of each product. If this product has been fully completed:, its cost is all the cost of finished goods; if this product is not completed, its cost is all the cost of products in progress. But usually, there are often both finished products and products in the product, which requires the total product cost in the finished product and in the product between the allocation, in general, a product should be less than a finished product to bear the cost, because the product is not yet completed, consume fewer resources than the finished product, the finished product and in the product of the allocation of the cost of the completed product and the product in the degree of completion should be taken into account. Methods of allocation include the approximate production method, the fixed amount method, and the fixed proportion method.
Four, product costing procedures
1. determine the costing method. Before carrying out costing, it is necessary to determine which costing method. Usually used methods are varieties, batch method, step-by-step method. This is based on the characteristics of the production process and production organization, while combining the requirements of cost management to choose.
2. Set up the relevant costing accounts. In order to calculate the cost of products, the need to set up a special account, that is, "production costs" account. The debit side of the pool for the production of various costs incurred in the production of products, the credit side to reflect the completion of the product transferred out of the manufacturing costs.
For a certain costing object, the costs incurred are only two kinds: ① direct costs. ② indirect costs, that is, **** the same nature, not directly for the production of this object. If the enterprise only produces a product, the direct and indirect costs are not different, they should be charged directly to the product cost. However, enterprises generally produce a variety of products. In this case, direct costs can still be charged directly to product costs, while indirect costs must first be pooled and then allocated to different costing objects. In this way, the need to set up a separate account, that is, "manufacturing overhead" account, "manufacturing overhead" account is the role of a variety of indirect costs, and then reasonably allocated to the costing object up.
If there are more cases of scrap and stoppage of work, it is necessary to collect information about scrap and stoppage of work losses, and set up a special account for "scrap losses" and "stoppage of work losses", and pool these losses into the debit side of the account for "scrap losses" and "stoppage of work losses", and then make the appropriate treatment and transfer on the credit side of the account: if it is a normal loss, it should be allocated to the product cost; otherwise, it should be transferred to administrative expenses or non-operating expenses. Transfer to administrative expenses or non-operating expenses.
In accordance with the requirements of the accrual system, the expenditure incurred in production does not necessarily have to be included in the cost of production, the period of expenditure and the costing period may not be consistent. There are two situations when expenses are incurred: ① the costs incurred in production are fully utilized in the current period and the benefits are not deferred to the next period. In this case, the expenses should be charged directly to the "production costs" or "manufacturing costs" account. ② costs incurred in the current period should not be borne by the current period. There are two cases: (1) the first expenditure, and then charged to the cost. This should be set up "amortized expenses" account, the expenditure is debited to the "amortized expenses" account, amortized into the cost of costs and then credited to the "amortized expenses" account. (ii) The first cost, then expenditure. This situation should be set up to "withholding costs" account, the current cost of debit the relevant cost account, credit "withholding costs" account, pay and then debit the "withholding costs" account.
3. Accounting for expenses incurred and categorized by purpose. The process of costing is a collection and distribution of costs (amortization) process, or vice versa, cost accounting is ultimately the cost of accounting. Costing is a multi-step process of dealing with costs. To do a good job of costing, the first step is to accurately reflect the total **** how much expenses, expenses of what nature. This step to solve two problems: First, the enterprise in the current period in the end what expenses, what expenses. This is the basis for good costing work. Such as how much raw materials consumed, to use the first-in-first-out method and the last-in-first-out method and other methods of proper measurement; such as due to the equipment to play a role in the value of wear and tear, to use the appropriate method of depreciation. Secondly, the costs incurred, in the end, what role. In the costing process, not only to reflect the expenditure of some of what costs, but also to further clarify the expenditure of the cost of what role. On who played a role in the utility. Costs incurred after the role is summarized in three cases: ① costs incurred did not play a role in the current period, should be deferred to a later period. Such as prepaid rent, etc., should be included in amortized expenses. ② expenses occur in the current period, and its utility occurred in the previous period. Such as at the beginning of the year to pay all the previous year's rent, can not be used as a current expense, but should be borrowed quot;Withholding Expensesquot; account. Most of the expenses, is spent in the current period, the utility is also in the current period, these costs should not only be included in the cost of the current period, but also according to its specific purpose of classification. Regardless of the object of costing is what, in general, are required to pay the following cost items; or, after the cost is incurred, is nothing more than the role of the following aspects: First, the consumption of all relevant materials, these materials constitute the entity of the product, which is called the direct material costs; Second, the consumption of all relevant labor costs, the labor of these production workers are directly used in the manufacture of products, which is called the direct cost of labor; Third, the consumption of various materials and labor and other costs, which is called the direct cost of labor. A variety of materials and labor and other costs, these costs are not directly used in the production of products, but only in the production process to play an auxiliary role, or to provide the necessary conditions of production, this cost is called manufacturing costs.
In order to reflect the incurrence of expenses and their classification by purpose, an accounting entry is required, i.e.
Borrow: relevant cost and expense accounts
Credit: relevant asset and liability accounts
In this accounting entry, the relevant asset and liability accounts credited to reflect the specifics of the expenses incurred. These accounts are cash, raw materials, accumulated depreciation, wages payable, benefits payable, etc., reflecting exactly what the business has spent. The debit side of the relevant cost and expense accounts include amortized expenses, accrued expenses, production costs, manufacturing costs, etc., reflecting what role these costs play. Production cost is the main account for costing, and eventually all the expenses have to be collected into the production cost account. Expenses charged to the production cost account are further categorized by purpose, and are generally divided into three items: direct materials, labor costs, and manufacturing overhead.
4. Allocation of auxiliary production costs." Production costs" general ledger has two sub-accounts: one is the basic production, used to account for the cost of production of products; the second is auxiliary production, used to account for the production of products for the production of services related to the cost of the production sector. Auxiliary production is also a production activity, it is the basic production activities to provide the necessary products and services, but also to consume a variety of production costs, the same to calculate the cost of the product. Calculation of the cost of auxiliary production requires the establishment of "auxiliary production" ledger account, the debit side of the aggregation of the various costs incurred, the credit side of the calculation of auxiliary production workshop completed finished goods cost, and at the same time transferred to the basic production ledger. This account generally has no balance.
5. Allocation of manufacturing costs. Product cost by direct materials, direct labor and manufacturing costs are composed of three parts, including direct materials and direct labor is a direct cost, directly into the "production costs" account, the manufacturing costs are indirect costs, not directly into the "production costs" account, but first in the "manufacturing costs" account, and then allocated to the "production costs" account.
6. The cost of finished goods. Through the above steps, all the production costs incurred during the period have been brought together in the "production costs" account debit, if the enterprise does not have the product, the cost of finished goods is the opening balance of the production cost account plus all the production costs incurred during the period. However, in general, enterprises have both products in process and finished products, and therefore need to allocate the cost of production between finished products and products in process, and calculate the cost of products in process and the cost of finished products at the same time.". Production costs" account has the following relationship between the relevant data:
Beginning balance + all production costs incurred during the period = cost of products in production at the end of the period + cost of finished goods
Cost of finished goods = beginning balance + all production costs incurred during the period - cost of products in production at the end of the period
That is to say, the problem of calculating the cost of finished goods, that is, the cost of the total cost of production at the end of the period of the distribution between the products in the product and the finished product. Finished goods to allocate between the total cost at the end of the period in the product and finished goods. Generally, this is done by methods such as the Approximate Yield Method or the Flat Rate Method.
The cost of finished goods is calculated, but also with the total cost of finished goods divided by the total production, the unit cost, so that the product costing is all over.
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