What is the production cost of the product?

Including direct costs and manufacturing costs.

1, direct expenditure:

Direct materials (raw materials, auxiliary materials, spare parts, fuel and power, etc.). ), direct wages (wages and subsidies for production personnel) and other direct expenses (such as welfare expenses).

2. Manufacturing cost:

Refers to the expenses incurred by the branches and workshops in the enterprise for organizing and managing production, including wages, depreciation expenses, maintenance expenses, repair expenses and other manufacturing expenses (office expenses, travel expenses, labor insurance expenses, etc.). ).

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1, production cost (production cost):

Also known as manufacturing cost, it refers to the cost of production activities, that is, the expenses incurred by enterprises in producing products.

Production cost is the monetary expression of the utilization rate of various resources in the production process, and it is an important index to measure the technical and management level of enterprises.

2, the role of production cost:

Under the condition of market economy, product cost is the compensation scale to measure production consumption, and enterprises must use product sales income to offset various expenses in the production process to determine profits. Therefore, the control of production cost is an extremely important work in enterprise cost management.

Production cost method is a widely used cost calculation method in the world at present. When the production cost method is used to calculate the cost, only the direct material cost, direct labor cost and manufacturing cost incurred in the production and operation process are included in the product cost, while the management cost, financial cost and sales cost are not included in the product cost, and are directly included in the current profit and loss as current expenses.

References:

Baidu Encyclopedia Production Cost

References:

Zhang Jianhua. Accounting information system. Shanghai jiao tong university press, 200 1 0 1.