Why do you allocate auxiliary production expenses first and then manufacturing expenses in cost accounting?

Because the cost will eventually be allocated to the specific product, the auxiliary production cost can not directly correspond to the product, but can correspond to which workshops will benefit.

Therefore, it is necessary to allocate the auxiliary production cost to each workshop first, and then divide the original manufacturing cost of this workshop plus the allocated auxiliary cost by the production quantity of this workshop.

Cost accounting is an accounting activity to calculate all production costs and expenses in order to obtain the total cost and unit cost of products under the condition of commodity economy. Modern cost accounting is to overcome the disadvantages of accounting information distortion caused by price changes caused by inflation.

In the case of price changes, the procedure and method of confirming, measuring and reporting related accounting objects with the current cost of assets as the measurement attribute is a value management activity of forecasting, making decisions, controlling, accounting, analyzing and assessing the cost consumption of related economic entities in the process of product production and operation with money as the main measurement unit.

Modern cost accounting is a new accounting theory developed on the basis of inheriting traditional cost accounting. It is the extension and expansion of traditional cost accounting in the changing price environment. It effectively combines cost accounting with production and operation, has different accounting procedures and methods from traditional cost, can reflect the changes of asset value with the changes of economic environment in time, and has high decision-making relevance.