What is the calculation formula of cost?

Cost calculation formula: ending cost amount = opening balance+current increase amount-current decrease amount.

Different industries may have different cost calculation methods; It is very important to control and calculate the cost, which is what investors are most concerned about. Cost calculation is a special method to collect the costs and expenses in the process of production and operation according to certain cost objects to determine the total cost and unit cost of each object.

Reasonable selection of cost allocation standards.

The production process is usually complicated. After an expense occurs, it often has multiple uses, produces multiple products, and has more than one object for cost calculation. In this way, after an expense is incurred, it is often not directly and completely recorded in a detailed account reflecting one object, but needs to be shared among several objects.

So, which object should pay more-a little, and which object should pay less? Its distribution principle is: "whoever consumes will bear" or "whoever benefits will bear". However, it is difficult to allocate expenses accurately, and it is also difficult to accurately measure the cost consumption (income) of an object.