Cost accounting method

There are five cost accounting methods, namely: variety method, batch method, step method, classification method and ABC cost method.

1, various methods

Variety method is a cost accounting method that takes the company's product varieties as the object of cost accounting, which is mainly divided into product categories, types, varieties, specifications and other categories, and is suitable for enterprises that only require the assessment of the final products.

Step 2 classify

Classification is a cost accounting method which takes the product category of the company as the cost accounting object. It can be divided into natural products and products needed by management, which are suitable for enterprises with many and miscellaneous product categories, but can be classified according to certain exhibitions, such as steel mills.

Step-by-step approach

Step-by-step method is a cost accounting method which takes the production stage or step of the company's products as the cost accounting object. It can be divided into departments, workshops, working procedures and processing stages, and is suitable for enterprises that require cost calculation according to production stages and steps, such as paper industry.

4. Batch processing method

Batch method is a method to collect production costs and calculate product costs according to product batches. In small batch single-piece production enterprises, the production activities of enterprises are basically organized according to the order number issued by the ordering unit. Calculating product cost according to product batch is often consistent with calculating product cost according to order, so batch method is also called order method.

5.ABC cost method

ABC cost method is a quantitative management method based on the economic and technical characteristics of things, using mathematical statistics methods for statistics, sorting and analysis, grasping the main contradictions, distinguishing the key points from the general ones, and thus adopting different management methods.

Cost accounting purpose

1, build a comprehensive enterprise cost management thinking and seek effective methods to improve enterprise costs.

2. Jump out of the traditional cost control framework and analyze and control the cost more macroscopically from the perspective of the company's overall operation.

3. Master the main methods of cost accounting and their respective advantages and disadvantages, and improve the existing accounting system according to the changes of the situation.

4. Master the main methods of cost analysis and provide key and effective cost figures for decision makers.