What are the advantages of planned cost and actual cost?

First, raw materials are accounted by planned cost method, which is suitable for enterprises with few varieties of materials and single receiving and dispatching volume. Its advantages are:

1, the material receiving and dispatching cost accounting is relatively direct.

2. The monthly work of materials is simple.

Second, raw materials are accounted by planned cost method, which is suitable for enterprises with more materials receiving and dispatching business and more complete and accurate planned cost information. In general, the planned cost is used for material receiving and dispatching accounting, and its advantages mainly include:

1, which is beneficial to the performance appraisal of the purchasing department;

2. It is conducive to strengthening the management and supervision of inventory;

3. It is beneficial to the performance appraisal of consumable materials department;

4. This is beneficial to simplify the accounting procedure.

Third, the use of planned cost valuation is applicable to: the planned cost data accounting is relatively sound and accurate, and the cost plan management accounting has a certain foundation.

Planned cost refers to the planned cost set by material enterprises in the current period. Multiply the planned cost of material procurement into raw materials and raw materials warehousing by the number of units, and record the difference of material procurement in the material cost difference account. At the end of the month, the material cost variance will be shared between the inventory and the receiver.

This practice is to reduce the trouble of warehousing when the market price of materials changes frequently, and restore the actual cost as long as it is leveled at the end of the month.

The actual cost is that the actual price is directly transferred from the material procurement to the raw material subject. If the market price of materials is changing, we should consider using FIFO method, LIFO method or weighted average method.

Extended data:

The composition and content of the planned cost should be consistent with the actual cost. The planned cost of purchasing raw materials is calculated according to the purchase price of each raw material and the distance of the supply location, and according to the actual cost items of raw materials. By comparing with the actual cost, it can be suggested that the procurement cost of raw materials can be saved and overspent.

The planned cost of products is calculated and determined according to the consumption quota, man-hour quota and expense budget of raw materials, fuel and power during the planning period, and according to the specified cost items.

It reflects the average cost level that should be achieved during the planning period and is the goal of reducing costs. By comparing with the actual cost, understand and master the execution and completion procedures of enterprise cost plan, and find ways to reduce product cost.

Refers to the expected product cost, material procurement cost, engineering cost, etc. During the planning period.

Based on the consumption quota of working hours, materials, fuel, power and tools. In the planning period and the current cost budget, as well as related information, and on the basis of analyzing the actual cost level achieved in the previous period, considering the changes of various factors affecting the production cost during the planning period and the expected effect of economic measures, the level that should be achieved in this period is formulated and calculated.

Baidu Encyclopedia-Planned Cost