What are the characteristics of the basic cost calculation method?

The basic methods of cost calculation include direct cost calculation, indirect cost calculation, completed cost calculation and unfinished cost calculation.

The basic methods of cost calculation include direct cost calculation, indirect cost calculation, completed cost calculation and unfinished cost calculation.

1. Direct cost calculation method: calculation of direct materials and direct labor.

2. Indirect cost calculation method: a method to solve how to calculate the indirect cost. The calculation of manufacturing cost allocation is generally based on production hours, flow hours, output value and direct cost.

The amount of indirect expenses that a product should bear = the number of distribution standards of the product × the indirect expense distribution rate.

3. Calculation method of completed cost and unfinished cost:

(1) Jordan yield method. Equivalent output, that is, the actual quantity of products at the end of the month, is converted into the quantity equivalent to finished products according to the degree of completion.

(2) Fixed consumption ratio method. That is, the method of calculating cost items according to the ratio of fixed consumption of finished products to fixed consumption of work in process and dividing the cost of finished products and work in process.

(3) norm cost deduction method for products. Norm cost is the unit norm cost determined for WIP and finished products in each processing step according to consumption quota data.

The principles to be followed in calculating the cost mainly include:

1, the principle of legality. Refers to the expenses included in the cost must comply with the provisions of laws, decrees and systems. Non-compliant expenses cannot be included in the cost.

2, the principle of reliability. Include authenticity and verifiability.

Authenticity means that the cost information provided is consistent with objective economic matters, and shall not be adulterated or artificially increased or decreased. Verifiability means that the cost accounting data are calculated by different accountants according to certain principles, and all of them can get the same result. Authenticity and verifiability are to ensure the correctness and reliability of cost accounting information.

3. The principle of relevance. Including the usefulness and timeliness of cost information. Usefulness means that cost accounting should provide useful information for management and serve cost management, forecasting and decision-making. Timeliness emphasizes the timeliness of information acquisition. Timely information feedback can take timely measures to improve the work. At this time, information often becomes useless information.

4. The principle of accounting by stages. In order to obtain the cost of products produced in a certain period, enterprises must divide endless production activities into various periods according to certain stages (such as months, seasons and years) and calculate the product cost of each period respectively.

The stages of cost accounting must be consistent with the monthly, quarterly and annual accounting years, which can facilitate the calculation of profits.

5. The accrual principle. Expenses that should be borne by the current cost, whether paid or not, should be included in the current cost; Although the expenses that should not be borne by the current cost are paid in this period, they should not be regarded as the main cost of this period, so as to provide the cost information of each project correctly.

6, the actual cost pricing principle. Raw materials, fuel and power consumed in production shall be calculated according to the actual unit cost actually consumed, and the cost of finished products shall be calculated according to the actual cost. Although the accounts of raw materials, fuel and finished products can be adjusted to the actual cost by adding or subtracting the cost difference according to the planned cost.

7. The principle of consistency. The methods used in cost accounting must be consistent in each period, so that the cost data in each period has a unified caliber, consistency and comparability.

8, the principle of importance. Projects that have a significant impact on cost should concentrate on accuracy. For those trivial matters that are not too important, you can simply handle them.

Refer to the above content: Baidu Encyclopedia-Cost Accounting