The most commonly used cost accounting methods

First, the moving weighted average method

One of the valuation methods of commodities is another inventory valuation method under the average method. That is, the new average unit cost should be calculated according to the inventory quantity and total cost every time the enterprise inventory is put into storage. The new average unit cost is used to determine the pricing method for receiving or sending inventory. Moving weighted average method is the name of weighted average method under permanent system.

Second, the monthly average method

Monthly average method (weighted average? The system) takes the opening quantity of this month and the total purchase quantity of this month as weights, takes out the total purchase cost of this month plus the opening purchase cost, and calculates the average unit cost of this month's inventory. On this basis, it calculates the cost of inventory issued this month and the actual cost of inventory at the end of the month. Mainly applicable to the cost accounting of finished products and semi-finished products of production enterprises; Raw material cost accounting.

Third, the first-in first-out method

The latest issue (requisition) of an item determines its inventory issue pricing basis according to the receipt time of each batch of the item (or this kind of item), and the item that is received first is issued first. When the FIFO method is adopted, the ending balance inventory cost is close to the current market value.

Fourth, LIFO method.

Just the opposite of FIFO. In the period of rising prices, increasing current costs and reducing profits can reduce the adverse impact of inflation on enterprises, which is also one of the methods to implement the principle of conservatism in accounting practice.

Verb (abbreviation of verb) individual evaluation method

Individual valuation methods, also known as "individual identification method", "individual identification method" and "batch actual method", refer to the methods of determining unit cost and issuing inventory cost respectively. Using this method, specific inventory items are required to be clearly marked, and those with small quantity and high value, such as large items and valuables, are required. For various items of ending inventory, the unit cost and total cost of each item are determined respectively, and then the total cost of ending inventory is added up.

Six, the planned cost method

Planned cost method refers to an accounting method in which the daily income, delivery and balance of enterprise inventory are priced according to the pre-established planned cost, and the subject of "material cost difference" is set as the link between planned cost and actual cost to register the difference between actual cost and planned cost. Adjust the planned cost of issued inventory and the planned cost of inventory balance at the end of the month, and reflect the actual cost by allocating the inventory cost difference. This method is suitable for enterprises with various kinds of inventory and frequent sending and receiving.

Seven. Gross profit margin method

Gross margin method is based on the current net sales multiplied by the actual gross margin of the previous period (or this month's plan) to calculate the current sales gross margin and the cost of issuing inventory. This calculation method is suitable for enterprises with many kinds of business and the monthly cost is really difficult to calculate. It is a simplified cost calculation method, but the comprehensive gross profit margin of all goods (or categories) is affected by many factors. The results are often inaccurate. When using this method, it is generally only used in the first two months of a quarter, and other cost calculation methods such as "weighted average method" must be used at the end of the quarter to calculate and adjust the quotient within a quarter. The cost of goods sold and the amount of goods at the end of the period are in line with reality.