General manufacturing cost accounting method

General manufacturing cost accounting methods include step-by-step method, batch method, variety method and ABC cost method.

Step-by-step method: Step-by-step method is a method to calculate the cost with the production stage and "steps" as the object of cost calculation. The scope of application includes a large number of enterprises with multi-step and multi-stage production; Management requires calculating the cost according to the production stage, steps and workshops; Metallurgical, textile, paper-making and other enterprises that produce a large amount of flowing water. Classification is a method of collecting expenses and calculating costs with "product category" as the object of cost calculation.

Batch method: batch method is a cost calculation method with product batches as the object of cost calculation. The scope of application includes single-piece, small-batch production enterprises and enterprises that organize production according to customer orders, so it is also called "order method".

Variety method: Variety method is a cost calculation method with product variety as the object of cost calculation. The variety method is suitable for a large number of enterprises with one-step production. Such as power generation, mining industry, and enterprises that only require the evaluation of the final product in management.

ABC cost method: ABC cost method is a method of collecting and distributing indirect expenses such as manufacturing expenses without the traditional method (taking the workshop as the collection and distribution object), but taking "activity" as the cost, which can allocate indirect expenses more reasonably and make the cost calculation more reasonable.

Composition of manufacturing cost

General manufacturing expenses consist of direct materials, direct labor and manufacturing expenses. Direct material refers to the labor object in the production process, which is processed into semi-finished products or finished products, and its use value becomes another use value; Direct labor refers to the human resources consumed in the production process, which can be calculated by wages and welfare expenses.

Manufacturing expenses refer to facilities such as factories, machines, vehicles and equipment used in the production process, as well as machine materials and accessories. Part of their consumption is included in the cost through depreciation, and the other part is included in the cost through maintenance, fixed expenses, consumption of machine materials and accessories.