What Are The Basic Functions Of Cost Accounting?

The function of cost accounting is to refer to cost The function of accounting in economic management. As an important branch of accounting, cost accounting, as an accountant, has two basic functions of reflection and supervision. However, from the history of the emergence and development of cost accounting, with the increasing complexity of production process, production and operation management constantly put forward new ideas for cost accounting. Requirement The specific contents of cost accounting are also developing. The following are the basic contents of cost accounting functions.

(1) the functions reflected

The function reflected is the primary function of cost accounting. The reflection function of cost accounting is to reflect the expenses of production and operation process and the formation of business cost and period cost in the process of production and operation from the perspective of value compensation, and provide various functions of cost information for management and management. The most basic aspect of cost accounting is to provide real and verifiable cost information for business management based on the various costs that have occurred, so as to make cost analysis and assessment work based on objective basis. With the continuous development of social production, the continuous expansion of business scale and the increasing complexity of economic activities, we need to strengthen planning and foresight in cost management. Therefore, we put forward higher requirements for cost accounting. We need to provide more information for business management through cost accounting, that is, in addition to providing accounting information that reflects the current cost situation, we also need to provide cost information for forecasting future economic activities, so as to make decisions and take measures correctly to achieve the desired purpose. It can be seen that the reflection function of cost accounting reflects the development to analyze and predict the future. Only in this way can we meet the needs of management and management in order to better play its role in operation and management.

It should be pointed out that reflecting the past is closely related to the prediction of the future. To carry out cost prediction, we must first understand the indicators that reflect the status quo and history of cost, and the inner links between them, so as to analyze the future cost situation and the conditions that should be taken to achieve the expected cost management objectives and the measures to be taken. Therefore, it is the basis for cost accounting to provide cost information to reflect the actual cost of production and operation and provide practical cost information.

(two) function of supervision

The supervision function of cost accounting refers to the function of monitoring the rationality, validity and effectiveness of various production and management costs in order to achieve the expected cost management objectives according to certain purposes and requirements through control, regulation, guidance and assessment.

In a socialist market economy, any enterprise in order to achieve itself Expect The business objectives include not only the formulation of plans, the allocation of resources and the implementation of organizational plans, but also the effective supervision so that all economic activities meet the requirements of relevant regulations. The supervision of cost accounting is an important component of accounting supervision and an important aspect of supervising economic activities.

The supervision of cost accounting includes supervision before, after and after. First of all, cost accounting should start from the requirements of economic management to reduce costs and improve economic efficiency, and review the plans and plans for future economic activities of enterprises, and put forward rationalization proposals, so as to give play to the guiding role of economic activities; while reflecting the expenses of production and operation, we should carry out supervision in advance, that is, to examine the rationality, legality and validity of the relevant economic activities based on relevant policies, systems and plans, budgets and regulations of the enterprises, restrict or prevent economic activities that violate policies, systems and plans, budgets, and so on, and support and promote economic activities of increasing production and saving, increasing revenue and reducing expenditure so as to achieve the goal of increasing economic returns. Secondly, cost accounting should carry out supervision after and after events through feedback of cost information, that is, by controlling and assessing relevant economic activities by analyzing and analyzing the information provided by the cost information, summarizing the experience from time to time, finding problems, making suggestions, and promoting measures in the relevant areas to adjust economic activities so that they can be carried out according to the prescribed requirements and expected goals.

The two functions of the reflection and supervision of cost accounting are dialectical unity and complement each other. Without correct and timely reflection, supervision loses the foundation of existence, so it can not play the role of restriction, control, guidance and examination in cost management. Only effective supervision can enable cost accounting to provide reliable and reliable information for management, so that the functions of reflection can be fully exerted. It can be seen that only by combining the two functions of reflection and supervision can we bring into full play the role of cost accounting in management.