Object Of Cost Accounting

The object of cost accounting is the reflection of cost accounting. supervise Content. It is of great significance to define the object of cost accounting, to identify the tasks of cost accounting, and to study and apply the methods of cost accounting, so as to bring into full play the role of cost accounting in economic management.

Theoretically, the content of cost is the content that cost accounting should reflect and supervise. However, in order to understand the object of cost accounting more detailed and concrete, it is necessary to explain the specific production and operation process of enterprises and the relevant provisions of the current enterprise accounting system. Take industrial enterprises as an example, explain the contents of cost accounting that should be reflected and supervised.

The basic production and operation activities of industrial enterprises are the production and sale of industrial products. stay product In the direct production process, that is, from the production of raw materials to finished products, the products are produced on the one hand; on the other hand, a variety of production costs will take place. In this process, the cost of production is generally divided into two parts: labor cost and labor cost, including labor data and labor objects. Data, in the production process, plays a long-term role until it is scrapped and does not change its physical form, but its value is gradually transferred to the products manufactured as a result of the wear and tear of fixed assets, which constitutes part of the cost of production. Raw material and other labor objects are consumed in the production process or changed in real form, and their value is transferred to new products all at once. It also constitutes a part of the cost of production. The production process is the process that the laborers process and manufacture products by means of labor tools, and through the processing of laboring objects, the value of the original labor objects can be changed, and new values can be created. In which housing, machinery and equipment, and other fixed assets as labor. The value created by labourers for their own labor is paid to laborers in the form of wages for personal consumption, so this part of wages also constitutes part of the cost of production. Specifically, the various production costs that occur during the manufacturing process of a product include expenditure on raw materials and main materials, auxiliary materials, fuels, depreciation of fixed assets in production units (such as branches, workshops), production of direct production personnel and management of production units, and other monetary expenditures. All these expenditures constitute the total production cost of the enterprise in the product manufacturing process, and the total production cost incurred for the production of a certain number of products constitutes the production cost of the product. The production cost and production cost of the above products are the main contents of cost accounting.

In the product sales process, enterprises will also spend a variety of expenses for the sale of products. For example, transportation expenses, loading and unloading charges, packing fees, insurance premiums, exhibition fees, travel expenses and advertising fees shall be borne by the enterprises, as well as the wages and welfare benefits of employees, the nature of similar wages, and the business expenses of specialized sales offices for the sale of goods of this enterprise. All these expenses constitute the expenses incurred for the sale of this enterprise product. enterprise Sales expenses. Sales expenses are also important expenses incurred by enterprises in the course of production and operation. The expenditure and collection process should also be reflected and supervised by cost accounting.

The administrative departments of enterprises will also have various expenses for organizing and managing production and business activities. For example, the salaries of personnel in the administrative departments of enterprises, depreciation of fixed assets, trade union funds, business entertainment expenses, loss of bad debts and so on. These costs can be collectively referred to as management costs. The management cost of an enterprise is also an important cost incurred in the course of production and operation of an enterprise. Its expenditure and collection process should also be the content of the cost accounting.

In addition, there will be some costs for enterprises to raise funds needed for production and operation. For example, net interest payments, net exchange losses, and financial institutions' handling fees. These costs can be collectively referred to as financial expenses. Financial cost is also the cost that an enterprise has in the course of production and operation. Its expenditure and collection process should also belong to the content of cost accounting.

The above sales expenses, management fees and financial expenses are not directly related to the production of products. Instead, they are directly counted into the profits and losses of the current period according to the period in which they are collected. Therefore, they constitute the period cost of the enterprise.

To sum up, in accordance with the relevant provisions of the accounting system for industrial enterprises, the object of cost accounting in industrial enterprises can be summarized as: the cost of production and the period cost in the process of production and operation of industrial enterprises.

Although the production and operation processes of other enterprises, such as commodity circulation enterprises, transportation enterprises, construction enterprises, agricultural enterprises and so on, have their own characteristics, according to the relevant provisions of the current enterprise accounting system, the expenses incurred in the production and operation process are also partly formed by the cost of production and operation of enterprises. Therefore, starting from the relevant provisions of the current enterprise accounting system, the object of cost accounting can be summarized as: production and operation cost and period cost in the course of enterprise production and operation.

Above, according to the relevant provisions of the current enterprise accounting system, we have a general exposition of the object of cost accounting. However, the cost accounting should not only provide reliable information on the cost of production, operation and operation, but also provide information on the cost of production and operation and the period cost for enterprises in the light of the relevant provisions of the current enterprise accounting system. For example, in order to carry out short-term and pre production decisions, we should calculate variable cost, fixed cost, opportunity cost and differential cost. In order to strengthen internal cost control and assessment, we should calculate controllable and uncontrollable costs. In order to further improve the decision-making relevance of cost information, we can also calculate the activity cost and so on. The cost mentioned above in accordance with the relevant provisions of the current enterprise accounting system, including the cost of production and operation and the period cost, can be regarded as the financial cost; the cost calculated for the needs of the internal management of an enterprise can be called the management cost. Therefore, the object of cost accounting should generally include the financial cost and management cost of various industries.