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Basic Accounting Knowledge: Cost

2010/12/22 15:43:00 46

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Cost is a noun that often appears in economic life, but there are great differences in connotation in various fields.

Definition of cost

According to the new accounting standards:

"Cost" refers to the occurrence and decrease of owners' rights and interests in daily activities.

All

A person distribus the total outflow of economic interests that are not related to profits. "

"Fees can be recognized only if economic benefits are likely to flow out, resulting in reduced assets or liabilities, and the outflow of economic benefits can be measured reliably."

"In order to produce products, provide labor services and other expenses that can be attributed to product costs, labor costs, etc., the enterprise shall include the cost of the products already sold and the services already provided into the current profits and losses when confirming the sales revenue and labor income of the products.

If an enterprise's expenditure does not generate economic benefits or even if it can generate economic benefits, but does not conform to or no longer meet the conditions for asset recognition, it shall be recognized as expenses at the time of occurrence and shall be included in the profits and losses of the current period.

Where an enterprise's pactions or events cause it to bear a liability and does not recognize it as an asset, it shall be recognized as a cost at the time of its occurrence and shall be included in the profits and losses of the current period.

"Items that meet the definition of cost and conditions for confirmation of fees shall be included.

profit

Table.

Profits include net income after deduction of expenses, gains and losses directly counted into current profits and so on.

The gains and losses that are directly included in the current profits refer to profits or losses that should be included in the profits and losses of the current period, which will lead to changes in owners' equity and have nothing to do with the owners' capital investment or the distribution of profits to owners.

Accounting for expenses

Including: main business costs, other business costs, business taxes and additional, sales costs, management costs,

Finance

Losses, accounting for impairment of assets, etc., accounting for losses refers to non operating expenses, including disposal of illiquid assets, loss of non monetary assets, loss of debt restructuring, donations for public welfare donations, extraordinary losses and losses due to inventory losses.

Production costs, manufacturing costs, labor costs, R & D expenditure and other subjects belong to the cost category, should be listed in the balance sheet.

(Note: to be exact, "production costs, manufacturing costs, labor costs, R & D expenditure and other subjects belong to the cost category and should be listed on the balance sheet."

The balance of production costs, manufacturing costs, labor costs, R & D expenditures, etc. should be classified as cost categories and should be listed on the balance sheet.

More appropriate)