What Is Accounting Cost?

Accounting cost is the objective and tangible expenditure of accounting records in the company's account books, including raw materials produced during the production and marketing process.

The production cost is the production cost incurred by the production unit for the production of products or the provision of labor services, including direct expenditures and manufacturing costs.

Direct expenditure includes direct materials (raw materials, auxiliary materials, spare parts, fuel and power, etc.), direct wages (wages and subsidies for production personnel), and other direct expenditures (such as welfare benefits). Manufacturing costs refer to the expenses incurred by the branch and workshop in the organization and management of production, including the branch plant.

Management expenses refer to the expenses incurred by the administrative departments of an enterprise for the management and operation of the organization, including the salaries and welfare expenses of the management personnel, the depreciation fees at the company level, the cost of repair, the pfer of technology, the intangible assets and the deferred assets amortization expenses and other management expenses (office expenses, travel expenses, labor insurance fees, land use taxes, etc.).

The financial cost refers to the expenses incurred to raise funds, including the net interest expenses of interest and their financial costs (net losses of remittances) during the period of production and operation.

Selling expenses refer to the expenses incurred for the sale of products and the provision of services, including the salaries of staff in the sales department, welfare benefits of workers, pportation costs and other sales expenses (advertising, office expenses and travel expenses).