We know that different enterprises have different characteristics in the production process and have different requirements for cost management. This has a great influence on the specific method of cost calculation. In other words, only by choosing different cost calculation methods according to the characteristics of enterprise production and the different requirements of cost management can the product cost be calculated correctly.

[Edit] Main production types and cost management requirements

Different enterprises. According to the production process and production organization, it can be divided into different types:

1. According to the characteristics of the production process, it can be divided into: ① single-step production: also known as simple production, it refers to uninterrupted and step-by-step production in production technology. Such as power generation, casting, mining and so on. (2) Multi-step production, also known as complex production, refers to production that can be interrupted technically and consists of several steps. If these steps are carried out in sequence, they cannot coexist or be reversed, and the finished product can be produced only after the last step is completed. This kind of production is called continuous complex production. Such as textile, metallurgy, paper making, etc. If these steps are not in chronological order, they can be carried out at the same time, each step produces different parts, and then assembled into finished products. This kind of production is called assembly complex production. Such as machinery, electrical appliances, ships, etc. ;

2. According to the characteristics of production organization, it can be divided into: ① mass production. Refers to the continuous and repeated production of products of the same variety and specification. This kind of production generally has fewer varieties and relatively stable output. Such as power generation, coal mining and metallurgy. The demand for mass production products is generally single and stable, and the demand is large. (2) mass production; Refers to the predetermined batch and limited production. This kind of production is characterized by many varieties or specifications, and it is organized by turns in batches. This kind of production organization is the main form of modern enterprise production. ③ One-piece production. It is organized according to orders and each product. This form of production organization is rare. Mainly suitable for some large and complex products. Such as heavy machinery, shipbuilding and special equipment.

Different enterprises have different requirements for cost management. For example, some enterprises only need to calculate the cost of finished products, and some enterprises not only need to calculate the cost of finished products, but also calculate the cost of semi-finished products at each step. Some enterprises require to calculate the cost on a monthly basis, while others may only require to calculate the cost after a batch of products is completed. Different cost management requirements are also a factor that affects the choice of cost calculation methods.

[Edit] Determination of product cost calculation method

Different enterprises have different cost calculation methods because of different production processes, production organizations and cost management requirements. The differences between different cost calculation methods are mainly manifested in three aspects: First, the cost calculation objects are different. Second, the cost calculation cycle is different. Third, the distribution of production costs between finished products and semi-finished products is different. Commonly used cost calculation methods mainly include variety method, batch method and step method.

1. Variety method; Variety method is a method of collecting production costs and calculating product costs with product varieties as the object of cost calculation. Because the variety method does not need to calculate the cost in batches or steps, this cost calculation method is relatively simple. Variety method is mainly suitable for large-scale single-step production enterprises. Such as power generation and mining. Or a small enterprise that does not need to calculate the cost of semi-finished products, although it belongs to multi-step production, such as small cement and brick making. The variety method generally calculates the product cost on a monthly basis, and there is no need to share the production cost between finished products and semi-finished products.

2. Batch method. Batch method is also called sequential method. It is a method to collect production expenses and calculate product cost by taking the batch or order of products as the object of cost calculation. Batch method is mainly suitable for multi-step production of single piece and small batch. Such as heavy machine tools, ships, precision instruments and special equipment. The cost calculation period of batch method is not fixed-generally, a production cycle (that is, the whole period from production to completion) is used as the cost calculation period, and the product cost is calculated regularly. Because there is no finished product before the work is completed and there is no finished product after the work is completed, the finished product and the finished product will not coexist at the same time, so there is no need to share the production cost between the finished product and the finished product.

Step by step. Step-by-step method is a method to collect production costs and calculate product costs according to the production steps of products. Step-by-step method is suitable for batch or batch multi-step production. Such as machinery, textile, paper making, etc. Because of the large production capacity, there are often finished products, semi-finished products and semi-finished products at a certain moment, so it is impossible to calculate the cost after all the products are completed. Therefore, the step-by-step method generally calculates the cost on a monthly basis, and the production cost should be shared between finished products and semi-finished products.

[Editor] Correctly divide the boundaries of various expenses

1. Correctly divide the boundary between product cost and product cost, and determine the range of cost. There are many expenses incurred by enterprises. According to the principle of who benefits (or who consumes) and who bears, all kinds of materials and labor costs consumed in the production process should be included in the production cost. Otherwise, it cannot be included in the production cost. Such as payment of various late fees, compensation, donations, sponsorship, etc. Should be included in non-operating expenses. Dividends should be included in profit distribution. Management expenses and financial expenses should not be included in the production cost, but should be included in the period cost.

2. Correctly divide the monthly expenses. According to the principle of staging, in order to reflect and assess the cost in time, it is necessary to calculate the cost regularly and monthly. According to the accrual principle, the expenses incurred should be allocated to the relevant month according to the benefit principle. (1) All expenses that have been spent but should be borne by the following months should be included in the prepaid expenses. (2) The expenses that have been paid this month but should be borne by last month should be deducted from the "accrued expenses" account because the expenses were predicted and recorded in the "accrued expenses" account last month. (3) This month's expenses, whether paid or not, should be included in this month's expenses.

3. Correctly divide the boundaries between product cost and period cost. All kinds of expenses incurred by enterprises should be included in the expenses incurred in the current month, and the boundary between product cost and period cost should be further distinguished. All expenses incurred in product production belong to the product cost, which should be recorded in the "production cost" account, and then transferred to the "finished goods" account after the product is completed. After sales, it is transferred to the "cost of sales" account, and the profit of this year is carried forward at the end of the period. Management expenses, sales expenses and financial expenses incurred in non-production areas are all period expenses, and the handling method of * * * is relatively simple. At the end of the period, all of them will be transferred to the "profit of this year" subject, and the current profit and loss will be offset in one lump sum.

4. Correctly divide the cost boundaries of different products. If an enterprise only produces one product, then the total production cost is the cost of this product. Ordinary enterprises produce more than one product, so it is necessary to allocate all production costs to several products. Any expenses that can be borne by any product should be directly included in the cost of the product. When the cost is shared by several products, appropriate standards should be adopted (according to the principle of who benefits and who bears) for distribution. Finally, the cost of various products is calculated.

5. Correctly divide the boundaries between finished products and semi-finished products. Through the previous step, we have calculated the total cost of each product. If this product has been completely completed, its cost is the total cost of finished products; If the product is not completed, its cost is all the cost of the product in progress. But usually, there are both finished products and in-process products, which requires the total cost of products to be allocated between finished products and products. Generally speaking, a work-in-process should bear less cost than a finished product, because the product has not been completed and consumes less resources than the finished product. The cost allocation between finished products and work in process should consider the degree of completion. The distribution methods include equivalent output method, quota method and fixed proportion method.