1. Provision means calculation and withdrawal. Calculate the withdrawal by multiplying the specified ratio and the specified base number and include it in a certain account. It refers to multiplying a prescribed base (such as the legal employee salary paid) by a prescribed ratio (for example, the welfare fee payable nationwide is 14% of the salary). The welfare fee payable calculated according to this method is the welfare fee payable that should be withdrawn. The process, included in the account of welfare fees payable, is the explanation of the latter sentence.

2. Apportionment is to determine the various cost objects of the cost, and allocate or assign the various costs to each product, process, task, or department. Cost apportionment refers to allocating the same expenses among various departments and products to facilitate the scientific calculation of each production cost.

The reasons for cost sharing are:

1) Modern production leads to the emergence of *** costs, and high technology further increases the proportion of *** costs, *** Coincidence costs can be said to be everywhere;

2) From Coase's discussion of enterprises, we can know that since enterprises can still save transaction costs, imitation costs are inevitable.

3. Amortization refers to the accounting treatment method of apportioning the acquisition cost of operating assets other than fixed assets that can be used for a long period of time according to their useful lives every year, which is similar to the depreciation of fixed assets. Amortization expenses are included in administrative expenses to reduce current profits, but have no impact on operating cash flow.

(1) Common amortized assets such as large-scale software, land use rights and other intangible assets and start-up expenses can contribute to the company’s business and income over a long period of time, so their acquisition costs are also It is only reasonable to spread it over each year.

(2) The amortization period generally does not exceed 10 years. Like depreciation, you can choose the straight-line method and the accelerated method to amortize intangible assets. In terms of amount, under normal circumstances, amortization expenses are much smaller than depreciation expenses. That is to say, most companies' fixed assets are much larger than intangible assets, so amortization and depreciation are generally disclosed together without Add distinction.

Extended information:

According to Article 49 of the "Details of the Tax Law", enterprise preparation fees should be amortized in installments starting from the month following the month in which production and operations are started. The amortization period does not exceed Less than 5 years. Land use rights should be amortized separately as intangible assets. As for the amortization period of intangible assets, if the contract has a stipulated number of years, it will be amortized according to the number of years stipulated in the contract. If there is no contract stipulation, it will be amortized according to a period of not less than 10 years.

Basic principles of cost sharing:

(1) Cost sharing and continuous cost reduction

Cost sharing should be able to promote the formation of a continuous cost reduction mechanism internally.

For example, in the sharing of water and electricity bills, if the auxiliary departments use electricity and water for "free", what are the possible consequences?

(2) Cost sharing should promote cooperation within the enterprise

At this time, attention should be paid to the issue of isolation cost allocation and non-isolation cost allocation. Isolated cost allocation allows each department to perform its duties, and is suitable for situations where the relationship between departments is not close, but it can easily lead to internal non-cooperation; non-isolated cost allocation will make various departments influence each other, and it encourages necessary cooperation. With mutual supervision, however, improper operation can easily cause a new rice in the pot.

Function of accrual:

1. Under the premise of accrual basis, certain expenses that have been incurred but not actually paid are included in advance.

2. Calculate and withdraw relevant (retention, impairment) reserves according to system regulations.

3. Anticipate certain accounts payable.

4. Other expected items that comply with the accounting system.

Reference materials: Amortization-Baidu Encyclopedia? Expense sharing-Baidu Encyclopedia?Accrual-Baidu Encyclopedia