Cost accounting is a process of estimating, tracking and controlling the cost of products and services, in which cost accountants help to manage plans and control the company's operations, make long-term or strategic decisions, and establish favorable cost control methods, reduce costs and improve quality.
The meaning of cost
Cost is the product of commodity economy, an economic category in commodity economy and the main component of commodity value.
The content of cost is often subordinate to the needs of management. In addition, because the content of economic activities is different, the meaning of cost is also different. With the development of social economy and the improvement of enterprise management requirements, the concept and connotation of cost are constantly developing and changing, and the range of cost that people can feel is gradually expanding.
Different economic environments and different industry characteristics have different understandings of the connotation of cost. However, the economic content of cost can be summed up in two ways: first, the formation of cost is aimed at a certain goal, which can be tangible products or intangible products, such as new technologies and new processes; It can also be a service, such as the service goal of education and health system. Second, the cost is the cost to achieve a certain goal, and the expenditure without the goal is a loss, which cannot be called cost.
Content of cost accounting
Modern cost accounting broadens the connotation and extension of traditional cost accounting, which involves a wide range of contents. According to the current knowledge of accounting circles in China, the basic contents of modern cost accounting are: cost prediction, cost decision-making, cost planning, cost control, cost accounting, cost analysis, cost assessment and cost inspection.
How to arrange and use the above resources, enterprises must plan the input and use of resources according to the tasks of enterprise production and operation, and measure the efficiency and benefit after these resources are put into use. This requires careful observation and analysis of the surrounding environment and internal conditions of enterprises, full mastery of correct information and improvement of information system are the basis for making cost plans. At the same time, improving quality of enterprise and improving the business environment of enterprises are important conditions for improving the cost plan of enterprises. In order to improve the quality and environment, we must deepen the reform. According to the requirements of the market economy, according to the various links and projects of production and operation, and according to the production and operation period, the cost budget and cost plan of each link and stage of production and operation are formulated respectively, and an organic cost planning system is formed.
Costs and expenses
Cost and expense are a set of concepts that are closely related and have some differences. Correctly distinguishing costs from expenses is an important premise of cost accounting. Cost refers to the cost of producing a product, completing a project or doing something, that is, the sum of the expenses incurred, which is the objectified cost. Expense refers to the consumption of the assets owned or controlled by the enterprise in the process of obtaining the current income, which is the cost matching the income during the accounting period. Cost represents the sacrifice of economic resources, while expense is the cost incurred in order to obtain income during the accounting period.
Cost accounting focuses on cost rather than expense.
Unexpended cost and consumed cost
In financial accounting, costs are divided into two categories: unconsumed costs and consumed costs.
Unexpended costs refer to expenditures that can generate income in future accounting periods, and such costs are listed as asset items on the balance sheet, such as equipment, inventory and accounts receivable. Consumed cost refers to the expenditure that has been consumed in the current accounting period and will not create income in the future accounting period. This kind of cost can be divided into expenses and losses. The former is listed as the deduction of current income in the income statement, such as the production cost of sold products and the expenses in various periods, while the latter is listed as non-operating expenses and other items in the income statement, such as the losses caused by natural disasters such as fires and floods, because there is no corresponding benefit.
Expenditure cost and opportunity cost
Expenditure cost and opportunity cost are two main types of costs.
Expenditure cost is past, present or future cash outflow. Opportunity cost refers to the income from the suboptimal scheme given up because of choosing the optimal scheme. The characteristic of accounting system is to record expenditure cost but not opportunity cost. However, in order to ensure the optimal decision, managers should consider the opportunity cost when making decisions.
Cost accounting information
Cost accounting is a mixture of financial accounting and management accounting, and it is an accounting method to calculate and provide cost information.
Financial accounting should be based on the relevant information provided by cost accounting for asset valuation and income determination, and the procedures of cost formation, collection and carry-over should also be included in the general framework of financial accounting based on double-entry bookkeeping. Therefore, cost data are often used by external information users of enterprises to evaluate the performance of enterprise management authorities and make investment decisions accordingly. Similarly, the cost data provided by cost accounting is often used by enterprise management authorities as the basis for decision-making or for evaluating the performance of internal managers.
The task of cost accounting
(1)[ 1] Calculate the product cost correctly and provide cost information in time. Only when the cost data is correct and reliable can it meet the needs of management. If the cost data can not reflect the actual level of product cost, it will not only be difficult to assess the completion of the cost plan and make cost decisions, but also affect the correct measurement of profits and the correct valuation of inventory, distorting the financial situation of enterprises. Timely preparation of various cost statements can make the relevant personnel of the enterprise know the changes of costs in time, and serve as important reference materials for setting the selling price and making cost decisions.
(2) Optimize the cost decision and establish the target cost. To optimize the cost decision, it is necessary to collect and sort out all kinds of cost information on the basis of scientific cost prediction, take all kinds of cost reduction measures under realistic and possible conditions, and choose the scheme that consumes the least living labor and materialized labor to produce each qualified product from several feasible schemes, so as to minimize the cost as the basis for formulating the target cost. In order to optimize the cost decision-making, it is necessary to enhance the cost awareness of enterprise employees, so that they can consciously consider and attach importance to the requirements of reducing product costs when dealing with each business activity, and compare the expenses with the income to improve the economic benefits of enterprises.
(3) Strengthen cost control to prevent crowding out costs. To strengthen cost control, the first step is to control the target cost. Mainly rely on the executive's self-management and self-control to promote them to improve their technology, practice economy and pay attention to efficiency. Secondly, abide by the provisions of various laws and regulations, and control various expenses, non-operating expenses and other crowding out costs.
(4) Establish cost responsibility system and strengthen cost responsibility assessment. The cost responsibility system is a stipulation on the responsibilities of all departments, levels and executors in the enterprise, and it is an effective way to improve the responsibility of employees to reduce costs and give play to their initiative, enthusiasm and creativity. To establish a cost responsibility system, it is necessary to implement the responsibility of completing the task of cost reduction to each department, level and responsible person, so that the responsibilities, rights and interests of employees can be combined, and the labor income of employees can be combined with labor costs; All responsible units and individuals should bear the responsibility of reducing costs, the right to implement cost plans, and get the benefits of rewards and punishments.
Foreign account accounting is to edit the company's foreign accounts. It is used by industry and commerce, taxation and investment units. The foreign accounts should be made into two books, one is to face the losses of the industrial and commercial and tax departments as much as possible; The other is to attract investors and the more assets, the better. And external accounting is mainly to take out the invoiced part of the company's income and expenditure to make a set of accounts. It is only to meet the needs of external investors in the tax department, but it can't reflect the company's no invoicing income and cost, and then it can't truly reflect the company's operating status and financial status.
Compared with internal accounts, external accounts need to know more about taxation, and have a deeper understanding of each tax type and tax rate. Some companies' external accounting is part-time accounting, which is only responsible for a company's tax returns and the preparation of tax return vouchers at the beginning of the month. Therefore, external accounting can also be called part-time accounting.