I just went to a newly established medical device company to do cost accounting, the main products are syringes, specifications have a variety of ml, the workshop **** there are four, first of all, th

I just went to a newly established medical device company to do cost accounting, the main products are syringes, specifications have a variety of ml, the workshop **** there are four, first of all, the note Different enterprises, due to the production process, production organization, as well as cost management requirements are different, the costing method is not - like. The difference between different costing methods is mainly manifested in three aspects: First, the costing object is different. Second, the costing period is different. Third, the production costs in finished goods and semi-finished products between the distribution of different situations. Commonly used costing methods are mainly varieties, batch method and step-by-step method.

1. Variety method: variety method is to product varieties as the costing object to aggregate production costs, product costing - a method. Because the variety method does not need to calculate the cost by batch, and do not need to calculate the cost of semi-finished products by step, so this costing method is relatively simple. Variety method is mainly applicable to high-volume single-step production enterprises. Such as power generation, extraction, etc. Or although belonging to the multi-step production, but does not require the calculation of semi-finished product costs of small enterprises, such as small cement, brick-making, etc.. The variety method generally calculates the cost of products on a regular monthly basis, and does not require the allocation of production costs between finished and semi-finished products.

2. Batch method: The batch method is also known as the order method. It is the product of the batch or order as the costing object to collect production costs, a method of calculating product costs. Batch method is mainly applicable to single pieces and small batches of multi-step production. Such as heavy machine tools, ships, precision instruments and special equipment. Batch method of costing period is not fixed, generally a production cycle (i.e., from production to completion of the entire period) as a costing period for regular calculation of product costs. Since there are no finished products at the time of completion and no products in progress at the time of completion, finished products and products in progress will not co-exist at the same time, and thus there is no need to allocate production costs between finished products and finished products.

3. step-by-step method: step-by-step method is the production of products according to the steps of the production costs, a method of calculating product costs. Step-by-step method is applicable to large quantities or large numbers of multi-step production. Such as machinery, textiles, paper and so on. Step-by-step method due to the production of large quantities, often at a certain time that has been completed: the finished product, and unfinished products and semi-finished products, it is not possible to wait for the completion of all products and then calculate the cost. Therefore, the step-by-step method is generally a regular monthly costing, and to allocate production costs between finished and semi-finished products.