1) production costs include industrial enterprises, constitute a product entity of direct materials, direct labor and manufacturing costs. For example, raw materials and wages of workers directly used for the production of products are directly classified as production costs.
2) manufacturing costs are, for the production of the consumption of the production plant incurred, can not be directly divided into a product of the costs. Such as: production workshop lighting electricity, production management personnel wages, welfare costs, maintenance costs, depreciation of production equipment.
3) administrative expenses are incurred by the administrative department of the enterprise costs, including common: management salaries, welfare costs, telephone charges, office rent and utilities, office equipment depreciation, management personnel travel expenses and so on.
4) sales costs refers to the business sector (such as sales, after-sales service) and other costs incurred, such as: sales salaries, commission, travel expenses, telephone charges, hospitality, advertising and promotion costs, depreciation of office equipment and so on.
5) financial expenses generally refers to the interest on deposits and loans incurred by the enterprise, bank charges, sales and purchase discount financing costs. Selling expenses: a variety of costs incurred in the process of selling goods and materials, providing labor services. (Operating expenses have been changed to selling expenses) administrative expenses: the enterprise for the organization and management of enterprise production and management costs incurred. Finance costs: fund-raising costs incurred by the enterprise to raise funds for production and operation. These are cost accounts, for example, a manufacturing enterprise to produce tables and chairs, the consumption of direct raw materials such as wood and paint, etc., as well as the wages of workers responsible for the manufacture of production costs, and the manufacturing sector in the manufacturing process of general consumption, such as mechanical wear and tear, workshop management staff, etc. belong to the cost of manufacturing.
The consumption of staff in the management department, such as various low-value consumables and the wages of management personnel, can only be charged to administrative expenses. In the process of raising funds for the enterprise consumption are included in the financial expenses, such as loans to the bank, the interest costs borne. Consumption in the process of operation belongs to the operating expenses, including business, sales staff salaries. I'll give you examples, so you can easily understand:
Production costs: such as production line workers' wages and production of direct materials, auxiliary materials.
Manufacturing costs: at the end of the month to be carried forward to the cost of production, such as shop workers wages, material consumption.
Operating expenses: now the new account is called selling expenses, such as the sales department staff salaries, and sales of transportation costs incurred.
Administrative expenses: such as management salaries, meals, office expenses and so on.
Financial expenses: such as interest income, interest expense. Production costs: is the production unit for the production of products or the provision of services and production costs incurred, including direct expenses and manufacturing costs. Direct expenditures include direct materials (raw materials, auxiliary materials, spare parts, fuel and power, etc.), direct wages (production staff salaries, subsidies), other direct expenses (such as welfare costs).
Manufacturing costs: is the enterprise for the production of products and the provision of services and indirect costs incurred. Manufacturing costs include product production costs in addition to direct materials and direct wages in all the rest of the production costs, mainly including the enterprise production units (workshops, sub-factories) for the organization and management of production of all the costs incurred.
Operating expenses: refers to the enterprise in the sale of products and services and other day-to-day business process of the expenses incurred in the process, as well as special sales organizations of the funds.
Administrative expenses: administrative expenses refers to the administrative department of the enterprise for the organization and management of production and management activities and the costs incurred.
Financial expenses: refers to the enterprise in the production and management process to raise funds for the costs incurred.
The various expenditures in the distinction to grasp a principle, that is, who benefits who bear. With this, it is good to understand.
Production costs: refers to the material, labor, expenses directly used in the production of products, such as production of direct materials, production workers' wages.
Manufacturing costs: refers to a variety of production workshop can not be directly and clearly accounted for in which product cost of *** the same consumption, need to be first in the manufacturing cost account collection, the end of the month to be carried forward to the cost of production, such as workshop management personnel wages, water and electricity consumption, depreciation of machinery and plant, and so on.
Operating expenses: now the new subject is called selling expenses, which refers to the expenditures used for product sales, such as the salary of specialized marketing personnel, advertising costs, exhibition costs, etc..
Management costs: refers to the management of the enterprise factory level (above the workshop) management expenditures, such as various management departments (such as the factory office, financial section, planning section, etc.) staff salaries, business hospitality, office expenses, and so on.
Financial expenses: refers to the revenue and expenses of the enterprise finance, such as interest income and expenditure, exchange gains and losses, financial institutions, such as fees.