Difference between cost and cost
1. Costs are the costs incurred by the enterprise in producing products and providing services, which are directly related to a particular product or service. Cost is a category of value in the commodity economy and an integral part of the value of the commodity, reflecting the economic costs that enterprises have to pay to achieve a specific purpose。
2. Costs are the total outflow of economic benefits incurred by an enterprise in its day-to-day activities that would result in a reduction in the owner's interests and that are not related to the distribution of profits to all. Costs cover a variety of expenses in the course of the enterprise's business, including production costs, management costs, marketing costs and financial costs, which may not necessarily correspond directly to specific products or services。
Subject settings for cost accounting:
“property costs” subject:
The subject accounts for the production costs incurred by enterprises in industrial production, including the production of various products (finished products, semi-finished products, etc.), home-made materials, home-made tools, home-made equipment, etc. The debit reflects the production costs incurred, the credit reflects the cost of the products transferred from completion and the balance of the debit at the end of the period reflects the cost of the products in progress that have not been processed. The subject should be subject to costing, for example, product varieties, with a breakdown of basic and ancillary production costs。
“construction costs” subject:
Manufacturing costs are indirect production costs incurred by manufacturing enterprises for the production of products (or the provision of labour) that are accounted for at the cost of products but are not specifically costed. This subject accounts for the indirect production costs incurred by the enterprise's production workshops (sectors) for the production of products and the provision of services, as well as production costs that are not required or easily accounted for separately, although they are directly used for the production of products. At the end of the period, the share of manufacturing costs is allocated to the individual cost-accounting objects according to certain criteria, and there shall be no balance at the end of the period in this subject except for seasonal production。
Costs include the total outflow of economic benefits incurred by the enterprise in connection with its day-to-day activities, primarily the operating costs, taxes and additional and period costs incurred by the enterprise in connection with its operations, such as the sale of products for the purpose of obtaining operating income。
The costs incurred by an enterprise for the production of products, the provision of services, etc., which are attributable to the cost of products, labour costs, etc., should be recognized as operating costs (including the main operating costs and other operating costs) for the sale of goods, the provision of labour, etc。
