First, the concept of variety law
Variety method is a cost calculation method with product variety as the object of cost calculation. In a large number of single-step production enterprises, because the production process is relatively simple, the production cost ledger is generally set up according to the product variety to collect the production cost and calculate the product cost.
The variety method is mainly suitable for power generation, water supply, mining and other production industries.
Second, the specific steps of the variety law
1. Set the production cost subsidiary ledger.
Under the variety method, it is necessary to set up a subsidiary ledger of production cost according to the product variety to collect all the expenses in the production process. The detailed account of production cost generally includes direct materials, direct labor, manufacturing expenses and other cost items.
2. Charge production costs
All production expenses incurred in the production process are collected into the corresponding production cost subsidiary ledger according to the product variety. These costs include direct materials, direct labor, manufacturing costs, etc. For direct materials and direct labor, it can be directly included in the corresponding production cost subsidiary ledger according to the original vouchers.
For manufacturing expenses, it is necessary to first collect them under the subject of manufacturing expenses, and then distribute them to the corresponding product varieties according to certain distribution standards.
3. Calculate the product cost
After collecting various production expenses, the total cost and unit cost of various products can be calculated. The total cost is the sum of all collected production expenses, and the unit cost is the total cost divided by the output. Under the variety method, the weighted average method or the first-in first-out method is generally used to determine the unit cost.
4. Carry forward the cost of finished products
After calculating the product cost, the cost of finished products needs to be carried forward to the inventory item to reflect the value of the inventory item. At the same time, it is necessary to leave the cost of unfinished products in the production cost ledger to reflect the value of work in process.
Application of diversity method;
1, the application in cost accounting
Variable method is widely used in cost accounting. In industrial enterprises, the variety method is mainly suitable for a large number of single-step production, such as power generation, water supply, mining and other production industries. In these industries, the production process is relatively simple. Generally, the subsidiary ledger of production cost is set up according to the product variety, and the production cost is collected and the product cost is accounted.
2. Application in commercial enterprises
In commercial enterprises, the variety method is also widely used in commodity inventory valuation and inventory management.
3. Other applications
In addition, the variety method can also be combined with other cost management methods, such as standard cost method and activity-based cost method. These methods can help enterprises to better control and manage costs and improve their competitiveness.