What are the methods of office furniture costing

Costing method. A method of aggregating production expenses by a certain cost object in order to calculate the total cost and unit cost of various products. The most basic costing methods are:

Variety method, batch method, step method. The determination of the cost calculation method depends to a large extent on the characteristics of the production of the enterprise and the requirements of cost management. For example, in the case of large-scale, single-step production, it is only required to calculate the cost according to the variety of the product, and this cost calculation method is stable to the variety method.

For another example, in the case of multi-step production of a single small batch, because the production is organized according to the customer's order and the production batch organized by the enterprise, the product cost should be calculated according to the order or production batch, and this cost calculation method is called the batch method. In the case of large-scale multi-step production, it is often not only required to calculate the method by product variety, which is called the step-by-step method. In addition, there are some cost calculation methods that can be combined with the basic method, for example, the variety method is used to calculate the cost, in the case of a variety of product specifications, in order to simplify the cost calculation work, the product can be divided into several categories first, the cost of each category of products can be calculated separately, and then a certain distribution standard is used within each category to calculate the cost of each scale of products, this method is called the classification method.

In enterprises with a relatively sound quota management system, in order to strengthen the quota control of costs, the actual cost of products can also be calculated based on the quota cost, which is called the quota method. It should be pointed out that due to the intricacies of the production situation of enterprises, in actual work, various cost calculation methods are often used at the same time or in combination. This depends mainly on the production characteristics of the enterprise, the goal of which is to achieve both the correct calculation of the cost of the product and the simplification of the cost accounting.