Of cost accounting

[Abstract] cost is the product of the commodity economy is a commodity economy in the economic category, is the major component of the value of goods. Costs tend to be subordinated to the content management needs. In addition, the contents of the different economic activities, the cost implications are also different. As social and economic development, business management requirements increase, the cost of the concept and content are in constant development and change, people can feel the cost range gradually expanding. theoretical structure of cost accounting cost accounting by objectives, assumptions, objects and principles of the organic elements of the overall composition. to strengthen its Research, not only has important theoretical value and practical significance.

[Keywords:] the principle of cost targets

In this paper, the theoretical structure of cost accounting a preliminary study of the Industrial Revolution led to the emergence of cost accounting, its theory and methods, with the increased level of productive forces and the objective needs of economic management gradually formed and developed. Cost accounting as a relatively independent accounting branch of the need for a theoretical structure, to establish a unified system of logical reasoning. the theory of cost accounting cost accounting structure is premised on the assumption, the cost of accounting object formed around a series of interrelated goals, targets, principles of composition an organic whole, with the aim of interpretation, evaluation, guidance, and better cost accounting practices.


First, the objective of cost accounting

1. Basic objectives. Is to make sure to bring as much as possible the cost of income or gains, which increase economic efficiency. Cost accounting is the measurement from the cost, recording, calculation and supervision aspects, in order to improve economic services, and economic efficiency as the highest goal.

2. A specific target. Refers to the practice of cost accounting information and to whom to provide what information, how to provide information. Costs mainly through cost accounting reports, statistical data and special reports, etc., within the relevant departments and staff to provide specific and integrated cost accounting information, so that the cost of planning and management control.

3. The ultimate goal. Is the effective allocation of scarce resources to achieve maximum cost effectiveness. The most important feature of cost accounting is to focus on enterprise resource planning and more effective control. Business arrangements, to use the resources must be based on the task of enterprise production and management to plan investment of resources, these resources are put into use and after use measure the efficiency and effectiveness.


Second, the cost accounting assumptions

1. Cost accounting entity. According to the modern cost accounting point of view, enterprises or other organizations such as independent economic entities are the true costs of the main, the cost is the cost for the final goal or give up all kinds of material, labor, and payment to the employees wages, or income to pay for the cost of fighting.

2. Going. Is the cost accounting should be sustained, normal economic activities as a precondition. So as to make cost-accounting principles, procedures and methods established in the settlement, based on the specific performance of the going concern value of assets denominated in , the asset cost to actual cost, the cost reflects the cost of the monetary value of the assets has been reflected in consumption, so as to maintain the consistency of cost accounting information processing and stability.

3. Costs of staging. Going to determine the current and expected future state of a certain period in order to provide cost accounting information, and periodic financial statements consistent with the use of accounting period, making the cost accounting methods in the measurement of cost and content with the distinct characteristics, the correct cost of each period by boundaries. in this way can benefit costs, revenue and profit recognition and measurement of cost accounting information to ensure the authenticity, not to mislead users.

4. Multiple measurement. Costs are generally expressed as the cost of economic activities, these costs include the cost of material, human resources, physical and mental cost and other spiritual cost. Monetary measurement has the advantage of a wide range of comprehensive and general capacity, but due to the awareness level of restrictions, to the spirit of the cost of human resources and other non-monetary measurement attribute for the complete conversion of monetary measurement, is difficult to achieve or accuracy is not guaranteed. Therefore, the measurement of cost accounting can be measured and non-monetary currency measured by combining both a currency unit reflects the various economic costs and benefits of the business, but also by physical indicators, or even words to describe the contributions made by employees and for the loss.

5. Equitable distribution. The fairness of allocation of costs directly related to the cost of the reliability of accounting information. The so-called justice, refers to the indirect cost allocation criteria in the choice should be based on causality, choice and the allocation of the cost of the closest level of standards. Requirements minimize subjective factors and maintain reasonable allocation method. justice is a relative concept, both subjective assumptions, but also the cost of reporting accounting information is a basic premise.


Third, the cost accounting objects

Cost accounting is the cost object, movement of funds spent in the process of classification, measurement and allocation for cost forecasting, decision making, control, analysis and assessment to provide objective evidence of a branch of accounting. In essence, the same general accounting object, the object of cost accounting is still in the process of social reproduction of capital movements, the difference is only limited to the cost of funding capital campaign, and has only focused on the unit as a whole movement of capital, more focus on units of funds within the units of the responsible exercise characteristics. on the nature, the cost accounting is the control of rational use of resources within the accounting, the main service in the enterprise cost management, decision-making and performance evaluation to provide the required information. reposted elsewhere in the Research Papers Download http://www . hi138.com four, cost accounting principles

Cost accounting cost accounting principles is to regulate the behavior of the guide, is the cost accounting to be followed in the basic principle of providing high-quality information users need cost information. Cost accounting in the accounting principles generally adhere to the same time, but also accord its unique requirements, some of the principles to expand or change the content.

1. The principle of legality. It refers to the cost accounting must comply with relevant laws, rules and regulations, and shall strictly comply with the scope of costs to ensure accurate and reliable information. Meanwhile, we can not artificially mixed costs and expenses during the period, different cost objects, different limits during the costs of the division, which in the strict sense, but also illegal activities.

2. Benefit principle. Allocation of costs should be cost-driven principles, follow the principle of beneficiary selection, of "who benefits the burden of" thinking. In the specific choice of distribution method, in accordance with the requirements of the principle of benefit, using the method of allocation of the distribution of objects is proportional to the cost, benefit much more affordable, less benefit less burden, which reflects a fair and reasonable distribution of costs.

3. Target principle. Enterprise cost management must have clear objectives, expected costs occurred in the greatest possible benefits can bring that to achieve maximum cost effectiveness. This requires the cost accounting information provided should be targeted, cost management in a timely manner to provide the necessary information resources to meet the decision-making needs.

4. Intelligibility principle. Since the main purpose of the reality of cost accounting is to provide users the cost of their decision-useful information, then the intelligibility is an important quality characteristics. The so-called comprehensibility, refers not only to ensure that all important matters can be fully disclosed, but also to avoid providing too much trivial information to link users to no avail. From the perspective of information providers, should ensure the relevance and reliability of the premise, and strive to make popular and easy cost accounting information understand, easy to the user able to understand the analysis and utilization of information resources.


V. Conclusion

Cost accounting cost accounting theoretical structure of target is the highest level, constitutes the cornerstone of the theory; cost accounting cost accounting assumptions operation provides the premise and constraints; cost accounting objects and elements of the recognition and measurement reflects the specific objectives of cost accounting requirements; cost accounting cost accounting principles as basic guidelines and practices deal with the specific standards to ensure the implementation of cost accounting objectives are a powerful tool.

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