Cost and expense are both interrelated and significantly differentAccounting conceptIn a general sense, costs generally refer toProduction and operationAll kinds of fund consumption occurred in.The cost of an enterprise, in terms of its economic essence, is the value of c+v in the composition of product valueEquivalents, expressed in monetary form, that is, the sum of funds spent by enterprises in product management.
Chinese name
Cost
Alias
capital
expression
It generally refers to all kinds of capital consumption in the production and operation of enterprises
The main functions are reflected in the following four aspects.
1. Cost is reflected and monitoredLabor costTools.
2. Cost is the measure to compensate production costs.
3. Cost can comprehensively reflect the quality of enterprise work, and is an important lever to promote enterprises to improve their management level.
4. Cost is an important basis for the price of customized products.
Meaning of terms
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Cost control
Through research, Linked-F, a consulting firm, found that effective cost analysis is the basic factor for an enterprise to succeed in the fierce market competition.Imperfect cost analysis can lead to simple cost reduction, thus making enterprises lose vitality.The establishment of a scientific and reasonable cost analysis and control system will enable managers to clearly understand the company's cost structure, profitability and the correct direction of decision-making, become the key support for internal decision-making, and fundamentally improve the cost situation of enterprises.Boluo Consulting believes that correct cost analysis plays an important role in whether a company is profitable.Due to the disadvantage of cost analysis, enterprises may make pricing mistakes because they fail to allocate expenses reasonably to different products, thus falling into a strange circle of selling more and losing more for a long time.
1. Strengthening cost management and reducing production and operation costs are important conditions for expanding production and operation.
2. Strengthening cost management is conducive to promoting enterprises to improve production management and economic efficiency.
Cost
3. Strengthen cost management, reduce production and operation costs, and lay a solid foundation for international capital accumulation.
Terminology principle
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1. Properly distinguish the nature of various expenditures and strictly abide by the scope of costs and expenses.
2. Correctly handle the relationship between production and operation consumption and production achievements, and achieve the best combination of high yield, high quality and low cost.
3. Correctly handle the relationship between production consumption and production technology, and combine cost reduction with technical innovation.
1. Evaluation of relevant costsinternal controls Is it present, effective and consistent.2. Obtain the detailed list of relevant costs and expenses, check whether the calculation is correct, and check whether it is related to the general ledger, sub ledgerAccounting statementsAnd relevant declaration forms.
3. Review whether the record and collection of each detailed sub item of cost are correct.
4. Spot check the matching of revenue and expenditure for large business, and check whether there is less or more business expenditure.
5. Review the correctness of accounting treatment, and pay attention toaccounting systemDifference in cost and expense recognition between tax regulations and tax regulations.
2： Review of main business cost(Take the production cost of industrial enterprises as an example)
1. Review whether the sub ledger is consistent with the general ledger and statements (work in progress);to examineMain business incomeAndMain business costAnd other accounts and relevant original vouchers to confirm the enterprise'sOperating incomeWhether it is consistent with the operating cost.
2. Obtain the production cost analysis table, list the main expenses and the unit cost of each product respectively, use the analytical review method, compare it with the budget amount, the amount of the previous period, the amount of the same period last year, and the average of the same industry, analyze the changes in increase and decrease, find out the reasons for abnormal changes, and make correct treatment.
3. Review of purchase cost.
(1) Review the purchase price, purchase expense andTaxesConstituted outsourcingstockThe actual cost of.
Cost
(2) Check whether the taxes payable for purchasing and subcontracting inventories are paid and included in the inventory cost.
(3) Review whether the procurement expenses such as transportation expenses, insurance expenses, loading and unloading expenses directly attributable to the actual cost of inventory comply with the relevant provisions of the tax law.
4. Review of material costs.
(1) Review whether the direct material consumption is true.
——Review the relevant content and data of the debit of the "production cost" account, check with the credit content and data of the corresponding "material" account, and trace to the picking list, return list, material expense distribution table and other vouchers.
——Conduct cut-off test.Spot check on the number of days before and after the final settlement dateMaterial requisition, production records, cost calculation sheet, combined with material unit consumption and input-output ratio and other data, review whether the name, specification, model and quantity of materials received are consistent with those consumed, and whether the material costs not borne in the current period are included in the production costs of the current period, with particular attention to the large amount of materials received at the end of the period.
(2) Confirm whether the material pricing is correct.
——Under the condition of actual cost pricing: understand the pricing method and conduct spot checkMaterial Cost Allocation TableCheck whether the calculation of delivery cost is correct and whether the calculation method follows the principle of consistency.
(3) ConfirmMaterial cost allocationWhether it is reasonable.Verify whether the distribution object of material cost is true and the distribution method is appropriate.
(1) Spot check relevant vouchers and check whether the collection of auxiliary production costs is correct.
(2) Check whether the auxiliary production costs are correctly allocated among departments, and whether the amount of such costs is accurately calculated according to the relevant provisions of the tax law.
6. Review of manufacturing expenses.
(1) Review whether the major items and exceptional items in the manufacturing expenses are reasonable.
(3) If necessary, cut-off test shall be carried out for manufacturing expenses.
(4) Review whether the allocation standard of manufacturing expenses is reasonable.If necessary, the distribution rate of manufacturing expenses should be recalculated, and the balance between products in process at the end of the year andFinished product cost。
Cost
(5) Obtain the summary sheet of manufacturing expenses, and contact withProduction cost accountCheck and confirm the total annual manufacturing expenses.
7. Review the debit amount of the "production cost" and "manufacturing expense" sub ledgers and check with the picking list to confirm theTaxable consumer goodsWhether it is used for continuous production of taxable consumer goods, and whether the price of purchased consumer goods used for continuous production in the current period and the corresponding amount of taxes on materials recovered by subcontracting are correct.
8. Review debit red ink or non transfer in of "production cost" and "manufacturing expense"Finished productsAnd trace to relevant vouchers to confirm whether the processing, repair and replacement income, sales of defective products, by-products, leftovers, etcOther incomeDirect write off of costs and expenses without revenue.
9. Review of WIP cost.
(1) Check whether the WIP quantity is true and correct by using the inventory step.
(2) Reviewwork-in-process costing Whether the method adapts to the characteristics of production process and adheres to the principle of consistency.
——Equivalent yield methodNext, check whether the measurement of completion rate, feeding rate and equivalent output is correct;
——Under the quota method, review the material and labor costs borne by the in-process productsFixed costWhether the calculation is correct, and compare the quota cost with the actual value. If the difference is large, it should be adjusted;
——Under the material cost method, review whether the cost of raw materials accounts for a large proportion of the costproportion；
——Under the fixed cost method, review whether the number of products in progress in each month is balanced, and whether the products are physically counted and recalculated for adjustment at the end of the year;
——Quota proportion methodNext, review whether various quotas are reasonable and whether the basic work of quota management is sound.
10. Review of finished product cost.
(1) ReviewCosting objectWhether the selection and cost calculation methods are appropriate and reflect the principle of consistency.
(2) ReviewCost ItemWhether the setting of is reasonable, and whether the collection and distribution of various expenses reflect the benefit principle.
(3) Confirm whether the quantity of finished products is true and correct.
(4) Analyze whether there is any abnormal change in the unit cost of main products and constituent items, and confirm whether the valuation of finished products is correct in combination with the valuation method of products in process.
11. The audit of the main business costs of other industries other than industrial enterprises shall be carried out in accordance with the relevant provisions of the tax law with reference to the relevant accounting system.
3： Review of other business expenses
1. Review the cost of material sales, purchase and sales commission expenses,PackagingCheck whether the accounting contents of rental costs, relevant taxes, surcharges and other business expenditures are correct, and check with relevant accounting statements.
2. Review the differences between accounting treatment and tax treatment of other business expenses and make corresponding treatment.
4： Review of deemed sales cost
1. AuditDeemed sales costWhether it is consistent with the data of deemed sales revenue calculated according to the tax law.
2. Review whether the products produced or processed by the enterprise itself are used for projects under construction, management departments, non productive organizations, sponsorship, fund-raising, advertising, samples, employee benefits, incentives, etc., and whether they are carried forward as the cost of finished products to sales costs in accordance with the tax law.
3. Review enterprise disposalNon monetary assetsFor investment, distribution, donation, debt repayment, etc., whether the actually obtained cost is carried forward to the sales cost according to the tax law.
4. Review whether the materials saved by the enterprise for processing and assembling with supplied materials are approved by the customsDutiable priceCalculate the cost of sales.
5： Review of non operating expenses
1. AuditNon operating expensesWhether it involves items that cannot be deducted before tax according to tax regulations.Key audit:
(1) Illegally operatedfineAnd the loss of confiscated property;
(2) Late fees, fines and penalties for various taxes;
(3) The compensated part of losses caused by natural disasters or accidents;
(4) Donations other than public welfare and relief in China;
(5) Various sponsorship expenses;
(6) Other expenditures unrelated to production and operation;
(7) To bear the principal and interest of the guaranteed loan for the guaranteed person;
2. Review whether non operating expenses are allowed to be deducted before tax according to the tax law.
(1) Review of fixed assets, construction in progresscurrent assetsWhether the net loss of abnormal inventory loss, damage and scrap is deducted from the compensation of the responsible personbalanceWhether it has been recognized by the competent tax authority.
(2) Review inventory, fixed assetsintangible assetsWhether the permanent or material loss of long-term investment has been recognized by the competent tax authority.
(3) Audit disposalLoss of fixed assets. Loss on sale of intangible assetsLoss from debt restructuringWhether it has been recognized and approved by the tax authorities in accordance with the tax law.
(4) Examine whether the donation has been made through non-profit public welfare organizations, social organizations and state organs established with the approval of the civil affairs department, and whether the amount of donation has exceeded the provisions of the tax lawquota。
(5) Review whether the compensated part has been deducted from the natural disaster or accident losses suffered by the enterprise.
3. Review whether the original vouchers of large non operating expenses are complete and meet the requirements of pre tax deduction regulations.
4. Spot check non operating expenditure items with large amount to verify the amount deducted before tax according to the tax law.
5. Review whether non operating expenditure involves giving away goods produced, processed or purchased by othersDeemed sales behaviorWhether to pay relevant taxes.
6： Verification of other costs and expenses that should be recognized in tax
1. AuditAsset evaluation impairmentWhether the pre tax deduction of other special property losses has been recognized by the competent tax authority.
2. Review other matters that need to be recognized by the competent tax authority.
7： Review of sales (operating) expenses
1. Analyze whether the proportion and trend of monthly sales (operating) expenses and sales revenue are reasonable, and track and find out the reasons for abnormal changes.
2. Review whether the setting of the items in the detailed list conforms to the scope of sales (business) expenses and relevant regulations.
3. Review whether the commission included in the sales (operating) expenses incurred by the enterprise conforms to the relevant provisions of the tax law.
4. Review whether the packaging fees, freight and miscellaneous charges, insurance fees during transportation and storage, loading and unloading fees, reasonable losses during transportation, selection and sorting fees before warehousing and other purchase expenses incurred by the enterprises engaged in commodity circulation business before the arrival of the purchased inventory in the warehouse are included in the business expenses according to the tax law, and then included in the sales expenses and other items for repeated declaration and deduction.
5. Review whether the operating expenses incurred by enterprises engaged in post and telecommunications and other businesses have been included in the operating costs, and whether they have been included in the operating expenses and other items for repeated declaration and deduction.
6. Review the detailed account of sales (operating) expenses, and confirm whether to exclude the foreign freight and miscellaneous expenses that should be included in the material purchase cost, and the prepaid expenses recovered from the buyer.
7. Related toTax adjustmentThe expense items of the matters shall be reviewed according to the key points of the review of the relevant tax adjustment matters, and the problems found in the review shall be reflected in the relevant tax adjustment matters review form.
8： Review of management expenses
1. Review whether capital expenditure items are regarded asIncome expenditureThe project is included in the management fee.
2. Review whether the enterprise has disbursed the reasonable labor protection expenditure actually incurred according to the tax law, and confirm the accuracy of calculating the amount of such expenditure.
3. Review whether the enterprise has eliminated the management fees paid to its affiliated enterprises according to the tax law.
4. Check whether the specific items of headquarters funds (company funds) included in the management fees comply with the relevant provisions of the tax law, and whether the amount calculated is accurate.
5. Review the amount included in the management expenses of the enterpriseTravel expenses, conference feesBoard feesWhether it complies with the relevant provisions of the tax law, and whether the relevant vouchers and supporting materials are complete.
6. The expenses involved in the tax adjustment shall be reviewed according to the key points of the relevant tax adjustment review, and the problems found in the review shall be reflected in the relevant tax adjustment review form.
9： Review of financial expenses
1. For the review of interest expenditure, please refer to the review of interest expenditure in the tax adjustment review, and reflect the problems found in the review in the interest expenditure review form.
2. Review interest income items.
(1) Obtain the interest income analysis table to preliminarily evaluate the integrity of the interest bearing project.
(2) Spot check the interest notice of each bank account or bill receivable, and check whether the realized interest income is recorded.Accrued interest before the period, whether to offset when actually receivedAccounts receivable。
(3) Review the calculation statement of accrued interest on the end date of the accounting period and check whether it correctly includes the accrued interest income in the current profit and loss.
3. Approve exchange gain/loss items.
(1) Reviewrecording rate Whether the use of "" is in compliance with the tax law.
(2) Spot check daily foreign exchange business and check conversionBookkeeping base currencyAccuracy of accounting treatment of events.
(3) Spot check the ending (monthly, quarterly or annual) exchange gain/loss calculation sheet, and review the integrity of the calculated exchange gain/loss items, the correctness of the converted exchange rate, the accuracy of the calculation of the exchange gain/loss amount, and the appropriateness of the accounting treatment of the exchange gain/loss in combination with the foreign currency cash, foreign currency bank deposits, and foreign currency creditor's rights and debt items of external settlement.
4. Spot check the original vouchers related to the handling charges or other financing expenses with large amount to judge the rationality of such expenses.
Term confirmation
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Recognition of costs
Cost expenses refer to the expenses incurred by an enterprise in the process of operation and management in order to obtain operating income, which are divided into basic business expenses, other business expenses, administrative expenses and financial expenses.
Two problems should be considered when recognizing costs: one is the relationship between costs and revenues;The second is the attribution period of costs.Specifically, there are the following criteria for cost recognition:
① The cost is recognized according to its direct connection with the revenue.If the decrease of assets or increase of liabilities is directly related to the income of the current period, it should be recognized as the cost of the current period.For example, the cost of goods sold is the consumption directly incurred in order to obtain income, which should be recognized as cost expense during the period of obtaining income;For another example, the delivery expenses incurred in order to promote the sales of goods are also directly related to the income obtained, and should also be recognized as cost expenses during the period when the income is obtained.
② Confirm the cost according to a certain distribution method.If the decrease of assets or the increase of liabilities is not directly related to the income, but can bring benefits to several accounting periods, a certain distribution method should be adopted and recognized as the cost of each period.For example, the cost of fixed assets used by the management department needs to adopt a certain depreciation method and be recognized as the depreciation expense of each period.
③ The cost is directly recognized as cost when it is incurred.If the decrease of assets or increase of liabilities is not directly related to the income obtained, and can only bring benefits for one accounting period or it is difficult to reasonably estimate the benefit period, it should be recognized as the current cost.For example, the salary of management personnel, whose benefit only affects one accounting period, should be directly recognized as the current cost;For another example, although advertising expenses may benefit for a long time, it is difficult to reasonably estimate their benefit period, so they can also be directly recognized as current costs.In addition, some expenditures with a long benefit period but a small amount can also be directly recognized as current costs according to the importance principle in order to simplify accounting, such as management tools used by the management department.
What is the core of enterprise competition?Is the cost!How to reduce costs may be your most concerned problem.This book will bring youCost accountingAnd how to reduce costs.
You will learn the basic methods and skills of cost accounting and cost reduction.
You will learn the practical operating procedures and methods of cost and expense handling as if you were there.
