生产成本（The cost of production）.doc

生产成本（The cost of production） Manufacturing cost is called production cost Cost of production also refers to the cost of production activities, i.e., the costs incurred by the enterprise to produce the product. The production cost is the monetary representation of various resources utilization in the production process, which is an important index to measure the technology and management level of the enterprise. Production costs are the production costs incurred by the production unit for the production of products or services, including direct expenses and manufacturing expenses. Direct spending including direct materials (raw materials, auxiliary materials, spare parts, fuel and power, etc.), direct wages (production personnel wages and subsidies), other direct expenses (such as welfare funds); Manufacturing cost refers to the business enterprise inside the factory, workshop for all costs incurred in production organization and management, including factory, workshop management personnel salary, depreciation, maintenance, repair, and other manufacturing costs, travel (business cost, labor insurance premium, etc.). Accounting subject setting for production cost In order to calculate the production cost, the production cost account can be set up for accounting and can be divided into basic production cost and auxiliary production cost account accounting. Manufacturing expenses should be collected in the manufacturing expense account before they are included in the cost calculation of each product, and then the cost of each product shall be allocated according to a certain standard. The cost of production in this period plus the initial cost of the product, minus the cost of the final product, will be able to calculate the cost of the completed product in this period. The role of production costs Under the condition of market economy, the product cost is a measure of production cost compensation, the enterprise must to product sales cover of expenses in the process of