Used to calculate the cost of a product or service

Evaluate resource usage efficiency

Identify direct and indirect costs

Classify fixed costs and variable costs

used in pricing decisions

For budgeting and cost control

Cost control and efficiency analysis

Profit maximization strategy development

Preparation of financial statements

Tax filing and compliance

Purchase price of raw materials

Shipping and handling charges

Material loss rate

Material recycling and reuse

Wages paid by the hour or by the piece

Social insurance and provident fund benefits

Recording and analysis of working hours

The relationship between labor costs and output

Depreciation, rent and insurance, etc.

Costs that do not vary with production volume

Materials, energy and maintenance, etc.

Costs that vary with production volume

Identify key activities in the production process

Allocate costs to specific activities

Diverse products and complex processes

Highly automated production system

Based on historical data or industry standards

Pre-set material, labor and manufacturing costs

Comparison of actual costs and standard costs

Analyze reasons for cost overruns or savings

Includes only direct materials and direct labor

Ignore allocation of manufacturing overhead

The production process is simple and straightforward

Manufacturing costs are relatively small

product, service or item

cost center or cost unit

Direct costs are directly attributed to the cost object

Indirect costs need to be assigned to cost objects

Purchase invoices, payroll and expense bills

Production records and time reports

Debit and credit accounting method

Cost aggregation and allocation

Choose an appropriate allocation basis

Apply allocation rates to calculate indirect costs

Total cost includes direct and indirect costs

Unit cost is total cost divided by output

Raw materials, parts and assembly costs

Quality control costs during production

Improve production efficiency through cost analysis

Reduce waste and improve resource utilization

Staff salaries, venue rental and administrative expenses

Direct costs of specific service items

Set service prices based on costs

Analyze the profitability of service projects

Purchase price and transportation cost of goods

Inventory management and inventory costs

Cost of sales includes cost of goods and selling expenses

Gross profit analysis helps optimize product mix

Material, labor and machinery usage costs

Budget and cost control of engineering projects

Forecast project costs and timelines

Identify and mitigate project risks

Accounting standards and tax rates in different countries

Cost control in long-distance supply chains

Supplier Management and Procurement Strategy

Reduction in logistics and inventory costs

Electronic data processing and automated accounting systems

Big data analytics and cost prediction models

Improve data processing speed and accuracy

Reduce manual errors and improve work efficiency

Resource consumption and waste disposal costs

Cost-benefit analysis of environmental protection measures

Corporate Social Responsibility (CSR) Related Costs

Cost considerations for ethical sourcing and fair trade

International Financial Reporting Standards (IFRS)

National Tax Laws and International Tax Compliance

Improve transparency and comparability of financial reporting

Promote trust between multinational companies and investors