Under the biased old accounting path, the environmental costs specific to furniture enterprises are assigned to the initial preparation expenses. As a result of this calculation, the product apportioned the amount of all depletion, distorting the initial information. For such drawbacks, a new type of idea unique to job cost was created. A cost library was constructed to identify the cost drivers. On this basis, the most suitable measurement cost is formulated and the difficulties are solved in an orderly manner. This way of thinking facilitates the collection of the most appropriate information, the setting of appropriate decisions, and the promotion of corporate progress over a long period of time.
Analysis method connotation
1.Connotation of outline
The unique outline of the operation costing method contains the following connotation: costs consume operations and operations consume resources. This arithmetic path integrates indirect and direct diverse costs as product consumption. This expands the scope of the original calculation and results in more accurate values. In this type of approach, the unique focus of cost accounting is formulated as operations. The sum of all costs, including product consumption and associated service consumption, summarizes all consumption in the real situation.
Calculation of job costing is closely related to the available resources and prepared products, and the job process connects the two. To analyze the various drivers, the resources are related to the usual operations, and the operations are related to the subsequent products. For furniture manufacturing, it provides a clear path of analysis and accurate information. A financial orientation is set up to break down the various account categories in order to capture costs. Costs are assigned to cost pools that are consumed by jobs and then deployed to various products. It focuses on historical costs and reflects an allocation view.
2.Necessary accounting value
Within environmental costs, indirect costs account for a large proportion of the costs. This type of cost characteristic, which determines the cost allocation, has the following values.
The environmental cost can find the real subject by the check of operation cost. Costs are complex, containing prevention costs, reimbursement costs, and other associated costs. By tracing the operation, we can find out the real cause and the real subject. In each period of time, clear benefit values should be accounted for. The initial amount of environmental costs is large and can increase from day to day, and the points in time are uneven. To estimate such costs, we should be able to consider the total environment and the amount to be incurred in the future. We can analyze the operating environment, subdivide the cost into various accounting intervals, and then check the revenue.
The cost of furniture can be recognized more accurately. Accounting for the total cost, covering it in the process specific to furniture preparation. Calculate the true cost and set it as a necessary reference for rate growth. Also, the value cycle within the reproduction structure is incorporated into the cost. The resources enter the furniture market with the depleted costs and participate in the reproduction, building a double cycle of compensation and depletion.
Accounting application process
The cost consumption within the furniture enterprise weekdays contains several layers. Operating costs are closely linked to the furniture products and a broader range of environmental losses. Accounting for cost checking involves two steps.
- Clearly measure the cost, then trace the driver and apportion it to successive environmental operations.
- Identify the various features that contribute to the overall cost; select the appropriate drivers and build a cost pool for homogeneous situations. After this analysis, environmental costs are broken down into existing profit and loss, or existing products.
The overall environmental costs, which exist during the preparation of furniture during the week, accompany the output process. For this reason, the identification of environmental costs relies on a variety of information, all of which are equivalent to common costs, and share basic information. The values collected can be shared for the attribution of such costs. According to the accounting caliber, an independent and own specific accounting system is constructed. The steps of subdivision contain the following.
- Operations should be recognized. The process of preparing and selling furniture can be subdivided into multiple related operations, dividing them into branches. The first up to the nth such operation is attributed to the summary total cost, the specialized environmental cost, respectively.
- Costs should be allocated to each type of operation. The resource drivers are identified according to direct traceability. The measured expended resources should be allocated to the jobs as above. Based on homogeneous operations, a cost pool is constructed and the total probability specific to the cost allocation is calculated.
- Identify the job consumption in the regular case of furniture products. Trace the direct motives, job-specific motives, and accumulate these motives within the overall job, then go to apportionment, allocate the current profit and loss, and allocate the relevant products.
Costing Approach
The focus of the operational costing method is to identify the potential cost drivers. The cost of furniture operations and deep cost drivers are closely related to each other. Each type of job motive builds the same cost library and simplifies the accounting process. Apportioning job costs, breaking it down to furniture products over multiple time periods, counts as current profit and loss. At the same time, such drivers characterize the total consumption that should be controlled and regulate the cost values. The selected cost drivers are closely related to the cost of depleted operations. For example, the emission of pollution cannot be separated from the total emissions in the zone, the total content of toxic properties, other cost drivers. Such emissions within the furniture company weekdays contain waste bodies, total real emissions, concentration of toxic waste, increment of discharge out, and overall environmental impact. The total cost is related to the treatment of all types of emissions.
In accordance with cost theory, the output cycle specific to furniture products is identified. The initial design, the purchase of the necessary raw materials, the preparation of the various types of furniture, and the subsequent sale of furniture are processes that can be subdivided into several types of operations. They are connected to each other to build a chain of operations. To allocate the various types of costs, direct traceability and indirect traceability can be chosen as the motivation. The direct traceability is adopted to identify the direct costs; for the output costs under the indirect path, the motive can be checked. This proper traceability circumvents the apportionment under the customary path and supplies accurate information.
Furniture costs cover environmental costs. In the new environment, the newly added environmental costs highlight the value of internalization and the addition of cost items. Such costs are classified as total consumption, in accordance with the cost principle. From a total perspective, costs contain materialized daily labor, total environmental consumption, and living labor. The environmental costs are independent and at the same time are assigned to the total amount.
It solves the problem that is specific to compensation funds, because resources must be recycled in order not to be depleted. From the available revenues, a sufficient amount of compensation is obtained to supply successive reproduction and promote continuous progress.
Conclusion
The operating cost method, which is used to check and account for costs in the accounting context, has its rationality. Within this type of process, a clear flow chart is depicted. In combination with the system illustration, the necessary steps for accounting costs are identified, and the operating procedures are analyzed. In the subsequent calculations, quantitative analysis should be added and real cases should be added. Future research should be able to go deeper and deeper.