Machiningcosts usually refer to other production costs other than direct materials in production costs, such as direct labor and manufacturing costs. Losses incurred during product processing, such as waste loss, and damage to raw materials are also included.
Machining costs sometimes have the following meanings:
- (1) Machiningcost of finished products. Refers to all expenses incurred during the entire machiningprocess from the start of the production of raw materials to the completion of the production of the product, except for the cost of raw materials.
- (2) Machiningcost of semi-finished products. Refers to the machiningcost incurred in a certain machiningstage to process the semi-finished products of the previous stage into the semi-finished products of this stage.
- (3) Workshop machiningcost. Refers to all costs incurred by a production workshop for the machiningof products in that workshop.
- (4) Foundry cost. Refers to all cnc machining costs incurred during the machiningor repair of substitute products or repair products that the enterprise processes or repairs on behalf of other units.
The content of the cost composition should obey the needs of management and develop with the development of management. The main contents of the cost composition stipulated by the state include:
① Expenses for raw materials, materials, fuels, etc., express the value of labor objects that have been consumed in the production of goods;
② Depreciation expenses, which represent the value of labor objects that have been consumed in commodity production;
③Wages represent the value created by the necessary labor of the producer.
In actual work, in order to encourage enterprises to save money, reduce losses, and strengthen their economic responsibilities, some lossy expenditures that do not form product value (such as waste loss in industrial enterprises, loss of work stoppage, etc.) are also included in the product cost. in. In addition, certain parts that should be allocated from the value created for society (such as property insurance costs, etc.) are also included in product costs. This shows the actual content of product cost. On the one hand, it is required to reflect the objective economic essence of the cost. On the other hand, it is necessary to include certain content that is not C+V in the machining cost according to the national distribution policy and financial management system. Certain expenses that belong to the nature of living labor are classified as non-operating expenses or expenses from retained profits.