Standard full cost accounting in manufacturing | Free template

Standard full cost accounting in manufacturing companies is a free template to calculate the cost of products in a manufacturing company. Standard full cost accounting is a method for cost accounting where all costs are distributed to object, usually products.

Standard full cost accounting is used both as a preliminary calculation and as a control calculation after the production is finished. Standard full cost accounting can form a basis for pricing decisions, inventory valuation or profitability analysis. In direct costs and indirect costs are used as concepts in standard full cost accounting. Direct costs are costs that can be allocated directly to an object, while indirect costs are allocated to the objects using allocation keys (cost drivers). Standard full cost accounting is based on categorized costs, the direct costs are allocated directly to the object and the indirect costs are allocated to the objects using allocation keys (cost drivers) via cost centers or without involving cost centers. Cost centers are separate units in a company to which indirect costs can be distributed before these costs are allocated to the object, a cost center may be a department or a machine group.

In this template for standard full cost accounting in manufacturing companies the target user is a small company without cost centers where direct costs is used as allocation keys for indirect costs. When direct costs are used as allocation keys it is called mark-up calculation. If you want to add cost centers in this template you need to adapt the model so that the indirect costs are divided into cost centers, this makes the calculation more tedious and less standardized. You can also if you want, change the allocation principles by using other allocation keys.

You can use this template standard full cost accounting in a manufacturing company and calculate the cost of products, set prices or to assess the profitability of products. Updated: 01/01/2015 | Created by All-templates.biz

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