The variable cost of the enterprise's product cost includes only the variable part of the production process. Fixed cost is a period cost, which is not included in product cost when cost is apportioned, and is directly included in reducing items of profit index, thus avoiding the subjectivity brought about by the variety of apportioning standards and simplifying cost accounting, it strengthens the objectivity and accuracy of accounting information and avoids the burdensome Cost Accounting Work of accountants. In addition, to some extent, it can prevent the indirect cost of distribution and use, adjust the loss of enterprise artificially, cause the distortion of enterprise accounting information, and improve the quality of accounting information.
The variable cost of the enterprise's product cost includes only the variable part of the production process. Fixed cost is a period cost, which is not included in product cost when cost is apportioned, and is directly included in reducing items of profit index, thus avoiding the subjectivity brought about by the variety of apportioning standards and simplifying cost accounting, it strengthens the objectivity and accuracy of accounting information and avoids the burdensome Cost Accounting Work of accountants. In addition, to some extent, it can prevent the indirect cost of distribution and use, adjust the loss of enterprise artificially, cause the distortion of enterprise accounting information, and improve the quality of accounting information.
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