Direct costs include direct costs, including direct materials, direct labor and other direct costs incurred by enterprises for producing goods and providing services. Indirect expenses include wages and welfare expenses, depreciation expenses, repair expenses, office expenses, utilities, consumption of machinery and materials, labor protection expenses, etc.

I. Direct costs

Direct cost is the cost consumed by a specific product, which can be directly included in the product cost according to the original voucher. According to the way that production costs are included in product costs, direct costs and indirect costs are divided. Whether an expense is a direct expense depends on whether it can be directly included in the production cost of the product.

Direct materials: refers to raw materials, main materials, outsourced semi-finished products, auxiliary materials and other direct materials that are directly used in product production and constitute product entities.

Direct labor cost: refers to the wages of workers directly involved in the production of products and the employee welfare expenses calculated and extracted according to the total wages of production workers and the prescribed proportion.

Second, indirect costs.

Indirect expenses refer to various expenses incurred by each production unit of a manufacturing enterprise for organizing and managing production. Accounting units usually collect indirect expenses through the subject of "manufacturing expenses" first, and then at the end of each accounting period, the collected manufacturing expenses are included in the production cost of related products according to certain standards.

Introduction of period expenses

I. Meaning

Period expenses refer to expenses that cannot be directly attributed to the cost of a specific product.

Indirect expenses are directly related to product management and product sales in the current period, but not directly related to product output and product manufacturing process, that is, it is easy to determine the occurrence period, but it is difficult to determine the product to which it belongs, so it cannot be included in the product manufacturing cost, but deducted from the current profit and loss.

Second, classification

The period expenses of an enterprise include sales expenses, management expenses and financial expenses.

1. Sales expenses refer to the expenses incurred by an enterprise in the process of selling goods, including transportation expenses, loading and unloading expenses, packaging expenses, insurance fees, exhibition expenses and advertising expenses, as well as wages and welfare expenses, expenses similar to wages, business expenses and other operating expenses of employees of the sales organization specially established for selling the goods of the enterprise.

2. Management expenses refer to the management expenses incurred by the enterprise for organizing and managing the production and operation of the enterprise, including company funds, trade union funds, unemployment insurance premiums, labor insurance premiums, directors' dues, agency fees, consulting fees, lawyer fees, business entertainment fees, etc. Expenses incurred by the board of directors and the administrative department of the enterprise in the operation and management of the enterprise or borne by the enterprise in a unified way.

3. Financial expenses refer to the expenses incurred by an enterprise to raise the funds needed for production and operation, including interest expenses (minus interest income), exchange losses (minus exchange gains) and related handling fees that should be used as period expenses.