Inglés

PRIMERA LECTURA EN INGLES  PARA EL GRUPOS 501,502, COSTOS PREDETERMINADOS.

ESTIMATED COSTS .
Definition . Objectives and Nature .

The estimated costs were the first step in the predetermination of the cost of production for the three elements of cost (material, labor and manufacturing overhead costs ) and were intended to predict the total cost spent on a particular product.

Also, the initial objective was pursued in the cost estimate , was to have a base to quote selling prices, then it was possible to use the estimated cost for accounting purposes , giving birth to the system of estimated costs.

The special feature of a cost system to be estimated is compared with the actual costs shall conform to those actually being possible with a preset time that comes closest to the actual cost .

From the above it can be inferred that the estimated costs are a variant of Default Costs and aims to set the unit cost projections for the next period costing . Thus, the need for industrial companies and services to meet their costs in advance , forcing these organizations to have a group of educated and suitable for assessing their costs and be able to present and offer reasonable sales prices .

Similarly, obtaining cost estimates are based on calculations of experiences and broad knowledge of the relevant industry , estimates that in no way have technical basis , being necessary to make corrections to fit the actual cost.

SEGUNDA LECTURA EN INGLES  PARA EL GRUPOS 501,502,  COSTOS PREDETERMINADOS.

The estimated costs represent only an attempt in anticipation of actual costs and are subject to adjustments as compared with the same.

This system consists of :

Default unit costs of production by estimating the value of direct raw materials, direct labor and indirect charges that are considered to be obtained in the future,
Subsequently comparing estimates with actual costs and adjusting the corresponding variations .
Constitute a system of predetermined costs taking into account the experience of previous years

Indicates what it may cost to produce an item, why such costs shall conform to the historical or actual cost.

A comparison is discrepancies between the estimated and actual known under the name variations thereof that will be a wake up call that forces to study the reason for the difference.

The calculation of the probable cost of producing one unit :

Technical - . Indicates the inputs required to produce a product and serves as the basis for the accounting estimate.

Accountant -. Valuation and proper registration of certain techniques consumption estimates.
FEATURES SYSTEM COST ESTIMATES .

Cost estimates are obtained BEFORE starting DURING manufacturing and processing.
They are based on predetermined calculations above statistics and extensive knowledge of the industry in question .

In order to obtain essential to consider certain volume of production and determine the unit cost.

TERCERA LECTURA EN INGLES  PARA EL GRUPOS 501,502,  COSTOS PREDETERMINADOS.

Currently there are several methods that cost companies implement as needed. Then the absorption costing and variable costing with their characteristics , differences and similarities between these two types of costing, the advantages and disadvantages of variable costing exposed

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