1. The characteristics of cost accounting for modern PCB companies
Accurate cost accounting plays a crucial role in guiding the operations and growth of enterprises, influencing decision-making, improving business processes, and enhancing competitiveness. Its significance is reflected in various aspects, including corporate pricing strategy reference, internal management control, and compliance with tax regulations.
For contemporary PCB companies, cost accounting presents unique challenges. These firms typically face a high volume of orders alongside strict quality requirements and short delivery timelines. Most notably, the lengthy product processes result in distinct characteristics for different product types, leading to significant variations in production costs.
2. The general steps of PCB enterprise cost accounting
The process of cost accounting in PCB enterprises generally follows several key steps, starting from the calculation of production costs to determining the total cost of the finished product and the unit cost. First, the production costs are audited to identify any non-compliance with established systems and regulations. Next, it is essential to define the cost calculation objects and items, creating detailed accounts for product costs. Additionally, all incurred expenses must be summarized, and various expense allocation tables compiled, distributing them according to their intended purposes and incorporating them into the relevant detailed accounts of production costs.
At the end of the month, a specific distribution method is employed for allocating costs, ultimately leading to the calculation of both the total and unit costs of the product. For PCB companies, the components of product costs can be categorized into three main elements: direct materials, direct labor, and manufacturing overhead.
1. **Direct Material Cost**
In the PCB industry, materials are seldom allocated to each product based on a material quota table. As a result, cost sharing has become a vital method for accounting material costs. The typical process involves first obtaining output statistics (often using the production area as a metric) and then compiling a monthly material summary to allocate it to the outputs of various finished product types at once, thereby deriving the standard material rate. This rate can be seen as the raw material quota for the finished product. Specifically, when calculating the cost of each product, the formula is: single area of the product * standard material rate.
In this industry, materials are generally classified into primary and auxiliary categories. For instance, high-value items such as copper plates, copper foils, inks, and dry films are categorized as primary materials, while others are deemed auxiliary materials. Well-managed companies often introduce a critical concept for primary material costs: the thousand-foot consumption. This refers to the material quota needed to produce a specified output (e.g., 1,000 square feet) of finished boards, corresponding to a bill of materials (BOM) for each product type.
For example, if a company sets its thousand-foot dosage at 1,100 square feet of copper plate for each double-sided board (approximately 80 sheets), the copper plate consumption per product would be calculated as: single area (square feet) of 1,000 * 80 (sheets), with the associated cost being: consumption of a single copper plate multiplied by its unit price (in yuan).
If the company specifies that 15 kilograms of ink are required for each thousand-foot double-sided board, the ink cost per product would then be: single area (square feet) of 1,000 * 15 * unit price per kilogram of ink (in yuan).
If the company determines that each thousand-foot double-sided board requires 2,100 square feet of dry film (approximately 3 rolls of dry film, each 21″ x 592′), the dry film cost per product would be: single area (square feet) of 1,000 * 3 * unit price per roll of dry film (in yuan).
2. **Direct Labor Costs**
In corporate payroll management, there are two models: hourly wage and piece rate. For cost accounting, it is essential to extract the current month’s actual working hours statistics, the output statistics, and individual (or group) output records to create a summary of the workshop’s monthly wages and bonuses.
Next, the monthly workshop output summary must be compared with the salary and bonus payment records to determine the standard labor rate for the process, which serves as an important metric for cost accounting.
3. **PCB Manufacturing Costs**
Manufacturing costs encompass utilities, repairs, and asset depreciation. Accurately extracting and allocating these costs to each product presents a significant challenge.
3.1 **Drilling Costs for Manufacturing**
In the PCB drilling process, product costs are directly influenced by the number of holes, the size of the holes, and the thickness-to-hole ratio. Consequently, many PCB companies have adopted the concept of “aperture single hole cost.”
3.2 **Surface Treatment Manufacturing Costs**
Common surface treatment processes include lead-tin spraying (hot air leveling), OSP (environmentally friendly coating), and the application of pure tin, silver, and gold. The price varies depending on the treatment process. Cost variations can be managed through the apportionment of manufacturing costs, which considers whether a product has undergone a specific process, with costs added accordingly.
3.3 **Gold Salt Usage for Manufacturing Costs**
The management of gold salt usage and safety is crucial for PCB manufacturers. For product cost calculations, the thickness and area of the gold plating are typically considered. By calculating the amount of gold salt required and multiplying it by the unit price, the cost of the gold salt can be determined.
**Summary**
In conclusion, the unique characteristics of PCB products present specific challenges for cost accounting. To facilitate efficient cost management, it is recommended that companies leverage advanced information technology. By developing a suitable calculation model within their computer systems, companies can achieve rapid and accurate cost accounting for PCB products and semi-finished goods.
Accurate cost accounting plays a crucial role in guiding the operations and growth of enterprises, influencing decision-making, improving business processes, and enhancing competitiveness. Its significance is reflected in various aspects, including corporate pricing strategy reference, internal management control, and compliance with tax regulations.
For contemporary PCB companies, cost accounting presents unique challenges. These firms typically face a high volume of orders alongside strict quality requirements and short delivery timelines. Most notably, the lengthy product processes result in distinct characteristics for different product types, leading to significant variations in production costs.
2. The general steps of PCB enterprise cost accounting
The process of cost accounting in PCB enterprises generally follows several key steps, starting from the calculation of production costs to determining the total cost of the finished product and the unit cost. First, the production costs are audited to identify any non-compliance with established systems and regulations. Next, it is essential to define the cost calculation objects and items, creating detailed accounts for product costs. Additionally, all incurred expenses must be summarized, and various expense allocation tables compiled, distributing them according to their intended purposes and incorporating them into the relevant detailed accounts of production costs.
At the end of the month, a specific distribution method is employed for allocating costs, ultimately leading to the calculation of both the total and unit costs of the product. For PCB companies, the components of product costs can be categorized into three main elements: direct materials, direct labor, and manufacturing overhead.
1. **Direct Material Cost**
In the PCB industry, materials are seldom allocated to each product based on a material quota table. As a result, cost sharing has become a vital method for accounting material costs. The typical process involves first obtaining output statistics (often using the production area as a metric) and then compiling a monthly material summary to allocate it to the outputs of various finished product types at once, thereby deriving the standard material rate. This rate can be seen as the raw material quota for the finished product. Specifically, when calculating the cost of each product, the formula is: single area of the product * standard material rate.
In this industry, materials are generally classified into primary and auxiliary categories. For instance, high-value items such as copper plates, copper foils, inks, and dry films are categorized as primary materials, while others are deemed auxiliary materials. Well-managed companies often introduce a critical concept for primary material costs: the thousand-foot consumption. This refers to the material quota needed to produce a specified output (e.g., 1,000 square feet) of finished boards, corresponding to a bill of materials (BOM) for each product type.
For example, if a company sets its thousand-foot dosage at 1,100 square feet of copper plate for each double-sided board (approximately 80 sheets), the copper plate consumption per product would be calculated as: single area (square feet) of 1,000 * 80 (sheets), with the associated cost being: consumption of a single copper plate multiplied by its unit price (in yuan).
If the company specifies that 15 kilograms of ink are required for each thousand-foot double-sided board, the ink cost per product would then be: single area (square feet) of 1,000 * 15 * unit price per kilogram of ink (in yuan).
If the company determines that each thousand-foot double-sided board requires 2,100 square feet of dry film (approximately 3 rolls of dry film, each 21″ x 592′), the dry film cost per product would be: single area (square feet) of 1,000 * 3 * unit price per roll of dry film (in yuan).
2. **Direct Labor Costs**
In corporate payroll management, there are two models: hourly wage and piece rate. For cost accounting, it is essential to extract the current month’s actual working hours statistics, the output statistics, and individual (or group) output records to create a summary of the workshop’s monthly wages and bonuses.
Next, the monthly workshop output summary must be compared with the salary and bonus payment records to determine the standard labor rate for the process, which serves as an important metric for cost accounting.
3. **PCB Manufacturing Costs**
Manufacturing costs encompass utilities, repairs, and asset depreciation. Accurately extracting and allocating these costs to each product presents a significant challenge.
3.1 **Drilling Costs for Manufacturing**
In the PCB drilling process, product costs are directly influenced by the number of holes, the size of the holes, and the thickness-to-hole ratio. Consequently, many PCB companies have adopted the concept of “aperture single hole cost.”
3.2 **Surface Treatment Manufacturing Costs**
Common surface treatment processes include lead-tin spraying (hot air leveling), OSP (environmentally friendly coating), and the application of pure tin, silver, and gold. The price varies depending on the treatment process. Cost variations can be managed through the apportionment of manufacturing costs, which considers whether a product has undergone a specific process, with costs added accordingly.
3.3 **Gold Salt Usage for Manufacturing Costs**
The management of gold salt usage and safety is crucial for PCB manufacturers. For product cost calculations, the thickness and area of the gold plating are typically considered. By calculating the amount of gold salt required and multiplying it by the unit price, the cost of the gold salt can be determined.
**Summary**
In conclusion, the unique characteristics of PCB products present specific challenges for cost accounting. To facilitate efficient cost management, it is recommended that companies leverage advanced information technology. By developing a suitable calculation model within their computer systems, companies can achieve rapid and accurate cost accounting for PCB products and semi-finished goods.
