What Are the Different Kinds of Website Fees?

Expense classification management refers to the classification according to the different nature of expenses. An expense management method based on which expenses are mastered.

Expense classification management

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Expense classification management refers to the classification according to the different nature of expenses. An expense management method based on which expenses are mastered.

Chinese name

Expense classification management

nickname

Refers to classification according to the different nature of costs

Scope of application

Expenses

Scope of application

Commodity circulation

Expenses are classified by economic nature and can be divided into productive circulation costs and pure circulation costs.

This classification facilitates the correct understanding and analysis of the economic significance of expenses and expenditures, facilitates specific grasp of the scope and standards of various expenses, and provides an accounting basis for other classifications and hierarchical management. It is easy to use different methods for different expenses to grasp the expenses.

Expenses are classified according to the link incurred, which can be divided into purchase expenses, storage expenses and sales expenses.

This classification is convenient for accounting, analysis, and evaluation of expenses in various commodity circulation links, and it is convenient to share expenses in different accounting periods. Correctly reflect the value of inventory goods and business results of enterprises. In enterprises that implement the internal economic accounting system, it is more convenient to decompose and implement cost indicators to departments, departments, and groups for group and group accounting.

Expenses are classified according to the relationship with commodity turnover, and can be divided into direct costs and indirect costs.

This classification facilitates the preparation of expense plans and facilitates the use of different methods for different expenses, such as direct expenses. It is mainly measured by the relative number, that is, the level of commodity circulation expenses, and the absolute cost, which is the amount of expenses, is used to measure whether the expenditure is saved.

Expenses are classified according to their relationship with business operations and can be divided into business expenses and administrative expenses.

This classification is helpful for grasping the expense ratio of operating expenses and administrative expenses. It is convenient for enterprises to adopt different management methods according to different expenses. Business expenses should generally be mastered and evaluated in combination with the amount of commodity turnover, and management costs should be controlled and assessed in absolute amounts.