[Nissho Bookkeeping x Music] Overcome the hurdle of Industrial Bookkeeping! Master the 4 classifications of indirect expenses with Arabian spells! "Caravan of Indirect Expenses" 🦊🏜️

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[🔽 Pon & Ten's Study Room]
"Studying is hard because there's so much to memorize..." "I can't get it into my head even after reading the textbook..." For those of you feeling this way, here is the magic of music! 🦊📘

This time, the energetic and cheerful "Pon" takes the lead! 🦊🎶

The theme this time is the nightmare of industrial bookkeeping that appears in Nissho Bookkeeping Level 2 and troubles many students..."The 4 Classifications of Indirect Expenses"!

"Unlike material and labor costs, there are too many types of expense calculations!"
"How do I calculate the adjustments for prepaid and accrued expenses again?"
"Which category do depreciation and inventory shrinkage costs fall into?"

For those confusing "expenses" in industrial bookkeeping, we have prepared a song that you can enjoy and learn from, set to enchanting Arabian pop!

🐫 The song title is "Caravan of Indirect Expenses ~4 Spells~" ✨

Set to a mysterious and comical melody featuring Middle Eastern instruments like the oud and qanun, once you chant the "4 spells," you won't get lost during the actual test anymore!

🔽 First, check out the video!

⚡ Today's theme: What are the 4 classifications of indirect expenses?

Among the "costs" incurred to make a product, those that are neither material costs nor labor costs are "expenses." Among these, those for which it is not directly known how much was spent on which product are called "indirect expenses."

In the world of bookkeeping, these indirect expenses are classified into four types based on "how to calculate them as consumption for the current month." Let's unravel the magic (rules) of the desert together with Pon!

① The First Magic: Paid Expenses 💸

[📝 Details & Bookkeeping Explanation!]
"Paid expenses" are basically calculated based on the "amount actually paid" for the current month's expenses (e.g., repair costs, subcontracting processing fees, storage fees, etc.).

However! The point you must never get wrong in Bookkeeping Level 2 is that"money paid in the current month = current month's expenses" is not always true. Adjusting this is the "addition and subtraction of prepaid and accrued expenses."

For example, if the amount paid this month includes a "prepayment for next month," you need to [subtract (minus)] it from this month's expenses. Conversely, if there is an amount that was used this month but "has not been paid yet (accrued)," you need to [add (plus)] it to this month's expenses.

💡 Calculation Formula (Boki's Decision!)

This "work of adjusting the discrepancy (difference)" is the first magic for calculating accurate costs!

② Second Magic: Monthly Allocated Expenses 🌙

[📝 Details & Bookkeeping Explanation!]
"Monthly allocated expenses" are expenses calculated by allocating the amount incurred over a "fixed period," such as a year or half a year, on a monthly basis.
Typical examples include "depreciation" for factory machinery, "rent" for land and buildings, "insurance premiums" for fire insurance, and "taxes and public dues" such as fixed asset taxes.

For example, suppose you paid 120,000 yen for one year's worth of insurance premiums in cash all at once. If you were to expense the entire amount in the month you paid it, the product cost for that month alone would become abnormally high, right?

That is precisely why calculating it as "120,000 yen ÷ 12 months = 10,000 yen per month," treating it as consumed equally every month just like sand falling through an hourglass (monthly consumption), is the spice of the calculation!

③ Third Magic: Measured Expenses ⚡

[📝 Details & Bookkeeping Explanation!]
"Measured expenses" are, as the name suggests, "expenses calculated by measuring with measuring instruments such as meters."
To put it bluntly, these are "electricity bills," "gas bills," and "water bills!"

This calculation is very simple and easy to understand.
"Unit price per 1kWh × Consumption (measured amount) recorded by the meter this month = This month's expense"

A feature of this is that you can accurately measure "how much was consumed this month" just by looking at the meters inside your own factory, without waiting for invoices from outside. Let's measure the magic lights (electricity) and water properly without hiding anything!

④ Fourth Magic: Incurred Expenses 📦

[📝 Details & Bookkeeping Explanation!]
Finally, there are "incurred expenses." These are a bit special; they are not calculated by paying money or looking at meters, but rather by the "fact that an event has occurred."The prime example of this is
"Inventory shrinkage loss!"

Even though there should be 100 units of material on the books, counting the warehouse reveals only 98... Since this 'missing 2 units of material' doesn't involve paying anyone, no money changes hands, but it is counted as an indirect expense (treating the occurrence as the consumption itself) as a 'fact of loss' that arose during the product manufacturing process.

Even if it looks like it has vanished into the desert sands, treating it as a cost is the rule for completing the drama of the ledger.

🦊 MV Highlights: 'Pon' traveling through a retro-pop desert caravan!

This MV features a retro-pop style with psychedelic and colorful hues that catch the eye!

The story begins with a scene where Pon, shaking her red hair and fluffy fox ears, opens a thick textbook in the vast 'Desert of Ledgers'📖
[[phN_open]]Dressed in a sailor-style white shirt and denim, she energetically spreads her arms wide and runs through a mysterious space (Magic Journey) where retro meters, gears, and coins fly about![[phN_close]]

If you watch Pon energetically chanting the spell 'Payment! Monthly Allocation! Measurement! Occurrence!' to the rhythm of mystical belly dancing, you'll surely find yourself humming along naturally!🐪✨

In conclusion

Once you have the classification rules firmly in your head, industrial bookkeeping cost accounting becomes as easy to solve as a puzzle.
If you get lost in expense classification during a test, remember the bridge phrase: 'Payment is adjustment! Monthly allocation is period! Measurement is meter! Occurrence is shrinkage!'

💡 Today's 'Review Memo (4 Spells)'

• 🎯 Payment Expenses = Based on actual payment amount (requires adjustment for prepayments/accruals!)

  • Example: Repair costs, storage fees

• 🎯 Monthly Allocation Expenses = Divide one year's worth by the number of months!

  • Example: Depreciation, rent, insurance premiums

• 🎯 Measurement Expenses = Measure consumption with a meter!

  • Example: Electricity, gas, water charges

• 🎯 Occurrence Expenses = No money moves, but it occurs as a fact!

  • Example: Inventory shrinkage costs

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This time, it was brought to you by the energetic Pon!
Now you too are a Cost Master...🦊🎤✨

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