Variable costs include: utilities; Catering raw materials and accessories;
In fact, it is very difficult to analyze and calculate the fixed cost from the perspective of strategic management. Traditional fixed costs are mostly analyzed by cost, quantity and profit and loss balance, and the data are inaccurate, which is why management accounting methods are rarely used in practice.
Fixed costs (expenses) refer not only to depreciation, but also to indirect costs in China. In traditional cost accounting, it is often calculated according to output. Even if some equipment is not used, its depreciation is amortized in the product cost, which just covers up the truth of the actual cost of the product, so it is easy to be ignored and makes managers neglect management. If activity-based costing is used to calculate, the actual cost will be allocated to the actual behavior or operation according to the machine time and labor of the equipment, which can make up for this shortcoming.
For example, the benefits of an agricultural machinery production enterprise are declining year by year, and the losses are serious. According to the traditional accounting analysis, just like the reasons for most enterprises' losses: market depression, fierce competition, rising raw material prices, 9 1 1 incident, atypical pneumonia, Iraq war and so on. However, the truth will be discovered after the attribute of manufacturing cost is re-recognized by activity-based costing.
It turns out that the fundamental problems of this enterprise are unreasonable product structure, low equipment utilization rate, frequent production replacement, long production preparation time, small single product output, low product output value and low labor productivity, which can not make up for the relatively high fixed costs. The essence of its products is that developed countries first transfer their products to developing countries.
From the point of view of fixed production cost, the corresponding strategic management indicators that enterprises need to consider include output rate index, unplanned shutdown index, machine time occupation index, production preparation time and manpower, product qualification rate index, procurement quality qualification rate index and timely supply rate index.
Fixed cost Even if the output is zero, the cost that an enterprise will still incur in a certain period of time. Total fixed costs include contract costs, such as interest costs, mortgage costs and management costs.
Fixed cost means that this part of the cost is fixed in a certain period of time, but the cost allocated to unit output changes with the change of output.