Improvement strategy of enterprise cost management

Abstract: Under the condition of market economy, the competition among modern enterprises is essentially the competition of enterprise cost. However, at present, the cost management and control of Chinese enterprises are very weak, which seriously restricts the survival and development of enterprises.

Keywords: cost, management, cost control

First, the connotation of cost management

Cost management refers to a series of scientific management behaviors such as cost accounting, analysis, decision-making and control in the whole process of product design, trial production, production and sales. The main purpose of cost management is to reduce costs and improve the economic benefits of enterprises.

Second, the problems existing in enterprise cost management

(A) ineffective control of procurement costs

There are explicit costs and implicit costs. When purchasing, enterprises often only see the explicit costs of product prices, but ignore the implicit costs such as supplier management. Enterprises have relatively weak control over the whole procurement system, and rarely carry out scientific and systematic management from planning, organization and supply chain as a whole. For the quality cost control of purchased materials, the product series quality and work quality are less considered; The docking of internal logistics and supply chain, the docking of sales chain logistics, and the coordination of procurement and process layout, warehousing and transportation are relatively few. Many enterprises have not established supplier-related files and related credit information. Every purchasing activity needs a lot of manpower, material resources and financial resources to re-select new suppliers and inspect their products. Without practical reward and punishment measures, it is impossible to mobilize the enthusiasm of procurement personnel.

(B) poor production cost control and management

1. The production plan and material plan are not coordinated. Inconsistency between production plan and material plan leads to inconsistent production and reduces production efficiency. The production plan comes from sales orders and forecasts, and the sales forecast of the sales department is often very inaccurate, which leads to frequent changes in the production plan and the interruption of the original plan of the production line. On the contrary, the material plan will also affect the production plan. Production planning often fails to fully consider the timeliness of material planning, which leads to the material planning always lagging behind the production arrangement, and often makes the production line either stop for materials or change the production varieties urgently.

2, production scrap management is not strict. Production scrap is a normal phenomenon in the process of production and operation, but many enterprises only record production scrap without effective management and accounting. Production waste mainly includes material waste and industrial waste. After material waste, enterprises did not investigate the causes of material quality problems, and industrial waste was not linked to the performance of managers and operators, which led to the artificial scrapping of more materials in the production line and long-term out of control. When accounting for the loss of waste products, accountants ignore the supervision function of accounting and fail to form an effective control mechanism for excessive scrapping.

(C) ineffective control of sales costs

After-sales service is essentially a commitment of enterprises to customers. The more services promised, the higher the cost. Most enterprises have established a complete service system, but many enterprises do not regard the loss of after-sales service spare parts as part of the obvious cost of product sales, so product marketing, planning and manufacturers do not have to worry about after-sales maintenance costs. As a result, the rules of sales pricing are distorted, and the light quality and heavy procurement cost lead to the rise of repair rate. There are many kinds of parts and poor universality, which leads to many kinds and large quantities of maintenance spare parts library and rising service costs.

Third, the improvement of enterprise cost management countermeasures

(A) procurement cost control strategy

1. Establish a supplier file and access system. The supplier file of the enterprise should be established. In addition to the number, detailed contact information and address, the supplier file should also include payment terms, delivery terms, delivery period, quality grade, etc. Every supplier's file must be strictly audited before filing. The procurement of an enterprise must be carried out among the archived suppliers, whose files should be updated regularly or irregularly and managed by a special person.

2. Make the standard purchase price of materials, and reward and punish the purchasing personnel according to their work performance. According to the market changes and the standard cost of products, enterprises should regularly set the standard purchase price for the materials they focus on monitoring, so as to encourage purchasing personnel to actively find sources of goods and continuously reduce the purchase price. The standard purchase price can also be combined with the price evaluation system to propose reward and punishment measures.

(B) production cost control strategy

1. Establish modern production cost control concept. The motivation of modern production cost should be strategic. In order to make enterprise products have strong competitiveness in the market, we should start from the internal environment and external environment. In the production cost management of enterprises, we should attach importance to and strengthen the research and analysis of management decision-making cost, so as to avoid the losses caused by decision-making mistakes, provide the basis for ensuring the best decision-making and obtaining the best economic benefits for the development of enterprises.

2. Control the processing cost. The first step of processing is feeding, so the cost control of processing must start from feeding and strictly implement the system of picking, replenishing and returning materials. Materials need to be managed and collected by special personnel, and the feeding needs to be as accurate as possible. Too much feeding will cause waste, too little will cause quality problems. When the first product is made, it should be strictly inspected, and batch production can be carried out only after it is qualified, and sampling inspection should be carried out during the production process to prevent waste products and defective products caused by machine fluctuation.

(C) Sales cost control strategy

1. Reform the after-sales service mode. Regional service platform can be established through strategic cooperation with local distributors. These strategic partners are responsible for dealing with the product quality problems in the front line of the market in time, while the company regularly sends technicians to provide technical training to the after-sales service personnel of strategic partners and supervise them to implement the company's after-sales policy. At the same time, the sales department has strengthened communication with the company's technical department and quality management department, and set up a quality improvement team to work closely with the technical center and quality management department to seek to reduce product defects.

2. The cost of repairing spare parts is included in the product sales cost. When the cost of maintenance spare parts is included in the product sales cost, in fact, only the hidden cost is converted into the explicit cost, and the total cost has not increased. This will force enterprises to take various remedial measures in production to minimize the impact of explicit costs. The advantages of this transformation are: strong timeliness, improved cost awareness of employees, real-time allocation of maintenance spare parts costs to product sales costs in proportion, and consideration in pricing, which is conducive to achieving reasonable profits.

Main references:

[1] Guo Zhibao. Implement strategic management in the procurement process. Friends of Accounting, 2009.6438+00.

[2] Cheng. Uncontrollable cost of sales. Financial Journal, 2008. 1.

[3] Yang Liyan. On product cost control. Hebei enterprises, 20 10.8.

Source: Cooperative Economy and Technology, No.6, 20 1 1.

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