Analysis Of The Core Issue Of Financial Management: Cost Control

< p > cost control includes cost prediction, decision making and control.

The prediction of enterprise cost and cost is based on the analysis of the past cost level of enterprises and the change of internal and external conditions of enterprises.

In fact, most enterprises do not make use of certain forecasting methods to speculate on the future cost and level of the enterprise and its trend of change.

Most enterprises in China only make cost plans at the beginning of the year.

Cost control refers to the organization, regulation and supervision of costs and expenses incurred in the course of production and operation of enterprises in accordance with established cost objectives, so that cost control is controlled within a predetermined target area.

In terms of cost control, due to the small scale of private enterprises, the strong mobility of personnel, and the unfamiliarity of most business managers, < a href= "//www.sjfzxm.com/news/index_c.asp" > cost control theory < /a >, the control link of cost and expense is relatively weak.

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< p > first, establish cost cost < a href= > //www.sjfzxm.com/news/index_c.asp > control standard < /a > establish cost cost standard system.

The cost standard is the reference basis for whether the expenditure is reasonable. The standard must conform to the actual situation of the enterprise operation, and there must be some pressure to achieve it.

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< p > the cost standard is the quantitative limit for the cost and expenditure of resources, which is the basis of cost control and cost assessment, and is easy to distinguish the responsibilities of departments.

Second, establish the organization and responsibility system of cost control.

It is the responsibility of the top management and Finance Department of the enterprise to establish the responsibility system of cost control and control, to fix posts, to set people, and to be responsible for each cost occurring point.

The formation process of cost is strictly controlled and supervised according to the cost standard.

Third, establish the information feedback system of cost control.

Timely and accurately feedback the difference between the cost standard and the actual cost, and the implementation of the cost control to the enterprise decision-making level, so as to take timely measures to organize and coordinate the financial activities of the enterprise, and successfully complete the cost plan.

Fourth, top leaders should pay attention to and participate in the whole staff to enhance their sense of cost.

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< p > the daily affairs of an enterprise are executed by a large number of employees. They will directly or indirectly affect the cost level.

Therefore, all employees are required to have the desire to control costs and the sense of cost, develop the habit of cost saving, and care about the result of cost control.

The idea of cost and expense is deeply rooted in the hearts of the people, letting every employee know that their behavior will also affect the cost of the company.

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< p > at the same time, for the production oriented private enterprises, the control of < a href= "//www.sjfzxm.com/news/index_c.asp" > cost < /a > requires not only the sound system, but also the implementation of all links.

The business activities of production enterprises can be basically divided into procurement, storage, production, R & D, marketing, design and other links.

First, from the point of purchase and storage, we should establish, improve and implement effective internal control in procurement process.

We must strictly implement the procurement duty separation system, the purchase requisition system, the bulk purchase order control system, the cargo acceptance control system, the account payment control system, and the accounting audit and reconciliation system.

In the process of purchasing, we should implement the principle of material purchase, which includes three goods, tender procurement and quality based pricing, so as to achieve high quality and low price.

At the same time, raw material reserves must be reasonable and different materials should have different standards.

The main raw materials and fuels should be made according to the customer orders and production conditions to make different reasonable stocks and reduce capital occupation.

A reasonable lead time is determined, the re order point is determined, and the insurance reserve (safe stock) is set up to minimize the total cost of storage cost and shortage cost.

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< p > secondly, from the perspective of production cost, using high quality materials, improving material utilization ratio and avoiding negligence in operation results in increasing waste and waste materials and wasting raw materials.

Improving product design, adjusting product structure and reducing material consumption on the premise of ensuring product quality.

We should improve technology, develop and use new materials and substitute materials with science and technology, and strive to achieve low input and high output.

Improve product quality, reduce waste loss, carry out total quality management, and establish strict inspection system.

At the same time, we should enhance the technical proficiency and work enthusiasm of workers through reasonable and feasible incentive and punishment measures, improve labor efficiency, ensure the synchronous growth of wages and enterprise benefits, reduce the proportion of labor costs in unit product costs, and increase the efficiency of enterprises.

In addition, we must distinguish between controllable cost and uncontrollable cost.

For the controllable cost cost, the limit standard should be worked out, and the cost of exceeding the limit standard should be examined and approved by the higher level leaders, and the reasons for the cost and expense responsibility person shall be explained.

The quota is controlled by quota, and the cost is controlled according to the cost budget.

All departments, workshops and teams are controlled and supervised by the relevant personnel respectively, and suggestions for improvement are put forward.

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< p > finally, from the links of research and development, design, marketing and distribution, it is necessary to formulate the cost and expense standard and expense reimbursement scope of travel expenses, communication fees, business entertainment expenses, etc., and the relevant personnel shall be responsible for controlling and supervising them, so that their standards can be effectively implemented.

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