How to innovate enterprise cost management

Lead: Enterprise cost management is the core content of enterprise management. Enterprises should attach importance to their own costs, strengthen cost management and maximize profits. In modern enterprise management, enterprises must form the concept of total cost management; Adopt cost management methods suitable for enterprise management; Strengthening the content construction of cost management and promoting the all-round development of enterprises.

How to innovate enterprise cost management? Disadvantages of traditional enterprise cost management

(A) the traditional enterprise cost management lacks market concept.

Cost is the comprehensive embodiment of the production and operation efficiency of an enterprise, and it is the comparative relationship between the internal input and output of the enterprise. Low cost means high efficiency, but it is not necessarily high efficiency. Many enterprises calculate the product cost according to the cost habit, and can reduce the fixed cost of unit product allocation by increasing output.

In this way, the higher the output, the lower the unit product cost. Assuming that the sales volume remains unchanged, the profit of the enterprise will be higher. This practice leads enterprises to increase production unilaterally without reducing product costs, regardless of the market demand for products, and transfer or hide the costs in the production process through inventory backlog to improve short-term profits. The reason for this phenomenon is that enterprise cost management lacks market concept and ignores the change of market demand, which leads to misunderstanding of cost information in management decision. It seems that the greater the output, the lower the cost and the higher the profit.

(B) The traditional enterprise cost management concept and content are rigid, and the means are aging.

Many enterprises only pay attention to the cost management in the production process, ignoring the cost management in the supply process and sales process; Only pay attention to the cost management after production, ignoring the cost management of product design and the reasonable organization of production factors before production. Some enterprises have weak prior cost management, and their cost prediction and decision-making are not standardized, systematic and dispensable; The cost plan is unscientific and not serious, and can be increased or decreased. Therefore, the blindness of cost management during and after the event is caused. In the specific cost accounting, only pay attention to financial cost accounting. Lack of management cost accounting. Until/very

Cost management means are still in the manual operation stage, lacking the characteristics of modern management. A basic requirement of modern cost management is the timeliness, comprehensiveness and accuracy of cost information, but manual operation is difficult to meet these requirements.

(3) Traditional cost management relies too much on the existing cost accounting system and cannot meet the needs of enterprises to implement total cost management.

The traditional cost management system fails to adopt flexible and diverse cost budgeting and accounting methods, which makes the cost management fall into a strange circle of simply managing for cost reduction, unable to provide the correct information needed for decision-making, unable to deeply reflect the business process, unable to provide the cost information of each operation link and the causal relationship of each link. Sometimes, even people who prepare cost reports find it difficult to explain their own product cost composition. Thus misleading the formulation of enterprise strategy.

In addition, the traditional cost management object is limited to the financial information of products, and it cannot provide the non-financial information such as resources, operations, products, raw materials, customers, sales markets and sales channels that managers need, and it is difficult to directly achieve the purpose of providing objective, true and accurate information for strategic management and strategic decision-making.

(D) the cost information is seriously distorted

The traditional cost accounting system is based on? Business volume is the only factor that affects cost? Based on this assumption, the cost accounting process is too simplistic. In highly labor-intensive enterprises, this simple accounting assumption (that is, allocating indirect expenses according to direct labor hours or output) usually does not seriously distort product costs. However, in the modern manufacturing environment, the proportion of direct labor costs is greatly reduced, and the proportion of manufacturing expenses is greatly increased, so it will be unreasonable to use the traditional cost calculation method again.

Second, the innovation of enterprise cost management thought

(A) the idea of reducing costs through technological progress and management innovation

Technological invention and management innovation not only win high monopoly profits for the United States, but also enable American enterprises to maintain their cost competitive advantage in market competition. This strategy is the most worthy of our consideration and reference. Compared with American enterprises, the biggest gap between China enterprises and American enterprises is not the backwardness of equipment, technology or production technology, nor the heavy redundancy or debt.

It lies in the conservatism of management thought and the lag of technology update. Generally, state-owned enterprises in China pay more attention to introduction and imitation, but ignore invention and innovation, research on scientific research achievements, productivity transformation, production and operation organization and individual creativity development. The result can only be to control and reduce costs from the perspective of tapping potential and saving on the basis of existing productivity. The cost competition generated by the application of a new technology and invention is far greater than the competitive advantage brought by tapping the potential from within.

(2) Pay attention to strategic cost management and value chain analysis.

In the market, what really matters is the cost of the whole economic process, and enterprises must know all the costs related to products in the whole value chain. Therefore, the company needs to change from simply accounting its own operating costs to accounting the cost of the whole value chain, and cooperate with other manufacturers in the value chain to control costs and seek to maximize benefits.

(C) a clear concept of corporate responsibility norms

Many successful American large enterprises are mostly cross-industry, trans-regional or multinational companies, and their production scale is huge, their branches are complex, and their management is second-depth, which is unmatched by China enterprises. But the division of power and centralization, that is, the division of responsibility, is much clearer than that of domestic enterprises.

(D) Pay attention to the idea of enterprise cost internal control

The internal control system of a considerable number of state-owned enterprises in China is not perfect, and they rely on financial audit to expose fraud and violation of discipline. This kind of after-the-fact audit makes the violation of discipline and discipline in enterprise cost management repeatedly banned for a long time.

Third, the innovation of enterprise cost management methods.

(A) efforts to improve the innovative spirit of enterprises, improve the conversion rate of scientific research results.

In the past, we put more emphasis on the adaptability of enterprises, but adaptability is adaptation rather than innovation, and our innovation ability is not strong enough. Although we have policies to encourage innovation, different enterprises implement these policies differently and the standards are unscientific. Some even become a mere formality, becoming a channel for awarding prizes in disguise, which affects the innovation enthusiasm of employees.

Therefore, it is necessary to reform the scientific research management system drastically, so that scientific research institutions can be more closely linked with enterprises and institutions of higher learning, and go to the market, form a benign compensation and investment mechanism for scientific research funds, and increase incentives for researchers and scientific research achievements. Turn scientific research achievements into productive forces as soon as possible.

(B) to strengthen strategic cost management

At present, our products lack competitive advantage. The main reasons are uneconomical production scale, large investment in production and construction, and high energy and material consumption. These are basically caused by neglecting strategic cost management in the process of product design and factory construction. They have a far-reaching impact on costs and are difficult to change in the process of production and operation.

To solve this problem, we must first analyze the existing production devices and manufacturing processes, resolutely eliminate those that are really inefficient, and transform and optimize the feasible ones as soon as possible. In future investment decisions, we should attach great importance to strategic cost management. Take strategic cost management as a necessary procedure for decision-making, and refuse to approve projects without cost analysis.

(C) to strengthen the value chain management in the process of production and operation

In cost management, we pay more attention to the control of cost and expense, but ignore the management of value chain. The main reason is that costs and expenses are intuitive, and the added value of various manufacturing procedures and operating procedures and the influence of logistics selection on value changes can only be found through calculation and comparison.

In fact, there are many costs that we can't control. The choice of manufacturing procedures, operating procedures and logistics can be optimized, and their impact on costs is long-term. Therefore, enterprises should calculate and analyze the added value of their manufacturing processes, reduce processes with little or no added value, and optimize resource allocation through value chain analysis in logistics selection.

(IV) Strengthen the internal control of the company and improve the ability of prevention and monitoring.

At present, the internal control of China's enterprises is mainly ex post audit. The audit of enterprise efficiency and internal control system is not enough. It is difficult to find out the existing or possible problems of the enterprise in time. This is also one of the important reasons why it is difficult to grasp the benefits of enterprises and there is no major breakthrough in management. It is urgent to improve the company's prevention and monitoring capabilities. We should learn from the successful experience of internal control in large American companies, change the focus of audit work, strengthen audit power, and change internal audit methods to further promote the reduction of enterprise costs and the improvement of efficiency.