Six basic methods of cost management

There are many ways to reduce costs, just a few steps for reference, hope to adopt!

First, the whole process

Enterprises should control the costs incurred in the whole process of product design, technology, procurement, manufacturing, sales and use, including not only the costs in the production process, but also the design and technology before production, sales and use after production.

Effective cost control is mainly to strengthen the whole process control before, during and after the event.

In advance control, we should carefully predict the possible results, and then compare them with the plan requirements, so as to adjust the plan when necessary, control the influencing factors and ensure the realization of the goal.

Process control, also known as executive control, is the basis and core work of cost control.

Finally, after-the-fact control, also known as feedback control, is mainly to analyze the implementation, compare with control standards, find problems, analyze reasons, take measures in time and implement them to prevent problems from happening again.

Second, all staff.

Enterprises should establish the concept of total cost control, not just relying on managers themselves.

Every enterprise employee should enhance cost awareness and strive to reduce production costs, which is called full participation in cost control.

Enterprises should fully integrate and make use of internal and external resources, and only cost control with full participation can effectively control the cost of expenses, time and quality.

Therefore, enterprises should actively build a comprehensive cost management model, decompose indicators, clarify responsibilities, strictly assess, firmly establish the concept of "efficiency first, consumption reduction first" for cadres and employees, and ensure the maximum benefit of enterprises.

Enterprises can work hard in three aspects:

1, scientifically and reasonably decompose the cost index.

According to the actual situation of each functional department and the division of functions, the cost indicators will be decomposed by year, quarter and month, implemented layer by layer, centralized and graded management, with clear responsibilities, and implemented to people, so that everyone has tasks on their shoulders and indicators on their heads from top to bottom, forming a strict and meticulous overall cost management responsibility system.

2, carefully prepare the monthly cost plan, advance control.

Entrepreneurial enterprises should make a good cost plan, publish and distribute it on a monthly basis, strictly assess it, and cash it at the end of the month, with prizes and penalties. At the end of the month, predict the cost completion of the month, analyze the reasons for cost overruns, sum up experience, find the gap, put forward opinions on reducing costs, and report them to the decision-making level of enterprises as a reference for cost improvement decisions.

3. Adhere to the work method of diligent accounting and meticulous accounting, and require the internal functional departments and employees of the enterprise to check the cost accounts, analyze the cost situation, clarify the input-output relationship, further improve the cost management level, and resolutely complete the cost indicators under the planned tasks.

Third, standardization.

Cost management should strive to be quantitative, quantitative and qualitative, so that cost management has standards to follow.

Standard cost is a kind of planned cost and the benchmark of cost control.

The standardization of enterprise cost requires managers to establish various cost quotas, such as procurement cost quota, production technology quota, labor wage quota, sales cost quota and so on.

Norm cost is the current quota of enterprise project operation cost, which reflects the cost level that should be achieved in the current period.

Reasonable cost quota is the standard to measure the cost savings or cost overruns of enterprises.

Through quota management, start-ups can avoid the blindness and randomness of expenses and improve the efficiency of capital use and management benefits. Of course, cost quota is also an important basis for cost responsibility assessment.

Fourth, responsibility.

To implement target cost responsibility management, it is necessary to decompose the indicators layer by layer, implement quota quantitative management and quota consumption contracting, so that everyone has indicators, everyone has a burden on their shoulders, and it is truly implemented by individuals, which plays a role in promoting employees' "careful calculation every day and monthly accounting".

At the same time, according to the management authority and scope of employees, they should bear corresponding economic responsibilities.

This kind of economic responsibility is not only related to the expenses, expenses and profits of the enterprise, but also related to the personal economic interests of employees and personal development in the enterprise.

Only when every employee in the enterprise strives to perform his duties and avoid unnecessary losses and consumption can the enterprise have low-cost competitiveness.

This is the cost responsibility of the enterprise. Only by clarifying the cost responsibility can we give full play to the enthusiasm and subjective initiative of employees and reduce costs with one heart and one mind.