How do enterprises control the cost well?

Absolute cost control is a cost control method to control the cost expenditure in absolute quantity.

Standard cost and budget control are the main methods of absolute cost control.

2. Relative cost control

Relative cost control refers to the method that enterprises control costs from the relationship among output, cost and income in order to increase profits.

The implementation of this cost control, on the one hand, can understand the balance between income and cost under the sales volume of enterprises, on the other hand, can know that when the sales volume of enterprises reaches how much, the profits of enterprises are the highest. Therefore, relative cost control is a more effective method, which is not only based on real-time and on-site management ideas, but also serves the management of enterprise strategic development from a forward-looking perspective to achieve cost control.

3. Total cost control

Total cost control refers to the cost control of the whole process of production and operation, the whole process of cost formation and all the costs involved by all employees. Enterprises should focus on the goal of maximizing wealth, establish management information system and cost control mode according to their own specific reality and characteristics, determine a comprehensive cost control system combining cost control methods, management priorities, organizational structure, management style and reward and punishment methods, and implement a comprehensive cost control system combining target management with scientific management.

4. Quota method

Quota method is a method of cost calculation and control, which is based on the pre-established product norm cost, and provides the difference between the actual cost and the quota in time when the production cost occurs, so that managers can take timely measures to control the production cost and calculate the actual cost of the product according to the quota and the difference.

5. Real-time cost control

Real-time cost control is a kind of cost management method. Before leaving work every day, the on-site construction management personnel record the number of labor, materials and machinery used and the number of completed projects. Through sampling inspection by the project manager or successor, through comparative analysis of computer software, it is concluded whether the cost index is realized and why.

6. Standard cost method

Standard cost method is an important part of western management accounting. It refers to a product cost calculation method based on the pre-established standard cost, comparing the standard cost with the actual cost, accounting and analyzing the cost difference, and it is also a cost control system to strengthen cost control and evaluate economic benefits.

7, economic procurement batch

Economic purchase batch refers to the purchase batch that minimizes the sum of purchase cost and storage cost under the condition that the total purchase amount remains unchanged in a certain period of time.

8. Cost-volume-profit analysis

Cost-volume-profit analysis is developed on the basis of cost behavior analysis and variable cost method, which mainly studies the method of quantitative relationship among cost, sales volume, price and profit. It is an important tool for enterprises to forecast, make decisions, plan and control business activities, and it is also a basic content of management accounting.

9. Linear programming method

Linear programming method is an important quantitative method developed in the Second World War, and it is commonly used in the total output planning of enterprises. Linear programming is the most important branch of operational research, which is the most perfect in theory and the most widely used in practice. It is mainly used to study the optimal allocation of limited resources, that is, how to allocate and use limited resources in the best way to give full play to the efficiency of resources and obtain the best economic benefits.

10, value engineering method

Value engineering refers to the functional analysis of products or services through collective wisdom and organized activities, so that the target can reliably realize the necessary functions of products or services at the lowest total cost (life cycle cost), thus improving the value of products or services.

1 1, cost plan

Cost planning is a popular cost management mode for foreign enterprises. Its essence is cost feedforward control. It is different from the traditional cost feedback control, that is, certain methods and steps are determined first, and corresponding countermeasures are taken according to the actual results deviating from the target value and the changes of the external environment. But flexibly adjust the current methods and steps according to the future goals, so it is an advanced and preventive control mode.

12, target cost method

"Target cost method" is a cost management method established by foreign manufacturing industry. The target cost method determines the product cost based on the given competitive price to ensure the expected profit. That is, first determine how much the customer will pay for the product/service, and then go back and design the product/service and operation process that can generate the expected profit level.