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Basic Knowledge Of Accounting: Cost Management

2011/1/10 13:44:00 38

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Cost management overview

Cost management refers to a series of cost accounting, cost analysis, cost decision and cost control in the process of production and operation.

science

The general name of management behavior.

Cost management generally includes cost forecasting, cost decision-making, cost planning, cost accounting, cost control, cost analysis, cost assessment and other functions.

Purpose of cost management

Fully mobilize and organize all personnel of the enterprise to ensure that the quality of products is guaranteed, and make scientific and rational management of all aspects of the production and operation process, and strive to achieve maximum production results with the least production cost.

The role of cost management

Cost management is an important part of enterprise management. It requires systematic, comprehensive, scientific and reasonable.

Promote

It is of great significance to increase production and reduce expenditure, strengthen economic accounting, improve enterprise management and raise the overall cost management level of enterprises.

Cost management process

In order to do well in cost management and raise the level of cost management, we must first carry out cost prediction seriously and plan the cost level and cost target in a certain period.

Analysis

Achieve the cost objectives of the various programmes, the most effective cost decisions.

The cost plan should be compiled according to the specific contents of the cost decision, and as the basis for cost control, the daily cost audit supervision should be strengthened, and the loss and waste situation in the production process can be found and overcome at any time. In the usual time, the cost accounting work should be carefully organized, the health cost accounting system and all basic work should be established, the scope of cost expenditure should be strictly enforced, the appropriate cost accounting method should be adopted, and the product cost should be correctly calculated.

At the same time, we should arrange the cost assessment and analysis work, correctly evaluate the cost management performance of various departments, promote enterprises to continuously improve the cost management measures, and improve the cost management level of enterprises.

The cost analysis should be carried out regularly to find out the reasons for the rise and fall of the cost and to tap the potential of reducing production costs and saving costs.

To carry out cost management, we should carry out the decomposition of indicators, implement the cost indicators at different levels, and carry out the management and examination in a piecewise manner, so that the task of reducing costs can be guaranteed from the organization and combined with the economic responsibility system of enterprises and departments.

Cost is a comprehensive index reflecting the level of production and operation management.

Therefore, cost management can not only be confined to production cost activities, but should be extended to product design, process arrangement, equipment utilization, raw material procurement, manpower allocation and other fields of production, technology, sales, storage and operation. Personnel involved in cost management should not only be full-time cost managers, they should include the production and management personnel of various departments, and mobilize the masses of workers and staff, adjust the enthusiasm of all staff and implement comprehensive cost management. Only in this way can we maximize the potential of enterprises to reduce costs and raise the overall cost management level of enterprises.