Interpretation Of Matching Principle Of Income Cost

Once the company's stock is listed, in order to keep investors confident, operators need to maintain a good image of the company.

Ina Mori will think that operators must have strong will to overcome the temptation to beautify enterprises.

Generally speaking, the following principles can be applied to achieve the matching principle of income and expenses: first, reduce fixed costs and reduce production costs.

KYOCERA's experience is purchasing second-hand goods.

At the beginning of their business, they often bought second-hand equipment due to lack of funds.

The price of first class equipment is usually ten times that of secondhand goods, but the efficiency is only two or three times higher than that of cheap secondhand goods, and its investment efficiency is not high.

If companies invest too much in advanced equipment, fixed costs will increase rapidly.

It will go up sharply, which is not conducive to the sustainable development of enterprises.

Second, in time

。

KYOCERA takes the order production mode, and will produce an additional quantity of products according to the normal rate. The extra products will become the stock that can not be sold.

For example, there are orders for ten thousand products, and twelve thousand pieces are produced for the sake of insurance. The two thousand products that exist in the storeroom are of no use even though they are of good quality.

He argued that the value of assets that were already worthless could not be stored as assets for good-looking figures on the books of the assets. The warehouse managers would not remove these stones. Operators should check the warehouse regularly and clean up the stones in time. This is the theory of pottery and porcelain stone.

Third, vigilance

The increase.

Ina Mori said the fixed cost mainly includes equipment cost and labor cost.

Ina Mori believes that a large number of equipment investment and non production staff increase is actually "puffiness" and must be highly vigilant.

Fourth, make profits by sweat and never speculate.

Ina Mori is very disgusted with the concept of abusing "financial management" and deeply dislikes venture capital, which is speculation.

In the Japanese bubble economy era, many enterprises are free to buy white wolves.

Some enterprises are scramble for this kind of profit without any effort.

However, rice Sheng believes: "only the money earned by sweating on the forehead and hard work can make profits."

So when the bank suggested that rice Sheng invest in real estate, he firmly refused.

It is precisely because rice Sheng has withstood this temptation that KYOCERA has been standing still under the impact of the bubble economy.

Fifth, that is, buying.

Rice Sheng said: "do not budgetary system, need to spend money, immediately apply, immediate ruling."

In terms of procurement, Ina Mori insisted on the principle of "buy one liter".

Even if it's cheaper and more tempting to buy it, I'll buy just one litre that I need at the moment.