What Are The Main Contents Of Cost Management?

Cost analysis.

Cost analysis is based on cost accounting data and cost plan information and other related information, using a series of special methods to reveal the completion of enterprise cost budget and cost plan, to identify the impact degree of various factors that affect the completion of the plan or budget, and seek a special work to reduce costs and save costs.

Cost item analysis:

1, manufacturing costs.

Manufacturing cost is the direct consumption material, direct wages, manufacturing cost and so on.

2, the period cost: the period cost is the expenses that enterprises can not directly attribute to certain products for organizing the production and operation activities.

Including management, financial and sales expenses.

The period cost is directly included in the current profit and loss and is offset from the current revenue.

Management expenses: management expenses refer to the expenses incurred by the administrative departments of enterprises for organizing and managing production and business activities, including wages and welfare benefits, labor union funds, staff education funds, labor insurance premiums, unemployment insurance premiums, research and development fees, business entertainment fees, property taxes, land use taxes, technology pfer fees, technology development fees, intangible assets amortization, and bad debt losses.

Financial expenses: financial expenses are expenses incurred by enterprises for raising funds, including interest expenses, net loss of exchange, financial institutions' handling fees and other expenses incurred for raising funds.

Selling expenses: selling expenses refer to the expenses arising from the sale of products, the manufacture of semi finished products and the provision of labor services, and the expenses of the specialized sales organizations, including pportation expenses, loading and unloading charges, packing fees, insurance premiums, exhibition fees, notice fees, sales service charges, which shall be borne by the enterprises.

Staff salaries, staff welfare and other funds.

The main contents of cost management are:

1, cost forecast.

Cost prediction refers to the scientific estimation of future cost level and its changing trend through the analysis and calculation of the factors affecting the cost changes and the adoption of scientific methods according to the dependencies between costs and various technical and economic factors, combined with the development prospects of enterprises and various measures taken.

2.

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Cost decision is to achieve target cost, on the basis of obtaining a large amount of information and information, with a certain means and methods, to calculate and judge, compare the different costs of various feasible options, and choose a technically advanced and economically reasonable program.

3, cost plan.

Cost plan refers to the amount of money required to fulfill the production tasks in the planned period in the form of currency, and determines the cost level and cost reduction of various products.

4. cost accounting.

Cost accounting refers to the principles, principles and provisions of accounting.

According to the book record, through the collection and distribution of all costs, the cost of finished products and the end product cost are calculated by appropriate cost calculation method, and the corresponding accounting treatment is carried out.

5, cost control.

Cost control refers to various factors that affect the cost in the course of production and operation according to the prescribed standards, so that the production cost is controlled within a predetermined range, including ex ante cost control, daily cost control and ex post cost control.

6, cost assessment.

Cost assessment is a work that compares the actual amount of accounting report period cost with planned index, quota index and budget target, and evaluates the achievement and level of cost management in each cost responsibility center. It is a key link to check whether the goal of cost management has been achieved.