Cost Control Procedures Are Very Important For Asset Management.

The steps, sequence and contents of cost control.

Specifically, it can be divided into three parts: cost pre control, cost control and cost control afterwards.

(1) cost pre control is the pre planning and auditing of the economic activities affecting the cost before the product is put into operation, and the target cost is determined. It is the feedforward control of the cost.

Specifically, it includes: forecasting the cost, providing the basis for determining the target cost; on the basis of the prediction, through the comparative analysis of the cost of various plans, determining the target cost; decomposing the target cost according to each cost item or expense item, and implementing it to departments, workshops, classes and individuals, and implementing the centralized management at the same time, so as to facilitate the management and control.

(2) cost control is the comparison between the cost and target cost that occurs at any time in the process of cost formation, timely finding differences and taking corresponding measures to correct them so as to ensure the realization of the cost goal, which is the process control of cost.

Cost control should be carried out on the basis of the centralized management of the cost objectives, strictly checking and checking all production costs at any time and anywhere in accordance with the cost objective, eliminating the possible signs of waste and wastage, and timely feedback all kinds of cost deviation information to the relevant responsible units, so as to facilitate timely corrective actions.

(3)

It is the calculation, analysis and assessment of the actual cost after the product cost is formed. It is the post feed control of the cost.

Cost control afterwards determines the cost savings or waste through the comparison of actual costs and certain standards, and conducts in-depth analysis to identify the subjective and objective reasons of cost saving or overspending, determine the attribution of responsibilities, and make corresponding assessments and rewards and punishments for cost responsibility units.

adopt

To provide positive improvement suggestions and measures for future cost control, and further modify the cost.

We should improve the cost control system so as to achieve the goal of reducing costs.

The cost control is mainly aimed at the real time decentralized control of specific cost items.

The comprehensive cost analysis control can only be carried out after the event.

The significance of post cost control is not negative. A lot of cost control depends on post cost control.

In a sense, control before and after is relatively speaking, the post control of this period is the pre control of the next stage.

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The method of calculating the total cost and unit cost of each batch of products is also called the costing calculation method.

Under the batching method, the costing period is consistent with the production cycle. It belongs to the product cost method of irregular calculation.

This method is suitable for single, small batch and multi variety production types.

Under this method, there are two ways to determine the cost object (or batch). One is to organize production directly and in batches according to the order of the customer. The other is to organize production according to the order of the enterprise in batches according to the order of the customer and the specific conditions of the production and operation of the enterprise.

In the above two cases, production is done in batches, and the batch is very small. Therefore, the product cost calculation can be based on the cost of each batch as the object of calculation, and the product cost ledger is set up, and the product cost is calculated according to the cost of production.

Under the batching method, raw materials, production workers' wages and employee welfare benefits that are directly consumed by each batch of products are generally recorded in the direct materials and direct labor cost items directly credited to the cost subsidiary ledger according to the original voucher or element cost allocation form. As for the other expenses occurring in the workshop (such as indirect consumption materials, management salaries, depreciation fees, repair fees, etc.), they are generally collected according to different workshops and recorded in the annual manufacturing expense accounts.

At the end of the month, a certain allocation method is used for distribution, and then recorded in the cost accounting items of cost related subsidiary ledgers.

Due to the different production periods of batch method, a batch of products will be put into production at the same time and completed at the same time.

Therefore, before a batch of products are completed, the cost of production is the cost of this batch of products. When all the products are completed, the cost of production is the total cost of the product. The unit cost can be calculated by dividing the total cost by the total cost.

Sometimes a batch of products will be completed over a month and will be sold externally. In this case, the finished products will be accounted for according to the planned cost or estimated cost. After the whole product is completed, the actual cost of the products will be re calculated.