How do enterprises control expenses?
1. Prior control
Pre-control, that is, to formulate reasonable standards for various expenditures in advance to prevent cost overruns. For example, how much should be invested in developing a new product and how much is the research and development cost, and a standard needs to be formulated in advance.
Many enterprises always control afterwards. Although it is not too late to mend, it is better to control it in advance and plan ahead.
2. Control afterwards
After-the-fact control is the behavior of correcting the cost difference that has occurred and adjusting or correcting the future cost expenditure. When the actual expenditure exceeds the original budget or standard, whether it is the difference in quantity or price, we should understand the reasons and then take corresponding countermeasures against these differences.
3. Control principle
In cost control, the principle of moderation should be adopted to avoid excessive control. In real life, many enterprises often overcorrect, take excessive control and control too much money.
Case 1
It is reasonable to invest 5 million yuan in developing a new product, while the boss only invests 2 million yuan, which is excessive control. In the end, the product may be barely developed, but no one cares after listing, because the product developed with a budget of 2 million may have insufficient functions and performance, which is called haste makes waste.
Comments: Therefore, in terms of cost, we should use it when we need it. When we save, we should save. We should be generous with money.
Case 2
There are three famous enterprises, one is Japanese A enterprise, the other is American B enterprise, and the other is European C enterprise. They have different countermeasures to control costs.
Enterprise A has a special control mechanism. If the budget is exceeded, the computer will automatically cut back. If the cost of last month exceeds the budget of 10%, the cost budget of next month will be automatically reduced by 10%.
If the income of enterprise B last month was actually lower than the budget, or the expenditure actually exceeded the budget, then the expenditure budget of next month will be frozen until the reason is found and a solution is found.
C based on the target achievement rate of enterprise's actual operating income in the last quarter (lower than 100%) or the revised target achievement rate in the next quarter (lower than 100%), the revised variable expenses in the next quarter.
Comments: The three enterprises in the above case respectively represent three different typical practices of enterprise cost control.
The situation of these three enterprises is different, so they adopt different methods:
Because the company's situation is not very good, the future performance of enterprise A will not improve in a short time, so once it overspends, it will be cut immediately;
And enterprise b may be very good at finding the cause of the problem and finding a solution;
The enterprise is in good operating condition.
Therefore, each company should choose its own cost control method according to its actual situation.