How to explain the importance of cost management?

First, based on the concept and importance of cost management \ x0d \ x0d \ 1. Cost management is a series of management work around all manufacturing costs and expenses in the whole process from product design to production, sales and after-sales service. \ x0d \ \ x0d \ 2。 Cost management is the central task of enterprise's daily operation and management, and plays an important role in enterprise's production and operation practice. The cost level of an enterprise not only determines the efficiency of its production and operation, but also directly affects its competitiveness, ability to resist internal and external pressures and ability to survive and develop. \x0d\\x0d\ Second, the status quo of modern enterprise cost management \ x0d \ x0d \ 1. Insufficient compensation for enterprise value. The rising prices of means of production cause serious loss of asset value, insufficient value compensation, uncontrolled general logistics management of enterprises and serious energy waste. \ x0d \ \ x0d \ 2。 Product loss costs increase. Enterprise production equipment and technology are outdated, the quality of raw materials is not good, transportation management is not good, a large number of defective products are produced in the production process, and the quality loss caused by waste products is serious. \ x0d \ \ x0d \ 3。 Accounting distortion of enterprise cost information. False cost accounting, on the one hand, is not paid attention to by accountants, on the other hand, it is artificially adjusting cost figures to achieve a certain purpose, which leads to serious potential losses and enterprises lose money in vain. \ x0d \ \ x0d \ 4。 The short-term behavior of cost management is serious. In recent years, due to the imperfect contract responsibility system, only Li Bao is not included in the cost, and short-term behaviors are rampant, managed by contractors, with poor management and lax supervision. \ x0d \ \ x0d \ 5。 Enterprise cost management lacks market concept. Benefit is the comparative relationship between input and output in an enterprise. Many enterprises divide and calculate product costs according to cost habits. By increasing output, the fixed cost per unit product can be reduced. The higher the output, the lower the unit product cost. Under the condition of constant sales volume, the higher the profit of enterprises, which leads enterprises to reduce the cost of products unilaterally by increasing production regardless of the market demand for products. Use inventory to transfer or hide costs in the production process to improve short-term profits. \x0d\\x0d\ III。 The foothold of modern enterprise cost management \ x0d \ x0d \ Modern enterprise cost management is that managers use special methods to provide analysis data of themselves and competitors to help managers form and evaluate enterprise strategies, thus creating competitive advantages and effectively adapting to external continuous changes. Modern enterprise cost management should be based on the following aspects. \ x0d \ x0d \ (1) Based on the long-term strategic objectives \ x0d \ x0d \ The purpose of modern enterprise cost management is to gain long-term and lasting competitive advantages, so that enterprises can produce and develop for a long time and be based on the long-term strategic objectives. If enterprises carry out labor cost management, they should hire highly skilled employees to reduce labor costs. According to the standard of "cost advantage", enterprises should employ employees who are young and highly educated for a long time, and use the learning curve to gain long-term cost advantage. \x0d\\x0d\ (II) Based on the overall development strategy \x0d\\x0d\ In order to make enterprise products have strong competitiveness in the market, cost management should not be limited to the production (manufacturing) process of products, but should extend its vision forward to the market demand analysis of products, the development trend analysis of related technologies and product design, and backward to the use, maintenance and disposal of customers. All these cost contents should be managed by strict and meticulous scientific means. If value analysis is carried out in the product design stage, it is a cost management method combining technology with economy. Modern enterprise cost management takes the overall situation of the enterprise as the object, is formulated according to the overall development strategy of the enterprise, and integrates the internal structure and external environment of the enterprise. (3) Based on the external environment \ x0d \ x0d \ Under the condition of market economy, the focus of enterprise management should shift from internal to external, and from production management to business decision management. In enterprise cost management, paying attention to and strengthening the research on the category of management decision-making cost can avoid the huge losses caused by decision-making mistakes. In order to ensure that enterprises make the best decisions and obtain the best economic benefits, enterprise cost management should be comprehensively investigated in the whole market environment, and correct and appropriate management strategies should be determined and implemented according to their own characteristics, so as to seize the opportunity, actively adapt to and control the external environment, take the initiative in the competition, and finally realize the predetermined strategic goals of enterprises. \ x0d \ x0d \ IV。 Countermeasures to Strengthen Enterprise Cost Management \ x0d \ x0d \ (1) Introduce a new concept-adopt strategic cost management \ x0d \ x0d \ The core of strategic management is to seek the lasting competitive advantage of enterprises, which is the core of all strategies. In the final analysis, it comes from the value that enterprises can create for customers. In order to gain competitive advantage, enterprises need to make choices, that is, on which advantage and within what scope they need to strive for and make choices. This requires the introduction of strategic management ideas into cost management, realizing the expansion of functions in a strategic sense, thus forming strategic cost management. Strategic cost management means that managers use special methods to provide the analysis data of the enterprise itself and its competitors, help managers form and evaluate the enterprise strategy, thus creating competitive advantages and effectively adapting to the changing external environment. \x0d\\x0d\ (2) Establish a new concept-dynamic cost-benefit concept \x0d\\x0d\ The content and scope of enterprise cost should change with the needs of management and develop with the development of management. Cost management should be all-round and whole process. In the design stage and development planning stage, we should carry out cost reduction activities, establish the concept of cost benefit, and improve the level of cost prediction and decision-making. Cost management should also be linked with the overall benefit of the enterprise, and the cost and its control should be viewed with the concept of dynamic cost benefit, and the necessity and rationality of input should be seen from the comparative analysis of input and output. Enterprises should decide the rise and fall of costs from the perspective of benefits, and conduct dynamic cost management with benefits as the center. Establish the concept of scientific and technological innovation and adhere to the combination of science and technology and economy. Effectively adopt new technologies, new equipment, new processes and new materials, and rely on modern science and technology to reduce product costs. At the same time, the scientific and technological content of products should be included in cost accounting, which is convenient for enterprises to make correct decisions. In the process of product cost formation, technical factors occupy a very important position. \x0d\\x0d\ (III) Establish a people-oriented concept and build enterprise cohesion \x0d\\x0d\ People are not simply tools to create wealth, but the largest capital, assets, resources and wealth of an enterprise, the main body of the enterprise, the main body of cost management and the key factor to determine the cost. Therefore, we must establish a people-oriented management idea, mobilize people's intellectual factors, cultivate and give full play to people's work ability, make employees and managers in an equal position and enjoy the same right to participate, and put humanism and democratic management ideas into the process of enterprise management, so that enterprises can truly become democratic and humanized organizations, thus inspiring everyone's sense of ownership and dedication from people's hearts. \ x0d \ x0d \ Through the internship at this stage, I deeply realized that deepening the reform of cost management is a prominent and urgent issue in the process of gradually establishing and perfecting the socialist market economy and modern enterprise system. On the one hand, the market economy provides a vast world for the development of enterprises, on the other hand, enterprises are facing fierce market competition. In order to survive and develop, enterprises must practice their internal strength and take various measures to improve cost management, so as to be invincible in the competition. Modern enterprise management needs to pay more attention to cost management, which must be more scientific and systematic. At present, there are many defects in the traditional cost management methods adopted by many enterprises in China, which need to be improved and perfected. Innovation is the primary problem to improve the cost management of enterprises in China, and strengthening cost control is the key to improve the cost management of enterprises in China. Only by effectively applying modern cost control and management methods to practice, making accounting and management science adjust to the environment and coordinate with the pace of economic development, can the existing cost management system be reformed rhythmically and the level of economic development be improved.