On how to strengthen enterprise cost management

Today, with the development of market economy environment, some enterprises in China have carried out advanced enterprise cost management pilot projects and achieved good results, but for a long time, there has been a deviation: enterprise cost management is regarded as the patent of financial personnel and a few managers. This paper analyzes the problems existing in the cost management of Chinese enterprises and discusses the countermeasures. First, the problems of enterprise cost management in China (1) The bad interest motivation of enterprise cost management leads to the distortion of cost information. In our country, a considerable number of enterprise cost managers adjust and fabricate cost information at will, driven by bad interests such as tax evasion, whitewashing performance, seeking personal gain or small group interests, which makes the distortion of cost information more and more serious, leading to the decrease of the flow and efficiency of various cost management activities and causing considerable losses to enterprises. Of course, the distortion of cost information may also be caused by the poor correlation between cost information and enterprise cost management, which is also a problem that enterprise cost management needs to pay attention to and solve. (B) There are misunderstandings in the establishment of internal cost management subjects. People think that cost and benefit should be the responsibility of enterprise leaders and financial departments, while workers in various workshops, departments and teams are only regarded as producers, which leads to ignorance of technology and finance, and employees are unwilling and unable to ask what costs should be controlled and how to control them, so they lack the enthusiasm of cost control and waste is extremely serious. Therefore, it is difficult for enterprise cost management to achieve results because of losing a huge management group. (C) Enterprise cost management methods are outdated. Generally speaking, the cost management methods of enterprises are still very old and cannot meet the requirements of the economic environment. According to the survey, 57. 1% enterprises adopt the variety method, and 4 1.5% enterprises adopt the step-by-step method, of which 22.9% adopt the parallel carry-over method and 16.8% adopt the step-by-step carry-over method. At present, the development trend of world production is the mode of small batch and multi-variety, because the preferences of buyers are not exactly the same. With the development of production, buyers can ask the factory to design and produce their most satisfactory products according to their own needs, and the factory can also ensure buyers to obtain ideal products efficiently in a short time. In this case, there may be only a few identical products on a production line, or even two identical products. This production mode will be suitable for calculating the cost by batch method. At present, only 5.7% of enterprises in China use the batch method to calculate the cost, which shows that the production organization in China is still relatively extensive and insufficient attention is paid to the consumption personality, thus simplifying the choice of cost accounting methods accordingly. Standard cost, planned cost and target cost are popular modern enterprise cost management methods in current cost and enterprise cost management. According to the survey of enterprises, 5 1.4% enterprises adopt target cost method, 38.9% enterprises adopt planned cost method, and 18. 1% enterprises adopt standard cost method. However, advanced activity-based costing and cost planning methods have not been popularized in enterprises. (D) The concept of enterprise cost management is backward. The backward concept of enterprise cost management generally exists in Chinese enterprises, which is manifested in the deviation in the understanding of the scope, purpose and means of enterprise cost management. The scope of cost management in many enterprises is limited to the inside of the enterprise, even including the production process, while ignoring the management of cost behavior in other related enterprises and related fields. The purpose of cost management is only limited to reducing costs, and less attention is paid to the effectiveness of costs from the perspective of efficiency. The means to reduce the cost is mainly in the form of saving, and the principle of cost-effectiveness cannot be applied, and greater benefits can be realized through the occurrence of costs. Traditional enterprise cost management mainly reduces product costs through two ways: one is scale efficiency, and the other is to enhance the negotiation ability with suppliers and distributors, so as to achieve the purpose of transferring costs. Because its scale is restricted by demand, what's more, the difference of consumer demand is getting bigger and bigger now, and the production scale of similar products tends to shrink. Simply shifting the cost of the enterprise from the core enterprise to the supplier or distributor will not only reduce the final selling price of the product, but also increase the cost, thus reducing the added value from raw materials to final consumer goods. Especially in today's increasingly open market environment, excessive cost transfer will make enterprises lose good partners. Second, the countermeasures to strengthen enterprise cost management (a) the introduction of enterprise cost management strategy. The economic environment in which modern enterprises live is changeable and the competition is increasingly fierce. Therefore, enterprises begin to attach importance to the formulation of competitive strategies, and adjust measures at any time according to the changes of customer needs and competitors, thus entering the stage of strategic enterprise cost management. Strategic enterprise cost management is based on the overall situation of the enterprise and the overall development strategy of the enterprise. Based on the competitive environment, the cost management of strategic enterprises comprehensively analyzes the value chain of enterprises, competitors and industries in which enterprises are located, so as to achieve the goal of knowing ourselves and knowing ourselves, and thus form various strategies of the value chain. (2) Do the basic work of enterprise cost management. The first is to formulate a scientific and reasonable consumption quota. According to the actual situation of industries and departments, formulate scientific and reasonable consumption quota as a reference for accounting and assessment, and lay a good foundation for accurate accounting. Second, strictly implement the capital quota and control the scale and quota. Capital occupation usually involves the steps of reserve capital quota, production volume, cost capital quota and working capital quota. Strict implementation of capital quota in enterprise cost management is helpful to the overall use and rational planning of enterprise capital strategy, thus ensuring the free use of unit funds and the orderly production and operation. The third is the integrity of original records and vouchers. The original records related to product output, such as summons, ledger, working time, personal attendance book, material requisition and other related consumption sheets, shall be kept by the responsible department and returned to the Finance Department for collection and sorting according to the specified time. The fourth is the formulation and implementation of internal prices. The formulation of planned price of raw materials and simulated valuation of finished goods inventory should maintain the stability of reaction to ensure the consistency of cost calculation and assessment. (C) establish a systematic view of enterprise cost management. Enterprises should establish the concept of systematic cost management, regard enterprise cost management as a systematic project, emphasize the whole and the overall situation, and conduct all-round analysis and research on the object, content and method of enterprise cost management. By studying the essence of each enterprise cost management method and the characteristics of the economic environment it adapts to, a systematic enterprise cost management method system is constructed. On the one hand, in order to make enterprise products more competitive in the market, cost management can no longer be limited to the production process of products, but should expand its vision to the market demand analysis of products, the development trend analysis of related technologies and the design of products, and to the use, maintenance and disposal of customers. On the other hand, with the development of market economy, intangible products are becoming more and more commercialized, and the connotation of enterprise cost management should also be extended from material product cost to intangible product cost. Such as human resource cost, capital cost, service cost, property right cost and environmental cost. (D) to cultivate awareness of enterprise cost management. At present, because the leaders and engineers of most enterprises don't understand the cost, it is generally incalculable how their design, technology, plans and measures will affect the product cost. Therefore, in order to strengthen enterprise cost management, the first task is to improve employees' understanding of enterprise cost management, strengthen cost concept, implement the principle of combining technology with economy and paying equal attention to production and management, publicize and educate all employees on cost awareness, cultivate all employees' cost awareness, and change the enterprise cost management of a few people into the participation management of all employees. Enterprises should attach great importance to the cultivation and use of professionals and actively hold various types of cost training courses to improve their professional knowledge in cost, open up broad ways to reduce costs from the technical and economic fields, and form employees' awareness of democracy and independent management within enterprises. Realizing self-management is not only the lowest cost management method, but also the most effective management method to reduce costs. Conclusion To sum up, strengthening cost management is the basis for solving various problems in enterprise cost management.