This paper mainly discusses that under the socialist market economy system, with the constant change of economic environment, the competition among enterprises is becoming increasingly fierce and the scale of production and operation of enterprises is expanding day by day. How to make enterprises survive, develop and grow in the market competition environment, realize the maximization of enterprise value, strengthen cost control and other issues have attracted more and more attention and attention. This paper mainly expounds the related concepts and significance of cost control, and through the analysis of the current situation of cost control in small and medium-sized enterprises in China, analyzes a series of improvement measures on how to control costs more scientifically and reasonably. So as to achieve the following purposes: (1) improve the economic benefits of enterprises; (2) improve the competitiveness of enterprises; (3) Protecting the safety of assets; (4) Improve social and economic benefits.
The first chapter of this paper expounds the related concepts of cost control, including what is cost and what is cost control, and then analyzes and discusses the scope, standards, control principles and significance of cost control in enterprises. The second chapter analyzes the present situation of cost control of small and medium-sized enterprises in China, and illustrates it with examples. The third chapter makes a series of analysis from the aspects of laws and regulations, implementation stages, different control subjects and personnel involved in control, and puts forward some improvement measures.
Finally, this paper draws a conclusion that only by establishing and perfecting the cost control system and improving the quality of enterprise personnel can the cost of enterprises be effectively controlled, and finally the dual purpose of improving enterprise and social benefits can be achieved.
Keywords: control; Cost control; Cost project control; Cost and expense evaluation system
Introduction: This paper mainly discusses that under the socialist market economy system, with the constant change of economic environment, the competition among enterprises is becoming increasingly fierce and the scale of production and operation of enterprises is expanding day by day. How to make enterprises survive, develop and grow in the market competition environment, realize the maximization of enterprise value, strengthen cost control and other issues have attracted more and more attention and attention. This paper mainly expounds the related concepts and significance of cost control, and through the analysis of the current situation of cost control in small and medium-sized enterprises in China, analyzes a series of improvement measures on how to control costs more scientifically and reasonably.
Chapter one? Overview of cost control
1. What is the cost?
Cost is the reaction of capital consumption in the process of enterprise production and operation, which can be understood as various expenses incurred by enterprises to obtain expected benefits, mainly including manufacturing expenses and period expenses. Cost is an important index to measure the internal operating efficiency of an enterprise, which determines the profitability of the company under a certain income.
Second, what is cost control?
Cost control refers to the planning, organization, coordination and supervision of various activities of costs and expenses in the production and operation of enterprises in accordance with the established objectives, that is, to control costs and expenses within the predetermined target range and achieve maximum economic benefits with minimum consumption. In short, cost control is the actions and measures taken to achieve the goal of cost management, including cost prediction, cost decision-making, cost planning, cost control, cost accounting, cost assessment and cost analysis. Its ultimate goal is to strive for maximum economic benefits with less consumption.
III. Scope, Standards and Control Principles of Cost Control
(A) the scope of cost control
The control scope of enterprise cost mainly includes product cost control and various cost control.
1. Product cost control
Product cost control includes direct material cost control, direct labor wage cost control and manufacturing cost control.
Material cost accounts for a large proportion in product cost, and its control is directly related to product cost control. (1) Control the procurement, storage and picking of raw materials. Blindly purchasing in large quantities and pursuing high quality and low price will increase the product cost. (2) Continuously improve the production process and improve the utilization rate of materials. (3) Using low-cost alternative materials on the premise of ensuring the quality and performance of products.
There are many factors that affect direct labor wages. For example, due to the improper arrangement of the production department, unskilled workers are required to do complex work, which will inevitably lead to an increase in production time. In addition, the quality of employees, labor productivity, workers' sense of responsibility, etc. It has a direct impact on wages.
Manufacturing expenses refer to the expenses that are directly used in product production, but are not easily included in the product cost, so there are no special cost items, including depreciation of fixed assets, repair expenses and other expenses, as well as various expenses indirectly used in product production. Make full use of existing equipment, maintain balanced production, improve equipment utilization rate, correctly accrue depreciation expenses of fixed assets, and reduce product costs.
2. Period cost control
It mainly includes management expenses, financial expenses and sales expenses. These expenses are not included in the product cost, but will eventually reduce profits. Therefore, it is necessary to strengthen the cost control in these three periods.
(2)? cost control standards
1, standard cost (norm cost)
Standard cost is a kind of cost scale pre-established by enterprises according to scientific methods under the existing production technology level, which is used to measure the actual cost. It is the target cost that enterprises should strive to achieve.
2. Cost budget
Expense budget is the budget of all expenses agreed upon according to the historical cost data and the actual situation in the budget period and considering the changes that affect a certain expense comprehensively. Used to control management expenses, financial expenses and sales expenses.
(C) the main principles of cost control
1, the principle of combining centralized control with decentralized control
Centralized control means that under the leadership of management, the centralized management department of cost control (usually the financial department) is responsible for unified control, coordination and accounting. Decentralized control means that all functional departments and grass-roots units of the enterprise headquarters control the costs and expenses that should be responsible according to their respective responsibilities.
The cost control of an enterprise is jointly completed by all departments, units and relevant personnel, and the appropriate degree of centralization and decentralization should be constantly adjusted according to the development of the enterprise, so as to achieve the best state that can not only mobilize the enthusiasm of all departments and units for cost control, but also enable the financial department to give full play to its coordination and supervision functions.
2, the principle of combining technology with economy
In the process of product cost formation, technical factors occupy a very important position. It is necessary to overcome the tendency of ignoring costs and controlling technology costs and not participating in technology decision-making. Cost control involves product design, technological transformation, material selection and other issues. Designers, engineers and technicians, and material procurement personnel of all relevant functional departments of the enterprise should understand and care about the cost; Accounting personnel should learn from the personnel of the production technology department, understand the technology and production process, and participate in the decision-making of cost and technology. Only with the concerted efforts of all parties in Qi Xin can we control the cost well.
3, the principle of combining professional management with mass management
Cost control is a highly professional job, and people without special training can't do it well. However, the cost control methods and schemes formulated by professional accountants and some measures taken to reduce costs need to be implemented by the broad masses of employees. Moreover, employees have accumulated rich experience in practical work and have many original opinions or good suggestions on cost control. Fully mobilizing the enthusiasm of employees to participate in cost control and listening to employees' opinions and suggestions are the key to achieving the expected effect of cost control.
4, the principle of comprehensive management
The production and operation process of an enterprise is actually the formation process of costs and expenses. In order to reduce costs, control activities should run through the whole process of enterprise production and operation.
5, the principle of cost-effectiveness
The implementation of cost control activities will generally produce some expenses, which are generally called control costs. The purpose of implementing cost control is to bring greater economic benefits to enterprises through effective control activities, that is, to control income. If the control income is greater than the control cost, the control activity is effective and reasonable, so it is necessary to control the activity. Otherwise, under normal circumstances, the control activities are invalid and unreasonable, and it is unnecessary to carry out them.
6, the principle of timeliness
The principle of timeliness of cost control means that in the cost control system, the deviation between the actual and control standards generated in the process of cost control should be revealed in time, and the deviation can be eliminated in time to restore normal information. At the same time, according to the principle of cost-effectiveness, some important and massive information should be provided in time; For some information with small quantity and poor importance, it can be provided regularly. Often, in order to reduce the loss during out-of-control period. Attention should be paid to shortening the period of feedback control and providing cost control in time.
7, the principle of adaptability
The production and operation activities of enterprises are complex and changeable. The principle of adaptability of cost control means that with the passage of time and the change of internal and external conditions, cost control can adapt to this change and play a better control role under changing conditions. When establishing the cost control system, we should consider a variety of factors comprehensively, and we should not lose sight of one thing and lose sight of another. We should fully estimate the possible changes in external conditions. When it is difficult to estimate, we should consider both internal and external factors of the enterprise.
8, the principle of combining power and responsibility.
The results of cost control should be analyzed and assessed, and if there are favorable differences, rewards should be given; Otherwise, corresponding measures should be taken to improve it and economic sanctions should be given. Enterprises should implement the economic responsibility system combining rights, responsibilities and benefits, and the decision-making power of each cost control responsibility center should be consistent with the economic benefits it has obtained. That is, what kind of rights you have, what kind of responsibilities you have to bear, and what kind of benefits you have to get accordingly.
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