Keywords cost control; Enterprise management; function
0. Introduction The current economic development is the development of economic globalization, and enterprises are facing fierce competition from home and abroad. Faced with this development trend, in order to achieve better development, enterprises need efficient management and control in addition to updating technology and talents. Among them, cost control is an important part of enterprise management and control, and it is also the basis for enterprises to achieve good economic benefits. Therefore, enterprises should attach importance to cost management, strengthen cost control, improve the management level of enterprises and enhance their core competitiveness.
1. Overview of enterprise cost control Enterprise cost control refers to the strict adjustment, control and calculation of various factors affecting cost control according to the set cost management objectives before the cost is generated, so that the cost expenditure of the enterprise can be controlled within the range of the cost objectives set in the early stage, thus achieving the cost management objectives. According to its broad and narrow definitions, cost control can also be called relative cost control and absolute cost control. Enterprise cost control in a broad sense involves all the management activities of an enterprise, while cost control in a narrow sense refers to achieving the cost limit set by the enterprise as the goal [1]. Enterprise cost control is an important part of enterprise management. The content of enterprise cost control includes: the control of internal personnel and the control of the whole process, all-round and whole link of enterprise operation. The principles that enterprises should follow in cost control are: economy, economy, consistency of power and responsibility, target management and comprehensiveness.
2. The role of cost control in enterprise management
2. 1 Promote the realization of economic benefits of enterprises
Scientific and effective cost control can promote the realization of good economic benefits of enterprises. At present, cost management is a very important management tool in enterprise management. Cost control is the top priority of cost management. Therefore, through effective cost control, enterprises can first reduce the capital risk of enterprises. For an enterprise, the good operation of funds is related to the life and death of the enterprise. In addition to attracting foreign investment to reduce financial risks, enterprises can also link the financial pressure of enterprises through their own cost expenditures, so that enterprises can put effective funds into production and construction, improve the technical equipment and personnel allocation of enterprises, and promote the realization of economic benefits of enterprises. Secondly, cost control can also be used as an effective means to strengthen internal management, so as to realize the orderly development of internal work, improve the enthusiasm of enterprises, create a good working environment for production and operation, and finally realize the economic benefits of enterprises. It can be seen that cost control is one of the important means of enterprise management at present, and it is also an effective means to maximize the interests of enterprises. On the whole, it ensures the double harvest of enterprise management and economic benefits.
2.2 to achieve sustainable development of enterprises
The development and growth of enterprises can not be achieved overnight, especially in today's global economic competition environment. Enterprises must pay attention to cost control if they want to be stronger and bigger and realize sustainable development. The sustainable development of an enterprise is inseparable from good talents and technology, and the most indispensable thing is capital. Economic benefit of enterprise = total income of enterprise-total cost input. Through this formula, we can see that the total cost input is very important to the profitability of enterprises. Although an enterprise has abundant funds, if it does not pay attention to effective cost control, it will not affect its short-term operation, but once a financial crisis occurs, it will inevitably lead to a major crisis and even bankruptcy. On the contrary, if an enterprise pays attention to cost control at every stage of development, it will certainly accumulate a large sum of money for the enterprise, and its ability to resist crises and risks will inevitably be enhanced, thus truly realizing sustainable development.
2.3 improve the core competitiveness of enterprises
Strengthening cost control can also effectively improve the core competitiveness of enterprises. Reducing the cost in the production process of enterprises can improve the profits of enterprises. The same product, according to the requirements of market economy, the price gap will not be too big. If enterprises can effectively reduce production costs, they can not only obtain higher profits, but also form a certain price advantage to attract more consumers, thus increasing product sales, better competing with similar products in the market, occupying a larger market share and creating brand effects. Finally, the economic benefits and sustainable development of enterprises will be realized.
3. At present, there are problems in the cost control of Chinese enterprises.
3. 1 Enterprises lack comprehensive awareness of cost control
At present, the cost control of many enterprises mainly achieves the purpose of enterprise cost control by reducing internal expenses and production costs. This single consciousness of cost control only pays attention to the cost control of production links and ignores the cost control of other links. This single cost control mode not only hinders the development of new products and technologies, but also affects the implementation of the overall development strategic objectives of enterprises. Not only that, but also some enterprises don't pay attention to enterprise cost control at all, lacking the consciousness of cost control, and enterprise managers only value output value and economic benefits. No matter the refutation of cost control consciousness or the lack of comprehensive cost control consciousness, it will directly affect the realization of product quality and economic benefit objectives in enterprise production and operation, resulting in the waste of funds and materials in enterprise production and operation, which is not conducive to the sustainable development of enterprises.
3.2 Enterprise cost control method is backward
At present, many enterprises still adopt traditional enterprise cost control methods, which is relatively backward for modern enterprise management. Traditional cost control methods mainly focus on the control of production costs. This model is to determine the target cost first, then convert the cost, compare and analyze the standard cost and the target cost, and finally put forward specific opinions on cost control. This cost control model does not fully reflect the cost information of the whole business process, nor does it take into account the technical requirements and consumer needs brought about by economic development, which makes the cost control of enterprises not only backward, but also lacks certain scientificity and effectiveness, which limits the normal operation of enterprise production.
3.3 enterprise cost control against enterprise development goals
Enterprise cost control is an important means to achieve enterprise development goals. If an enterprise wants to get development, it must make corresponding enterprise cost control targets. However, there are still many enterprises that ignore the strategic objectives of enterprises when setting cost targets, and lack foresight and long-term vision for the development of enterprises. This short-term cost control can only achieve the current cost management objectives, which is not conducive to the sustainable development of enterprises in the future.
3.4 The cost control system of related enterprises is not perfect.
Although many enterprises have formulated basic cost control management systems, such as the basic management system of cost accounting. However, due to the imperfect system and irregular management, the records of cost items are unclear or the implementation is not in place; Some enterprises fail to implement the acceptance management system, which leads to the untimely and incomplete property inspection of enterprises. However, the relevant system has not played its due role. Especially in the production of modern enterprises, the proportion of direct costs of enterprises has decreased, while the proportion of indirect costs has greatly increased. If the corresponding system is not perfect or perfect, the enterprise data information will be inaccurate, thus affecting the mistakes of enterprise cost control decision-making.
4. Effective cost control measures for enterprises
4. 1 Establish a new concept of cost control
At present, enterprises are facing fierce competition at home and abroad. In order to achieve the goal of maximizing economic benefits, every enterprise must establish a new concept of cost control. First of all, in enterprises, it is necessary to arouse the attention of all departments to enterprise cost control, improve employees' understanding of enterprise cost control, and let employees know the important significance of cost control to the development of an enterprise. Specifically, we can carry out publicity lectures on cost control within the enterprise, so that every employee can realize cost control from the bottom of his heart and strive to make every employee an effective practitioner of enterprise cost control. Through the joint efforts of all employees within the enterprise, we will do a good job in cost control of the enterprise. Secondly, the practice of enterprise cost control must also take the development strategic goal of the enterprise as the fundamental starting point, so that cost control can adapt to the overall strategic goal of the enterprise. Specifically, enterprises must thoroughly implement and implement the ideas and methods of global control. Finally, enterprises should build a comprehensive cost control management system and attach importance to the important role of cost control in enterprise development and profit maximization. Specifically, enterprises are required to comprehensively analyze the characteristics of the object and content of enterprise cost control and adopt appropriate cost control methods.
4.2 Adopt advanced and scientific cost control methods.
Enterprises must adopt advanced and scientific cost control methods if they want to successfully occupy market share in the fierce market competition. The method of cost control should be that enterprises effectively combine traditional cost control methods with modern cost control methods on the basis of analyzing their own situation. For example, the application of activity-based costing, cost-benefit analysis, value chain cost analysis and life cycle costing. Especially in modern manufacturing industry, its automation level is getting higher and higher, including many cost control links, involving: design and production costs, organization and coordination costs in the production process, organization order costs and indirect costs, including materials and labor costs with a small proportion. In this regard, activity-based cost control method can be adopted.
4.3 Strengthen cost control management
It is easy to ignore daily cost control in enterprise cost control, and enterprises should strengthen cost control management. For daily cost, the first is the control and management of daily material cost, which requires almost all personnel and construction workers to operate in strict accordance with the skills and procedures required by the design drawings to reduce the waste of materials in the construction process. Second, managers should effectively control labor costs, effectively supervise the number of construction workers and working hours every day, and prevent the loss of labor costs. Third, we should pay special attention to the management of indirect cost control, because indirect costs are prone to accidents and are not easy to control compared with direct cost control. In view of this, if it is a limited amount, it must be controlled strictly according to the limited amount. If it is not a limited amount, it must be controlled according to the pre-agreed fee.
4.4 Improve the cost control management system
First of all, it is necessary to establish a responsibility system for cost control within the enterprise and strengthen the sense of responsibility for cost control in all links. By establishing the responsibility system of cost control in all links and departments, the smooth development of enterprise production and operation can be effectively guaranteed. Secondly, we should improve the basic system of enterprise cost control. For example, to improve the cost recording system, enterprises are specifically required to accurately and effectively record the expenses of various materials in production and operation, and each expense must have relevant and effective vouchers. At the same time, it is necessary to improve the quota management system of enterprises, such as man-hour quota, raw material quota, expense quota involved in enterprise management, etc. These quotas must continue to be formulated reasonably and scientifically on the basis of investigating the actual situation. In addition, it is necessary to improve the standardized asset verification system and carry out systematic and standardized management on the measurement, acceptance, receiving and dispatching, inventory and other links of enterprises. Finally, we should improve the enterprise cost budget management system. Specifically, enterprises should make a reasonable budget for the main costs of enterprises according to the overall strategic objectives. Because the primary cost budget management is coordinated and improved according to the specific development goals, the cost budget of enterprises can not only conform to the overall development, but also can not ignore the detailed production.
4.5 Construction of enterprise cost assessment mechanism
The establishment of cost assessment mechanism is another effective measure for enterprises to realize cost control. Specific enterprises can take cost expenditure as an important direct standard for internal assessment. Enterprises can establish an effective incentive mechanism to link the cost control of enterprises with the work of various departments and strengthen the sense of responsibility of enterprise employees for cost control. The cost control of enterprises mainly includes direct cost control and indirect cost control. The combination with the incentive mechanism of enterprise work is manifested in the work requirements of cost control and the division of cost control functions of various departments. The construction of enterprise cost expenditure assessment system requires that the completion of cost control should be included in the employee assessment system while ensuring the smooth development of all work. For example, the cost control target set by the production department in the first quarter is 500,000. If the cost control of the production department exceeds the set target in the first quarter, and the responsible person has no real and effective explanation, the health department can impose corresponding punishment. By establishing a cost assessment system, cost control will be included in the performance assessment of employees, so as to effectively mobilize the enthusiasm within the enterprise and maximize the economic benefits of the enterprise.
5. Concluding remarks
To sum up, enterprises must pay attention to cost control if they want to improve their core competitiveness, achieve the goal of maximizing economic benefits and promote the sustainable development of enterprises. Through the awareness of cost control within the enterprise, we can establish a comprehensive and systematic new concept of cost control, improve the enterprise cost control system and establish an enterprise cost expenditure assessment system, which can not only effectively improve the management level of the enterprise, keep the enterprise cost within a scientific and reasonable range, but also realize the final growth of enterprise benefits and promote the long-term development of the enterprise.