Reduce costs and increase profits

Integrative Principle

cost-benefit principle

importance principle

objectivity principle

Forecast, decision-making, planning, control, accounting analysis, assessment

Profit = (unit price - single change) × sales volume - fixed cost

(Unit price - single variable) × sales volume

(unit price - single change) ÷ unit price

breakeven amount (Unit price - single variable) × sales volume - fixed cost = 0 or Fixed cost ÷ (unit price - single variable) × sales volume Sales volume is generally an unknown parameter x

Operation rate

Safety margin contribution evaluation index

1-Unit variable cost = unit contribution margin

1-Break-even operation rate = safety margin contribution rate

Basic formula: % of profit ÷ % of factor

Problem-solving ideas: First find the growth percentage of profit. Generally, the growth rate of the default factor is 10%.

(Unit price - single variable) × sales volume - fixed cost = target profit is similar to a single target

Combined units (finding the lowest common factor)

average

driving factors

Value-added work (3 conditions)

Non-value-added operations Any activities that do not qualify as value-added operations are non-value-added operations.

Cost Center

Profit center is responsible for costs, revenue and profits

investment center

direct material

Direct labor

variable manufacturing overhead

① Actual usage × actual unit consumption × actual unit price (3 actual) = actual total cost

② Estimated usage × standard unit consumption × standard unit price (0 actual) = estimated total cost

③Actual usage × actual unit consumption × standard unit price (2 actual)

④Actual usage × standard unit consumption × standard unit price (1 unit) = standard total cost

①-②=Consumption difference ②-③=Output difference ③-④=Efficiency difference ②-④=Energy difference ①-④=Overall difference

Reduce consumption, increase production, improve efficiency, and satisfy the boss