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Cost Management Guidelines
The mind map of cost management guidelines refers to the general term for a series of management activities carried out by enterprises during their operations, including cost forecasting, cost decision-making, cost planning, cost control, cost accounting, cost analysis and cost assessment.
Edited at 2023-10-05 14:40:05
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- Outline
Cost Management Guidelines
General principles
definition
It refers to the general term for a series of management activities carried out by enterprises during the operation process, such as cost forecasting, cost decision-making, cost planning, cost control, cost accounting, cost analysis and cost assessment.
in principle
Integrative Principle
Cost management should be based on the enterprise's business model, and cost management should be embedded in all areas, levels, and links of the business, so that cost management responsibilities are assigned to people, control is in place, assessment is strict, and goals are implemented.
adaptability principle
Cost management should be compatible with the characteristics and goals of the enterprise's production and operation, especially with the enterprise's development strategy or competition strategy.
cost-benefit principle
When applying relevant tools and methods for cost management, the benefits and costs it brings to the enterprise should be weighed to avoid the benefits being less than the cost of the investment.
importance principle
Cost management should focus on projects that have a significant impact on costs, and projects that are not important can be appropriately simplified.
Management Accounting Tools and Methods
target costing
standard costing
variable costing
activity-based costing
premise
Enterprises should combine their own cost management goals and actual conditions, and on the premise of ensuring product functions and quality, choose to apply cost management tools and methods suitable for the enterprise or comprehensively apply different cost management tools and methods to better achieve cost management goals. .
Application Environment
Enterprises should choose appropriate cost management tools and methods based on their internal and external environments.
Enterprises should establish and improve the cost management system, which generally includes an expense review system, a quota management system, a responsibility cost system, etc.
Enterprises should establish and improve cost-related original records, strengthen and improve the collection, recording, transmission, summary and arrangement of cost data to ensure that cost basic information records are true and complete.
Enterprises should strengthen inventory measurement and acceptance management and establish inventory measurement, acceptance, return and inventory systems.
Enterprises should make full use of modern information technology, standardize cost management processes, and improve cost management efficiency.
Supplementary Provisions
The Ministry of Finance is responsible for interpreting these guidelines
app
ex ante cost management stage
cost forecast
Based on existing conditions, on the basis of historical cost data, and based on possible changes in the future, cost management activities use scientific methods to describe and judge future cost levels and their development trends.
cost decision
On the basis of cost forecasts and related cost data, comprehensive economic benefits, quality, efficiency and scale and other indicators, use qualitative and quantitative methods to analyze each cost plan and select the optimal plan for cost management activities.
cost planning
Based on the operation plan and relevant cost data and information, according to the goals determined by the cost decision-making, through certain procedures and using certain methods, binding cost planning and management activities are carried out according to the production consumption and cost level of the enterprise during the planning period. .
In-process cost management stage
Cost Control
According to predetermined goals, cost managers exert active influence or intervention on the cost occurrence and formation process and various factors that affect costs, and cost management activities to control actual costs within expected goals.
Ex post cost management stage
cost accounting
According to the cost accounting objects, in accordance with the unified national accounting system and enterprise management requirements, various expenditures actually incurred during the operation process are collected, distributed and carried forward according to the prescribed cost items, and the total costs and units of different cost accounting objects are obtained. Cost, cost management activities that provide cost information to relevant users.
cost analysis
Cost management activities use cost information and other relevant data provided by cost accounting to analyze changes in cost levels and composition, identify various factors that affect cost changes and their causes, and take effective measures to control costs.
cost assessment
Regularly summarize and evaluate the actual completion of the cost plan and its related indicators, and carry out corresponding rewards and penalties based on the assessment results and the implementation of the responsibility system to supervise and promote the company to strengthen the cost management responsibility system and improve the cost management level. management activities.