MindMap Gallery cost management
Regarding the cost management mind map, it mainly includes the meaning and goals of cost management, cost management principles, The main content of cost management, etc.
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Chapter 8 Cost Management
The meaning and objectives of cost management
significance
Reduce costs and create conditions for expanding reproduction
Increase profits and improve efficiency
Gain competitive advantage and enhance ability to compete and withstand pressure
Target
Overall objective
Cost leadership: the pursuit of absolute cost reduction
Differentiation: Manage the life cycle while ensuring differentiation, and implement continuous reduction of people's cost.
specific goals
Costing: Provides information to internal and external information users.
Cost control: reduce costs
Principles of cost management
Integration principle: based on business model, embedded in all aspects
Principle of adaptability: adapt to business characteristics, goals, development strategy, and competition strategy
Cost-benefit principle: weighing costs and benefits
Principle of importance: focus on projects with significant impact and simplify those that are not important.
Main contents of cost management
cost forecast
Cost is minimal
cost planning
Cost Control
cost accounting
cost analysis
cost assessment
Analysis and application of basic principles and benefits
Overview of cost-volume-profit analysis
four hypotheses
Total cost = fixed cost variable cost
Revenue and sales are perfectly linear
Production and sales balance
Stable production and sales structure
Profit and loss equation: Interest and tax profit = unit price * sales volume - unit variable cost * sales volume - fixed cost
contribution margin equation
Contribution margin = sales revenue - variable costs = (unit price - unit variable costs) * sales volume
Contribution margin per unit = unit price – variable cost per unit
Add to 1
Break-even analysis
Target profit analysis
sensitivity analysis
marginal analysis
Application of cost-volume-profit analysis in decision-making
Standard cost control and analysis
Concepts related to standard cost control and analysis
Establishment of standard costs
Calculation and analysis of cost differences
Activity-Based Costing and Responsibility Costing
operating cost
liability cost