Enterprise Cost control management It includes two parts: cost allocation and cost control. cost distribution To solve the problem of how to collect and allocate the cost of products or services, the core content is the cost. business accounting The problem faced by cost control is how to minimize the cost of enterprises, including all efforts made by enterprises to reduce costs.

1. Cost allocation

Cost allocation is to allocate indirect cost, common cost or joint cost to different departments, processes or products.

Cost allocation includes the following basic steps:

(1) determine the cost object. The enterprise must determine the cost to which department, finished product or process. Cost objects are often the branches of an enterprise. If a segment of an enterprise is granted some decision-making power and becomes a cost object, the accounting system will evaluate its performance.

(2) collect common costs and allocate them to cost objects.

(3) choose the basis of cost allocation. The cost allocation is based on the operational indicators related to the common cost of assigning the target cost object. The common cost is usually allocated by cost allocation to the cost object. The cost allocation basis can roughly reflect the consumption way of the cost object to the common resources.

2. Cost control

Cost control refers to the use of cost accounting based methods, predetermined cost limits, according to the cost of expenditure, the actual cost and cost limit, to measure the performance and effectiveness of business activities, in order to improve work efficiency, achieve or even exceed the expected cost limit.

(three) principles of cost control management

Competition is the benchmark for cost control.

Full staff whole process control.

The ultimate goal of maximizing enterprise value.

Meticulous management, from details to manpower.

Integrate and optimize internal and external resources.

(four) the role of cost control management in Enterprises

Cost control management is the fundamental way for enterprises to increase profits and directly serve enterprises.

Cost control management is the main guarantee for enterprises to resist internal and external pressures and survive.

Cost control management is the foundation of enterprise development.

(five) summary

The cost control in modern enterprises is based on the variable cost method. The implementation of variable cost method should be oriented towards the future and strengthen the internal management of enterprises. Theoretically, it is more in line with the principle of "matching" in accounting, which helps to strengthen cost control and performance evaluation, and urge enterprises to attach importance to sales links so as to achieve the goal of selling products. But there are also deficiencies:

(1) does not meet the requirements of financial accounting for product cost and external reporting.

(2) can not meet the needs of long-term decision-making.