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Five Mistaken Ideas Of Inventory Management

2014/2/20 20:35:00 33

Cost ManagementMisunderstandingFinancial Management

In the market economy, the competition of enterprises mainly includes product competition, and the core of product competition is cost, so cost management is an enterprise. Operation and management An important part of the enterprise is the basic link and important means of the business activities, and it is also the main way to expand and develop the enterprises themselves. The quality of cost management determines the competitive position of enterprise products in the market economy. The cost level has a direct impact on the economic efficiency and future development ability of enterprises.


   First, settle accounts after autumn.


This is in the process and method of cost management, without control, just stare at the final result. Beyond the cost control plan or goal, we must punish severely. Some people hang on the lips often say, "I only want the result, I only look at the result." As we all know, when the result comes, no matter how strict and strict punishment is, we will not be able to recover the wasted resources.


   Two. Only counting accounts.


   cost control It also requires calculating and calculating. But at the same time, we must consider closely the impact of input on output and income in the long run. Just counting the small accounts, we can only be a big miser like the boss, but we can not inherit the family business and expand our business.


  Three, only accounts for immediate accounts.


That's the cost. management control The lack of strategic vision separates the current input and benefits from the future inputs and benefits. This is like a second person, holding money instead of letting go, changing to a restaurant, and tightly controlling himself, so that the efficiency of existing resources can not be fully explored.


  Four, ignore people's accounts.


In order to consolidate and develop the market, enhance the cohesiveness of enterprises and achieve greater benefits and outputs, some enterprises are very careful about their customers and employees. However, they ignore this point and lose sight of small gains and losses, especially ignoring the role of the people. A small savings to enable enterprises to develop the interests of the main body, the loss of recognition of enterprises, but also make the enterprise lose the future. This is the most farsighted cost management.


   Five, each account.


In the actual process of the operation of enterprise organizations, the common problem is that all units and departments are closed to each other. They only calculate small accounts from their own units and departments, and do not calculate large accounts from the overall angle of the operation of enterprise organizations. The cost of units and departments within the enterprise is controlled and saved. However, from the perspective of the whole enterprise, the cost is offset and wasted. This is the biggest mistake of enterprise cost management.


Cost management is the lifeline of enterprises. All cost management activities of enterprises should be guided by the concept of cost and benefit. The need of internal management is the source of power for cost management, and the cost management of enterprises runs through the whole enterprise's production and operation process. Cost management must be based on the strategic height, and the center of cost management will be transformed from an introverted to an outward oriented one, from a management to a decision type, with the lowest possible cost, creating as much value as possible, and obtaining more economic benefits for the enterprise. If enterprises want to survive and develop, they must work hard and take various measures to reduce costs, raise the level of cost management, and carry out production and operation below the cost level of competitors so as to remain invincible in the competition.

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