How To Control Target Cost From Material Purchase

Management consulting experts learned from the financial accounting methods of ALTEC company in the past years that the basic data of daily financial accounting can not only be used for preparing financial statements, but also for target cost control and assessment services, thus saving the cost of information accounting itself.

The material cost of many processing and assembling enterprises accounts for a large proportion of their product cost, reaching 70%-80%. Therefore, saving material cost is of great significance for achieving the target cost.

The material procurement organization is good or bad, to a certain extent, it restricts the cost of materials.

The main process of material procurement process control is:

Compile material purchase plan according to target cost and supervise enterprise strictly implement material purchase plan.

Ensure the quality of materials.

In the procurement process, we must not only pay attention to the low price of materials, but first of all, we should ensure the quality of materials. At the same time, we should prevent blind pursuit of quality.

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Under the premise of ensuring the quality of materials, we should purchase from "cheap".

Material quality and material price should be analyzed to decide which factory to purchase. The bidding method can be used to select suppliers with good quality and reasonable price as partners.

If you want to know more about financial budget management, financial management cases, or how to prepare financial budgeting, please consult more.

Administration.

Choose reasonable

To reduce the cost of materials.

We should strengthen the education and use of internal audit to strengthen the discipline inspection and supervision.

It is necessary to put an end to the unhealthy tendency of individual purchasers who take advantage of the rebate and sacrifice the interests of enterprises.

Daily ABC analysis should be used to manage inventory materials, and different control methods should be adopted for different types of materials. The supply department should formulate normal loss orders and profit and loss accounts for inventory materials, and find that problems can be investigated accordingly.

It is worthwhile for the MeiLing group to adopt the procurement system of merit evaluation.

The preferential procurement system mainly includes three aspects: the "three ratio" fixed-point, the merit evaluation and the economic claim.

This procurement system links the main indicators such as price, quality, reputation and so on to pursue the best performance price ratio, prompting the supplier's technical quality level and cost management level to continuously improve.

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Cost management is an important part of enterprise economic management. It is closely related to external economic environment.

At present, the economic environment that has the greatest impact on cost management has two main changes: first, the establishment of a buyer's market for Chinese products; and the two refers to the pformation characterized by electronic technology.

The two makes enterprises as the main participants of social production activities have been greatly affected.

At present, with the pformation of market structure from seller's market to buyer's market, the cost structure of products has also changed. The proportion of productive cost has decreased, and the proportion of circulating cost has been increasing.

However, the traditional cost management in our country is limited to the production field too much, so as to reduce direct materials, direct labor costs and manufacturing costs as the main means of cost management, and neglect the control of cost and cost in the process of product development, sales and after-sales service, which can not meet the needs of modern cost management.

If enterprises simply reduce production cost as the whole content of enterprise cost management, enterprises will not be able to base themselves on the market.

Under the buyer's market condition, enterprises should carry out comprehensive cost management under the premise of obtaining maximum economic benefits.

The revolution of electronic technology is mainly characterized by the popularization and application of computers, and the use of computers provides convenience for modern cost management.

Computer operation is fast, and has storage function, information feedback speed is fast, can enhance business processing ability, for timely and accurate cost prediction, decision-making and accounting, effective implementation of cost control, comprehensive assessment and analysis of cost is of great significance.

Some managers of some enterprises in China are still not aware of these changes and still rely on traditional manual operation. This method is hard to adapt to the requirements of modern cost management.