How to view and apply variable cost method

Jun 16 - 2022

Howtoviewandapplyvariablecostmethod

The text tries to way in layman's low volume injection molding terms to express the work cost fee master high basic theory, looking forward to the practical operation of the accounting operation practice has some assistance.

First, the understanding of strategic cost management
A quote from a company director noise cancelling earbuds can indicate the necessity of an excellent cost management system: "Today the field return are extremely low, usually only 4-6 points, if there is a 1% difference in the calculated cost, the company's profitability needs to be distorted by 20%." Let's take a look at what operators and doctors have to say about cost control.
1. Easy to understand
The cost management system is treated as a part of accounting and costing is done for better financial reporting, and it is not critical to know who is applying the cost information content. Costing is just a daily task.

2. General Application
The cost management system is used job cost accounting software as a support point for operational decision analysis, a source of information content that can assist the supervisory unit and its sales and marketing units in making operational management decisions, but not much. It can be understood from the total number of cell phone calls from marketing units to the costing staff of the finance department asking for discounted prices and preferential indoor space.

3. Deeper application
Consider the cost management system as a basic service platform for the company's overall operation, and promote the company's lean management to improve and enhance. According to this service platform, it is possible to analyze the use value of each commodity that brings the company, analyze the profitability characteristics of the commodity, and analyze the use value of each customer/mode/area for the company. At the same time, this website can support the completion of the point obligation financial accounting management system, which can help to clarify

By:Dreamy