How To Deal With The Bad Management And Operation Of An Enterprise

At present, many enterprises in China, regardless of market demand for products, unilaterally reduce production costs by increasing production, and shift or hide the cost of production process through inventory backlog to improve short-term profits.

The reason for this phenomenon is that the cost control of enterprises lacks market ideas, which leads to misunderstandings in the management decisions of cost information.

The driving force of cost control should come from the need of internal management.

However, from the current situation, the cost control of many enterprises in China is limited to the compliance and implementation of the cost regulations promulgated by the state's financial laws and regulations. The cost control focuses on the macro needs and ignores the important role of cost control in the management of enterprises.

Enterprises depend too much on existing costs.

The system can not meet the needs of enterprises to implement total cost control.

The traditional cost control system fails to adopt flexible and diversified cost methods, which makes cost control fall into a simple cycle of reducing costs and reducing costs.

It can not provide the correct information needed for decision-making, nor can it reflect the business process and the cost information of each operation step, thus misleading the formulation of business strategy.

In addition, the traditional object of cost control is limited to the information of the financial aspects of the product, and can not provide the non-financial information such as resources, operations, products, raw materials, customers, sales market and sales channels needed by the managers, so it is difficult to provide sufficient information for strategic management.

Under the modern manufacturing environment, the proportion of direct labor cost has been greatly reduced, and the proportion of manufacturing costs has increased significantly. The traditional cost accounting method will lead to serious distortion of product cost information and make enterprises mistakenly choose the direction of product management.

The traditional cost calculation method will inevitably produce the following unreasonable phenomena:

(1) use the direct labor cost that occupies smaller and smaller proportion in the cost of products to allocate the manufacturing cost that has a larger proportion.

(II) allocate more and more operating costs which are not related to working hours;

Ignore the difference of actual consumption of different batch products.

2. inventory

Unreasonable occupation

At present, most enterprises in our country still have large class management of inventory, and the way of calculating the difference between the sales price and the purchase price, even the majority of enterprises that use computers can only operate single machine.

With the increasing number of commodities, traditional management methods are becoming more and more unsuited to the needs of modern commercial development.

Its defects lie in:

It is difficult to grasp inventory situation in detail.

Pricing decisions affecting commodities.

We can not predict the quantity of goods in time, accurately and scientifically.

Especially for some seasonally strong commodities, how to determine economic quantities is very important. If there is a slight negligence, there will be losses due to overstock of commodities, or a missed opportunity for sale because of insufficient merchandise.

3. loss of credit sales caused by lack of strict credit system.

Reasonable use of credit sale policy helps to stabilize sales channels and maintain market share, but accounts receivable increase takes up a lot of capital, resulting in the accumulation of funds in circulation, and at the same time it will inevitably produce some bad debt losses.

Giving credit to customers who fail to meet credit standards.

Even if some enterprises are actively collecting, they will increase their collection expenses because the other party is unable to repay their debts.

4. types

Expenditure is not budgeted and often occurs at random.

At present, enterprises generally have the phenomenon of no budget or strict budget execution.

It is mainly manifested in the following aspects:

Scientific purchase should not only compare the prices of goods, but also strictly control the purchase cost.

At present, most commercial enterprises have the phenomenon of excessive pportation charges and no control over travel expenses.

There are many problems in the major expenditures of most commercial enterprises, such as routine maintenance and external procurement.

Although the number of major projects is small, the large amount of funds has an important impact on the capital allocation of enterprises.

In reality, some major expenditure items are wasted due to lack of pre scientific prediction, strict control in the matter and strict evaluation afterwards.

Most commercial enterprises carry out two levels of accounting, driven by the interests of small groups, making the budget difficult to strictly enforce.

There are, of course, external reasons for the occurrence of cash flow problems, such as imperfect capital market, single financing channels, and lack of alternative financing channels and financing methods. The state's tax burden is heavy, enterprises lack the ability of self accumulation, and financial institutions such as banks are tightening money and so on.

The external reasons are important, but the fundamental reason for determining the state of the capital chain of the enterprise is still the cause of the enterprise itself.