Discuss the difficulties and advantages and disadvantages of budget and total cost unit cost contr

Answer]: In the preparation method of cost budgeting, zero-based budgeting has some shortcomings, which are mainly manifested in: the workload of preparing the search budget is relatively large, and the determination of the cost-effectiveness rate of each project lacks objective basis.

1. Quantitative analysis of budget variance. Quantitative analysis should be based on different situations with the proportion of the hole analysis, comparative analysis, factor analysis, break-even analysis and other methods, from the quantitative full reflection of the budget implementation unit of the current situation, development trend and existing problems and potential, from the production and sales of varieties structure, **, variable costs, marginal income, expenses and other factors analysis. From the perspective of the formation process of profit and loss, the formation of differences can be classified into two major aspects:

sales revenue variances and cost variances; According to the composition of sales revenue and cost, the difference in sales revenue and cost difference are nothing more than two categories: difference and quantity difference. The so-called difference refers to the difference caused by the change of factors; The so-called quantitative difference refers to the amount of the difference due to the change in quantity. Variance analysis should be a step-by-step process, that is, starting with comprehensive financial indicators, gradually decomposing, and finally implementing specific production technical indicators.

2. Analysis method of the reasons for budget discrepancies. The main purpose of the quantitative analysis of budget variances is to find the reasons for the variances, and the main methods of analyzing the reasons for budget variances are: meetings and consultations of specific supervisors, foremen and other personnel involved; Analyze the workflow, business coordination, oversight effectiveness, and other presences.

Briefly explain how the target costing method compares to other cost management methods. Its advantages and disadvantages.

Pro, the target cost method is a cost management method that sets the target cost based on market demand and designs and produces products on this basis. Compared with other cost management methods, the target cost method has the following advantages and disadvantages:

1.More customer-oriented: The target cost method is guided by market demand, which can better meet customer needs and improve product competitiveness.

2.Conducive to cost control: By setting target costs in advance, production costs and quality costs can be more effectively controlled and cost overruns can be avoided.

3.Enhance the spirit of innovation: the target cost method requires that product design and production are within the set target cost range, which requires continuous innovation to promote the innovative spirit and ability of the enterprise.

Disadvantages: 1High requirements for employees:

The target cost method requires that product design and production should be within the set target cost range, and the comprehensive quality and skills of employees are higher. 2.Higher risk:

If it is not accurate, it may lead to the cost target being too high or too low, affecting the normal operation of the enterprise. 3.Constraints are large:

Target costing has strict requirements for both product design and production processes, which can limit creativity and flexibility.

Answer]: The difference between the actual cost and the budgeted cost is called the actual cost reduction, and the ratio of the actual cost reduction to the budgeted cost is called the actual cost reduction rate, which is a reflection of the comprehensive income level of the enterprise. The difference between the planned cost and the actual cost is called the project cost reduction amount, and the ratio of the project cost reduction amount to the planned cost is called the project cost reduction rate, which is the basis for assessing the project cost target.

Target cost is an estimated cost that is formulated through research, analysis and technical determination to evaluate the actual cost and measure the work efficiency. Target cost not only refers to product cost, but also includes management cost, marketing cost, R&D cost, design cost, customer service cost, and distribution cost. It requires that the objectives be defined in advance while taking into account the attribution of responsibility and that the actual data be collected and processed in accordance with the attribution of responsibility.

The overall budget reflects the financial plan of the enterprise in a specific period in the future (generally not more than one year or a business cycle of all production and business activities), which aims to achieve the target profit of the enterprise (the estimated amount of profit in a certain period of the enterprise, which is the goal of the enterprise, and formulates operating indicators according to the target profit, such as sales volume, production volume, cost, fund raising, etc.), with sales as the starting point, and then the production, cost and cash receipts and expenditures, etc., and the preparation of the estimated profit and loss statement, The projected cash flow statement and projected balance sheet reflect the financial position and operating results of the business in the coming period.

Target cost management should only be an important part of overall budget management.