1, primary indicator:
The first-level index is the highest-level cost index, which usually reflects the overall operating status of the enterprise with the overall cost performance. The core of the first-level index is to comprehensively evaluate the cost-effectiveness of enterprises to determine their overall economic benefits and competitiveness. First-class indicators can be used to measure total cost, total profit, total asset profit rate and so on. Through the analysis of the first-level indicators, the management can understand the overall cost level of the enterprise, which is helpful to formulate the overall strategy and decision.
2. Secondary indicators:
Secondary indicators are cost indicators that further refine and decompose primary indicators on the basis of primary indicators. They are usually associated with various departments or business activities of an enterprise. The goal of secondary indicators is to know more about the cost of different departments or business activities in order to control and optimize the cost more accurately.
For example, secondary indicators can include labor costs, raw material costs, production costs, sales and market costs of departments. Through the analysis of the secondary indicators, the management can find out the specific reasons for the increase of costs or the decrease of benefits, and take corresponding measures to improve them.
3. Three indicators:
The third-level indicator is a cost indicator that is further refined on the basis of the second-level indicator, and is usually related to the specific process, link or project of the enterprise. They are a more detailed division and measurement of secondary indicators. According to the actual situation of the enterprise, the three-level index can take many forms, such as product cost index, production process cost index, supply chain cost index and so on. By analyzing the three-level indicators, the management can deeply understand the cost composition and effect of different links, formulate targeted optimization plans, and improve the overall cost-effectiveness.
First-class index, second-class index and third-class index constitute a distinct cost index system. The system can help enterprises to analyze and control the cost from the whole to the part, provide scientific basis for enterprise decision-making, and improve the economic benefit and competitiveness of enterprises. Each level of indicators has different application scenarios and values, which need to be used flexibly according to the characteristics and needs of enterprises.
Cost introduction
Cost refers to the expenses and costs paid or borne by enterprises for production and business activities. In economics, cost refers to the resources and inputs needed to produce and supply goods or services. Cost is all kinds of expenses paid by enterprises in the production process. These expenses include direct costs and indirect costs. Direct cost refers to the expenses directly used in the production process of products or services, such as raw material procurement expenses and direct labor wages.
Cost is the price paid by an enterprise to obtain a certain number of products or services. Cost can be in the form of monetary expenditure, or it can be the cost paid by the enterprise to give up other opportunities. For example, the money paid by enterprises for purchasing production equipment is the cost in monetary form; The rental income that enterprises give up for using their own land for production is the opportunity cost.
Costs can also be divided into fixed costs and variable costs. Fixed cost is the cost that does not change with the increase or decrease of product quantity under a certain production scale, such as rent and depreciation of fixed equipment. Variable cost is the cost that changes with the increase or decrease of product quantity, such as raw material cost and direct labor cost.