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  3. Financial Management: how to achieve savings on production costs.

Financial Management: how to achieve savings on production costs.

admin2010-02-11  100
问题 Financial Management: how to achieve savings on production costs.
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答案Suggested answers: a．Poor management is at the root of most of business failure. Business difficulties, of course, may be caused by the poor quality of management that is by internal factors as well as by factors external to the firm. The poorly operated business will fail, the well managed will succeed. Business is a hard competitive struggle. If you want to achieve savings on production costs, you need to know: location, excessive competition, and difficulties relating to receivables and inventory, and inadequate sales. The individual business, if its management is knowledgeable of its environment, alert, resourceful, and flexible, can adjust to the constant changes in dynamic economy and survive. b．If you want to achieve savings on production costs, you have to make market research flint and then make a strategic plan. The development of a sales forecast is crucial to the planning of any business. With sales forecast in hand, all the costs of the business can also be forecast based on knowledge of how the sales are generated (the market plan). Based on the income and costs generated by the sales forecast, a financial plan can then be prepared. Selection of location is also important. When you select your location, you need to make your first marketing decision. This requires that you know (1) your product or service, (2) its users (potential customers), and (3) your competitors. c．If you want to achieve savings on production costs, you must know strategic cost management. Today’s business objectives are threefold: to make profits, to beat competition, and to delight customers. To achieve the first two objectives, you must accomplish the third. However, traditional cost-management techniques focused on the first objective only by minimizing cost regardless of the effects on customers. Cost management entails far more than cost cutting. Good cost management must be forward looking. It is still important to look backward, but the more you look forward to target costs and manage operations to meet cost goals, the less you will have to look backward to find out where costs went awry. And thus you should avoid the trap of trying to account costs out after the fact, rather than designing lower costs in before the fact.
解析 cost management成本管理。receivable应收的，应收款项，应收项目。resourceful资源丰富的，足智多谋的。trap圈套，险境。
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