Talking about the Order Costing Algorithm of Printing Industry

I. Overview of the printing industry The traditional costing algorithm is based on the monthly division of prepress, printing, and post-press processing. The process is calculated by the cost accounting unit. This algorithm is used to knead together multiple types of prints. Therefore, there is no way to know the water situation of a single print, and it is very difficult to adapt to the existing market economy model. In the market economy, the competition among enterprises first shows the price competition. The salesman can no longer rely entirely on the printing price to quote. In order to obtain more orders, the price is usually quoted at a price lower than the working price, but the salesman is not clear. How much should be lower than the wage price to not lose money. The traditional cost algorithm can not provide a reference for the clerk when quoting, so there is an urgent need to implement a new cost nucleus algorithm, which is an order cost nucleus algorithm that is calculated on a single print basis. Second, the order cost algorithm described briefly I use the following formula to briefly explain the order cost algorithm:
The total cost of a print = the material cost of the print + the labor cost of the print + the management cost of the print + the fixed cost of the print The material consumption = Σ (N process or machine material consumption)
Printing labor costs = Σ (N process or machine labor costs)
Printing management fee = Σ (N process or machine management fees)
Printing fixed cost = Σ (N process or machine fixed costs)
The material consumption of a certain process or machine = process or machine time required for the print job × process or machine unit work time material consumption process or machine unit work time material consumption = current month process or machine material consumption total ÷ month actual total work time process or machine Labor cost = Σ (m individual process or machine labor costs)
The labor cost of a person's process or machine = the man-hour required for the process or machine's print job × the labor cost of the person's work unit's unit labor hour's labor cost = the person's current month's income ÷ the actual total time worked or machine Desk management fee = Σ (m individual process or machine management fee)
Someone's process or machine management costs = Process or machine time The print job required time × The person's unit work hours management costs Someone's unit work hours management costs = Current per capita management fees ÷ Month Actual total work hours Month per capita management costs = Management fee of the current month ÷ Total number of production personnel in the entire plant Process or fixed cost of the machine = Σ (m individual process or machine fixed cost)
The fixed cost of a person's process or machine = the working time required for the job for the process or machine x the unit time of the person's work time fixed cost for a person's work time = fixed cost per month for the per capita month actual total working hours Cost = fixed cost of the shop in the month, total number of production personnel in the workshop, and the cost of the physical order of the order cost algorithm is difficult to achieve in the era of computer management. The difficulty lies in the manual extraction of basic data and complex manual calculations. This can be achieved using computer network management on enterprise INTRANET. First and foremost, the most important thing is to divide the company's processes and all the machines, and number them according to the workshop. The key is to not miss any process (including manual processes), which is related to the accuracy of the order cost accounting, and missed a The process is to miss a part of the cost. In the following, taking the binding shop as an example, the list of processes for making the binding shop is shown in FIG. The second is the extraction of basic data. This requires the daily production of each process or machine to be recorded and entered into the computer. For this purpose, a new production daily report is designed as follows: (Download chart)
This production daily report is a comprehensive daily report. The first part of it is to record the daily production of a certain process and machine, accurate to each order, and record the quality; the second part is the operation of recording equipment; the second part Record the working status of personnel, two of which are prepared for the order into a nuclear algorithm. Each machine chief or each process leader will record the daily production status in the daily report, and send it to the workshop statistician. The statistician will uniformly record the data to the computer to save the prints. Working hours and personnel used by each process or machine and their working hours. The consumption of processes or equipment is realized by the workshop material management module in the material management system. It is required that the workshop material management module picks materials in units of processes or machines, so that the material consumption can be summarized according to the processes or machines. Labor wage data comes from the personnel labor system. The management fee is the cost of the company's management personnel, including the management staff's salary or benefits, office expenses, conference fees, transportation fees, repair fees, health expenses, etc., which is obtained from the financial management fees subject. The fixed cost of the workshop is mainly composed of the salaries and benefits of the workshop management staff and maintenance personnel, ie the non-production staff of the workshop, the fuel cost of the workshop, the utility bills of the workshop, the depreciation of the workshop equipment, the maintenance of the workshop equipment, etc., each month by the financial management subsystem. The workshop funding subject is provided. With these data sources, the total cost of a print can be calculated based on the formulas listed in the previous section, thus achieving an order cost algorithm.
The function of the order cost nucleus has many functions, and it can help the clerk's quotations and management decision-making through various analysis of the order cost. We will make a histogram of the quotations, orders, and wages for each print (as shown in the figure below, with a value of 10,000 yuan). Through the histogram, we can see some problems at a glance and then analyze these issues. Fourth, the role of order cost nucleus algorithm Order cost nucleus has a lot of role, through the various analysis of the order cost, can help the clerk quotations, management decision-making. We will make a histogram of the quotations, order costs, and wages for each print (as shown in the figure below, with a value of 10,000 yuan). Through the histogram, we can see some problems at a glance and then analyze these issues.
Print 1, Print 4 and Print 6 are relatively reasonable. Prints 2 and 5 have low bidders. Print 3 costs too high. The low bid price indicates that the salesman has a low price or that our cost constitutes a problem. Too high also shows that our cost structure is problematic and we need to analyze the composition of the order cost. The cost of an order is made up of four parts: material consumption, labor, management fees, and fixed costs. We draw the composition of each print cost out of their constituent pie charts, and then analyze the constituent pie charts. If the proportion of material consumption in the pie chart is large, the management can control the material consumption and reduce the cost; if the proportion of manual occupation is large, it indicates that the staffing of each process or machine is unreasonable, and the management at all levels reasonably allocates the production personnel. To reduce costs; if the proportion of administrative expenses is large, it means that the management agency is too big, and the decision-making level can reduce the management mechanism to reduce the cost; if the fixed cost occupies the proportion, it means that there are too many non-production staff in the workshop and the workshop management can reduce Non-production staff to reduce costs. In general, the proportion of administrative expenses is smaller than the sum of the other three costs. If you want to expand profit margins, you can also use the above methods to reduce costs.
If reasonable controls and adjustments are made through the management and decision-making levels, our order costs tend to be reasonable. We can use some formulas to calculate the lowest reference point for the salesman's quotation.
The formula is as follows:
The profit rate of a print based on the work price = (work price - order cost) work price × 100%
The average profit rate of a certain wage = Σ (n prints based on the profit rate of the wage) ÷n×100%
The lowest reference point of quotation = average profit rate based on labor price × labor price It can be seen from the above analysis that the order cost algorithm is superior to the traditional cost algorithm, but because this method is still in the trial phase, it is inevitable that it will not be considered. In a comprehensive place, we hope that the readers will put forward suggestions for improvement!
Excerpt from: Chinese printing