What Are Hard Costs?

Cost structure analysis, analyzing the cost structure of products, can find ways to further reduce costs. Study the product cost structure. First of all, you should observe the changes in the actual number of last year, the number of plans for the current year, and the actual number of changes in the current year to understand the increase and decrease and the rate of change. Second, the actual cost of the current period should be measured. The structure is compared with the structure of actual costs and planned costs in the previous year, and the changes in the cost structure are combined with the increase and decrease of the cost of each project to understand the changes in the cost structure; once again, other relevant information such as product types, technology, consumption quotas, and labor productivity And equipment utilization, and further analyze the reasons for the increase and decrease in the cost of each project and the change in the cost structure.

Cost structure analysis

Analyzing cost structure can help

Analysis of cost structure (taking washing powder manufacturing industry and software industry as examples)

Generally, the price of a bag of washing powder is about 3-5 yuan, about 10% of the profit, and the cost is about 90% of the price. Cost factors mainly include raw materials (flavors, bleaching powders and various washing ingredients) and labor costs (ie wages), in addition to transportation and distribution costs. Among them, the cost of labor, that is, wages, accounts for about 20%, and the price of washing powder is not very high. The wage standard for washing powder manufacturing is basically in the range of 20% of its cost structure.

1. Compare software development industry

Its biggest cost is intelligence, which is the time to develop energy, that is, wages must occupy at least 50% or 60%; other daily management and maintenance costs may account for 10% to 20%, and profits are 20% to 30%. The price of software products is not low, so wage levels are high.
The larger the share of intelligence in the cost structure, the higher the wage standard. This is a simple truth. The nature of business is determined by the cost structure of the industry. No matter what system the companies have a common industry foundation, this is the first.

2. Business requirements and employee appointment methods directly determine employee salary standards

People with different skill levels bring different production efficiency to the enterprise, which is also a determinant of the wage standard. Still with

With the change of cost, PMP (MP4) seems to be ushering in the eve of the price avalanche. In this context, analyzing the cost of MP4 is undoubtedly of strong market realistic significance.

At present, the main reason for the low sales volume of PMP is the high price. The price of more than 2,000 yuan is unacceptable to consumers, and the bottom line that consumers can accept is about 1700 yuan. However, the largest part of the cost of PMP is the hard disk. The 1.8-inch hard disk is almost monopolized by Hitachi (Hitachi Global Storage) and Toshiba. The two have limited production capacity and cannot meet market demand at all. The price is stable at about $ 90 and the cost of the 1.8-inch hard disk. It is also relatively high, and you cannot count on how much there is to fall. At the same time, because the sales volume is not large, manufacturers will inevitably pursue single-machine profits. PMP itself is also positioned in the high-end user market, and its prices have remained high for a long time. In the next year, the price of 1.8-inch hard disk PMP will not be less than 2,000 yuan. The 2.5-inch hard disk PMP is expected to be less than 2,000 yuan.

Take a main model PMP of a manufacturer in Taiwan Province of China to disassemble and analyze its cost. The current price of the machine is about 2800 yuan, and the cost is about 1792 yuan.

At present, PMP mostly uses laptop hard disks, and is mainly 2.5-inch laptop hard disks. Although 1.8-inch hard disks can reduce the size of the whole machine, the price has also increased a lot. The higher the capacity, the greater the increase. With a 20GB capacity, a 1.8-inch hard drive is $ 30 to $ 40 more expensive than a 2.5-inch hard drive. For a 40GB hard drive, a 1.8-inch drive is more than $ 100 more expensive than a 2.5-inch drive.

[2] Borui Management Online