The hidden cost of the business

下面为大家整理一篇优秀的assignment代写范文- The hidden cost of the business，供大家参考学习，这篇论文讨论了企业的隐形成本。企业作为一种盈利性组织，其终极目标无外乎以最小投入实现最大收益，要想实现这一目标，企业内部就必须做到高度协调、统一，因此，企业的高层决策者必须要有行之有效的权威。如果这种权威失灵了，那么为此而增加的支出即为决策者权威失灵成本。另外，信息失真成本就是由于获取的信息与实际情况偏差，而造成的企业当前和未来的生产经营过程中的耗费或损失。

Hidden costs this concept derived from economics, economists according to whether the financial expenditure costs can be divided into dominant cost and recessive cost, that is hidden costs should be calculated as the cost, but it did not make money spending, manufacturers themselves have the value of production factors, such as the manufacturer of the land, that you have their own capabilities, etc., due to this part of the factors of production and capital spending are not addressed, not included in the financial accounts, often being ignored, called hidden costs. The definition of hidden cost based on economics is to help enterprises make correct economic decisions, which contains relatively narrow contents.

As a for-profit organization, the ultimate goal of an enterprise is to achieve the maximum profit with the minimum input. In order to achieve this goal, the enterprise must achieve a high degree of coordination and unity within the enterprise. Therefore, the senior decision makers of the enterprise must have effective authority. Only when the internal authority of the enterprise runs effectively can it maintain a good operation. However, this kind of authority may sometimes fail in the enterprise, resulting in different degrees of confusion, which will lead to the work efficiency and quality is difficult to guarantee, and then affect the production and sales, the final result is to bring the enterprise inestimable loss, and even make the enterprise development stagnation. This kind of expenditure increased by authority failure is the cost of decision maker authority failure.

Information distortion, that is, the information does not conform to the actual situation or the reflection of the actual situation is not complete. The cost of information distortion is the consumption or loss caused by the deviation between the acquired information and the actual situation. From the point of the cause of information distortion, including the cost of enterprise internal information distortion form and external information distortion of cost as well as the formation of internal and external information asymmetry: from the perspective of the controllability of information distortion, and include the cost of information distortion can be controlled and uncontrolled information distortion cost such as: from the information distortion in frequency, including regular cost information distortion and incidental cost information distortion.

Human resource is the most important resource for enterprises to obtain economic benefits from product production. Most enterprises only calculate the direct explicit cost, but ignore the cost reflected by time and quality paid by enterprise personnel during the control, that is, the accounting of hidden human resource cost. In fact, the hidden cost of human resources will cause more serious harm to enterprises, and the hidden value may be much higher than the explicit cost, which is mainly reflected in the cost of staff turnover and the waste of enterprise talents.

Most of the hidden cost is the potential cost, the future cost, which will take effect after a certain period of time, and this effect is undoubtedly negative, because it will benefit in the future. Hidden costs are harder to recognize because it is difficult to determine whether and to what extent future events will occur.

In economic activities, enterprise managers are often blinded by the maximization of short-term benefits and ignore the impact of current behaviors on future costs. For example, if the company does not set up the firewall in order to save tens of thousands of yuan, once the information is leaked, the loss may reach hundreds of millions of yuan or even immeasurable. This is the magnification of hidden costs. The similar hidden cost also has the enterprise personnel crisis, the financial crisis, the credit crisis and so on.

The key of scientific and effective decision-making mechanism lies in scientific decision-making layer and decision-making procedure. In a sense, the behavior of the decision-making level determines the success or failure of the company to some extent, and also determines whether the hidden cost can be successfully controlled. This requires decision-makers to identify potential hidden costs based on the actual situation of the enterprise, and make scientific decisions on this basis, so as to put forward higher requirements on the talents of decision-makers. In addition, the top level of the enterprise must also develop a scientific decision-making process. This requires policy makers to enterprise actual market demand and detailed investigation, guided by the scientific management principles and theories, according to actual circumstances, the current status and future trend of the enterprise make objective judgment and decision making, a scientific effective decision-making, so as to minimize decision-making errors, thus reduce the decision failure costs.

Human resource is the most critical factor to support the development of modern enterprises. In the enterprise, human resources maintain a relatively stable state, and at the same time have a certain degree of mobility, but must flow within a reasonable scope. The brain drain in an enterprise will not only take away resources such as technology and marketing, but also affect the work enthusiasm of other employees, which is not conducive to the sound operation and development of the enterprise. At the same time, the continuous recruitment of staff will cause a lot of unnecessary costs, and the hidden costs such as time and energy spent by the enterprise can not be ignored. A reasonable incentive system is a powerful guarantee to stabilize the staff. It is an effective incentive system to create and provide opportunities for personal development and learning for employees by providing better salary and welfare.

Enterprises must face up to the importance of recessive cost and dig out the recessive cost. The hidden cost is the same as the current cost in the accounting method, the key is how to quantify the abstract hidden cost items, and then in concrete currency to show. Therefore, we should attach importance to the evaluation of the hidden cost items. Secondly, according to the different characteristics of the project, the monetary value of the hidden cost project should be calculated scientifically and accurately. Finally, the dynamic nature of the hidden cost should be fully considered, and the hidden cost should be adjusted at any time to avoid deviation. It should be noted that recessive cost has the characteristics of wholeness, and most of its project cost object is the whole social and economic unit, so it needs to be accounted in the total cost. At the same time, in the recessive cost accounting, shall, according to the characteristics of the hidden costs, reasonably determine the scope of the different hidden costs, pay attention to distinguish with similar or similar costs, adhere to the principle of basing on the actual, and scientifically forecast and collection costs, and assigned to the correct cost object, prevent overstating the hidden costs and duplication of situation.

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