Research Of Product Cost Forecast In Quotation Stage Of F Company

Profit is the lifeblood for enterprise’s survival and development, and it isdecided by the difference between product price and product cost. But in the currentmarket economy condition, the market decides the product price, and the enterprisecontrols the product cost. In enterprise operation and manageme nt activities, theproduct quotation is crucial. If the enterprise product quotation is more than themarket average level, it will reduce the market competitiveness of the products, andthe enterprise could lose part of the market. If the enterprise product quotation is lessthan the market average level, the product market competitiveness will be improved,but the enterprise may sacrifice a portion of the profits. In product quotation stage,therefore, predicting the product cost by scientific and effective method will providesthe full basis for the enterprise’s product quotation, and it will ensure the rationalityof the product quotation, and raise the market competitiveness of the product, andmake the enterprise obtain survival and development space.In manufacturing enterprises, generally, the product’s life cycle can be dividedinto product quotation stage, product development stage and product productionstage, a total of three stages. In the three stages, the enterprise product costmanagement activities are mainly product cost forecast of product quotation stage,product cost development of product development stage, and product costperformance of product production stage. Scientific and effective product costforecast, not only provides the full basis for the enterprise’s product quotation, it alsoprovides product cost design goals for the enterprise.Based on the products of the F enterprise as a case, this article provide a feasiblemethod for product cost forecast in quotation stage through using the linearregression theory in cost forecast research. As a case by the product of the Fenterprise, this article sets up the product cost libraries first, through the analysis ofthe Activity-Based costing. Then it analyses each cost library’s cost drivers, usinglinear regression analysis tools, and indicates the main cost driver. And then throughthe main cost drivers of the above, it analyses the product cost by setting up amultiple linear regression model, and the product cost prediction method is obtained.Finally, through the analysis of the practical application of the product cost forecast method, this article adjusts the product cost forecast method, in order to improve therationality of product cost forecast.Through the research, this product cost prediction method which is based on thelinear regression, is an effective product cost prediction method, and it is worthy ofreference for the same type enterprise.