Research On Cost Management Of FY Clothing Company

Clothes are indispensable to people’s life,which not only provide people with warmth but also dress them up and beautify themselves.It is well-known that the clothing industry,as one of traditional industries,has been leading social and economic development,raising people’s standard of living,playing an important role and exerting significant influences in the whole industry chain.However,on the one hand,due to the subsequent effects of the subprime crisis,the global economy is gloomy in recent years,which has brought negative influences to the development of the clothing industry and intensified the competition among clothing industries;on the other hand,with the upgrading of clothing industry and the transformation of production mode and business pattern,the changing structure and cost of production factors are influencing the cost of clothing.Shishi City is the major base of Min-school clothes.Enterprises in Shishi are also facing challenges in the fierce competition of the clothing industry and have to win to continue their operation.As a member of the production base of Min-school clothes,FY Clothing Company is making great efforts to run its business,compete with other clothing enterprises,and enhance its cost management.As an enterprise that is devoted to producing clothes for foreign clients,FY Clothing Company integrates research,development,designing and production together.With the expansion of its scale,FY Clothing Company is facing greater competitive pressures.As a result,for the company,cost competition is of great importance.From micro and macro perspectives,this essay has discussed the cost management of FY Clothing Company,and found its problems in management and accounting.Since the factors of production and operation are always changing and adjusting,the company has more and more problems in cost management.For example,higher procurement cost,poor supplier management,the inappropriate cost management of Design and R&D Department,poor inventory management,the waste of fabrics in the manufacturing shop,poor in-and-out-of-storage management,and the irrational distribution of working hours in the workshop,all of those problems are detrimental to the cost management of clothing products.Through analyzing the reasons and results of the existing problems,observing the field and studying individual cases,the essay has a deeper understanding of FY Clothing Company.Therefore,aimed at the problems of FY’s cost management,the essay has put forward a series of suggestions,including strengthening the management of supplier,procurement cost,design cost,logistics and general operating costs,to help the company effectively control cost and improve its internal management.