Abstract: Jewelry industry is actually an industry that creates beauty. With the development of China's economy and the continuous improvement of people's living standards, more and more people begin to pursue this kind of beauty. Although China's jewelry industry started late, it has developed very rapidly due to China's open policy. This paper mainly analyzes the cost restriction and cost management of jewelry industry.

Keywords: jewelry industry; Cost limitation; cost control

With the rapid development of economy, the market competition is becoming more and more fierce. How to gain a foothold in such a fierce market and improve the efficiency of the jewelry industry directly affects the development of China's jewelry industry. At present, there are many reasons for the cost restriction and cost management of China's jewelry industry, which have become the bottleneck of the development of jewelry industry. Therefore, it is imperative to implement scientific and effective management strategies.

First, the status quo of the jewelry industry

Profitability can be said to be the goal pursued by every enterprise and the foundation of enterprise survival. At the same time, whether an enterprise can make a profit is also related to its products. Products are determined by quality, and some enterprises often ignore the quality of products, making it impossible for enterprises to obtain opportunities for survival and development in such fierce competition. Therefore, quality is the foundation of an enterprise. Good product quality can satisfy consumers, attract consumers and improve the profits of enterprises.

Nowadays, enterprises have changed from simply increasing competitiveness by quantity to increasing competitiveness by comprehensive strength of enterprises. At present, quality cost is still the main guarantee in our country, and it is also widely used in some industries such as food and automobile. However, the application of quality cost constraint in jewelry industry is rare. For the jewelry industry, quality cost refers to the expenses spent on jewelry sales and after-sales service, as well as compensation for jewelry that does not meet the requirements of consumers.

In recent years, the price of jewelry is getting higher and higher, and the increase is amazing. Both at home and abroad, the prices of jewelry raw materials and finished products are rising rapidly. Moreover, jewelry is very popular among consumers because of its small size, portability and preservation of value. Now more and more people have realized the appreciation ability of jewelry, and more and more people are beginning to collect jewelry. However, the raw materials of jewelry belong to non-renewable energy. With the increasing demand for them, the exploitation of raw materials is also increasing, resulting in less and less resources and higher costs. The rise in jewelry prices is an inevitable trend. Behind such expensive jewelry, there are actually reasons for quality cost. Therefore, it is very important to control and manage costs.

Second, the jewelry industry cost constraints and cost management reasons

(A) the concept of cost control and management is backward

At present, the backward concept of cost control in China's jewelry industry leads to a narrow range of cost control in the jewelry industry, which cannot adapt to the rapid development of the times. At the same time, the traditional economic concept also affects the cost management of jewelry industry. The jewelry industry considers its production cost, which leads to frequent decision-making mistakes and the cost constraint can not achieve the expected effect. This economic concept has seriously affected the development of the jewelry industry.

(B) backward procurement cost management

Because the cost of materials accounts for about 85% of the cost of jewelry, the purchase cost of materials has a very important impact on the sales price of jewelry, so every enterprise attaches great importance to the purchase of materials. But at present, many jewelry industries still adopt traditional purchasing methods, such as shopping around. Although this strategy makes suppliers compete with each other and reduces the cost of materials, from another perspective, due to the large number of suppliers, it may lead to the antagonistic relationship between enterprises and suppliers and lack of cooperation. Enterprises can neither use suppliers nor guarantee the supply channels and quality of materials. This way of purchasing materials is no longer suitable for today's society.

(C) awareness of cost constraints is not strong

At present, many jewelry enterprises have not fully realized the importance of cost control and cost management, the risks brought by fierce market competition, the reasons leading to cost management and restriction, blind capital investment, and the decline of capital utilization rate and competitiveness of enterprises.

(d) excessive inventory in the warehouse

Many jewelry enterprises are afraid of the shortage of raw materials and store a lot of materials in the warehouse, which leads to the rising cost of the warehouse. At the same time, there is no reasonable calculation method for the limitation of gold, stone and other materials, which can not restrict its cost.

Third, the jewelry industry cost constraints and cost management strategy analysis

In view of the reasons of cost management and restriction in China's jewelry industry at present, the author thinks that it should be solved from the following aspects.

(A) to establish an effective cost management and control mechanism

First of all, the jewelry industry should establish an effective control system and strengthen the cost control of the jewelry industry. Moreover, enterprises should set up special cost control departments to ensure the specialization and accuracy of enterprise cost information. At the same time, the establishment of cost management and restraint system in jewelry industry should be based on the daily operation of enterprises, so as to facilitate enterprises to solve problems in time when reasons arise.

(B) to develop a strict raw material procurement plan

The most important thing in jewelry industry is the procurement of raw materials. The quality of raw materials directly affects the price of finished products and the cost of enterprises. The raw materials for making jewelry are more expensive. If there are a lot of materials in the warehouse, it may cause difficulties in capital turnover of enterprises. At the same time, with the constant change of the market, the price is also changing, which will lead to the uncertainty of the cost and sometimes even cause losses. Therefore, enterprises should purchase in a planned way to prevent waste. When an enterprise purchases, the production department should formulate a corresponding purchase plan according to the actual production situation of the workshop, submit it to the financial department for approval, and then deliver it to the supplier in writing for purchase. This can effectively alleviate the' backlog' of the warehouse.

(C) the establishment of a strict quotation system

The financial department should set up a special person to inquire about the daily consumption of raw materials and the market price of some auxiliary materials, shop around and make records. If it is found to be inconsistent with the quotation, please correct it in time. At the same time, raw materials such as stone and gold materials that are often used should be publicly quoted according to the relevant market prices, and regular meetings should be held to make a fair choice of the prices provided by suppliers. In addition, the newly added materials should also be studied.

(4) Strictly control the purchased goods.

The warehouse keeper should strictly control the quantity and price of purchased materials. Unqualified quality and purchased quantity exceeding the expected quantity shall be rejected. At the same time, if the price is inconsistent with the purchase order, it should be corrected in time; Goods that pass the inspection shall be coded, classified and placed, and reported to the finance department after being signed by the warehouse keeper and accountant.

(5) Strictly monitor the warehousing records.

Jewelry enterprises should strictly check the entry and exit of materials, and only with the visas of relevant departments can they store or take out materials, so as to eliminate the situation of taking materials without any proof, ensure the safety of materials, ensure the loss of materials and ensure the profits of enterprises.

(6) Scientific analysis of costs.