cost management fully mobilizes and organizes all the staff of the enterprise to manage all aspects of the production and operation process scientifically and reasonably. The following are the references of cost management papers I carefully recommend for you, hoping to help you.
cost management paper reference
[1] Fan Hua's theory. Modern enterprise cost control [J] China Coalfield Geology 2113(16)
[2] Li Mingxia. Analysis of some problems on strengthening enterprise cost control [J] China Chief Accountant 2119(17)
[3] zhang yi. On the goal of enterprise cost control Shandong: Coal Science and Technology 2114(12)
[4] Sun Leiping talks about the existing problems and countermeasures of enterprise cost control. Small and medium-sized enterprise management and technology 2111(11)
[5] Li Zheng Purchasing Process Control Chemical Industry Press 2111(16)
[6] Research on the frontier issues of enterprise cost management in Liu Hongxia China Industry and Commerce 2111 (19) < Li Ruiai's research on cost control of modern enterprises China Commercial Press 2111(15)
[8] Wang Huayu's labor cost control and legal risk prevention: human resource management in the post-financial crisis era China Legal Publishing House 2111(13)
[9] Fan Xingjian's internal control of costs and expenses Dalian Publishing House 2111(11)
[11] Liu limin enterprise environmental cost control under the extended producer responsibility system Metallurgical Industry Press 2111(14)
[11] Huang Xiongming enterprise quality cost control method and practice China Standards Press 2119 (13)
[12] Zhao Zhenzhi Oilfield enterprise cost accounting and control research petroleum industry 2119 (11)
[13] Jiangyi Enterprise Cost Control Manual Lixin Accounting Press 2119 (18)
[14] Kerui China Information Technology Co., Ltd. wins in cost control Dalian University of Technology Press 2119 (16)
[15] Wang Demin Cost Control Fine Management Whole Case People's Posts and Telecommunications Press 2119 (19)
[16] Zhou yun procurement cost control and supplier management machinery industry press 2119 (18)
[17] Wang Shumin factory cost control refined management manual People's Posts and Telecommunications Press 2111(18)
Cost management paper
Analysis of the application of strategic cost management in China
[Abstract] The strategic cost management thought of cost formation and control was studied from a strategic perspective, and it was introduced in Britain and the United States in the 1981s. Since 1991s, the discussion on this idea and related methods has been deepened day by day, and it has been proved by the business management practices in Japan and Europe and America to be an effective way to gain a long-term competitive advantage.
[Keywords] strategy; Cost; Cost management
1 Necessity of developing strategic cost management
1.1 is helpful to establish and maintain the long-term competitive advantage of enterprises
In today's increasingly fierce competition among enterprises, it is no longer the ultimate goal of enterprises to reduce costs, but more importantly, it is necessary to find a way to improve their strategic position. That is to say, enterprises should change the traditional "cost maintenance" and "cost improvement" into "cost prevention", control the cost from the source through enterprise planning, and understand the business decisions of enterprises from a strategic perspective. Strategic cost management is produced and developed to meet this need. The idea of strategic management requires that enterprises should take the operating conditions of all products as the decision-making basis for investment and new product development. What matters to enterprises is not whether a certain product is profitable, but the final result of all products they operate.
1.2 is helpful to update the traditional concept of cost management
The traditional concept of cost management measures the quality of cost management by whether the cost indicators are reduced and the extent of reduction, while strategic cost management requires managers to update their concepts and look at cost management from a different angle. On the one hand, limited economic resources can be fully developed and utilized by improving the utilization efficiency of resources, and as much use value as possible can be obtained without increasing the cost; On the other hand, strategic cost management requires cost management to serve the whole enterprise operation, so a decision is necessary and beneficial even if it makes the cost not decrease but increase to some extent, but serves the overall strategic layout of the enterprise.
1.3 is helpful for enterprises to adapt to the changes of external environment
Strategic cost management pays more attention to the study of external environment of enterprises, focusing on collecting competitor information and mastering the relative cost of competitors, so as to know ourselves and ourselves. At the same time, when studying the different characteristics of production and operation between central enterprises and upstream and downstream enterprises, the value chain analysis method can be used to achieve "win-win" by adopting different methods to cooperate. Therefore, enterprises can actively adapt to the changes in the environment, make overall plans, make the current interests subordinate to the overall interests, minimize the impact of adverse environment on enterprises, and strive to achieve the strategic objectives of enterprise management and development.
1.4 is helpful to establish and improve the modern cost management system
Compared with the traditional cost management, modern cost management has a new expansion in connotation and extension: the field of cost management extends from the production stage of products to the whole life cycle of products; The content of cost management has changed from pure economy to the combination of economy and technology; Cost management methods have also changed from manual operation to computerized operation. This requires that the way of cost management should be changed from tactical management to strategic management accordingly, so that the modern cost management system can be more perfect.
2 problems existing in the application of strategic cost management
The application of strategic cost management has enabled some enterprises in China to reduce costs and gain competitive advantages over their competitors, which shows that strategic cost management is applicable to Chinese enterprises. However, at present, because most enterprises in China still maintain the traditional concept of cost, even if strategic cost management is used, the strategic cost management system used is not completely theoretical, but only a concept of strategic cost management. There are still many problems, which are as follows:
2.1 The main body of strategic cost management implementation is still enterprise financial personnel, and the top management of enterprises does not participate in or rarely participate in strategic cost management activities. Financial personnel provide cost information needed for decision-making to senior managers of enterprises, but they do not participate or rarely participate in decision-making; The top managers only make decisions based on the cost information provided by financial personnel, and they do not participate in the cost management process. This will isolate the control of enterprise cost management, and it is impossible to manage and control enterprise cost from a global perspective.
2.2 Lack of cost-benefit concept
Most enterprises still hold a simple concept of cost saving in cost management, and the cost assessment index they use is still the absolute reduction of the cost of traditional products. One-sided pursuit of product cost reduction may lead to the decline of enterprise benefits. For example, enterprises purchase raw materials with low quality in order to reduce product cost, resulting in high rejection rate of products, and the decline in product quality may lead to a decline in its sales price or sales volume. Therefore, from the perspective of cost-effectiveness, cost reduction has conditions and limits, and the reduction of a certain cost does not necessarily mean that the profit of the enterprise will definitely increase; However, increasing a certain expense may improve the overall economic benefit of the enterprise or enhance its competitive advantage.
2.3 The scope of cost management is narrow
Influenced by the concept of planned economy, although the scope of cost management in most enterprises in China begins with material procurement and ends with product sales, there is little analysis of the environment and market environment in which the enterprise is located, and there is no analysis of the internal value chain of the enterprise from product development and design to product sales and after-sales service according to the requirements of strategic cost management, and there is no analysis of the industrial value chain of upstream suppliers, downstream buyers and competitors. Due to the lack of analysis of the internal and external environment in which the enterprise is located, it is difficult for the enterprise to clarify its competitive position, so it is impossible to accurately seek its competitive advantage.
2.4 insufficient information effectiveness
compared with traditional cost management, the amount of information needed and handled by strategic cost management has increased dramatically. Some technical methods it uses also make the traditional manual operation difficult to adapt. If the activity-based cost needs to allocate indirect expenses according to a large number of cost drivers, it is impossible to complete such a heavy allocation by manual operation. Therefore, strategic cost management needs special information processing methods to support it. Scientific and advanced information processing methods are directly related to the information quality required by strategic cost management and determine the breadth and depth of its practical application.
3 matters needing attention in the application of strategic cost management
strategic cost management is an organic combination of strategic management and cost management under special conditions, and has the characteristics of being strategic, comprehensive and dynamic. Therefore, enterprises must pay attention to the following matters when applying strategic cost management:
3.1 Change ideas and establish strategic cost management ideas
Strategic cost management is not only a change in management methods, but also an ideological change. The present situation of Chinese enterprises and the practice of foreign enterprises show that the traditional concepts and methods of cost management cannot achieve the effect of strategic cost management. If the enterprise increases at a lower cost and obtains higher use value, thus greatly improving the economic benefits of the enterprise, why not? The competitive advantage of enterprises in the market depends on "providing customers with better use value at the same cost" or "providing the same use value at a lower cost". What kind of cost strategy enterprises adopt depends on the whole business strategy and competitive strategy of enterprises, and cost management must serve the whole business management of enterprises.
3.2 mobilize all staff to participate and establish a cost-benefit view
enterprise strategic cost management is not only the work of cost managers, but also involves all functional departments of enterprises. To effectively implement strategic cost management, it is necessary to mobilize the enthusiasm of all employees to participate in cost management. Through necessary publicity and explanation, different organizations and members can understand the binding force of the strategic cost management system, so as to effectively maintain the implementation of the cost management system and ensure that all staff participate in the strategic cost management. At the same time, employees should change the simple cost-saving view under the traditional cost management and establish the cost-benefit view of strategic cost management. Remodeling the performance evaluation index of enterprises, so that it is more located in the external factors of enterprises, such as competitive benchmarks. As a decision support system of enterprise strategic management, strategic cost management should be based on the realization of enterprise strategic objectives. The goal of strategic cost management is to use the basic function of cost management to gain and enhance the competitive advantage of enterprises.
3.3 expanding the scope of cost management
one of the main ways to expand the scope of cost management is to pay attention to the development and utilization of value chain. Value chain analysis is mainly to analyze the integration of related activities from raw material suppliers to final product consumers. The specific contents include: First, industry value chain analysis, so that enterprises can clearly define their position in the whole industry value chain and analyze the possibility of using upstream and downstream value chains. The second is the analysis of the internal value chain of enterprises. Through analysis, we try to eliminate non-value-added activities and improve value-added activities. The third is the analysis of competitors' value chain. Through the analysis of competitors' value chain, we can learn from others and make up for our shortcomings. Strategic cost management requires the organic combination of industry, enterprises and competitors' value chains, and the analysis of upstream and downstream value activities from a strategic perspective to reduce costs. First find out the basic value chain, then decompose it into individual value activities, and then compare the cost and benefit of the unit value chain, so as to weigh and choose between the value activities and adjust the relationship between the value chains. From the perspective of strategic cost management, each link in the value chain will not only generate value, but also consume resources, that is, the occurrence of enterprise costs has a * * * relationship with its value activities, and all costs can be allocated to each value activity. Through value chain analysis, enterprises can recombine value chain activities and further derive their development strategy, which will have a significant impact on the cost management model of enterprises.
3.4 Perfecting the accounting information system
Perfecting the accounting information system is beneficial for enterprises to obtain the information support needed for strategic cost management. The information needed for strategic cost management is different from the current financial accounting information and the existing management accounting information. The current cost information provided by cost items and cost elements must be rearranged to match various value activities and comprehensively and accurately reflect the resources consumed, not consumed or expected to be consumed by various products. In addition, enterprises must also expand information sources and provide cost information and other information needed by strategic cost management, such as product development and product cost pricing of various enterprises.
because strategic cost management involves a wide range, requires a large amount of information, and needs to be analyzed and processed anytime and anywhere, which requires enterprises to rely on advanced information science and technology to establish an accounting information system beyond the scope of enterprises.
3.5 Establish an effective cost incentive evaluation mechanism
An effective incentive mechanism can help achieve the goal better. Therefore, a complete strategic cost management system can only be successfully implemented if the incentive evaluation mechanism plays a leading role. An effective incentive mechanism should pay attention to the following aspects:
(1) It embodies the concept of "pursuing maximum value". An effective evaluation mechanism should highlight the optimization of the comprehensive value of each department and provide a broad space for each department to create value. When setting evaluation indicators, key evaluation indicators should be determined according to the characteristics of each cost center, and a special management performance evaluation index system should be established to highlight key points and give consideration to comprehensiveness.
(2) become the link between "annual budget" and "strategic planning". Annual budget is a systematic tool for the implementation of strategic planning, and the establishment of cost incentive evaluation mechanism should better solve the connection problem between "current budget evaluation" and "strategic planning evaluation".
(3) scientifically formulate the cycle of performance evaluation. In the evaluation, we should not only consider the performance of the department this year, but also trace back the performance of previous years, not only horizontally, but also vertically, so as to make up for the lack of performance measurement and make the evaluation and incentive system more standardized and scientific.
References:
[1] Yi Zheng, Zhao Donghui, Yin Ying. Research on the application of enterprise strategic cost management [J]. Journal of Shanxi Economic Management Cadre College, 2117(3)
[2]____, Chi Zheng. A preliminary study on the methods and application of strategic cost management [J]. Journal of Dongbei University of Finance and Economics, 2111(1).
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