Interpretation Of Green Management Accounting Management Method

Green management accounting, as an interdisciplinary subject between modern management accounting and green economy, integrates various activities of green management into its accounting, and plays an active role in promoting effective integration of enterprise resources.

Here, the author briefly introduces the methods of green management accounting to participate in enterprise management decision-making.

The cost driver analysis of the company is the best way to reduce the cost.

The benefits and profits of green management accounting are reflected in the green cost management.

Green cost management should not only analyze the drivers of production and operation costs, but also analyze the causes of expenditure incurred by production and operation, resulting in environmental pollution, resource consumption and the impact of products on people, as well as the expenses incurred in such aspects as safety, environmental protection and energy conservation.

In China, environmental related expenditure is generally included in the "management fees" and other items. This accounting practice can no longer meet the management needs of the green era.

The product cost accounting of enterprises is to correctly allocate indirect costs and calculate product costs by analyzing various cost drivers and related costs.

At present, the green cost of enterprises is increasing substantially. Under the premise of correctly calculating the cost of products, we should also focus on considering the green cost drivers that traditional cost management has not taken into consideration, in order to find an effective way to obtain cost advantages.

For example, in addition to considering the general factors, enterprises should also consider the green costs caused by the new products being put into production, and the extent of pollution brought by different products in the production process and the extent of resource consumption will have great impact on the production and operation of enterprises. We should try to find the best investment point and reduce the cost through appropriate investment scale.

Moreover, in the process of research and development, enterprises should make use of modern technology to innovate natural resources products to realize the pformation from traditional enterprises to technological green enterprises. At the same time, we should master the degree of research and development cost, pay attention to the future income of research and development projects, and reduce the cost through appropriate high-tech development policies according to the principle that income exceeds expenses.

Value chain analysis, to enhance the competitive advantage, and analyze the value chain of enterprises, not only to analyze the value chain inside the enterprise, but also to analyze the value chain between the enterprise and its suppliers, customers and the competitors in the industry, and ultimately enhance the competitive advantage of the enterprise.

The value chain analysis of green management accounting is mainly reflected in the following aspects: first, analyze the value chain between enterprises and suppliers.

The company makes a wise choice for the quality and price, delivery efficiency and pportation mode of raw materials from suppliers.

For example, when purchasing raw materials, the purchasing department of enterprises should choose the same quality and low price varieties to save costs, and also consider the destructive impact of non environmental protection raw materials on the ecological environment when used. The environmental cost will be taken as one of the considerations for enterprises to purchase raw materials, so as to achieve both economic and environmental benefits.

Secondly, it analyzes the value chain between enterprises and customers.

On the one hand, it is required to eliminate all "non value added operations", such as the implementation of "timely production system", in order to achieve "zero inventory", implement "total quality management" and strive for "zero defects"; while the other side faces "increased value operations", such as product design, manufacturing, packaging, and marketing operations, etc., it is necessary to improve its operational efficiency as much as possible, and reduce its consumption and consumption of resources, so that enterprises can meet customer needs in the most economical and effective way.

Once again, enterprises determine their relative position by analyzing the value chain of competitors, and take corresponding cost competition measures to win the cost advantage.

For example, the relative competitive position of an enterprise can be reflected from the contrast between the final result of profit and loss obtained from "customer value" and the competition of enterprises.

Product positioning analysis, maintaining sustained competitiveness, and for some products with reduced cost, staff should be initiated to find a cost reduction plan, discover and develop all cost advantage resources, and take cost leadership.

For products that are difficult to further reduce costs, we must work hard in terms of function and quality, take the lead in difference, increase their functions or improve their quality, so as to achieve their differences from competitors.

For example, advocate "polluter pays" pricing method, bring environmental costs into the price, increase enterprise income, compensate cost expenditure.

Because of the restrictions of various conditions, the competitive advantage of enterprises at the same time leading to cost leadership and leading edge differences is unrealistic. However, focusing on a centralized market strategy with a cost or difference leading to a target market, it is possible for enterprises to compete in a target market with a broader market scope.

Environmental analysis and coordinated development will bring opportunities and threats to enterprises.

When an enterprise conducts business activities, understanding and analyzing the environment is conducive to the realization of management objectives.

Enterprises should fully understand some laws, regulations and industrial policies which are closely related to the production and operation activities of the enterprises. We should consider people's views on life style and environmental pollution, and learn the scientific knowledge and management knowledge that are useful to the business environment of the enterprise. On this basis, we should analyze and formulate the enterprise development plan.

If enterprises do not care about the environment, they may be adversely affected.

For example, enterprises ignore the relevant provisions of environmental protection law, still use low cost, but seriously pollute the environment of raw materials and fuel, may incur heavy fines or be withdrawn from the market, at this time the loss is heavy.

If an enterprise attaches importance to the living environment and creates new energy-saving and environmental protection products, it will adapt to the green consumption of customers and occupy the market, thereby bringing more benefits to itself.