Unscramble The Development Of Cost Management Theory

Under the modern market economy, the aim of enterprises is to maximize economic benefits in compliance with regulations.

To improve economic efficiency, enterprises must pay attention to cost management.

Since the 70s of last century, some advanced manufacturing methods have emerged, such as agile manufacturing, flexible manufacturing and computer integrated manufacturing system, which make the traditional cost management method unable to apply modern manufacturing mode.

Under such circumstances, many new theories and methods of cost management have emerged.

In early 1980s, Kaplan published a series of articles on reform and management. In 1988, the correct calculation cost was made to make the right decision. The first problem was that the direct cost ratio decreased and the indirect cost increased. The current cost system failed to adapt to this change in time, and the new method was called activity-based costing.

The basic principles of activity-based costing management are: depending on the work process of the enterprise as a set of operations, according to the demand of the market, starting with the customer order, checking the operation consumption and activity cost, prompting the resource motivation and operation motivation, and carrying out the cost driver management and operation management.

Inventory backlog and backlog of funds in every link to improve the company's operating efficiency.

To implement activity based costing management, enterprises must first define the cost of operations, and to achieve this, we must base on the activity based costing.

Specific implementation of activity-based costing management is to follow the following procedures: (1) analyze the operations of accumulating customer value and establish operation centers; (2) classify and summarize all kinds of resources that the enterprises are relatively limited, and allocate resources reasonably to all operations; (3) classify and summarize the final goods or services produced in the camp, define the cost objects; (4) excavate cost drivers and strengthen cost control; (5) establish and improve the performance evaluation system, and strengthen the performance appraisal of cost management.

From the macro perspective, strategic cost management extends the influence cost factors to the production system, focusing on the long-term and fundamental problems of enterprises.

Strategic cost management is based on a long-term and fundamental impact on the development of enterprises. Based on this, we use cost data and information to formulate policies so as to gain competitive advantage in the market and ensure the realization of company goals.

The basic ideas of strategic cost management include the origin and management of cost, the idea of matching with enterprise strategy, the integration of cost management measures and measures, and the cost consciousness of employees.

It emphasizes that cost management should start from the origin of cost. The cost management strategies and measures adopted should be compatible with the basic strategy of enterprises and the stage of development of enterprises, and the coordination of various strategic measures should be coordinated. The system of cost management must be integrated into the management process and business activities in order to truly play a role.

We must cultivate staff's cost consciousness.

The implementation of total cost management requires all aspects of product development, design, manufacture, sale, service and assessment to comprehensively implement management and cost prediction, decision-making and control, so as to make the products produced by them be of good quality, low cost and reasonable price in similar products, thus gaining market recognition and occupying the market and ensuring the ultimate realization of the business objectives of enterprises.

Total cost management can be roughly divided into four stages: the first stage, the new product development and design stage.

The cost accounting in this stage of cost management is very important; in the second stage, product cost is the value of compensation for materialized labor and live labor compensation in enterprise's commodity production.

The cost management at this stage is a dynamic process of production consumption and cost elements. It is a process to control the cost deviating from the quota (standard), and is the key stage to tap the potential of production. The third stage is the cost accounting calculation of the finished product after the warehousing is finished, the actual cost stage; the fourth stage, the product sales cost (cost) control stage.

Enterprises should attract buyers with good product quality, reasonable product price and good after-sales service, expand product sales and occupy the market of products.

From the point of view of strengthening cost management, the leaders and relevant functional management departments of enterprises should strengthen the supervision of this part of the expenses and implement the strict budget and final accounts system. All expenses should be determined according to the standards, and be included in the annual budget according to the standards. After the relevant leaders and relevant departments have jointly examined and approved the implementation, the final accounts shall be executed at the end of the year, so as to eliminate waste.

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The theory and method are produced in the new economic environment. They break through the limitations of traditional cost management theories and methods, and can accurately reflect the cost of products, and provide scientific basis for policymakers.

But we should also see that these theories and methods are not perfect. They still have many problems to be solved and need to be perfected constantly. In addition, there is also a lack of systematicness in all aspects. Later, people need to invest more energy in integrating various methods.