The Application of Goal-oriented Cost Management System in the Machinery Manufacturing Industry
|School||Southwestern University of Finance and Economics|
|Keywords||Into insurance companies Target cost Strategic approach Cost Control Measures|
Under the conditions of market economy in the information age open, global economic integration, the increasingly fierce market competition can not be avoided. To take advantage of the competition, the price advantage is one of the core enterprise can not be ignored, the price competition is the cost of the competition, in the face the enterprises generally poor efficiency of reality and the pressure of the economic globalization, the corporate imperative is how to adapt to the modern era the characteristics of cost management, the establishment of a comprehensive state-of-the-art method, in order to effectively manage costs and improve the competitiveness of enterprises and economic benefits. In China, the low level of cost management, the cost of consuming high economic benefits, has been constrained corporate survival, profitability, an important factor in the development. Both cost-conscious play down the reasons for the weakening of cost control, cost management theory, content, method, mode, system is too old, lack of systematic cost management requirements suited to market economy conditions, urgent The need to reform and innovation of cost management methods to the theory of cost management, content method of systematic, in order to achieve the goal of cost, minimize, maximize capital appreciation earnings or enterprise value maximization. How can a business with less capital investment under the premise to ensure product quality, functionality, at the lowest cost-consuming, to get more profits? Should say, is the most effective ways and means to implement the target cost management. Target cost management method originated in Japan, is based on the introduction of the U.S. target management innovation and expansion. It is acceptable to have a competitive market price and enterprises are expected to achieve the profit target down to launch the target cost of the product, and the effective control and management. The target cost management is a business strategy, development strategy, and market competition combine the comprehensive cost of operating the system, now adopted by many of the world's advanced enterprise and have made great achievements. Into insurance companies in the early 1990s, the establishment of the appropriate agencies to target cost activities, however, due to the impact of the planned economy, there is no sufficient competition in the market, automotive and automotive testing equipment at the time is a scarce resource, as long as the produced worry not sell, business leaders re-emphasis on production rather than operating, resulting in the two rounds of the fate of target cost institutions. The beginning of the century, with the opening up of the market, the domestic automotive testing equipment market competitors, since have the influx of foreign automotive testing equipment, automotive testing equipment is facing unprecedented fierce competition in the market, individual enterprises can quickly launch good quality, low price cost-effective products is the key to winning business and survival, the recent market form of Shijiazhuang Huayan enterprise equipment with its high-cost advantage, aggressive market significantly, corporate profitability in the industry in a leading position. China's automotive testing equipment companies in target cost management has not yet formed system, a serious impact on the competitiveness of enterprises. Therefore, through theoretical research and practical combination, to establish a target cost management methods for domestic automobile testing equipment enterprises have very real practical significance and practical value. Purposes of this article is to target cost management of basic theory and practical status of corporate target cost management of the target cost management mode conducted innovation and development, in order to make it be widely promoted and applied update of the traditional cost management philosophy, comprehensively improve the level of cost management. The paper is divided into four chapters described. The first chapter and the last chapter of the introductory and concluding part of the paper, constitute the main body of the paper in the middle of the two chapters: first discusses the basic theory of the target cost management, followed by the target cost management model of domestic and foreign similar enterprises comparative analysis and to draw inspiration and thinking, and conducted in-depth analysis and summary of cost management mode again into the insurance company's goals, and proposed the idea to improve and deepen the company's goals into security cost management mode. Chapter 1 is the introductory part of the thesis discusses the purpose and significance of the thesis, the basic idea of ??the topics of reason and thesis papers. The major systems summed up the successful experience into insurance companies target cost management mode, and also pointed out that at still need to improve and deepen. The Dynamic Cost management background first into the insurance companies cost management model, framework were discussed in detail, and pointed out that the target cost management model based on the actual cost accounting, the goal of cost control, the additional cost of the operation, responsibility cost management combine control mode. Then reveal the inadequacies of the existing management model into the insurance company's current target cost. Concluded inevitability into Paul public target cost. Chapter 2, mainly from the theoretically discusses the meaning of the target cost, the meaning of the characteristics and the relationship with the other costs, target cost management features, content and effect. These problems are both basic theoretical issues of target cost management, but also further elaborated business goals cost management model to establish an important foundation. Main analysis and evaluation of the target cost management model quite successful and representative in the domestic and foreign enterprises, Handan Iron and Steel, a comparative analysis of the target cost management mode, and Japanese companies, pointed out that the advanced nature of the mode is relative, mode between is the same build the scientific target cost management model should weaknesses, bold and innovative. Chapter 3, the first to improve and deepen the basic principles of cost management model of corporate goals described put forward the following views: (1) improve the cost-conscious and cost of quality, and establish cost \(2) to establish a scientific and effective target cost. (3) expand the target cost. (4) The effective decomposition of the target cost and implementation. (5) establish a target cost management for the new center costing way. (6) The target cost assessment sought to institutionalize. Chapter 4, the concluding part of the paper, mainly on the harvest in the implementation of the target cost and future cost management efforts in the direction. The main conclusions drawn are: target cost management method based on marketing and competition in the market-based pricing method, with its competitive market price and the target profit fell launch the target cost of the product, reflecting a market-oriented. \Target cost management mode, generally contains the following: target cost forecasts, and decision-making of the target cost, target cost plan (target cost decomposition), the implementation and control of the target cost, target costing, target cost analysis, target cost assessment.