Research Of Construction Of Cost Accounting Standards

However, theoretical research on this area is lagging behind; the view of this, the author researches importantly the construction of cost accounting standards through normative research. On the basis of existing research results, the author researches to build the cost accounting standards of Chinese enterprises comprehensively and systematicallyThis paper firstly reviews and comments the existing research results and analyzes the related concepts, believes that the cost accounting standards relatively to the cost accounting system are more suitable for the future and development of Chinese enterprises and are the direction of development of cost accounting system reform in China, and defines the cost accounting standards.This paper analyzes theoretical basis for construction of cost accounting standards, through the analysis, believes since the widespread presence of information asymmetry, the need for cost control and theory of institutional change on role of the society and economy, the old and outdated system must be changed to meet the requirement of economic environment and business management.This paper introduces and analyzes comprehensively American cost accounting standards, Japanese cost accounting standards, Indian cost accounting standards, Korean cost accounting standards, and German cost accounting regulation. The paper draws the conclusion that cost accounting standards is helpful for controlling the cost of government procurement, preventing the funds’running off, promoting enterprise cost management and competitiveness.This article analyzes the necessity and feasibility of construction of cost accounting standards. This article analyzes necessity of construction of cost accounting standards, from the view points:the current situation of cost accounting in Chinese enterprises, the requirement of cost controlling in some special industries and areas, and the need of consistent with the international costing principle. From the system point of view, the old cost accounting system is outdated and financial accounting standards and cost accounting standards focus on different areas. They both block the improvement of Chinese enterprise costing and cost management. From the view of cost accounting practices of companies, the conclusion can be draw that in general enterprise’s costing and cost management is backward. It is necessary to promote enterprise’s costing and cost management. By studying public utility, performance audit of state-owner companies, government procurement, arms procurement and BOT, it is necessary to establish cost accounting standards to provide cost auditing standards. Chinese enterprise must absorb the international advanced cost accounting principles and practices, in the process of coordination and integration of international costing principles and practices, to promote enterprise’s costing and cost management and reduce worse situation of China’s enterprises in the international anti-dumping lawsuit. From the point of economic environment, institutional environment, cultural environment and theory environment, construction of cost accounting standards is feasible.This paper discusses theory system of cost accounting standards. Theory system of cost accounting standards helps to explain guidance, evaluate and improve the cost accounting practices. So theory system of cost accounting standards should be studied firstly during construction of cost accounting standards. In China, the specification of different areas has different requirements for cost regulation, so China should establish different levels of cost accounting standards. General cost accounting standards is applicable to all enterprises within the whole society. Military procurement cost accounting standards is for Military procurement. Sub-sector cost accounting rules is for public utility. Different cost accounting standards have different objectives, targets, assumptions and principles. General cost accounting standards should have the ability to promote uniformity and consistency& authenticity and accuracy of enterprise costing, promote the improvement of enterprise costing and cost management, and keep cost accounting practices with international cost accounting practices. General cost accounting standards should be Principle-oriented and recommend the enterprise to implement the standards. But the performance audit of state-owned companies, and the suppliers or contractors of government procurement and BOT projects must implement the standards. Because there are different in government procurement and military procurement, government procurement and military procurement are subject to different standards. Military procurement cost accounting standards should meet the special requirements of military procurement. It should be to promote uniformity and consistency& authenticity and accuracy of contract costing of enterprise, and enforcement. Cost accounting rules of the industry and the general cost accounting standards have the same goals, but cost accounting rules of the industry are mandatory and regularity. General cost accounting standards is suitable for all enterprise and they are the ruler of costing. The assumptions of general cost accounting standards include:cost accounting entity, going concern, the cost of staging, and monetary measures. Military procurement cost accounting standards and cost accounting rules of the industry have the same assumptions with general cost accounting standards. The general principles of general cost accounting standards include: the principles of relevance and reliability, the principle of consistency and comparability, the principle of benefit, the principle of transparency& audit ability and the principle of cost-effective. It is the basis for organization of cost accounting. The basic principles of military procurement cost accounting standards are consistent with general cost accounting standards. But the military procurement cost accounting standards is for the cost of military procurement contracts, it is more emphasis on the unity and consistency and transparency and audit ability of military procurement contracts and cost-effectiveness of military procurement contract. Cost accounting rules of the industry and general cost accounting standards have the same basic principles, but the former more emphasis on the legality of the product cost.This paper studies content of cost accounting standards. The main contents of the general cost accounting standards should at least include:General; definition and classification of the cost; direct costs and indirect costs; confirmation, measure, accumulation and allocation principles and methods of cost elements; scrap loss costing; in products and finished products costing; the main costing methods; preparation and presentation of cost report, and preservation of cost data. Military procurement cost accounting standards should include:contract allowable cost; cost staging; direct costs and indirect costs; labor and ancillary costs, depreciation of fixed assets, renovation, amortization of intangible assets, management fees, finance charges and other measurement, and distribution attributed to the principles and methods; some special side such as the cost of the project.This paper discusses the problems that may be encountered in the process of building cost accounting standards. It includes:who is the editor of cost accounting standards, the process of the building and implementation of cost accounting standards, and the coordination between the cost accounting standards and financial accounting and auditing standards. The editor of cost accounting standards must be the Ministry of Finance. The building and implementation of cost accounting standards should be step by step. The general cost accounting standards can be implemented in state-owner companies and the contractor of the government procurement and BOT, and then roll out in all enterprises. Cost accounting standards should not belong to current acconting standards.It should be as dependent standards. Cost accounting standards should coordinate with financial accouting standards.