Research On The Mode Of Cost Management Of Modern Enterprise

Cost is a comprehensive economic index, it not only reflects the supplies consumption of enterprises and the level of management as well as the efficiency of capital usage, but also influences the enterprises' future. So, cost management will be an important measure for cultivating the enterprises' core competent advantage. Now there have been six years since we got into the 21st century, great changes have taken place in the social economic and cultural environment. Under the new economic environment, application and prevalence of high-techs have imposed unprecedented impact on every aspect of human society. As a result, significant changes have emerged in the production and operation environment of enterprises. Externally, the enterprise as an open economic system of the market economy centre, its operations and management inevitably are restricted and influenced by the objective environment. Internally, those marvelous changes in terms of diversified social demands, shortened product life cycle and more segmented markets, brought by highly developed economies, lead to historic transformation in production structure of enterprises and profound evolution in management. Both the internal and external changes in economic environment, whilst propelling development and evolution of management, contribute magnificent pushing power to modern costs management. In particular, after China joining the WTO, updating of management, especially management of costs, is in urgent need.On the base of the time's changes and the newest achievements of the enterprise theory , we give our suggest on Activity-Based Cost Management and costing target, aiming at doing more study on modern enterprises' cost management model from the following four aspects as cost management idea, cost management artifice, cost management measure and cost control afterwards evaluation. As there's no real complete Activity-Based Costing method in domestic enterprises, we analyze the possibility and integration method of combination of ABC and ERP, design the model of integration in order to put the Activity-Based Cost Management into use and make its advanced property available. Besides, we have found new ways of cost benefit analysis and built orderly the index system of cost benefit evaluation. Lastly, by citing examples, our study illustrated how ABCM work as a kind of advanced cost management. Many enterprises in our country are facing the trouble of development restriction by cost management. So applying ABC in enterprises in both the similar industries and other sectors has important realistic meaning and historic significance in helping them strengthen cost accounting and perfect cost management.