Research Of Cost Management Model Based On EVA-ABC

Cost management is one of the enterprise management cores. Its quality has a direct relation to the level of corporate cost, economic benefits, and the survival of enterprises. With the rapid development of science and technology, the accelerating change of technological, the innovation of manufacturing model, the changes of corporate cost structure and scope, and the growing concern and the pursuit on shareholder value, the traditional cost management model is no more available enough. Therefore, how to break through the traditional cost management model, and absorpt the new cost management idea, making cost information can be more effective for enterprise management and decision-making services, while meeting the needs of financial reports, becomes the issue which is urgently await to be solved.As the forefront theory of the cost management and financial management, activity-based costing (ABC) and economic value added (EVA) has a direct and indirect impact to cost management. Through integrating EVA and ABC ,this thesis constructed a new cost management model based on EVA-ABC, provided a provides a new idea new idea for to improving the predicament of cost management, and also made contributions to building control system with the goal of maximizing shareholder value.The main comments covered as follows: (1) with the new operating environment and the basic theory of cost management, the article analyzed the shortcoming of the traditional cost management model which exposed under the new environment; (2) through analyzing the basic theory of ABC and EVA, the article got the contributions and the enlightenments to the cost management from ABC and EVA; (3) integrated EVA and ABC, proposed the new cost management model based on EVA-ABC, and summarized the characteristic and significance of this new management model; (4) researched the basic theory of the new cost accounting method and the seven steps of its implementation; (5) analyzed the basic theory of the cost control system based on EVA-ABC, and designed the new cost control system, that is the feedforward control system, process control system and feedback control system; (6) proved the practicality and the validity of the cost management based on EVA-ABC through a case and an example, so that to provide implementation reference for its introduction its operating.