Research On The Cost Control Of The Integration Of ERP,ABC And Target Costing

As the development of information technology and the change of contemporary operational environment, the current cost control mode hasn't satisfied the requirements of the enterprise's management and decision.ERP can integrate the material flow,information flow and cash flow of enterprise, and can provide the integrated,timely and abundant information for the enterprise's cost management. But the current cost control mode based on ERP has several weak points especially in the cost control and cost calculation. On the cost calculation, because the manufacture expenses are increasing the proportion of the total product cost, the cost allocation method according to the single valued criterion can't provide accurate cost information. As for the cost control, ERP cost control only pays attention to the product manufacture phase and ignores the product develop and design phase. Moreover, the current cost control in ERP can't trace the real cause of cost incurred, then can't implement targeted and efficient measures. So ERP integrated traditional cost management can't sufficiently play to their advantages on IT, then can't increase the enterprise cost competitive strength.Based on the comparison and analysis of the fundamental of ERP,Activity-based Costing(ABC) and target costing(TC), the paper researches the cost control integrated ERP,ABC and TC, and constructed the total cost control frame mode integrating ERP,ABC and TC. The new mode is based on ERP, integrates the management thinking of ABC and TC, and makes up for the weak points of the traditional cost control. After integrating TC with ERP, the mode increases the target cost control ability in the product develop and design phase, and improves the standard costing of ERP; After integrating ABC with ERP, the mode improves and updates the method of the product manufacture phase's cost control. The information provided by ABC analysis can help enterprise decrease the unnecessary overheads and optimize the enterprise's activity chain and value chain.The paper provides a method and tactics for utilizing ERP and contemporary cost management thinking to control cost. Several research results can help enterprise understand ERP totally, and can give some references for developing the cost module in ERP.