Research On Production Cost Management Method For Iron & Steel Enterprise Based On Activity-Hierarchy

Cost is one of the most important factors in the keen competition of the iron and steel enterprises. With the changes of the inner and outer economic environment, Cost management is stepping towards integration, informatization and intellection. Establishing an integrated production cost management system suitable for iron & steel enterprise in MTO pattern is an urgent requirement for surviving and developing. an integrated production cost management model for Iron & Steel Enterprise framework and its implementation techniques are studied.First of all, the features of production process and cost structures are described as the base of the cost working mechanism of Iron & Steel Enterprise. And then three-tier hierarchical cost monitoring model is presented. Three level granularity monitors provide platform for the research and application of cost management theory and methods.Based on the differences of resources' properties consumed in different production stages and the varieties of cost subjects' division, varieties of activity-hierarchies are defined. And then the cost accounting method based on activity- hierarchies is established. The principle of this cost accounting method is that the resource costs can be assembled into varieties of activity-hierarchies and allocated into activities or cost objects according to the hierarchies. The allocation results will be more reasonable to reflect the resource consumption, keeping in step with the production process, providing data support for further cost analysis and control.Cost variety analysis method based on activity-hierarchy is put forward to correspond to multistage allocating process. These cost analysis methods have the aid of production activity information and activity cost information to reflect reasons and results of cost occurring in every links in production and provide valuable information and rules for activity improvement.Finally, combining the research results and information technology, a cost management system is presented and the related function models and information models are established. The object-oriented designing method such as case analysis, process analysis and component analysis are presented and system actualize approaches and techniques are put forward. With the refinement of the cost management granularity, detailed cost information is provided for the cost analysis and control, the cost management system obtains good application.