Costing Control Study In E High Performance Chemical Enterprises

High-performance chemical is an important part of special chemical industry, which is a high added value, high profit and high growth rates of demand for a certain period. All these factors indicate that E high-performance chemical company, is in the growth phase, and will face fierce domestic and foreign competition. How should the company establish cost control methods and cost control concept to dominate the enterprise cost management? This is a question which has a theoretical significance and practical significance.The main purpose of this paper is to propose an improvement measure for cost accounting and cost estimates, based on the basic theory of cost control and combined with characteristics of cost control and some and existing problems from E high-performance company to improve its overall competitiveness. First, we reviewed the current status of cost control from E high-performance chemical company; the following are the main findings:Backward thinking of cost control, cost control is imperfect ;Lack of knowledge of cost, the narrow concept of cost control, lack of driving forces ;Cost control methods and means of backward ;Lack of long-term cost control, the overall strategy of cost control standpointThrough analysis of these issues one by one, E high-performance chemical company, on the one hand, control its cost by using of cost estimates and operating costs.Cost estimates, based on an annual basis the financial side, is an important part of the overall budget, includes budget preparation, budget implementation, budget control and budget evaluation and etc. The purpose of cost estimates is to determine the fixed costs of production and activities; to form the baseline that implement during actual operation, to establish a standard for production cost control.In this paper, we analyze the reason why ABC (Activity-Based Costing, ABC method) exist in the E high-performance chemical company, and divide the company cost into two parts: short-term dynamic cost (such as direct materials , direct labor, etc.), that driven by business volume (e.g. Output) and long-term dynamic cost (mostly various indirect costs) that driven by operation volume (resource consuming). Cost control in the enterprise through the ERP system can be an appropriate scale enterprise, because usually more conducive to large-scale small-scale product unit costs.On the other hand, enterprises from a strategic height emphasize cost management, and finally, form a complete set of cost control system, effectively improve productivity, shorten the production cycle, increasing production while ensuring the quality.In this paper, we try to understand the current situation of the cost control in E high-performance chemical company, by using a systematic analysis method that integrate theory with practice, and enterprise survey, talking to the operator, document reviewing and etc. Through"variance analysis"and"inspection walk through"method, we try to find the deficiencies of the cost control from E high-performance chemical company, and attempt to resolve the problems of key links.Innovation of this paper is that we provide the improvement measure to the E high-performance chemical company based on cost estimates of operating cost combined to improve cost control measures. Particularly, we pointing out that the E high-performance chemical company should not just focus on the isolated cost control, but establish modern cost awareness and use"cost - benefit analysis"method to create greater benefits for the enterprise. This is a practical significance.cost - benefit analysis to create greater benefits for the enterprise to start and strengthen cost control, has a certain practical significance.