Defense Scientific Research Institutions, Military Cost Management System Design

Financial management, especially military product cost management obviouslycannot adopt high-speed economy development of A Institute in recent years, It is veryimportant to research and design military product cost management system; improvemilitary product management level since cost management consciousness, costaccounting, financial management quota and cost control are weak.The paper introduces cost management problem and design of A institute militaryproduct cost system by using basic and advanced cost management theory whichincludes activing based costing, strategic cost management, target cost, direct materialcost difference analysis, and the lowest point for quality cost.The paper analyzes A institute present financial and cost management problemsand reasons from organization system with the features of military cost managementand cost calculation. The paper proposes basic military cost management system plan,i.e. establish strategy cost management consciousness and realize strategy costmanagement system. Cost management and control will be archived through target costplan mode,forcase target profit and decide target cost.A institute will process military product cost management system by three steps toreduce cost from design, purchase, transportation, manufacture control aspects, andimprove profit and establish total cost control system. Total cost management includesall process control, all-staff-in and cost management direction idea.The purpose of the theory is to enhance military cost management and control, andimprove synthetic capability and optimize military cost and economic benefit, promotesynthetic competition of A institute and service state military.