Research On Cost Management Improvement Of Y Company

Own-brand motor corporation is in an inferior position when competing with the joint venture and foreign Motor companies, there are many disadvantages such as quality, brand, manufacturing and marketing. So, Own-brand motors are mainly middle and low level ones currently, high level market need to be cultivated and exploit. Own-brand motor corporations often promote sales of its motors by fetching down their prices. But the high production costs is hard to reduce, the profitability is very poor as a result.Y company has the same problem, it is most urgent to improve the profitability of own-brand motor. Accelerating new product development, improving manufacturing processes, controlling product quality, enhancing brand building all may strengthen the competitive power and expand sales. In this paper, I research on cost management improvement of Y Company to improve the profitability.Cost management is the core topic of this paper. At the first part of the paper, I introduced the current cost management in Y Company including cost management system, cost controlling, cost accounting, budget management and cost analysis. At the second part of the paper, I analyze problems in the current cost management such as imperfect cost management system, outdated content, poor execution and so on. These existing problems lead to the poor profitability. in this paper I present a set of improvement plan to strengthen the basis of cost management, to improve cost management system, and to develop effective cost control and improving measures, to establish standard cost accounting system to enhance accuracy, to implement a comprehensive budget management to strengthen cost analysis.These improvements is the right remedy, the effectiveness depends not only on the improving program itself, but also the intensity, timing, and methods, which is the next topic I will study.