Research On Order - Based Cost Management In Equipment Manufacturing Enterprises

Competition is the first law for market economy while making profit is the foundation forsustainable development of enterprises. Current competitions among the enterprises are mainlyreflecting on cost performance competition. But virtually it shows the cost control managementdifference among companies.In recent years, along with serious competition in the market, company A are facing thesituation that product price is keeping reducing, but customized products and small batchproduction requirements are increasing. The current cost accounting method cannot met this kindof requirements and production organization anymore. Therefore, company A is eager to buildnew production management and cost accounting system which can respond to the marketdemand rapidly. Besides, on the request of increasing production efficiency, controllingproduction cost effectively, raising enterprise core competition and improving profitability, theordering cost management system comes into being.This paper first describes the background and meaning for selecting this topic. Then itnarrates the study content and thoughts of the writer. The paper emphasis on introduction of themeaning and theoretical study status of cost management as well as its application status andexisting problems in equipment manufacturing enterprises. The latter chapter elaborates thedesign principle, design flow, implementation step, implementation strategy as well asadvantages and necessities for ordering cost management system application. This systemincludes the whole process control from signing the contract, organizing production until productdelivery. It prevents wasteful practices and is good for responsibility implementation and resultassessment. Thereby, the cost data can be transferred timely and accurately to the managementlevel.The paper studies the cases for ordering cost management system implemented in companyA. It analysis the problems finding in cost management system, and clarifies the necessity toimplement ordering cost management system. On studying the application for ordering costmanagement system implemented in company A, this paper explores and analysis the wholeprocess for its organization, implementation, flow and accounting. And summarize someexperiences and shortages. At last, the writer states his comment and expectation.In correlation with the financial management status in company A, the application forordering cost management system provides powerful guarantee for company development andcost control. This beneficial exploration will provide experiences and references for moreequipment manufacturing enterprises in cost control management system.