Steel Companies Daily Cost Analysis And Profit Forecasting System

With the development of economy, China’s iron and steel enterprises havedropped into loss or a low-margin stage. Forced by the change of market conditionsof enterprise, the information system has been widely used in the steel industry toimprove the level of enterprise refinement management and promote thetransformation of production and operation mode from extensive to intensive. Thesteel enterprises have accelerated the pace of transformation. Xiangtan Iron and SteelCorporation(XISC) of Hunan Valin is among them.The paper is based on the system of daily cost analysis and profit prediction.First of all, the paper analyses cost theory and implementing case according to therepresentative of activity-based costing at home and aboard, and then combines withthe present situation and existing problems of cost accounting in XISC. Then thepaper suggests implementing the management system of daily cost and profitprediction and analyses daily cost management, process cost audit, daily costprediction and the demand of daily cost analysis before ironmaking and aftersteelmaking under the system. On the basis of demand analysis, it refines a keyservice model of daily cost analysis and profit prediction in steel enterprises.Considering the scalability and the maintainability, the system, based on thethree-layer software framework of C/S, its subfunction modules of the framework aredesigned in terms of technology integration, safety, efficiency, stability, adaptation.The programming of this system covers all requirements of daily cost analysis andprofit prediction, realizing daily cost analysis before ironmaking and aftersteelmaking, rolled cost management, financial daily cost management, corporatecosts, product profitability analysis, design cost management and system management,etc. the success of construction and running on the line has improved the enterpriseinfrastructure management work, strengthen the process control in cost accountingand realize the transformation of business system in the center of cost. It also providesa favorable environment for the implementation of sophisticated cost managementstrategy.This article is based on costing theory and information technology means,combined with the actual situation of the Xiangtan Iron and Steel Corporation’s CostManagement. It proposes the complete solution of daily cost analysis and profit forecasting system for Iron and steel enterprises form all angles such as enterprisesystem establishment, key business model definition, system frame design,development and implementation of application functions. It provides an idea fordomestic steel companies to make implementation of whole process, whole cycle, allproducts of the fine cost management.