Study On The Improvement In The Cost System Of Xiangfeng Special Paper Company

Under the condition of market economy, implementing cost leadership strategy and improving the rate of return on capital is the eternal theme of enterprise management and the fundamental goal of the operation of enterprises. If enterprises want to survive and develop,they should strengthen cost management, take various measures to reduce costs, participate in market competition with cost advantage.Responsibility cost management is one of modern methods of cost management. It divides business departments into several responsibility center, which preparing the responsibility budget according to the scope of responsibility, the prescribed quota, fee standards and the settlement price controlled by responsibility center. It can mobilize business departments and all the staff actively reduce cost and achieve full participation with the responsibility of cost distributed onto each center or staff. Hunan Xiangfeng Special Paper company is one of the eight key enterprises in the production of cigarette paper, but there are still some problems in the process of research and development, procurement, production, sales, and cost evaluation etc.This paper presents the way to improve the cost management system of Xiangfeng Special Paper company, mainly about the construction of responsibility cost system. Under the guidance of openness, justice and fairness, virtuous cycle of assessment system, unification of responsibility, power and benefit, the pareto principle and joint responsibility, the specific building process including the following three sides, setting up responsibility center of people-oriented, responsibility for the preparation of the budget and construction of responsibility cost management system. The article also presents timely improvement measures after the construction of cost management system, including authentic and timely feedback of responsibility cost management, dynamically adjustment scheme of responsibility cost strengthen, and implementing mechanism of evaluating cost performance which can help improve the efficiency of management. The specific measures of establishing responsibility cost system mainly includes dividing internal business process into more specific responsibility center, So that we can place the responsibility and assessment on every center to incentive and castigate them to control cost better, leading improvement firms' competitive advantage of cost.