Research On Cost Management Of The Production Project Of The Boiling Company

According to statistics, more than 75 percent of global toys are produced in China, Chinese toy manufacturing enterprises reached more than 20,000. With the increase of the improvement of living standards, the demand for toys for children in China is increasing. If in the future, children's toys spending to achieve the evaluation criteria in Asia, it means that the toy market sales have billions of breakthrough. According to the accounting identity "Profit = Revenue- Cost" can be seen, the profits obtained for the toy manufacturers depends on the difference between revenues and costs. For toy manufacturing enterprises, production costs accounted for a larger proportion of the total cost, which is important for enterprises to achieve significant profit. Currently the number of toys on the toy manufacturing industry, market supply is greater than the number of demands. Toy market is in the buyer's market, toy manufacturers are difficult to determine product prices. It is difficult to get more profits through raise prices. In recent years, due to rising raw material and labor costs, China's toy production cost pressures is increasing. Thus, control the business costs has become an important way for toy companies to survive and develop. Costs can be a direct reflection of the current business management capacity and competitiveness in the toy manufacturing industry, the competitiveness of enterprises means that the competition of cost management. Traditional cost management methods have been unable to meet the needs of business now. In order to compete in the market place, companies can't have been using the traditional cost management, we must focus on cost management, control and continuous improvement.Based on the current situation of enterprise development, we take the project cost management of company as the research focus, and proposed cost management scheme for the company. Firstly, this paper on the summary of previous scholars cost management research, introduces the existing cost management methods. We analyze the basic situation and the status of project cost management in boiling company, to identify the issues that existence in the toy production company. There are some problems in the cost management, mainly displays in: the idea of cost management are limited,lack of reasonable manufacturing cost allocation standard, lack of the cost control in the process of production, lack of a complete cost management system. Next, this paper according to the specific situation of boiling company, we proposed overall idea of cost management. That is to use Activity-Based Costing method of cost accounting, through the construction of a sound cost management system for cost management. Through make the comprehensive budget management, establish the corresponding cost management system to ensure the implementation of the cost management program. In addition, the paper puts forward that the company needs to establish a good organization to ensure the implementation of the cost management system, clear the distribution of cost responsibility, put the cost control into practical work. We develop a budget cost management, cost control programs and make the assessment program for the company. In order to guarantee the implementation of cost management program, this paper analyzes the measures of cost management system, organizational restructuring and cost performance evaluation, and we provide a more complete and specific programs for the cost management of company.