The Research On Cost Management Of S Company Under ERP Environment

With the constant improvement of market economic system,the development of new product research and the exploration of new areas in all kinds of the enterprises,more and more enterprises pay attention to how to find a cost reduction strategy for effective cost management under the existing production conditions.Obviously,As a new enterprise cost control method,ERP with integrity and the systematic advantages helps our refining and chemical enterprises achieve the optimal restructuring of enterprise business processes,reduce invalid operation costs,promote enterprises' information construction,realize the integration and sharing of information and provide accurate and timely data information for the enterprises' management decision.However,there are also many different cost management methods under the ERP environment,so the enterprises should consider their own actual situation to select the suitable cost management method in ERP environment to adapt to the enterprise development.S company,a super large petrochemical joint venture,has many characteristics of production and business operation,for example,a long chain of petrochemical industry production,complicated process and great demand for raw materials.This paper,firstly,based on the current research of the cost management,analyze detailedly the current situation of S company's cost management under the ERP environment,then analyze the advantages and disadvantages of this current cost management method and find out the problems and finally conclude that S company should adopt Activity Based Costing and combine it with Standard Costing both under the ERP environment.Secondly,this article,fully combining the actual situation of S company,design the new cost management method under ERP environment and complete the optimization of building foundation.This section select the oil refinery plant of S refining and chemical company to complete the division of several activity-based cost center,establish a resource library,formulate the cost drivers which could assign each activity to the cost of production.Again,selecting the distillation workshop,the delayed coking workshop and the catalytic reforming of the oil refinery plant for application,this section carry out concretely application of the new cost management method under the ERP environment.According to the data of total cost of these three workshops in December 2016,the fifth section introduce the Activity Based Costing into the current cost management under ERP environment of S company,analyze the difference between two cost data.Then based the comparison of traditional and new cost management of S company,the paper analyze the potential achievement that the new mode could bring S company and consider the suggestion of application.Finally,the last part of this paper summarize several conclusion about this paper's topic.Through the research and analysis of S company's cost management under the ERP environment,the whole paper aims at providing reference,help and guidance for refining industry to build and practice suitable cost accounting and cost control in cost management which under the ERP environment.