A Case Study On The Design Of HW Company’s Responsibility Cost Management System

Responsibility cost is computed based on the cost centers with responsibility which is treated as the cost object.It is an important basis for the appraisal of each responsibility center business performance and fulfillment of duties.As an effective cost control methods,responsibility cost management system has achieved good results in many enterprise,especially in the construction companies.High-tech manufacture companies are becoming increasingly important in the national economy.However,in the current study,the responsibility involved in high-tech manufacturing enterprise cost management studies is rarely concerned.This article will research on the responsibility cost management for HW fragrances and flavors producers.This article studied the case of HW Company.In this process,we departed from the theory of cost management responsibility,combined with the characteristics of fragrances and flavors manufacturing enterprise costs,and analyzed the arising problems in HW fragrances and flavors manufacturing enterprise cost management.In recent years,the cost of HW Company was rapidly rising.After analysis,it mainly due to the following reasons.Firstly,HW Company did not establish a mature cost management system.Secondly,there were no clear divisions of responsibilities in HW Company.And in the long-terms,HW Company wasted a lot.In view of this,it is necessary to build responsibility cost management system in HW Company.The article elaborate the division of HW fragrances and flavours manufacturing Corporate Responsibility Center,budget establishment of the responsibility cost,accounting of the responsibility cost,and the assessment of responsibility cost.Besides,the paper also analyzes the problems of responsibility cost management in the implementation process,such as division of responsibilities centers,controllability analysis of cost,and the pricing of internal transfer.At the same time,the paper gives possible solutions.Of course,HW Company may face other new difficulties,and it is need to adjust according to actual situation.This paper studies the fragrances and flavors manufacturers want to design a reasonable and feasible responsibility cost management system.I hope this paper can provide a reference for cost control in fragrances and flavors manufacturers.By this way,on of HW Company can reduce the cost,increase profits,and improve the Rate of Return Common Stockholders’Equity(ROE)of enterprises.In summary,application responsibility cost management can effectively reduce the invalid cost and reduce the waste resources.It has high social significance.