The Construction And Application Of ABM In Introducing VBM Framework

Management accounting and cost management control have always been a topic of concern in all companies.The management theories and methods of enterprises have undergone great innovation with the rapid development of the economy and the gradual realization of an integrated capital market.Activity-based cost management is an important innovation in traditional cost management.Although the activity-based cost method and activity-based cost management are more and more frequently used by enterprises in China,there are not many companies that insist on using them.The reason is that the traditional activity-based cost management system only pays attention to the cost information of the operation level and the cost of the product.The impact does not take into account the capital cost or risk factors generated by the enterprise's production of product resources,and it is difficult to meet the requirements of the enterprise to implement value management and strategic planning.At the same time,the idea of maximizing the value of the company as the company's overall management objective has gained more and more recognition.The company's management has begun to pay attention to how to obtain more value for the company.The idea of value-based management has thus emerged.This article seeks to build an activity-based cost management system that incorporates the VBM framework.It links micro-level operational information with macro strategic objectives to serve the company's goal of maximizing value.Activity-based cost management is analyzed from the operational level that connects the company's business activities,identifying value-added and non-value-added activities,high-efficiency activities,and inefficient activities.It also measures the cost of consumption,confirms the activity flow of the operation chain,and provides value-based management.The path guidance and analysis basis of the change from cost to value provide practical basis for the value-based management to play in practice.By reading domestic and foreign scholars' research on the framework or model of value-based management(VBM),value-based management(VBM)is a management tool and management method.It emphasizes the process of value management of an enterprise.The concept of strategic management thinking has certain procedures or steps.Generally speaking,it contains such a process from strategic planning to strategic control to strategic evaluation.This process is actually the three steps of goal setting,goal control and result control in enterprise management accounting.Specifically,these three steps are setting goals,controlling the realization of goals,and rewarding and punishing the achievement of goals.This is based on the three goals of value measurement,value diagnosis,and value allocation in value management correspond to one another.The combination of value-based management(VBM)and activity-based cost management can effectively avoid the traditional activity-based cost management by neglecting the overall problem by focusing on the absolute reduction of costs,and grasping the company's production and management at the macro and micro level.Situations and corresponding competitive advantages provide new ideas and can encourage companies to make strategic decisions based on this.Therefore,value-based management(VBM)and ABC are essentially unified,and the combination of the two can better serve the goal of maximizing the value of the company.There are five parts in this article,which are the introduction,the theoretical overview of ABC,the establishment of the activity-based cost management system that introduces the VBM framework,the application of the activity-based cost management system introduced into the VBM framework,and the safeguard measures and issues that should be addressed in the application of the system.The first part mainly expounds the background and significance of the case study.At the same time,by reading a large amount of literature,the current situation of domestic and foreign scholars' research on activity-based cost management and value-based management is sorted out,and the research methods and research ideas of this paper are determined.The second part is mainly the theoretical overview,introduces the basic connotation,principles and implementation procedures of the ABC and ABM.It also introduces the theoretical basis for the construction of the ABM system that introduces the VBM framework and lays the theory for the next writing basis.The third part is to discuss the construction of the activity-based cost management system that introduces the VBM framework,which is also the focus of this article.In this part,first of all,it analyzes the deficiencies of the traditional activity-based cost management system.There are two main points.First,the impact of capital costs on product costs is ignored,and second,it is easy to induce corporate managers to pursue short-term benefits.Based on this,this paper proposes the concept of value-based management(VBM),elaborates on the basic theoretical model and basic concept of VBM,and summarizes the basic features of the activity-based cost management system introduced into VBM framework.Then,this paper starts from the four aspects of goal setting,value motivation analysis,goal control and result control to construct the integrated framework system of VBM and activity-based cost management,so as to realize the enterprise value management from company strategy to value analysis,budget and performance evaluation.The fourth part is the application analysis of the activity-based cost management system introduced into the VBM framework.Finally,it sums up the safeguard measures and problems that should be paid attention to when using the activity-based cost management system in introducing VBM framework.