Research On The Problems And Countermeasures Of N Company's Standard Cost Management

N company is a wholly foreign owned company established in Nanjing,making car engine body foundry Company.With the rapid development of China's auto market,N company's production and business scale in recent years has increased rapidly.In this context,the N company has a serious problem of cost information relevance,and this led to a series of major issues for the enterprise.These include the material cost information and the actual situation relevance is week,does not reflect the real consumption;manufacturing costs distribution crossly allowance between products,the average allocation is unreasonable;material usage information is extensive,huge waste can't be explained;the information cycle reporting is not timely,can't meet the needs of on-site management.Through the analysis of reasons we find that the problem is mainly due to the product cost structure set in the ERP system is not in accordance with the actual production process;manufacturing cost allocation and distribution method is simple,the cost information can't be accurate to the product;the storage location is set single,no leading department is responsible for the products quantity physically and accounts;limited by the time of the periodic reporting,the cost system to provide the lagged information does not help to solve the problem in time.All of these problems are caused by the loss of the standard cost information relevance of N company.In order to improve the cost information relevancy of N company,we make countermeasures against the four main issues caused by lacking of cost information relevancy:including increases the process in system,as well as the corresponding material management,to improve the relevance of material cost;to design the manufacture cost allocation and distribution method,using appropriate cost drivers to accounting manufacturing costs;refine storage locations in system,making the departments equal rights and responsibilities on products quantity physically and accounts;implements operations conveniently use real-time reporting system,increase the timeliness of cost information.Some suggested solutions in this study have been applied in practice and have achieved good results.