Study On The Improvement Of Budgeting And Accounting In YI's Cost Management

In the production process,cost management is an eternal theme.Since China had worked to deepen the market in economy,the telecommunication industry has been breaking the monopoly and formatting a competitive market model.In recent years,telecommunication companies were facing problems like have slow growth and small profit.Thus,having accurate,timely,complete cost information may provide a favorable support for enterprises to cope with the competition.However,the telecommunication industry is different from the traditional manufacturing industry that requires designing an appropriate management system that suits it.In my paper,I chose a municipal company,YI,as my research object,and work on it step-by-step following the structure of “situation – question – reason – advice”.First,describe the current status and characters of YI,then find out and analyze problems,and finally give suggestions.The results show that YI's current cost management system cannot meet its need in supporting useful information because it did not make budgeting and accounting as its highest priority.During cost budgeting,YI Company's budgeting department keeps the habitual thinking that based on a rough estimate of basis,and it lacks of interactive communication.During accounting,the main problem of YI is that it doesn't have reasonable cost allocation method and product-based cost accounting system,so pricing is not easy and its data cannot support managers to make decisions.To deal with those problems,I present some suggestions for optimization.For cost budgeting,using activity-based budgeting system and designs can fix budget communication mechanism.For Cost accounting,using ABC system and building a model based on ABC can help achieve correct imputation of product's cost.The significant of this study is to catch the needs of decision-making management.To reach this goal,I analyzed the status of YI,position its shortcomings,and put forward feasible suggestions.Meanwhile,it can also provide a reference for other types of telecommunication companies.