The Advanced Study On Producing Cost Management Of Sinocare

With the market competition getting intense day by day,the price has become the key factor for gaining advantages.Under the huge market pressure,Sinocare implement low-cost strategy,and using ERP system actively to manage the producing cost.So studying the case of Sinocare’s producing cost management based on the environment of ERP that will have a big realistic significance for Sinocare’s sustainable development.Based on the theory of standard cost management under the environment of ERP,this paper analyzes the present producing cost management situation and problems of Sinocare.It is believed that the Sinocare has the concept of cost management,and the administration and supervision authorities of the enterprise realize the importance of cost control.Meanwhile,Sinocare have its own systems of cost calculation,analysis,and performance evaluation.However,there are still some problems such as out-of-date cost management thoughts,serious defects of production and inventory internal control,unreasonable enough of the cost calculation and analysis.Therefore,Sinocare should improve the level of producing cost management as soon as possible,and establish standard cost system based on ERP environment.It is better to normalize the process of production documents in ERP environment by clearing job responsibilities,standardizing procedures of acquiring materials,defining the rules of reward and punishment.It is useful to utilize and strengthen ERP’s pre-plan,middle-control and after-analysis on standard cost management.