Studies On The New Mode Of Cost Management

In this dissertation, we make a deeper study on a new mode of costing and a new mode of cost control, which are two central problems on cost man- agement mode. Main efforts of us are as follows. After a systematic, deep analysis of the variations of modern business en- vironment, which including market, management and production environ- ment, we also analyze its impact on traditional mode of cost management. We find that the variations of market environment are mainly in three as- pects. They are demands diversification, shortening of lifetime and elaborate division of market. As to the variations of management environment, they are the emergence of new theories and methods of management, and their effective application in business, such as just-in-time (JIT), business process reengineering (BPR) and value-based management (VBM). As for the variations of production environment, that mostly means auto- matic production, and the trend is CIMS (computer integrated manufacturing system). The new mode of cost management has an impact on the traditional one in two ways. One is the impact on the method of costing, i. e. the variations of cost structure and its derived problems on the distribution of indirect ex- penses. The other is the impact on the method of cost control. The traditional method of cost control is Out of date. On the basis of a detailed demonstration on these four typical modes of management, i. e. traditional mode of cost management, mode of activity-cost management, target cost and cost pool. We make some comparative study and evaluation on them. The comparison is on the basis of four aspects. They are the scope and emphasis of cost management, methods of costing, methods of cost control and suitable environment. The evaluation is on the basis of three aspects. They are advanced property, imitation and problems on operating. We find each mode has its own characteristic and applicable conditions as well as its advanced property and limitation. Each has its problems in operat- ing.. The dissertation gives a new mode of cost management, which mainly consists of a new mode of costing and a new mode of cost control. It also gives a deep analysis on the application of the new mode. The new mode of costing consists of target costing, improved costing and activity costing. The focal point of our discussion is how to practise it. What especially is that we make a systematic, deep analysis on the appli- cable opportunities of activity costing and the determination and choice of cost driver. To be convenient for costing and automatic realization of the new mode on computers, we introduce some concepts and methods such as activity cost matrix, production costing matrix and activity-production costing matrix into this dissertation. We also point out several important factors in how to deter- mine and choose the cost driver. The new mode of cost control is constructed by a three-level system, which consists of a system of current control, fore- control and target control. It meets the demand of modern business environ- ment. We can see that through the analysis of its practice. Some of the study in this dissertation is based on former researchers?ef- forts. Some is primary, such as the mode of cost pool management, the corn- parison and evaluation of the typical mode of cost management...