Analysis Of Present Cost Management Problems And Proposal On Future Improvement For Jiaughe Chemical Factory

With respect to manufacture and management, modern enterprises generally aim at increasing its economic efficiency. What should be done first to increase its economic efficiency is to enhance its cost management. The two reports, Decision of Several Significant Problems on State Enterprises' Reform and Development from the Fourth Plenary Session of the 15th CPC Central Committee and the government work report from the Third Session of the 9th National People's Congress, both indicate-poor management in cost and capital, which have resulted in the low-level enterprises management, are the weak links of our state enterprises at the present. It's known that improved cost management will assure the state enterprises' scientific management. Cost management should be essentially targeted in enhancing the competitive ability. Therefore, it's quite significant to emphasize cost management in establishing modern enterprises institution.This thesis covers the research in the present cost management of a subject investigated, Jianghe Chemical Factory. The factory has made progress in cost management during the past years. However some problems have exposed as well-employees' indifference in break-even cost, imperfect institutions of cost evaluation & cost control, cost accounting of workshop departed from that of the whole factory, false cost statistics, nonstandard materials management leading to out-of-control cost, man-hour and material quotas without restriction, financial executives with low abilities in general.On the basis of the analysis of the factory's cost composition in 2000, the thesis puts forward some innovative approaches, for the achievement of entire personnel, overall process and all-around cost, which include upgrading the accountants' professional skill, establishing scientific quota standards and strict examining institutions, regularizing administrative organization and encouragement measurement. With respect to the actual conditions of the factory, the thesis offers project design on cost control and secondary cost accounting system in details.Last, according to the research on the theories and methods about strategy cost management(SCM) and all-round cost management, the thesis raises proposals below, to reduce the cost by technology innovation, to adopt operating cost management mode and so on. By using the established target cost frame, the thesis analyzes the productive cost of each manufacture unit and period expense, consequently to bring the target cost management-co.v/ control and cost reduction into effect.The research offered in this thesis is of practical value to Jianghe Chemical Factory, moreover, it would be useful reference for the related military industrial enterprises to a certain extent.