Redesigning Of Cost Control System Of KNIT--The Application Of ABCM In Our Enterprise

Cost takes up an important station in market competition. Currently our principal task is that we should use foreign experience of advanced cost management for reference with combining actualities of our country, in order to improve the level of cost management of our enterprises, and shorten the difference between our country and advanced country in the field of cost management. And it is the studying and composing intention of this thesis.From studying and summarizing the evolution of cost management and analyzing the forming background of Activity-Based Cost Management (ABCM), part one provides the comprehensive research on the ABCM theory. Based on these understanding, the author oppugns the three actualizing steps of ABCM which is brought forward by Turney, P. B. B., epurates a personal viewpoint, and reconstructs the more perfect and more applied process of performing of ABCM.Part two studies and explores the history and the actuality of cost management of our country, and focuses on analyzing some issue which exist in our enterprises in the field of cost management. Then the author points out that popularizing ABCM in our country plays an important role at present and in the future.A state high-tech enterprise-Kunming North Infrared TechnologyCo, Ltd. (KNIT) which was established three years ago is regarded as a studied object. Part three introduces the synoptic situation of KNIT and its former cost control system, and evaluates its deficiencies. This will paves the way to redesign the cost control-system of KNIT.Part four firstly discusses the necessity of redesigning, and then brings forward designing target and essential requirement of the new system. Subsequently, systematically introduces a cost control system of KNIT which is designed by the author independently and is adopted by KNIT. The system is based on the process of performing of ABCM which is reconstructed in part one, and is composed of two basal subsystems, three performing subsystems and two sustaining subsystems. The former include organizational structure subsystem and institution subsystem. The middle include analyzing subsystem, activity improving subsystem, and cost calculating and performance appraisal subsystem. And the later include information subsystem and personnel training subsystem.From reviewing performing effectiveness of the new system since it was gone into operation half a year ago, Part five estimates its advantage over the former system and its existent shortcoming in brief.Contemporary cost management is an applied science with strong practicality. This thesis tries to give attention to both theory and practise. The author not only summarizes and re-explains the theory of ABCM, but also researches its application in our country, thereby obtaining the Promethean fruit. Of course, it will pass through a long-term process to establish the mature and perfect theory of ABCM and attain its effect in practise.