Analysis On Modern Enterprises Cost Management Innovation

Great changes of environment in enterprises have made traditional cost accounting which was based in amount could not reflect the consumption of products, the distorted information of products lead to enterprises be defeated in management decision-making. Modern enterprises which manufacture is dominated by computers are turning their style of producing from a few variety and mass-produce to more variety and few production. The demands of individual consumers are making enterprises switching their production continually and repeated busywork is reducing greatly, so the efficacy of controlling the cost of product by traditional cost accounting is disappearing gradually. On the same time, logistical cost is playing an important part in cost management, but cost accounting nowadays making against enterprises grasp their logistical cost and evaluate logistical performance. The study analyses the kickback of traditional cost accounting and the motive of cost management innovation. In the point of view, communication revolution and individual consumers driving enterprises changing their style of manufacture to automating, promoting their management, the contain of product cost have changed too, so enterprises have to transit their cost management. Pursuing the most value is the motive of cost management, because cost is the decision of profit.This issue try to analyze activity costing, logistical costing and so on which were happened in the enterprise by demonstration, and try to compare the difference between Activity based costing, Target costing, Logistical costing and traditional cost accounting, it also try to point out the distortion and localization of traditional cost accounting, show out how modern enterprise cost management methods reality reflect the produce cost. On the means of study, this issue calculate and analyze the financial affairs not only by traditionalcost accounting which was based amount but also by ABC, compare their difference and try to explore how ABC improve producing activities. It wants to find out how the enterprise adopt Target costing to layout product, compare the similarities and differences between China and Japan. It also tries to analyze logistical cost by calculating the item, department and function, promote enterprises to hold their real logistical cost. After these demonstration, the issue figure out that Activity based costing can provide real information of product cost and promote enterprises improve their activities. Target costing is an advanced idea that can control product cost beforehand. Logistical cost management innovation make enterprises reforming their logistical management, preparing commodities in reasons. It is out of questions, modern enterprises cost management innovation can take an unable substitutional function both in promoting production and improving costing.