Research On Innovation Of Cost Management In Enterprise--Apocalypses Of Implementing ABCM In DA Corporation

With China's entry into WTO, domestic market will open widely, together with the development of economic globalization, all the enterprises are facing more and more opportunities and challenges. In order to gain superiority, they must do their best to decrease product cost and increase product quality. During the process of conversion from planned economy system to the socialist market economy system, many enterprises of our nation have been succeeding in perfect their cost management to a great extent. However, comparing with the advanced level of cost management in developed countries, they still lag behind a lot. How do the enterprises of our country combine their own features with foreign country's advanced cost management theory, carrying on a innovation of cost management, exploring a set of cost management system accords with their own development plot, is the subjects which a lot of enterprises are facing at present. This is also what this paper is to probe into.This paper starts with the stages of traditional cost management's developing process at first, pointing out its defects, then analyzing the changes of the modern business environment becomes challenge of traditional cost management, this situation proves the certainty of emergence of modern cost management. In thispaper, the author introduce one of the modern cost management theory-Activity-Based Cost Management (ABCM) in detail. At the same time, analyzing the develop process and current situation of cost management in our nation. make a contract of theory research and practice with foreign ones. Point out questions and margins exist in home enterprises and measures that should be taken.A case is cited In the forth section to illustrate how ABCM, a kind of advanced cost management is applied in a specific enterprise, DA corporation is a manufacturing company, it carried on the bold try in cost management reform, abandoned the traditional cost management pattern, adopting the advanced approach, has made some helpful experience. This paper expounds the background, procedure and result of the reform of in cost management, and gives some suggestion to forward the further improvement measures.The experience of cost management reform implemented in DA Corporation is useful for enterprises in both similar industries and other ones in our country. Because the development of many enterprises in our country have already run into the restriction of cost management, so applying ABCM in enterprises in both similar industries and other sector has important realistic meaning and historic significance in help them strengthen cost accounting and perfect cost management.The ones that should be pointed out are, because the problems existing in the reform of cost management can not be solved overnight, More time will be needed during setting up and perfecting cost management system. As to a great deal of enterprises, defining the dynamics of the reform and range implemented should accord with their own real conditions, spread over a whole area from one point, implementing step by step, form into a characteristic set of cost management, excavating the potentiality of decreasing costs, make the enterprise keep the advantage under the environment of keen competition day by day.