The Cost Management Of Research And Development

With the more and more intense competition among market, product of velocity has been accelerated, R&D activities throughout the production process are playing an increasingly important roles in the company, to promote enterprises in a competitive environment to survive. The concept of traditional cost management has restricted the positive attitudes of R&D activities, based on the new characteristics of R&D activities, this paper put forward some new requirements of traditional cost management, to proceed to the corresponding research. Firstly, it carried out a systematic analysis researches the accounting issues of R&D. This process has established a sound foundation for the R&D. The relatively correct cost information help managers increase investment in research and development efforts. It breakthrough narrow scope of traditional cost accounting problems. Secondly, it deliberates the cost control of R&D issue. According to this main feature a new concept of controlling the product cost from the source is put forward. This paper will discuss the application of Activity-Based Costing in cost control, a case study is given to clarify the importance of R&D for cost control and operating cost can be an effective cost control R&D. This part which breaks through the traditional cost control concepts, most of the product cost has been determined in the development stage. Finally, it discusses the performance evaluation problem, R&D activities require a lot of finical from enterprises. A lot of investment is requirement in the R&D, so whether the R&D investment can promote the continuous enterprise development or can make the enterprise gain greater value, through the empirical test, it gets an conclusion which plays an important part in the enterprise's R&D investment. This part which breaks through traditional management ideas in which only caring about the size of the cost,and considering the Limitations of the relationship between input and output. This paper is to change the traditional concept of cost management on R&D, make enterprises more attention to the development cost manage of R&D, Implement the effective cost management has help to decrease cost, raise productivity, buildup competitive ability.