Study Of Cost Accounting Report System Based On Value Chain

With the fast development of modern science, especially the information technology, a great change has taken place in the environment of running a modern business. In conventional cost management an importance has only been paid to the management and reporting on product costs and period costs, and little importance to other process costs. With the value chain theory by Michael E. Porter, when the theory associated with the management of cost it is been found material and helpful for businesses to cut their costs for competitive advantage. Nowadays, though there are many articles on value chain in cost management, in these articles value chain is not associated with cost reporting. In existing cost reporting, businesses focus more on product cost reporting rather than on purchasing cost, cost of goods sold as well as cost of after-sale services. Or they only analyze a single action cost, but ignore the internal relationship of every action cost. Cost analyzing relies too much on accounting method and its regulation, and businesses don't analyze the cost behavior which is not included in the accounting regulations.According to our research on value chain theory and present cost reporting in our country, this article develops the overall cost reporting based on value chain. In this article, firstly it shows characters of every link; secondly it analyzes the more details of cost in the link and finally develops cost reporting for the cost analyzing demand. In the process of cost evaluating and analyzing, this article makes out some index, and evaluates every link cost and its internal relationship of every link cost. This research applies the theory into practice in the form of cases to establish cost accounting reporting based on value chain. The example above is a high-tech company. With a new experiment of cost reporting, we hope to help the management in knowing their business'cost for the need of internal cost information.