The Research Of Cost Report System Based On Value Chain

The current reports only pay much attention to costs of products in the yielding phase, whereas attach little importance to costs in other phases which are all included in period expenses. Cost analysis relies on financial and accounting methods excessively and finds it hard to grasp the cost of the enterprise generally on strategic level. In view of what have been analyzed, the paper will construct cost reports according to value chain theory in the hope of enriching the definition system of cost reports theoretically,directing mass accountants making and analyzing cost report,providing administrators with information of which is decision-making and effective。.The paper adopts theoretical and case study methods. In the theoretical study, through probing into theories related to value chain and the current situation of cost reports in China, the paper has designed a more integrated report system. Firstly, in order to build a platform for value chain-based cost reports, the paper modifies traditional cost calculation. The paper analyzes the cost report contents on each link, and designs the structure of cost report according to managerial requirements based on modified calculation and each critical link's characteristic. Moreover, the paper attempts to design index related to cost analysis and evaluation. In the case study, the paper applies the newly constructed cost report system to a specific enterprise, and has made suggestions to solve the problems in the case.The result shows that value chain-based cost reports, being different from traditional cost reports, take main links of the value chain as the basic frame, the major operations confirmed according to importance and traceability principle as the contents, whose cost information is from the platform based on activity value chain calculation. The cost reports may provide report users with information of which level is more distinctive, embodies cost report information quality characteristic on relativity and reliability and help administrators make proper decisions.