Operating Cost Control Based On Value Creation

The cost control is an eternal topic in the enterprise management, facing the keen competition environment, if you want to keep the enterprise stand to the invincible position day by day, every advanced management technology should be applied in the enterprise management. The traditional method of cost control focused to the control in the stage of manufacture, and as the result of the traditional method allocates the cost to the product directly, the relativity is low. How extent the cost control to the stage of product design stage, syncretize beforehand and afterward control, achieve the comprehensive cost control is a question which current needed to solve anxiously.This article take the modern cost management theory as a foundation, in summarizes and absorbs the domestic and foreign research results, after introduce the related elementary knowledge of activity management and cost control, and construct the system of activity-based cost control. In the entire cost control system design process, how unifies the enterprise value creation and the cost control is the matter which the author diligently explores. Firstly, this article introduce the concept of activity-based EVA, divides the activity construction into three parts as the center of activity-based cost, the EVA center and the strategic center on the basis of whether it's controllable. Strategic center reflects the whole contributions to enterprise value creation. The EVA center reflects each one's contributions to enterprise value. the center of activity-based cost reflects the drive factor to activity-based EVA. Then construct the system of cost control on the weight of each responsibility center's activity-based cost center. Finally unifies the method of the productivity analysis and the value analysis promulgated the contributions to the enterprise value creation thoroughly. In this foundation, this article relates the activity-based cost control and BSC to realizes continue improvement.Normative research method is mainly used in this article, case explanation and mathematical formula inferential reasoning is used if necessary. There are four part in this article.The motivation of select this topic, the present research situation in the domestic and foreign countries; the research method is expounded in the introduction. This part indicates its intention to be at.The basic theory of activity-based cost control is introduced in the second part. Elaborate the basic theory of activity-based management and cost control separately, and unify both of them in the flow view of activity-based management, in order to provide the theory support for the design of activity-based cost control system.The third part is the design of activity-based cost control system. This part is the main body and the innovation place of this article. Firstly discriminate the stage of design and product on the basis of the total design method. On the one hand use the value engineering method realizing the cost control in the stage of product design, on the other hand, constructs the integrity cost control system on the foundation of unifying the computing of activity-based cost and the budget of activity-based cost on the foundation of activity management theory, set down the control standard, the activity-based cost computation, the difference computation and the analysis, the examine and appraisal of the performance of cost control. Through the variable cost and the fixed cost control separately, in order to carry out the responsibility to the center of responsibility which the main body is the department is advantageous for the control achievements inspection and the appraisal.The fourth part is the operation of system successful. Elaborated the condition of how to operate the system successfully, unify the cost control and the valuation creation through the valuation analysis.