Jingding Decision Support Systems And Cost Control System Design

The paper utilizes the research method based on management accounting to discuss how to control the cost of our company and how to use cost information to make a project quoting decision. There is six parts in the paper. Part one: introduction to this thesis. This part points the purpose, range, and limitation of thesis research. Part two: explanation to relative concept and theory. Part three: analyse to company operation circumstances. Firstly, According to the summary of domestic engineering market analyse the characteristic of investor. Our main competitor can be classified into foreign capital engineering company and domestic capital engineering company. The use of SWOT analyse method to show clearly the orientation of our company in the same industry. Secondly, making use the financial data of our company in five years to generate special chart which consists of total assets turn over, fixed asserts turn over, gross profit rate, net profit rate, return on assets, return on equity. The results show downtrend management efficiency and payoff capability emerge of our company in 3 year. I think the main reason is that cost control is not good enough, manufacturing cost increased much larger than takings in 2002. Part four: structure to cost management system. Considering the development background of our company, when company converted from cost center to profit center, we still followed former cost control system and performance standards, and these conditions brought the losses. So in this part, I bend myself to making up a cost management system to fit for the profit center system. Part five: support to make decisions and design to cost control system. In chapter five, we can get the pricing decision models by using the cost information from chapter 1 to chapter 4. Full-cost approach is so important that help us get decision-making modules, thereby, how to apply the full-cost approach and contribution approach in the decision-making of quoted price, paper gives very detail description. The sale price achieved from full-cost approach is more safety from thelong-term. Because the company has changed from cost center to profit center, we must adjust the performance evaluation standard and the internal control system. So profit budget system, budget implement method, cost control system and performance evaluation system are built up by the contents of profit budget management. And how to workout the problem should be attentive during budget and how to actual budget control, this part provides detail description. In addition,designing schedule control management report to solve the problem in the project control. Project manager can know clear the cost, efficiency, schedule and profit from the report, no matter what degree the project evolves. The key point of performance evaluation is how to link employee's profit and project performance and company's profit closely. In this way all employees will take part in their work with enthusiasm. On the other hand, employee's float wage must build on the base of project performance. Bonus should be calculated from total budget man-hour and company's profit, so a special statistics about employee total budget man-hour was designed to support bonus system. Part six: shortcoming and prospect. It points out the shortage of the paper, and gives the suggestion that How to improve the system. In the end, the information tells us tactic management accounting will have quiet great development in 21st century...