Beijing Kimberly Cost Control System Analysis

Beijing Kimberly is a typical manufacturer, which deals with various kinds of paper products. We study its cost control system in this case.which operates on a standard cost basis. It uses the manufacturing cost method.which is widely used in most manufacturing enterprises. The cost control system in Kimberly also works through a ERP application- BPCS. BPCS is a famous and powerful ERP management system and it can automates almost all the processes such as finance,manufacturing,purchasing,sales.customer service.payment and analysis. Kimberly's cost control system consists of finance module.manufacturing module.purchasing module and inventory module. Each of their setting is directly connected with the control of its function. After getting data from these modules.Access application is used to calculate the standard cost and actual cost including the relative analysis and reporting.Users can get timely statistics through this ERP management system,which is one of this cost control system's advantages. The standard cost method can evaluate the result and change of cost controlling effectively and provide supporting for evaluating achievements of each department and working centers.such as manufacturing department,purchasing department. The system can also collect many kinds of useful information.which is very helpful to make a detailed analysis of manufacturing process and cost reduction. This system also has some defects. Users may find difficulties in process management.especially in the receivable management and fixed assets management. The result of cost difference is not totally actual because some calculation method is not applicable for the actual situation. And the system only emphasize on process control,which is not enough for serving the company's strategy.Finally.suggestions are put forward to solve problems existent in the cost control systems,such as redesigning the processes, strengthening communications between different departments,modifying some un-applicable costing methods, reinforcing financial analysis and more training on finance staff, so as to improve the managing level for cost control.