The Advanced Study On Cost Management Of Powerway Group Based On ERP

After about three decades high speed growth on economy, China has become theglobal’s manufacturing center, and the competition in manufacturing industry is veryintense, to gain a larger share of market, cost down is a key action to enhance anenterprise’s products competitive power.Therefore, set out from Powerway group’scurrent situation of cost and expense management,studying how to improvePowerway’s cost and expense management will have a big realistic significance forPowerway’s sustainable development.Firstly, for ERP theory, literature reviewing for it with present cost controltheory at home and abroad, probing cost management problem under ERP system.Secondly, research from cost attribute, activity based costing management method,cost control content and cost control procedure and method etc. and combining ERPprinciple, which lay a good theoretical foundation for thesis study.Thirdly, objectivelyand fully analysed the current situation and problem existed in powerway group’s costmanagement, which including some problems on cost management concept, costaccounting method, inventory management, cost control etc.Fouthly, applied the maintheory of cost manangement at home and abroad nowadays, informatizationmanagement theory of ERP combining Powerway’s physical truth, then put forwardrelatively all-sided improvement proposals for cost management concept, costaccounting method, purchasing cost management, cost management before theproduct put into production, inventory cost management, manufacturing costmanangement and administrative cost management etc.The article highlighted the combination of ERP and actitive-based costingmanagement, which is a trial for cost management enviroment combining the costmanagement method.The combination is not only a demand for cost managementtheory development, but a request raised in actual practice. The study also has acertain reference significance for other enterprise’s cost management improvement.