The Research On Application Of ERP Cost Management System In Zhengzhong Company

With the customer demand diversity, the world economic globalization and the fierce market competition, enterprises of China face a major crisis. In order to seek development in the changing market environment, many companies began to introduce the oversea advanced management technology and concept. Standard cost management system favored by the masses of small and medium-sized enterprises because of its outstanding advantages. Many small and medium-sized high-tech enterprises in our country are developing rapidly. They need to improve management urgently, and then joined the pioneer of application of ERP management system actively. However, due to various reasons, many enterprises do not implement ERP project smoothly. ERP project does not bring benefits for these enterprises, on the contrary, brings heavy burden to the enterprise due to consuming large amounts of resources. In this paper, refer to the implementation of cost management system of ERP project in Hunan Zhengzhong Pharmaceutical Machinery Company, we analyzed the actual situation of enterprises and the problems of implementing cost management system. To deal with the problems in establishing standard cost accounting system, we put forward relevant measures to improve the ERP cost management system implementation. Firstly, we preceded theoretical analysis, briefly introducing the principle and characteristics of Standard Cost and the Activity-Based Cost, interpreting the concept and advantages of ERP system. Secondly, we fully analyzed the original management situation of Hunan Zhengzhong Pharmaceutical Machinery Company and criticized its cost management. Thirdly, we described the implementation of ERP cost management project in detail and analyzed the main causes of their defeat. Finally, in allusion to those main causes, we proposed the coping strategies from four aspects:ERP project management, the capacity of project personnel, the enterprise management system and technical problems of ERP. We aim to provide helpful information to Zhengzhong Company and other small and medium-sized high-tech companies.