Research On Dongxingmao Company Of Ordering Production Cost Management

In view of the small and medium-sized manufacturing production mode selectioncaused the scholars both in nationwide to explore, production two modes ofproduction and inventory is more and more attention by scholars. But how to solve theproduction mode shift due to the less production cost management problems of thestudy also. Shigeru paper to large companies as a case, study the after productionpattern transformation, the existing problems in cost management, in order to be usedfor reference in other enterprises.DongXingMao is a company in which is focusing on producing and selling woodproducts. The company started by using the mode of inventory of production, prior tothe arrival of the order, the products had been produced. But with the economicdeveloping, consumption structure changing, personalized market demand hasbecome a trend in the manufacturing industry. The mode of inventory production cannot meet the current market demand, but also caused a backlog in the product liquidityslow turnover and other issues. To meet the different needs of different customers,companies gradually adopt production orders for production. Also the changes to theproduction cost control and management have brought new challenges.Meanwhile, Dongxingmao company did not make a reasonable allocation ofcosts according to the accounting standards, the fee is not into manufacturing costs,selling expenses, management fees, and finance charges, instead, all fees just summedtogether. This will inevitably lead to miss the manufacturing costs when calculate theproducts costing, which results in distortion of product costs And causing inflatedprofits of the enterprise results in the enterprise cannot get compensation of the costs,thus affecting the smooth production and operation activities.How to restore its true cost situation, to resolve staff management and costcontrol orders, is the focus of this article. This paper compares the mode of inventoryand order production pattern, using SWOT analysis method to analysis the mode oforder production. And considering the actual conditions of DongxingMao company,we study the effect of order to the cost of production. In the end of the article, weprovide more accurate cost information to decision making and afford direction toDongxingMao’s cost control. Ultimately, according to the above research, we providehelp to its transformation to modern enterprise.