Researching On The Application Of “benchmark-model” Cost Control Standards In Manufacturing Enterprises

Since 2008 the international financial crisis, a large number of manufacturing enterprises have narrowed the scale of production, affected by financial crisis, the order quantity significantly reduced. In this context, the enterprises in order to survive, only to accept customers’ requirement for selling price cut, and they can’t put forward the price to the customer’s requirements. At this point, most enterprises can choose pay cuts or job cuts to survive.However,combined with national macro policy more and more tend to the livelihood of the people, also means that the salary of laborer increases unceasingly, the enterprise profit space is becoming more and more narrow or even negative, it also became the main cause of most of the manufacturing enterprise bankruptcy. In order to present the existence and the needs of the enterprise profit maximization, enterprises to strengthen cost control becomes very important. In order to lower the price and the higher wage compensation under the background of the enterprise gain more profit, double cost control standard of this new concept arises at the historic moment, but since most companies not enough very clear understanding this standard lead to its actual effect is far lower than the expected utility. This paper will from three parts to explain the double cost control standards from theory to case studies the train of thought, in order to deepen the practice of understanding and application of the standards and methods. The first part of the paper, the cost, the cost control and the double standard cost control concept is defined, on the concept of dual cost control standard source human-basis management and incentive mechanism theory analysis, as well as the application of double cost control standard in the domestic status quo. To analyze the present situation of the manufacturing enterprise cost control including its characteristics and shortcomings, as well as the application of double cost control standard in the domestic present situation; The second part is based on WT company as an example to illustrate how to double the cost control standards used in the manufacturing enterprise cost control, through the formulation based on double cost control under the standard cost budget to control the product cost in advance, through the employees’ utility function, enterprise revenue function, the establishment of the enterprise profit maximization under the employee incentive model to double the cost control to set standards namely “benchmark”- “model” cost control standard, to control the product at that time, through building the appraisal model of cost control standard, the effectiveness of the implementation of double cost control standard evaluation afterwards; The last part isputting forward to the “benchmark”-“model” cost control standard application in manufacturing enterprises cost control some prospect of application and popularization of advice.