Research On Cost In The Process Of Translating Technology Into Financial Results

With the global competition increasing, there is no doubt that technology is playing an important role for enterprise development.In the long-term influence of planned economy system, a majority of companies have been inputting traditional factors to expand the scale. They make profits mainly depending on cheap productivity and increasing the amount of investment. A lack of innovation and ability leads to high costs of technology capital and relatively low profits. Technology started to show an alternative role for labor, promoting low costs. High value brought by technology capital accounts for technological inputting from national and companies. Technology capital is one of the emerging elements of capital, which is the core capital for development. It will cost an amount of time and process to convert the value made by technology into financial results. On the other words, investment of technology capital achieves its added value not only with a lag but also with equipped cost consuming.The study of the process of the technology capital changing into the financial results is the indicators of the cost of technology capital for the input and the indexes of corporate financial results for the output, which discusses how to optimize the cost of enterprise technology capital so that it can be effectively controlled. Firstly introducing the background and current research, this paper is based on the Financial Efficiency Theory, Elements Capital Theory, Cost Control Theory, Cost-benefit Theory and the Core Competence Theory, providing a theoretical basis for the analysis of technology capital. Secondly the analysis of factor influence for the cost of technology capital is made up of three aspects which are independent research and development, external purchase, and products of technology. And the factors directly determining the index calculation methods are roughly broken down nine sub-factors, which are conducive to accurately select cost and outcome indicators in chapter4. Then build a technology capital optimization model and use a combination of theoretical research and empirical method. Make use of DEA software to analysis the data from224listed companies in manufacturing. Thus judge the excessive or insufficient investment with cost efficiency and rule of economic scale and then the optimal result obtained. According to the optimal result, good measures are put forward. The research finds that the investment of R&D is low, especially the software for R&D. The quantity of investment of technology capital should be promoted and enterprise ought to pursuits the maximization of profit and the minimization in a reasonable range.