A Study On The Application Of Enterprise Cost Accounting Based On ERP

Cost accounting is the basis of cost management. The accuracy and timeliness of cost accounting data directly influence effectiveness of enterprise cost management measures. In recent years, international and domestic market competition is becoming entenser. Cost leadership has become one of the key strategies for enterprises to win the market competition. Gaining profit from cost and management has increasingly become the key to improve enterprise competition ability. Accordingly enterprise management is expecting more and more from internal management accounting. Cost information and cost analysis must be more refined, accurate and timely. Traditional manual cost accounting apparently can’t meet such management requirements easily, which means management accountants must utilize information technology. However in terms of accounting informationization improvement, most enterprises concentrate on the field of financial accounting. There is few application in the field of management accounting.As the product of information technology and management science ERP system has been adopted by more and more manufacturing enterprises. ERP system integrates enterprises’ information resources from production, technology and management. Using CST is an effective measure to improve enterprise cost management level.In this paper, the theories of cost and ERP are expounded. On the basis of relevant research at home and abroad, the author analyzes the practical situation of L Company, and analyzes the situations where traditional cost accounting methods were not adapted to modern enterprise management. Based on the standard costing, the CST combined with the enterprise internal costs calculation and ABC costing, is put into practice in L Company. The implementation of the CST, improves the cost accounting and cost management level of the L Company, and enhances market competition ability of the enterprise. This article also summarizes the L Company’s problems in the process of CST building, and puts forward corresponding solutions. Combined with L Company’s cost module implementation experience, our country manufacturing enterprises should propose the attention to the problems in the process of construction of ERP system.This paper introduces the L Company’s CST. This is a beneficial attempt to domestic large manufacturing enterprises, in cost accounting’s informatization. However, the question of if the cost accounting methods have promotion value needs further theoretical research in the future. The experience and lessons from this work have reference value, for large domestic manufacturing enterprises in their overall information system construction work.