Discussion On Cost Management Of Small And Medium-Sized Manufacturing Enterprise

Small and medium manufacturing enterprises are an ignorable important force in China’s economic development. They play an increasingly significant role in promoting economic conversion, boosting industrial innovation, solving the employment issues, maintaining social stability and so on. With the further development of economic globalization, simultaneously with the various superimposed impacts coming from domestic and aboard, small and medium manufacturing enterprises are faced with various difficult situations in their development, and the pressure in competition is unprecedented. In order to survive and develop in the competition, they must strengthen the cost management. Under the new development situation, it requires the enterprises to make a close connection with both the upstream and the downstream of the value chain, to establish a mutual trust and benefit each other, and to development a win-win cooperation mechanism, so as to create the overall advantage of the whole value chain in competition. In order to adapt to the need of the enterprise value increase, the scope of the modern enterprise cost management has extended from the inside of the enterprises to the entire value chain. At present, it is obviously difficult for the traditional cost management method generally used by the small and medium enterprises to meet the needs of the value management in the enterprises, nor is it able to provide objective or accurate cost information. Under this background, the emergence of the value chain cost management mode has effectively improved solved this problem. This thesis adopts the method of combining normative research and case analysis, sets its base from the perspective of value chain, and discusses the small and medium-sized manufacturing enterprise cost management. Firstly, this thesis reviews the research conditions of the domestic and foreign value chain, cost management and value chain cost management, and by having the above researches as its basis, further introduces the basic concepts and theories, so as to make it clear for the connotation, the characteristics, the management procedures and all that of the value chain cost management.Secondly, it makes a concise narration on the present situation of small and medium-sized manufacturing enterprises, points out the problems in the cost management,makes a comparison between the value chain cost management and the traditional cost management, and sets its focus on and makes an elaborating analysis on the implementation necessity and feasibility of the value chain cost management.Thirdly, it discusses the value chain cost management respectively from three aspects, i.e. internal value chain, vertical value chain and horizontal value chain, of small and medium-sized manufacturing enterprises, and establishes the value chain cost management mode. Finally, it discusses the practical application of small and medium-sized manufacturing enterprises’cost management model base on value chain perspective by taking C Company as an example, and expects to provide reference for the cost management and to achieve good results for the C Company.