Study On The Responsibility Cost Management Of Large-scale Pig Breeding Enterprise

With the rapid economic growth, the living standard of Chinese people has been improved significantly, thus stimulating a strong consumption of pork while pig breeding industry has ushered in an explosive rate. As a result, various companies flood in this market with an increasing number, among which Company ZB is one of the typical examples. Influenced by this tendency, the pig breeding industry has to face the challenges of large-scale production and industrialization, and this will lead to a higher market concentration and competition.No matter what strategy a company employs, cost advantage is the key to obtain its core competence. The large-scale development and industrialization of pig breeding requires a new form of cost management as it is challenged by new rivalry pressures which set higher requirement on cost management.In recent years, the large-scale pig breeding enterprises have adopted a collectivization management mode to build a broader industry chain. They establish pig breeding bases in all parts of the country, aiming at preempting the market gaps as soon as possible to seek more opportunities and room for their profit growth. Eventually, a decentralized management mode made up of headquarters and breeding bases has been formed. And under this mode, some requirements in cost management on decentralized management and agents are put forward.Based on the case study of DT plant, this thesis has analyzed the current situation of cost management and the existing problems. The necessity of implementing responsibility cost management in DT plant has also been expounded. And after the analysis on the value chain and cost management system(including systems of the cost accounting and operating control), this research has also put forward some suggestions and corresponding solutions for large-scale pig breeding enterprise in term of the implementation of responsibility cost management to obtain cost advantages.The final conclusion of this thesis is: for those large-scale pig breeding companies like DT plant, the most effective measure to manage their cost is to adopt cost advantage strategy and implement comprehensive responsibility cost management with the tool of performance appraisal. And it is feasible to improve cost management by perfecting its system(including cost accounting and operational control system) for a company.