A Study Of Strategy Cost Management Applied In Military R&D Institution

In recent years,with vigorous development of China's aerospace,machinery,ships and other areas of national defense science and technology industry,military system reform is deepening,military research units of the original industry monopoly position is gradually broken,the military scientific research units not only faced with domestic counterparts,but also with the international competitors to compete.However,for a long time,as the state fund is the main source of military institutions'funding,in order to pursue the successful completion of scientific research tasks,military institutions often overlook the effectiveness of its development and economy,gradually lost their market competitive advantage.At the same time,the country allocated funds are also declining,according to statistics,from 2014 to 2016,China's defense budget decreased from 12.2%to 7.6%,gaining new sources of funding has become unavoidable for military research units' development.Therefore,under these circumstances,how to ensure that every penny spent correctly has become the top issue for military research institutes to solve.This paper begins with the whole environment of China's military research industry,and introduces the research background and purpose,ide'as and framework in detail.Secondly,the author briefly enumerates theories of modem cost control,and expounds the differences between strategic cost management theory and other theories.In addition,from the analysis of military research institutions,including product types,business processes,cost structure,accounting methods and other characteristics,we study the implementation of strategic cost management strategy.Finally,based on the case of the A research institute,this paper introduces its background and production system,the development process and the composition of the cost elements,and points out that there are some weakness in the cost management,such as the cost control standard is too subjective,the budget control mechanism is not completed.We set the strategic cost management system based on three dimensions:strategic environment,internal and external value chain and cost driver.We apply the strategic cost management to the A research institute in order to change the concept of cost management,optimize the internal and external value chain,implement the comprehensive budget management,strengthen the process control of scientific research activities,strengthen the control of cost elements,and improve the internal control system.