A Research On The Modification And Improvement Strategy Of H Company's Standard Costing System

Cost management is the core part of enterprise management,and cost advantage is one of an enterprise's core competitiveness.Western countries already obtained great theoretical research achievements and practical experiences on cost management,provides great reference significance for China's enterprises.As one of the popular cost management methods,standard costing method is now widely promoted and used in China's manufacturing enterprises as well.In this paper,H company's standard costing system is taken as the research object.Firstly,the basic theory of cost management and standard costing management is discussed,including the concept of standard costing,general precondition for implementation,the approaches of standard cost establishment and cost variance analysis,the advantage and the disadvantage under new manufacturing environment,which lays the theoretical foundation of the whole paper.Standard costing system should be set on the basis of an enterprise's internal operating management,therefore,H company's basic information was introduced,including the main product,the operating status,the organizational structure etc.Then,an investigation,about the core organization structure of H company's standard costing system,relative supporting enterprise system and information management platform etc,was made.Through investigation,it was found that there were many problems mainly on compliance with China General Accepted Accounting Principle,inventory pricing,efficiency of its information management platform,cost control and supportive enterprise system etc.According to research,this paper will discover the causes of the problem of H company's standard costing system in term of implementation precondition,implementation procedure,systemic function and compliance of China's accounting regulation.Lastly,based on the literature research and case study,this paper will propose a gradual,practical and systematic strategy for modification and improvement of H company's standard costing system.This strategy will be divided into the fundamental stage and the application stage.The fundamental stage consists of three steps.The first step is to set up the strategic position of standard costing system from top to bottom.The second step is to optimize the organizational structure.The third step is to improve basic data,to improve cost standard and to optimize H company's SAP system.The application stage consists of three steps as well.The first step is to improve the standard costing process,the second step is to improve the standard cost control,the third step is the in-depth application of standard costing system in comprehensive budget management,performance assessment,decision making etc.After all,this way of case study from multiple perspectives on standard costing make a strong practical significance for this paper.