Research On Cost Control Of H Company Based On Target Cost Management

Relying on the comparative advantage of low cost,China's manufacturing industry has rapidly integrated into the global industrial division system,entered the fast lane of development,and become an important driving force for China's high-speed economic growth.In recent years,this situation is changing,and the manufacturing cost of our country is increasing year by year.The Ministry of Finance of China issued Accounting No.24 in September 2017,which issued Guidelines for the Application of Management Accounting No.300-304-Guidelines for the Application of Cost Management.The main purpose is to promote Chinese enterprises to strengthen cost management and enhance their competitiveness in the market by improving their cost management level.After 2012,the growth rate of fixed assets investment in China has declined,the construction machinery market has declined year after year,and the competition is more intense.H company survived in the downward market environment.After 2016,with the improvement of the market environment,H Company has obtained the orders for the production and processing of spare parts for new products from customers.On the one hand,market opportunities,customer orders continue to increase,revenue increases;on the other hand,H company's cost growth is faster and profit is meager.Under this background,the application research of market-oriented cost control method can meet the challenges brought by market changes to H company.Target cost management is a strategic concept of enterprise market-oriented cost control.Especially for the construction machinery manufacturing industry in the fierce market competition,target cost management can cover the process from design to production through the decomposition,control and assessment of cost control objectives in all links,and ultimately improve the level of cost management and enhance the efficiency of enterprise management.With the wide application of target cost management in domestic and foreign enterprises,many enterprises have succeeded in application,and target cost management has also been paid more attention to and applied by more enterprises.Practice has proved that the adoption of target cost management helps to reduce the production and operation costs of enterprises,increase the economic profits of enterprises,improve the value of enterprises,and enhance the competitiveness of enterprises.The prominent feature of target cost management is the market-oriented cost control mode.Based on the theory of target cost management at home and abroad,this paper takes the cost control problem of H company in construction machinery manufacturing industry as the research object,and takes H company's new product installation seat as an example,demonstrates the necessity and feasibility of applying target cost management in H company.H company should adopt target cost management to solve the existing cost control problems.As for how to solve this problem,taking H company's product installation seat as an example,the cost control system of target cost management is designed: target cost formulation,target cost decomposition,target cost assessment.In order to ensure the implementation of the target cost management method,aiming at the possible problems in the application process of the target cost management,this paper puts forward relevant safeguard measures and suggestions,aiming at solving the problem of cost control in H company,reducing the cost of the company,and providing reference for the application of the target cost management in small and medium-sized manufacturing enterprises.