Research On Target Cost Management Of Second-hand Equipment In Zoomlion Based On Target Cost Management

During the 11th Five-Year Plan period,the national infrastructure development,construction machinery market demand rapid expansion,enterprises have been through financial leasing and other sales models to seize the market.Then,as the economy slows down,a large amount of accounts receivable is difficult to recover,and companies need to reduce losses by recycling used equipment.However,in the disposal of second-hand equipment,because there is no effective cost management for the price characteristics of second-hand equipment,the price of a large number of second-hand equipment is difficult to be accepted by customers.Therefore,how to choose the appropriate cost management method for the disposal cost of second-hand equipment has become the focus of second-hand equipment cost management.As a leading enterprise in construction machinery industry,ZOOMLION also faces the problem of cost management of second-hand equipment disposal.This paper takes ZOOMLION as the research object,uses the investigation and interview method to find out the problems faced by the second-hand equipment disposal cost of Zoomlion,through the literature research method to study the current situation of cost management,and through the case analysis method to analyze the causes of the problems and solutions,put forward the use of target cost management system,supported by big data technology to solve the problem of second-hand equipment disposal cost management.Firstly,this paper expounds the relevant literature on target cost management and market characteristics of second-hand equipment at home and abroad;Secondly,by investigating the general situation and disposal cost management of second-hand equipment in ZOOMLION,it is found that the total input cost is higher than the market price,the actual disposal cost is higher than the standard cost,the shortage cost is higher than the standard cost effect is poor.In order to solve these problems,this paper proposes to use the target cost management method,divide the cost management into four steps: target cost determination,decomposition,control and assessment,and solve the cost management problem through the identification of market demand,target costdetermination,reasonable allocation of cost responsibility,intelligent manufacturing improvement process.In this paper,it is found that there are still many problems in the management process of the disposal cost of second-hand equipment in.The objective cost management method can help the enterprise to carry on the whole process cost management pertinently.This paper effectively combines the price characteristics of second-hand equipment with the target cost management method,which provides help for ZOOMLION to reduce the value loss and enhance the competitiveness of the second-hand equipment market.At the same time,it promotes the perfection of the second-hand equipment market.It provides help and reference for the management of second-hand equipment disposal cost in other enterprises in construction machinery industry.