The Research On The Improvement Of Cost Management Of The CIEM

As an important factor that affects profit,cost is becoming more and more prominent in business management.With the intensification of market competition,the pace of market development has become slow,and the growth of revenue has been weak.To gain more profits,cost control has become a key measure.Controlling costs can help companies gain an advantage in price.Therefore,regardless of the scale of the company,building a good cost management system will play a vital role in achieving the management objectives of the enterprise.The CIEM is a company engaged in the manufacture of heavy machinery equipment.Most of the orders are for the production of non-standardized products.After full investigation,the following problems are found in the cost management of the CIEM.(1)In the cost accounting,there are problems of improper allocation standard of manufacturing expenses,incomplete content of cost accounting and inaccurate product valuation;(2)In the cost control stage,there are problems of neglect of cost control in the design stage,lack of scientific management of material procurement,and extensive management of production links;(3)In the cost evaluation and feedback stage,there are problems that the evaluation scope is limited and subjective,the evaluation lacks punishment measures,the evaluation results are not publicized,and the employee participation is low.These problems will prevent the company from sustainable development,and will also have a negative impact on the company’s cost reduction and efficiency increase.Based on this,this paper proposes corresponding improvement measures for the optimization of the cost management system of the CIEM from three aspects: cost accounting,cost control,and cost evaluation.The main improvement measures are as follows.(1)In terms of cost accounting,the activity-based costing is used to optimize the allocation of indirect costs.Through the division of operation centers,different cost drivers are established to allocate expenses,making cost accounting more realistic.(2)In terms of cost control,there are three measures.First of all,pay attention to cost management in the design stage and strengthen communication between departments in the design stage;secondly,standardize supplier management and use fixed-length procurement to optimize material procurement;and finally,strengthen material approval and increase material utilization to strengthen production management.(3)In terms ofcost evaluation and feedback,establish a rigorous and reasonable cost evaluation system,the CIEM should establish scientific evaluation rules,set specific indicators for evaluation,strengthen reward and punishment measures,publicize the evaluation results and widely collect employee opinions.By optimizing the cost management accounting,control,evaluation and feedback links,I really hope the measures can improve the cost management level of the CIEM and help it build core competitiveness.The article comprehensively uses research methods of literature research,case studies and survey research.Based on the actual situation of the CIEM,this article puts forward comprehensive improvement suggestions on the company’s cost management status.At the same time,the research results of this article can also provide theoretical support and practical reference for the same type of enterprises to improve the cost management level,and better protect the long-term development of enterprises.