The main methods are: (1) reverse engineering cost method; Activity-based costing; Target cost method; ERP standard cost system;

1 the main problems of enterprise cost management in China

1. 1 Backward concept of cost management. Most enterprises' understanding of cost management is still limited within the enterprise, especially that cost reduction only exists in the production and manufacturing process of products, and they are not good at cost management from the whole enterprise. In addition, the cost management of most enterprises is only limited to reducing production costs, without considering the issue of cost efficiency. They simply pursue cost reduction, so they can't apply the principle of cost-effectiveness and get more benefits at a certain cost.

1.2 The awareness of full participation in enterprises is backward. Traditionally, there is a misconception in enterprise cost management in China: cost management is only regarded as the work of the financial department of the enterprise, and reducing the operating cost of the enterprise is the responsibility of the senior staff of the enterprise, which has nothing to do with the ordinary employees. Front-line production workers have nothing to do with setting cost objectives, cost implementation, cost supervision and improvement, and rarely participate in the formulation of enterprise cost management objectives. Modern enterprise management theory holds that it is of great benefit to fully mobilize the enthusiasm of employees and give full play to their role in cost management. However, at present, in Chinese enterprises, employees rarely participate in the formulation of enterprise cost strategy, and their awareness of cost is indifferent, and their enthusiasm for cost control cannot be mobilized, which will lead to the waste of enterprise resources and the weakening of cost management to a certain extent.

1.3 The cost management methods of most enterprises are backward. Although a few enterprises have adopted some advanced cost management methods and achieved good results, the cost accounting and cost management methods of most enterprises still rely on traditional methods. Many enterprises use variety method and step-by-step method in cost accounting. These two methods are distributed by large manufacturing enterprises. Under the traditional planned economy, these cost accounting methods accurately reflect the cost of enterprise products. However, the current market is changing rapidly, and consumers' preferences are also different. Single piece and small batch production has become a means for enterprises to gain the favor of the market and consumers. Only by constantly catering to consumers' tastes can enterprises expand the market and obtain high profits. But the cost accounting method of batch method is adopted. On the other hand, in cost management, most enterprises still use traditional methods such as target cost, standard cost and planned cost. With the rapid progress of technology and the increasing proportion of manufacturing cost in product cost, these methods can no longer accurately reflect the cost of products, which has a proportional impact on enterprise decision-making and new product development. More advanced activity-based costing is rarely used, which makes the cost management methods of enterprises in China lag behind some advanced developed countries.

1.4 focuses on enterprise internal cost management. For most enterprises, cost management only involves the inside of the enterprise, and few enterprises bring the business between upstream suppliers and downstream sellers into the cost management of the enterprise. In modern society, information technology is highly developed, the business scope of enterprises is constantly expanding, and the links between enterprises are closer and more convenient. The business transaction cost between enterprises and other enterprises also accounts for a large proportion of the total cost of enterprises. Therefore, external costs should also be included in the cost management of enterprises for comprehensive analysis and management, so as to reduce the operating costs of enterprises to a greater extent.

1.5 non-integration of cost management strategy and overall enterprise strategy According to modern enterprise strategy theory, enterprise strategies can be mainly divided into the following three categories: cost leading strategy, differentiation strategy and target aggregation strategy, and cost management strategy should be integrated and matched with overall enterprise strategy. However, at present, most enterprises in our country focus on reducing costs, without linking it with the overall strategy of the enterprise, which may have a negative impact on the overall strategy of the enterprise to some extent.

2, the concept of cost management and the necessity of implementation.

Enterprise cost management aims at providing information and participating in management, and manages all capital consumption related to the business process of the enterprise, including cost planning, cost calculation, cost control and performance evaluation. The role of cost management in enterprises is mainly manifested in the following aspects:

(A) cost management can reduce costs and improve the competitiveness of enterprises.

Under any given conditions, as long as other factors that affect the change of profit do not change because of the change of cost, reducing cost will always be the first. Cost reduction is usually achieved in two stages. First, under the given economic scale, technical conditions, quality standards and other specific conditions, reduce costs by reducing consumption, improving labor productivity, and rationally organizing and managing. Then, when the cost is reduced to the limit allowed by these conditions, the structural factors affecting the cost are improved by changing the basic conditions of the cost, such as adopting new technical equipment, new process flow, new product design and new materials. It provides a new premise for further cost reduction, and further reduces the cost that was originally difficult to reduce on a new basis.

(B) Cost management can increase the profits of enterprises and improve their economic benefits.

Reducing costs can increase the profits of enterprises, but in some cases, the strategic issue is how to obtain other competitive benefits by increasing costs. When the changes of cost and other related factors are interrelated, how to make a trade-off between reducing cost and production and operation needs is an inevitable difficult choice for cost management.

(3) Cost management can ensure that enterprises can resist internal and external pressures and cooperate with enterprises to gain a competitive advantage.

In the fierce market competition environment, in order to gain competitive advantage, enterprises often take many strategic measures, which usually need cost management to cooperate. In addition, under the condition of limited resources, it is also one of the important goals of cost management to improve the utilization efficiency of resources, make limited economic resources produce more products, create more value, and achieve the purpose of saving and increasing production. This is of great significance to enterprises with bottlenecks.