Cost is the source of value creation and the driving force for enterprises to pursue profits. As a branch of enterprise management, cost management is of great significance to improve the overall management level of enterprises. The development of enterprise cost management is closely related to economic development and reform, and is deeply influenced by the national political and economic environment. Since the founding of the people's Republic of China 70 years ago, a set of cost management system with Chinese characteristics has been formed through enterprise cost accounting, cost accounting methods, cost management norms, and related theoretical research and practical application. At this stage, China's economic development has entered a new normal. The state has put forward a new development concept of "innovation, coordination, green, openness and sharing". Cost management has entered an era of "great wisdom moving to the cloud".
1、 Enterprise cost management under planned economy system (1949~1976)
1. economic environment background under the planned economic system. At the beginning of the founding of the people's Republic of China, the accounting principles and accounting systems of different industries and regions varied greatly, and Chinese Bookkeeping and Western bookkeeping coexisted. This backward and disorderly accounting work did not meet the requirements of unifying the financial and economic work and restoring the national economy at that time. Therefore, in the period of national economic recovery, the accounting work is carried out around the establishment of a unified accounting system. The most urgent task is to establish a unified national accounting and reporting system and establish a normal order of accounting work. With the recovery of the national economy, China began to enter the first Five-Year Plan period of planned large-scale economic construction in 1953. In order to meet the needs of large-scale economic construction and the requirements of enterprise economic management at that time, China drew lessons from the theory and practical experience of Soviet cost management and introduced the latest achievements of Soviet cost management. Since 1958, China has entered the second Five-Year Plan period. The measures of "decentralization, simplification and popularization" have been adopted in accounting and cost management, and the slogan of "eliminating superstition, emancipating the mind and thoroughly reforming enterprise accounting rules and regulations" has been put forward. In 1961, the Ninth Plenary Session of the Eighth Central Committee of the Communist Party of China put forward the policy of "adjusting, consolidating, enriching and improving" the national economy, marking that China has entered a period of national economic adjustment. It is an important task for enterprises to make up losses and increase profits, promote enterprises to improve operation and management, and strengthen economic accounting. Cost management, as the key to turning losses into profits, also had a qualitative development in this period. On the basis of meeting the needs of economic development at that time and summing up previous experience and lessons, a cost management method in line with China's socialist planned economy construction was initially formed.
2. construction of cost management system under the planned economic system. In december1949, the Ministry of finance established the accounting system division (upgraded to the accounting system division in 1950) to examine and approve the unified accounting system formulated by various departments, which started the construction of China's accounting system. On march9,1950, China issued the order of "drafting a unified accounting system". The formulation of the first batch of accounting systems was carried out in full swing. While various industries promulgated unified accounting systems one after another, they also formulated methods and systems related to cost accounting. With the promulgation of these measures and systems, cost accounting and management have been preliminarily standardized. In January1953, the Ministry of Finance formulated the unified cost calculation regulations for state-owned industrial enterprises, which defined the purpose of enterprise cost calculation, made detailed provisions on material costs, labor costs, depreciation and other production costs and commercial costs, standardized the basic procedures for cost calculation, distribution and settlement of industrial enterprises, unified the cost items of 8 production costs and 11 factory costs of industrial enterprises, and further unified the cost regulations. During the second Five-Year Plan period, under the requirements of thoroughly reforming the accounting rules and regulations, a series of notices on simplifying finance and decentralizing management power, including the provisions on improving the management system of industrial enterprises, were issued. In 1958, the Ministry of Finance issued a notice to abolish six rules and regulations, including the unified cost accounting procedures for state owned industrial enterprises, and 12 systems, including the accounting treatment measures for materials of state owned industrial enterprises, were also handed over to the central competent enterprise departments and provinces, cities and autonomous regions to decide whether to continue to use, modify or abolish them according to specific circumstances. It was not until 1959 that the Ministry of Finance issued several provisions on strengthening the management of cost plans and several provisions on the accounting work of state-owned enterprises, unified the eight major cost elements, and stipulated the cost accounting procedures and cost allocation methods that cost management was paid attention to again. With the adjustment of the national economy, enterprise cost management has gradually entered the stage of consolidation and improvement. The joint notice on strengthening the cost management of state-owned enterprises issued by the Ministry of Finance and the State Planning Commission in 1961 and the notice on implementing the working procedures for accounting of state-owned enterprises (Draft) issued by the State Council put forward higher requirements for strengthening the management of cost plans, labor quota and cost accounting, and provided an institutional guarantee for promoting cost management.
3. the practical application of cost management under the planned economic system. In the early days of the founding of the people's Republic of China, industrial enterprises carried out planned management and economic accounting system, which put forward requirements for enterprise cost accounting and management. It is required that all expenses that can calculate the quantity cost should be set up separately to assess the consumption quota, and the planned price cost should be used to realize the four stage cost calculation. During the "first five year plan" period, while comprehensively studying the cost management theory and practice of the Soviet Union, combined with China's own development needs, China's cost management has made new development. First, the system of industrial accounting in the Soviet Union was used for reference, including voucher journal checking algorithm, material accounting balance method and quota method. With the implementation of the economic accounting system, many enterprises have strengthened cost accounting and management in finance. For example, Shenyang transformer factory has implemented the new form of "workshop under indicators" cost management of workshop cost accounting in the process of cooperating with the workshop under economic indicators; Another example is that Tianjin steel works has implemented the team accounting system on the basis of the workshop under the indicators. At the same time, the monthly financial revenue and expenditure plan, fund balance meeting system and economic activity analysis meeting system have been advocated nationwide. The scope and content of cost accounting and management have also been expanded from simple post settlement to the whole process of planning, control, analysis and supervision. During the second Five-Year Plan period, under the background of the reform mode of "decentralization, simplification and popularization" and "two parameters, one reform and three combinations", mass cost accounting and management have been well developed, a three-level (group, workshop and factory) cost accounting system has been formed, and a daily cost accounting system has been implemented. In the period of national economic adjustment, by summing up the past experience and lessons, a traditional cost management model with both centralized and unified labor division has been formed, thus establishing a three-level economic accounting system and strengthening cost management.
2、 Enterprise cost management in the period of economic system transition (1977~1991)
After a series of adjustments and national macro guidance, especially with the transition of economic system, the expansion of enterprise autonomy, the market mechanism began to play a role, and the enterprise management shifted to the track of improving economic efficiency. Traditional cost management has also been reformed. Many advanced cost management theories and methods have been introduced from abroad. China has made a great breakthrough in cost management and initially established a modern cost management system in China.
1. economic environment background during the period of economic system transition. In 1978, the Third Plenary Session of the Eleventh Central Committee proposed reform and opening up, and made a major decision to shift the focus of work to socialist modernization, which put forward new tasks and topics for the study of cost management theory and methods. China has gradually focused on the modernization of industry, agriculture, national defense and science and technology. Economic work has shifted from the pursuit of speed to the focus on economic benefits. Industrial enterprises have changed from production to production and operation. Cost accounting has also changed from simple recording and accounting to cost control and supervision. In 1984, the Third Plenary Session of the 12th Central Committee of the Communist Party of China made the decision to reform the economic system, proposing to establish a planned socialist commodity economy based on public ownership, which is a fundamental breakthrough for the original highly centralized planned economic system, and cost management is facing a major reform opportunity. With the advancement of the economic system reform, the government has gradually delegated power and profits to state-owned enterprises, established various forms of economic responsibility systems based on the contract system, and implemented the factory director manager responsibility system. Enterprises can arrange their own production and sales on a larger scale, have partial pricing power over their own products, and enhance their competitiveness. Under this economic background, cost management has increasingly become the highlight of enterprise management, and modern cost management methods have emerged.
2. construction of cost management system in the period of economic system transition. In may1977, a leading group of the State Council was established to rectify losses and increase profits, implementing the rectification of state-owned enterprises by stages and in batches. In August, 1982, the State Council approved the report on strengthening the financial and accounting work of state-owned enterprises issued by the Ministry of finance. Subsequently, the Ministry of Finance carried out a comprehensive rectification and management of the financial work of enterprises. In march1984, in order to promote enterprises to act in accordance with the law, strengthen cost management, reduce cost consumption, and promote socialist modernization, the State Council promulgated the regulations on cost management of state owned enterprises, which defined all economic entities that implement independent economic accounting, and the scope of cost expenditure, the basic norms of cost accounting, and the basic tasks of cost management The cost management responsibility system and how to supervise and sanction the cost management are specified in detail. In the same year, in order to promote the specific implementation of the regulations on the cost management of state owned enterprises in various industries, the Ministry of finance also formulated and promulgated the implementation rules for the cost management of state owned commercial and foreign trade enterprises, the implementation rules for the cost management of state owned industrial transportation enterprises and other industry cost management implementation rules. With the advance of the Seventh Five Year Plan, how to improve product quality and reduce consumption has become the focus of enterprise management, which puts forward higher requirements for enterprise cost management. In order to do a good job in energy conservation and consumption reduction and speed up the modernization of enterprise management, in july1986, the State Council issued the decision on Several Issues Concerning Strengthening the management of industrial enterprises, requiring industrial enterprises to change the situation that material consumption accounts for too much of the total cost as soon as possible, actively promote and improve the total quality management and economic responsibility system, conscientiously implement the accounting law and cost management regulations, and apply modern management methods such as value engineering, From each link of supply, production and marketing, we can save money and increase income.
In December of the same year, the Ministry of Finance formulated and promulgated the cost accounting measures for state owned industrial enterprises, which clearly stipulated the basic tasks and objects of enterprise cost accounting, the collection and distribution of cost items and production expenses, and the accounting of product sales costs.
3. practical application of cost management in the period of economic system transition. In the period of economic system transition, the whole economic work and enterprise management have changed. In order to adapt to the economic system reform, some new cost management models came into being, and cost management has also been "transformed", which has promoted the development of modern cost management practice in China. Specifically reflected in the following aspects:
The enterprise pays attention to improving economic benefits and reducing costs in all links of production and operation, and forms a total quality cost management centered on value management in all links of cost management; An in plant settlement center has been established to further tighten capital supervision and save capital on the basis of strengthening the hierarchical and centralized management of enterprise working capital. For example, the quality cost management policies adopted by Angang, FAW car, WISCO and other enterprises can reduce costs and improve benefits while ensuring quality. The cost management has changed from the financial cost management of bookkeeping, accounting and reimbursement in the form of "calculation" to the modern cost management combined with computer technology, value engineering and other technologies; From the traditional Soviet model, the lagging cost management has gradually changed into the leading cost management; From professional cost management to total cost management and whole process cost management. For example, Shenyang Heavy Machinery Factory, Hangzhou washing machine factory and Tianjin 609 factory have actively carried out value engineering activities, and their economic benefits have been significantly improved; Jianghan bit factory has implemented three-dimensional cost management, which not only turns losses into profits, but also leaps to a leading position in the petroleum machinery industry. After the implementation of various forms of operation contract system, enterprises and individuals have closely integrated their responsibilities, rights and interests. Under the leadership of the factory director, enterprises implement the cost management responsibility system according to the division of responsibilities, so that the responsibility cost accounting is full of vitality. With the deepening of economic system reform, in order to improve the effectiveness of cost accounting and the pertinence of cost assessment, standard cost method and target cost method have been introduced into China's enterprise cost management system.
For example, the "responsible price control method" adopted by the first internal combustion engine parts factory of Shaanxi Province, the standardized operation promoted by Xiangtan Iron and steel plant, and the target cost method introduced by Chongqing Iron and steel plant, Hubei Enshi bearing plant and the fourth Xiangtan plastic plant have achieved good management results.
3、 Enterprise cost management during the establishment and improvement of the socialist market economic system (1992-2011)
With the establishment and improvement of the socialist market economic system, China has gradually established a modern enterprise system based on the company system. The separation of government and enterprises, the transformation of government economic functions, enterprises are pushed to the market and become the main body of market competition. The law of competition and the law of value force enterprises to strengthen cost management in order to survive and develop. At the same time, in order to better serve the socialist market economic system, the theory and method of cost management should also adapt to the system reform.
1. the economic environment background of the period when the socialist market economic system was established and improved. Deng Xiaoping's 1992 Southern tour speech and the successful convening of the 14th National Congress marked that China's reform and opening up and the four modernizations have entered a new stage of development. The 14th National Congress of the Communist Party of China made clear the decision to establish a socialist market economic system. In order to meet the requirements of the socialist market economy, it is proposed that we must adhere to the policy of taking public ownership as the main body and developing a variety of economic components together, further transform the operating mechanism of state-owned enterprises, and establish a modern enterprise system that meets the requirements of the development of the market economy. The enterprise has become an independent production and operation unit that operates independently, assumes sole responsibility for its own profits and losses, self-development and self-discipline. With the accelerated implementation of the "going global" strategy and the successful entry into the WTO in 2001, China's economic system has further integrated into the international economic system. Chinese enterprises have stepped onto the international economic stage, and the market competition has become more intense. In such an economic environment, only the continuous improvement of product quality and the continuous decline of product cost can increase the vitality of the enterprise and make the enterprise truly have vigorous vitality. Therefore, in order to adapt to the transformation of China's socialist economic system, enable enterprises to change their operating mechanism and be invincible in the fierce market competition, fundamental changes have taken place in the ways, methods, means and modes of cost management in China, and the status of cost management in enterprise management is becoming more and more important.
2. cost management system construction during the establishment and improvement of the socialist market economic system. From May 11 to 14, 1993, the State Economic and Trade Commission held an on-the-spot meeting on "strengthening management and reducing costs" in Hangang. This paper describes the basic situation and specific practice of "simulated market accounting and cost veto" in Hangang, and gradually popularizes the cost management experience of Hangang to the whole country. In november1992, the Ministry of Finance promulgated the general principles of enterprise finance and the accounting standards for business enterprises (hereinafter referred to as "the two principles"), which have been implemented nationwide since july1,1993. In 1993, the fifth session of the Standing Committee of the Eighth National People's Congress adopted the decision on Amending the accounting law of the people's Republic of China. In 1999, the 12th session of the Standing Committee of the Ninth National People's Congress revised the accounting law of the people's Republic of China again. The revised accounting law stipulates that the cost calculation shall go through accounting procedures and carry out accounting. It is not allowed to change the recognition standards or measurement methods of expenses and costs at will. It is not allowed to falsely list, overstate, omit or understate expenses and costs, which provides a legal guarantee for cost accounting.
In 2000, the Ministry of Finance promulgated China's first enterprise accounting system, which was implemented within the scope of joint stock limited companies on January 1, 2001. The promulgation and implementation of enterprise accounting system has an important impact on the implementation of accounting law and the construction of cost management system in China. "Two principles" and "enterprise accounting system" have made major adjustments to the original cost management and cancelled the special fund; We have reformed the depreciation method of fixed assets and implemented the accelerated depreciation method to a certain extent; The bad debt reserve system has been established, and enterprises can withdraw bad debt reserves according to regulations; Improved the amortization method for low value consumables and simplified the accounting procedures; Change the accounting method from total cost method to manufacturing cost method. In December2006, the Ministry of Finance carried out the first large-scale revision and addition to the "two principles". China's accounting system and international financial reporting standards have achieved substantial convergence, filling many gaps in China's accounting standards. The revised accounting standards for business enterprises further standardized the depreciation of fixed assets, amortization of intangible assets, borrowing costs and other cost accounting and management related contents.
3. cost management practice during the establishment and improvement of the socialist market economic system. The establishment of the socialist market economic system requires not only the reform of the ways and methods of cost management, but also the further transformation of the mode of cost management. The typical representative of cost management practice in this period is Hangang's "simulated market accounting and cost veto". On the basis of learning from the experience of cost management activities of Hangang, all localities have created some new methods suitable for the development of socialist market economy in combination with their own enterprise characteristics, such as the purchase and sales price comparison management of Weifang Yaxing group, the standard cost system of Baosteel, the "operational accounting" of the energy plant of WISCO, the cost management center of Changhong, etc. Hangang's "simulated market accounting and cost veto" is to adopt the "backward push" method according to the market conditions at that time, determine the internal costs and internal interests from the back to the front, and finally delegate the price increase factors to various production units and production links through price reform, on the premise of ensuring that all products do not suffer losses at least. The purchase and sales price comparison management of Weifang Yaxing group adopts the "price comparison" method to dynamically monitor the two links of purchase and sales, that is, to purchase at low cost on the premise of meeting the product quality requirements and sell at high price on the premise of meeting the quality needs of customers. Baosteel's standard cost management is mainly based on Baosteel's comprehensive budget management, to reform and improve the standard cost management system commonly used by large international iron and steel enterprises, and to implement a new standard cost system with a three-step model of "budget implementation improvement". The "action accounting" of WISCO energy plant is localized on the basis of the flawless plan "action accounting" in Japan, which emphasizes service quality. It emphasizes cost reduction, decomposes and implements the cost reduction indicators to individuals, adopts the floating wage system and the practice of proportionate Commission on saved expenses, and effectively achieves "who saves, who benefits".
4、 Development of enterprise cost management accounting in the new era (since 2012)
With China's economic development entering the new normal, most Chinese enterprises are facing problems of overcapacity, insufficient innovation and structural imbalance between supply and demand. The new environment and development concept put forward new requirements for cost management and brought great challenges to cost management. However, the development of Internet, artificial intelligence and other technologies has pushed enterprise cost management into the era of "great wisdom moving to the cloud", bringing new opportunities to cost management.
1. economic environment background in the new era. The 18th National Congress of the Communist Party of China in 2012 made it clear that the overall layout of the cause of socialism with Chinese characteristics has expanded from the "four in one" of economic, political, cultural and social construction to the "five in one" of introducing the construction of ecological civilization. More and more attention has been paid to the ecological environment. The extensive economic growth model is no longer applicable, prompting people to think more deeply about the cost problem. In 2013, the Third Plenary Session of the 18th Central Committee of the Communist Party of China made the decision of the Central Committee of the Communist Party of China on several major issues of comprehensively deepening reform, which made specific arrangements for the main tasks of comprehensively deepening reform in China. The Fifth Plenary Session of the 18th CPC Central Committee held in 2015 formulated the 13th five year plan for China's economic and social development, and proposed to firmly establish and effectively implement the new development concept of innovation, coordination, green, openness and sharing. Subsequently, in order to adjust the economic structure, release the vitality of the real economy and realize the optimal allocation of factors, the supply side structural reform was carried out and the policy of "three deletions, one reduction and one subsidy" was implemented, which put forward new requirements for the operation and management of enterprises. The 19th National Congress of the Communist Party of China in 2017 proposed that socialism with Chinese characteristics has entered a new era, and the main social contradictions in China have changed. The focus of economic construction is not the lack of production capacity, but to strive to solve the imbalance caused by the low quality of development. Since the 18th National Congress of the Communist Party of China, the Internet, big data, cloud computing, artificial intelligence and other technologies in China have developed rapidly, and financial robots have emerged, which has had a significant impact on the basic, normative, structured and repetitive financial work. Under the requirements of comprehensively deepening the reform, the economic prospect is bright, which brings opportunities to cost management, but also makes it face great challenges. China's cost management will keep up with the pace of reform and contribute to the innovation driven development of the economy in the new era.
2. construction of enterprise cost management system in the new era. With the promotion of comprehensively deepening reform, in order to make enterprise cost management better serve economic development, the Ministry of Finance issued the enterprise product cost accounting system (Trial) in 2013, which has been trial implemented in large and medium-sized enterprises since January 1, 2014. The cost accounting measures for state-owned industrial enterprises issued in 1986 will no longer be implemented. The system has made clear provisions on the product accounting objects, product cost accounting items and scope, product cost collection, distribution, carry forward and other cost accounting management issues of various industries (except the financial and insurance industry), made up for the shortcomings of the original cost accounting system, and further standardized the product cost accounting behavior of enterprises. In order to comprehensively deepen the reform in various industries, standardize industrial cost accounting, and strengthen cost management, the Ministry of finance has successively issued the product cost accounting system for petroleum, petrochemical, coal, power grid and other industries. In 2014 and 2017, on the basis of drawing lessons from international financial reporting standards and combining the needs of China's economic development, the Ministry of Finance twice made large-scale revisions and additions to the accounting standards for business enterprises, and made new provisions on fair value measurement, employee compensation, recognition and measurement of financial instruments, transfer of financial assets, hedge accounting and other standards. This revision not only improves the quality of enterprise cost accounting, but also has important significance for promoting the sustainable development of enterprises and social economy. In 2016, the Ministry of Finance issued the basic guidelines for management accounting, which introduced the management accounting tools and methods applied in the field of cost management. On this basis, in 2017, the Ministry of Finance issued the first 22 application guidelines for management accounting, which clearly stipulated the principles, procedures, tools and methods of cost management, required enterprises to establish and improve the cost management system and cost related original records, strengthen the inventory measurement and acceptance management, make full use of modern information technology, standardize the cost management process, and improve the efficiency of cost management. At the same time, the applicable industries, application environments and applications of target cost method, standard cost method, variable cost method and activity-based cost method are introduced in detail, and the advantages and disadvantages of various methods are evaluated. Although the basic guidelines and application guidelines for management accounting do not require all units to enforce them, their issuance provides specific guidance for units to strengthen management accounting and promotes the construction of management accounting system including cost management.
3. practical application of enterprise cost management in the new era. With the change of the main social contradictions, the production mode of enterprises is more customer-centered, the production mode of coexistence of multiple product structures has become the mainstream, the product upgrading is faster and faster, and independent innovation has become a powerful weapon for enterprise competition. However, how to achieve the unity of high quality and low cost, how to achieve the lowest cost in different market segments, and how to realize the platformization and informatization of cost control have also become new challenges for cost management. Therefore, strategic cost management, activity-based costing, product cycle cost management, dynamic cost management, quality cost management and other cost management methods have been popularized and applied. Faced with the increasingly complex business model, enterprises should not only pursue short-term cost reduction, but also establish long-term cost management planning in combination with their own strategic positioning, actual operation and market environment. Through the activity-based costing method to track and analyze the activities of enterprises, high investment such as equipment investment and R & D expenses can be accurately allocated. With the proposal of "five in one", ecological environment protection and green development have been placed in an unprecedented important position. The traditional economic development model of "high input, high consumption and high pollution" is no longer applicable. Enterprises are paying more and more for maintaining the ecosystem. On the one hand, enterprises should fulfill their environmental protection responsibilities, on the other hand, they should strive to reduce environmental costs. Therefore, environmental cost management has become an indispensable part of modern enterprise cost management system. The development of environmental cost management will greatly promote the construction of ecological economy and green sustainable development in China. In order to promote environmental cost management, resource flow cost accounting, which clearly reflects the real ecological resource price, will also be paid more and more attention. For example, Haier Group, Gree Electric Appliance and Vanke Group implement strategic cost management based on business process and value chain and customer orientation; Sinopec and PetroChina have established environmental protection information platforms, emphasizing the standardization of environmental management and standardized environmental cost management mode; China Unicom and Kunming cigarette factory have implemented all staff, all-round and all process refined total quality cost management. The successful cost management practices of these large enterprises provide a good reference for the innovation of cost management practices of relevant enterprises in the new era.
5、 Historical evidence discussion and summary of the development of cost management in Chinese Enterprises
1. impact of environment and technology on cost management. In the period of planned economy, the distribution of means of production, the production and sales of enterprises are all decided by the government plan. The state pays more attention to enterprise cost accounting. In the period of planned commodity economy, enterprises have a certain degree of autonomy and begin to be responsible for their own profits and losses. Enterprise cost management has gradually shifted from post accounting analysis to the combination of pre forecast planning, in-process control and post accounting analysis feedback. Finally, in the period of market economy, with the development of computer, big data, cloud computing and artificial intelligence technology, enterprise cost management can not only manage in advance, during and after the event, but also dynamically manage each activity and the whole product life cycle in a more precise and timely manner. Enterprise cost management can better match with enterprise business model, strategy and business. In general, with the reform of China's economic system and the needs of enterprise management, China's cost management has gradually expanded from simple cost accounting and analysis to cost forecasting, decision-making, planning, control, accounting, analysis and assessment, and then moved towards an intelligent, refined, accurate, personalized and platform model.
2. unity and difference in cost management system. In the period of planned economy, the formulation of cost management methods, rules and regulations in China is all around the production cost items, cost items, cost calculation, distribution and settlement. It can be considered that in the planned economy period, the construction of China's cost management system is only aimed at cost accounting. It was not until the State Council promulgated the regulations on cost management of state-owned enterprises in 1984 that the construction of China's cost management system was really launched and the cost management system was gradually improved. It not only standardized the scope of cost expenditure and cost accounting, but also had detailed provisions on the basic tasks of cost management, cost management responsibility system and how to supervise and sanction cost management. With the promulgation and implementation of the "two principles", "enterprise accounting system" and "enterprise product cost accounting system (Trial)", China's enterprise cost accounting has been further standardized. The issuance of the basic guidelines for management accounting and the application guidelines for management accounting also provide guidance for the practice of enterprise cost management. Generally speaking, the construction of cost management system in China mainly focuses on the cost accounting system, because only accurate and standardized cost accounting can provide basis for cost control, analysis and assessment, and better carry out cost forecasting and planning. In addition, in the face of different business models, strategic positioning and business types, it is difficult for other links of cost management to be unified and standardized, and it is difficult to formulate a unified system.
3. introduction and self innovation of cost management methods. In the application of cost management, we first learned the methods of Soviet industrial accounting, and then gradually created a number of methods with Chinese characteristics, such as "liuxingfu team accounting system" and "financial resident system". With the advance of reform and opening up and economic system reform, enterprises have higher and higher requirements for cost management, and more advanced cost management methods abroad have been introduced and applied. At present, China's cost management system has not only achieved convergence with international practices, but also combined with the development requirements of the new economic normal. Strategic cost management, product life cycle cost management, dynamic cost management and environmental cost management have become the focus of current cost management. Cost management methods and methods have been continuously developed and innovated in economic system reform and economic management. At the same time, the practical application of cost management has gradually formed the application experience and achievements of enterprise cost management with Chinese characteristics.