Cost Cost Cost Based on Value Chain Control

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					Value Chain Cost Cost Cost Control Research

 theory of value Cost Control

  Summary: Based on the Value Chain Cost Control starting from value creation, and
finally to maximize customer value - cost of inputs in order to create value, they must
put the cost of creating value. This change should make enterprises cost of the value
chain analysis, we first determine its cost position, and then from the enterprise value
chain, value chain and competitors, industry value chain perspective of three different
cost-control, so that "value creation - - input costs - and create value "of a virtuous
  Keywords: Value Chain; cost control; practical application

 1, from the perspective of the current enterprise value chain, cost control problem

  (a) Cost drivers of a single, cost information is not comprehensive
  traditional notion that the cost of the project cost control, material labor costs by the
constitution, only the cost of production as the only driving factor calculation. In fact,
cost drivers are diverse, multi-level of, such as enterprise size, degree of integration,
geographic location, complexity of products, business management system and with
suppliers and customer relations, and so are all affect the cost of Guan Jian factors,
these are not traditional cost control considerations. Meanwhile, the traditional cost
control information is mainly to provide financial information, ignore the hidden costs
of information, such as market development, internal restructuring, production
flexibility, customer satisfaction, so there is no comprehensive description of the
enterprise can Chengben the true composition of such tangible and intangible costs of
information hampered the management vision, affecting the accuracy of their strategic
  (b) the emphasis on production and business activities within the enterprise value of
  traditional internal cost control focus only occurs during the production cost of its
starting point is between the purchase and sale of the largest value-added
manufacturing of. This model makes the cost management within the enterprise, and
enterprise supply and marketing chain in the costs incurred to downplay the external
environment for business is turning a blind eye, which makes cost control and
strategic management was difficult to adjust. Strategic management emphasized that
to know ourselves, that is, open type, competitive market environment, we should
concern ourselves, but also to understand others. Have undertaken the process of these
management activities requires a lot of cost information, the traditional cost control
systems alone can not meet the requirements.
  (c) the lack of competitors, the cost analysis and research
  failure of the traditional cost control state competitor cost analysis and research,
while in a highly competitive environment for businesses to develop a sustainable
competitive advantage and gain a competitive advantage in the position to be
compared by analyzing their competitors, the competitive situation and to determine
the competitive strategy, to understand that the whole industry strengths and
weaknesses, which will help enterprises strategic restructuring and strategic objectives.
This requires companies to understand the domestic market De case, the simulation
cost competitors, to their market competition, in which the relative cost position of its
own, for the development provide a basis for cost control.

 2, cost control, new perspective - the value chain cost control theory

  (a) the concept of value chain cost control and content
  so-called value chain, cost control is based on the theory of the modern value chain,
on the basis of cost control. It is mainly popular in recent years means the value chain
analysis of cost control cost, it is through the value chain analysis, value chain
optimization in order to control business costs, improve competitive advantage. The
content value chain, cost control is different from the other cost control, including the
  1. The enterprise value chain to pooling and sharing costs to develop the value chain
cost plan
  Value Chain Based on cost control and allocation of costs In doing so the object is
the value chain, the level of the enterprise based on the current cost to value chain
analysis as a basis for the cost of each activity in accordance with the value of the
value chain Guiji, and then assessed according to different approaches to the value of
activities. Optimized through the value chain to determine the value chain level and
composition of the total cost of various types of value chain operations and constitute
the specific types of operations the level of operating costs.
  2. Value Chain Costing
  Value Chain Based on the cost control requirements must be reflected in the value
chain for each type of cost accounting, the cost of each operation for each category of
each operation to control the costs of assessment, and value chain optimization
financial evaluation of programs designed to provide data. Value chain by working
through the cost accounting categories (infrastructure, human resource management,
research and development, procurement, operations and four auxiliary internal
logistics, production, external logistics, marketing, and service five basic operations)
to set an account and in an account set up under the operation according to each
specific detail the secondary account or accounts method, the traditional value chain
cost information can be based on cost accounting provided by the second Guiji, such
as job costing product cost can based on the use of "activity-based cost method" to
obtain, and thus obtained a more accurate product cost information.
  3. Identify structural factors that affect the cost, the enterprise expanded its value
chain value chain
  corporate external and internal environment factors act on the business value of
influence, and thus affect the cost of the enterprise. But it should be noted that no one
factor could be affecting the level of enterprise cost the only factor, that is a
multi-function business costs. Analysis of enterprise value of influencing factors, at
source on the judge to help companies cost behavior and how to change the behavior
of the cost of a deeper understanding. Thus, combining the disciplines of basic theory
and practice of a number of cost management, analysis of structural factors affecting
the cost of it is very necessary.
  (b) of the value chain, the basic method of cost control - Value Chain Analysis
  1. The concept of value chain analysis
  value chain analysis is based on the value chain, the main methods of cost
management. Value chain analysis not only of the value chain enterprises themselves,
but also competitors, value chain analysis and industry value chain. Analysis of the
value chain is aimed at competitors by competitors of the value chain in-depth
investigation to find out the product differentiation advantages of competitors or the
source of cost advantage to learn from the experience of competitors, methods,
measures to optimize the business operations and value chain to enable enterprises to
catch up or surpass our competitors and the industry value chain analysis is clear from
the strategic business value chain in the industry, location, analysis and optimization
of the enterprise value chain and upstream (supplier) and downstream (distribution
channels) the relationship between the value chain, to promote lower costs or
differentiation, to adjust the enterprise value chain in the industry, the location and
extent, take advantage of cost advantage or differentiation.
  2. Value chain analysis of the ideological content of
  cost analysis is mainly directed against the traditional enterprise value chain, ranging
from procurement of the beginning, to the sales date, and will focus on the
manufacturing sector, on the various sectors of the industry association poorly
understood and rarely consider the cost of competitors, these are limiting the role of
traditional cost analysis methods. In strategic cost study, mainly using value chain
analysis of the cost of business behavior, digging through it to the cost and potential
sources of differentiation and. Value chain analysis for the cost advantage of
providing a basic tool and framework for enterprise business process is divided into
both fragmentations and related activities, and affect the activities of these activities
and the motivation to conduct in-depth analysis, based on the analysis, from the
customer values, not value-added operations to eliminate as much as possible to
enhance the operation of differentiation can be enhanced so as to achieve lower costs,
the purpose of improving the competitiveness of enterprises. Because value chain
analysis method greatly overcome the traditional cost analysis of the existing
drawbacks, made clear their own companies and competitors, based on the advantages
and disadvantages, by more economical than the competition or better in these
strategically important value activities to gain competitive advantage.

 3, the value chain cost control in the enterprise specific applications

 (a) of the internal value chain analysis - cost control to solve the problem.
 lot of companies that exist within the value chain, both the business unit (such as the
factory and workshop) between the value chain, but also within each business unit
value chain. Enterprise value chain are interdependent activities constitute a system,
in this system exists between the various activities within the value of the link, usually
with a change in the activities and costs to influence the activities and costs another
changes. Internal Value Chain Analysis The aim is to identify the enterprise value
chain analysis value chain enterprises themselves and their strengths and weaknesses
in order to construct or reconstruct support value chain positioning of the enterprise
value chain. Internal value chain analysis of the steps: First, define the scope of each
value chain. Single product business enterprises, mainly from the production and
management processes and related support activities to determine the extent of its
value chain diversification enterprises, in addition to determining the value chain for
each business area outside the scope of this paper should also identify each from [worry documentation] to collect and organize, for the original
author! Value chain activities in a variety of value synergies. Second, the distribution
of the corresponding cost value activities. After the business value chain in the
decomposition, according to the different cost drivers, the costs to the value of value
chain activities in order to share the aim is to produce a reflection of the distribution
of value chain costs, compare the value of the cost of distribution activities, which a
breakthrough in identifying areas for improvement costs. Third, within the value
chain to identify and assess the linkages between sectors. Identify the linkages
between value chains are competing for the clear understanding of the situation is
very important to confirm that the various links to explore the value of each activity
or other activities that affect the impact of a process. Only recognize these potential
links to better use these links, during optimization, and coordination so without at a
  (b) of the industry value chain analysis - determine the company's industry position
  for any business is the industry value chain in one or more links, just consider the
company's own value chain is not enough The value of the linkages between the main
activities is an important source of competitive advantage. Value chain, including
many in the mutual contact, for example, raw material supply process in the
relationship with suppliers; 企 业 the process of internal business units or
departments of the relationship; product sales process with 顾客 much else besides.
Industry value chain will be considered as a whole enterprise, it is the raw material
inputs from the initial formation of the end-user product value between the formation
and transfer of all form part of the value of all activities. Industry value chain,
companies can generally be divided into the upstream firm (supplier), business
enterprises and major competitors, downstream firms (buyers) the three main links.
Industry value chain analysis is based on a business venture upstream and
downstream business and the competitors are listed, and key suppliers, buyers and
competitors, value chain analysis, cost-competitive advantage from the establishment
point of view, to determine enterprise integration strategy. Through the industry value
chain analysis, value chain in the industry can determine which part of the cost greater
understanding of their position in the industry, consider the possibility of using the
upstream and downstream value chain to further reduce costs or to adjust the
enterprise value chain in the industry location and extent in order to achieve cost
  (3) competitors value chain analysis - find and maintain its competitive advantage
  value chain analysis of competitors is to reveal the business and the relative cost
position of competitors. Competitors need to measure the value chain analysis, cost
level competitors, cost structure and cost expenditures, and enterprise product cost
comparison reveals the differences in determining competitive advantage lies in order
to clear the status of the relative costs of enterprises, that the same competitors is
lower than the cost of competitive advantage or disadvantage, in order to take some
strategic action to eliminate the cost disadvantage, and create cost advantage.
Competitors, value chain analysis of the basic steps are: (1) to understand the costs of
competitors; (2) assessment of the value chain of the rational and scientific
competitors; (3) the cost advantage of competitors in the value chain positioning
accuracy Among; (4) to eliminate the cost disadvantage, and create cost advantage of
strategic action. Competitors, value chain analysis is to determine the key competitors
in the value chain activities related to cost drivers and their relative position, then the
use of cost drivers of the behavior of competitors estimate cost differences.

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Accounting, 2007, (3).
 [3] Literature, value chain management in the business of cost control [J]. Market
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to collect and organize, for the original author! / Center>

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