关于大规模生猪养殖企业责任成本管理的研究——以 DT 生猪养殖厂为例

CHAPTER 1   Introduction

1.1 Research Background and Significance

1.1.1 Background

Recently,  encouraged  by  the  increasing  demand  in  pork  and  the  favorable government  policy,  the  pig  industry  in China  has  obtained  a  rapid  progress. Investment  from  various  fields  has  been  put  in  to  it  and  the  whole  pig breeding industry  mow  is  facing  a  dramatic  change  in  its  development  pattern.  And   this change can be reflected in following aspects: firstly, the breeding model has adjusted from  small  free-range  farming  to  specialized  operation  in large-scale,  and intensiveness of breeding pigs has largely increased; secondly, the farming enterprises have  shifted  their focus  from  the  simple   farming  business  to  the  construction  of  a complete pig breeding industry chain.

Under  this  background,  the  competition  of  pig  breeding  industry  has  become increasingly  fierce.  What’s  more,  the current  large-scale  production  mode  of  pig breeding  differs  from  the  small-scale  breeding  in  the  past.  Therefore, to  gain  more benefits,  it  is  a  necessity  for  pig  breeding  companies  to  improve  their  business management  by reforming  their  management  concept  and  choosing  the  most appropriate methods for further development. 

Financial  management  is  placed  as  the  priority  for  modern  corporate management,  especially  when  it  comes  to management  cost.  Hence,  the implementation  of  cost  advantage  has  a  great  influence  on  the  development and strategic execution of the company. 

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1.2 Research Objectives

To achieve massive production, industrialization and a complete industry chain, higher  demand  has  been  set  on  cost management.  This  thesis  selects  the  DT  plant which is governed by Company ZB as the research object, exploring the crux of the problems  existed  in  the  cost  management  with  a  thorough  analysis  of  its  operating conditions. And  specific  measures  for  the  implementation  of  the  responsibility  cost management  are  advanced  in  light  of cost  accounting  and  operational  control.  The ultimate  goal  of  this  thesis  is  to  achieve  improvement  on  cost advantages  and competitiveness  for  the  enterprise,  finally  reaching  its  strategic  goals.  And  other companies can also draw useful experience from this thesis.

This  thesis  has  adopted  the  method  of  case  study.  DT  Plant,  a  subsidiary  of Company  ZB  is  selected  as the study  object  to  explore  its  shortcomings  in  cost management by depicting its operational state. Through a detailed analysis of the cost situation of DT, responsibility cost management is introduced to meet the needs of pig breeding companies, and it has referential meaning to the whole industry.  

With rich experience in finance, the author has conducted an intensive study on the  state  of  DT  plant’s  cost management  through  investigation,  observation  and literature review, aiming at seeking feasible solutions to the existing problems. 

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CHAPTER 2   Literature Review

2.1 Definition of Cost Management

2.1.1 Connotation of Cost Management

It was once believed that cost management only involved calculating and report of services or products. While with the economic development, cost management has slowly been recognized as a matter of managing activities and is not supposed to be accounting-centered.

In  the  book  Cost  Accounting  co-written  by  American  scholar Charles.T·Hangmen and his colleagues, it says that cost management refers to a series of  activities  conducted  by  managers  to  continuously  control  and  lower  cost for customers’  satisfaction.  And  for  The  Accounting  Dictionary  compiled  in  Japan,  cost management is generally regarded as cost control, and the cost are produced through the  process  of  operating  and  monitoring  the  business. While  in  regard  to  the Dictionary of Cost Management of China, it has defined cost management as a series of scientific methods deployed to better control the cost produced during the process of production and management, and it requires a complete and systematic procedure which entails prediction, plan, decision, control, calculation, analysis and assessment, etc. The goal of cost management is to motivate all staff to find the best way to reduce cost and attain maximum yield, while maintaining product quality. 

Although  those  understandings  of  cost  management  have  made  some improvement  to  some  extent,  they  are still  too  segmentary  as  their  explanations  all give  priority  to  only  one  side  of  cost  management.  It  should  be cleared  that  cost management, in essence, concerns management rather than control, and the difference between these two categories are: management calls for coordinating the resources of labor  and  finance  through  various approaches  like  planning,  organizing,  controlling, and  motivating;  while  control  is  just  one  of  the  basic  function of management. Therefore, the claim of equating management to control, in effect, has narrowed the denotation of cost management. 

Moreover,  cost  management  involves  managing  corporate  value,  which  will influence  every  aspect  of  business activities.  Hence,  it  is  limited  to  solely  manage production cost as a company should position itself  as  an  assembly of  various  tasks for  customers’  needs.  It  is  supposed  to  possess  a  wide  range  of  functions  such  as research and development, design and production, marketing and after-sale services. The one-sided definition which limits cost management to control production cost will definitely restrict cost management to fully exploit its function. 

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2.2 Responsibility Cost Management and Relevant Basic Concepts

2.2.1Responsibility Cost Management Mode

Responsibility Cost Management refers to a managing mode which is originated from  the  concept  of  decentralization, it divides  internal  responsibility  centers  and identifies the range of cost control, the final performance of cost management is also collected and evaluated by this mode on the basis of different responsibility centers. This  mode  has unified  cost  calculating,  controlling  and  economic  responsibility through the whole process, reflecting a synthesis of duties, rights and benefits during the  management,  and  it  is  favorable  to  mobilize  the  initiative  of  each responsibility center to better perform itself. The basic concepts of responsibility cost, controllable cost and responsibility center are expatiated as follows:

2.2.1.1 Responsibility Cost

Responsibility  cost  means  the  cost  that  should  be  assumed  by  the  pointed undertaker based on his/her controlling ability. It can also be explained as the person in  charge  should  undertake  his/her  responsibility  all  alone, which  identifies  the controllable cost to a certain responsibility accounts. And the sum of controllable cost produced in a responsibility center can be regarded as its responsibility cost.

Responsibility and cost form an organic integration which has its priority at the same  time.  Responsibility  is  the  primary point  and  the  secondary  is  cost.  This  is because that only a definite responsibility extent can lead to an accurate calculation of the  cost.  Therefore,  a  scientific  responsibility  distribution  is  vital  to  the  success  of responsibility cost management. 

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CHAPTER 3   Cost Management of Large-scale Pig Breeding Mode ............... 25

3.1 Industry Development Background ...................... 25

3.2 Introduction to the Business of Large-scale Pig Breeding .................... 26

CHAPTER 4   Case Study of the Cost Management of DT Plant ........................ 34

4.1 Introduction to the Breeding Business of Company ZB ............... 34

4.2 Introduction to the Pig Breeding Business of DT Plant ........... 34

CHAPTER 5   Explore and Practice of the Responsibility Cost Management of DT Plant ........ 49

5.1 Improving and Strengthening the Cost Management Method of DT Plant ............ 49

5.2 Competitive Strategy Analysis of DT Plant ................. 49

CHAPTER 6   Analysis of the Effectiveness of DT Plant’s Responsibility Cost Management

6.1 Implementing Procedures

1. Adjusting the layout of pig house and resolving the problem of mixed feeding. Defining the feeding scope and boundary of each breeding zone, each staff and each pig.  Preventing  sharing  of  raw  materials  which  leads  to  the situation  of  unable  to differentiate the cost.

2.  Granting  lager  responsibility  and  right  to  DT  plant  in  sows  introducing, because the quality and disease occurrence of introduced sows are critical to the later breeding cost and immune health care of the plant. The original mode is that DT plant introduces  sows  from  the  appointed  plant.  But  under  the  new  procurement management mode,  DT  plant  has  the  right  to  choose  the  plant  to  introduce  sows according to such indicators as sows’ selecting standard and disease occurrence, etc.

3.  Implementing  comprehensive  performance  management,  changing  the  single evaluation criteria of production indicator used in the past; Granting larger right and responsibility  to  the  financial  staffs  in  performance  appraisal, increasing  the proportion  of  cost  indicator  in  performance  appraisal;  Making  comparison  with standard  cost  and advanced  cost  by  comprehensive  accounting  and supervisor-subordinate communication, so as to define the appraisal indicator of DT plant's performance in above mentioned items. 

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CHAPTER 7   Conclusions, Limitations and Prospects

7.1 Conclusions

Through  the  study  on  the  implementation  of  DT  plant's  responsibility  cost management,  the  author  draws  the conclusion  that:  as  for  such  large-scale  pig breeding  plant  that  adopts  the  decentralized  management  structure of  department management  plus  breeding  plant  management  as  DT  plant,  it's  an  effective management measure to implement cost advantage strategy and fully implement the responsibility  cost  management   with performance  appraisal  as  the  tool;  it's  a feasible  choice  to  strengthen  corporate  cost  management  from  the perspective  of improving cost management system (including cost accounting system and operation control system). 

The object of this study is the DT plant of Company ZB. Although DT plant is one  of  representatives  of  the  large-scale  and  industrialization  of  company  ZB's  pig breeding, there are individual differences among the large-scale pig breeding plants in the problems in corporate layout, scale and region. Therefore, the applications of this study's conclusion may  have  certain  differences,  especially  in  defining  the performance appraisal indicators.

The  duration  of  this  practical  study  on  DT  plant  is  two  years  time,  but  the effective implementation of this plan was started in 2014. Therefore, in regard of the improvement  measures  mentioned  above,  the  author  hasn't  got adequate  data  about the  actual  implementation  of  the  company,  with  incomplete  analysis  of  the  problem and inadequate discussion on the production management of pigs.

reference(omitted)