On the operating cost method of accounting in the value chain in the use of

Summary: business management accounting should adapt to the changes through the value chain management, value chain accounting theory and activity-based costing analysis, the operating cost method of accounting in use in the value chain, the feasibility of necessity.

Keywords: activity-based costing, value chain management, value chain accounting

With the acceleration of global Economic integration and information technology era, the current business development model has been gradually showing a close contact, information exchange, cooperation and win-win feature. Faced with more open markets and more competitors involved. Enterprise To win in the competition, must be introduced to maintain long-term competitive advantage of a new management model - the value chain management.


A value chain management and value chain accounting theory

1,1 thinking of value chain management
In 1985, Harvard professor Michael Porter (Michael E, Por-ter) in the <<a competitive advantage (Competitive Advantage), a book first proposed the concept of value chain Porter said: "Every business is in the design, production, sales, sending and supporting their products during the process of collection of various activities, all of these activities can be used to indicate a value chain. "In his view, the general value chain, including internal logistics, production and management, external logistics, marketing and service of five basic activities and procurement, technology development, human resource management and enterprise infrastructure four complementary activities.

Value chain management is an integrated management approach, which the value chain as the basic tool, through the exchange of information between enterprises processing and analysis, the effective integration of business process optimization, resulting in lower operating costs, improve efficiency throughout the value chain, ultimately achieve added value. It focuses on cooperation between enterprises that co-operation will no longer be the previous "zero sum" game, but a win-win results. Value Chain Management focuses on the entire value chain is split into multiple value of the activities that work to manage. job is to connect the upstream and downstream business ties, but also the value chain, value-added sources.


1,2 The proposed value chain accounting
The concept of value chain accounting by our late famous professor of accounting for five scientist Yan first put forward his view that the so-called value chain, accounting, business value of information and the underlying relationship between depth study of specific can be stated as: is collection, processing, storage, and use the value of information provided, the implementation of the enterprise value chain control and management, the enterprise value chain to ensure compliance, efficient and orderly operation, so as to create value and maximize the value of a distribution kinds of management activities.

Accounting is not the accounting value chain under a branch, but traditional accounting management in the information age, the extension of the theory based on the value chain and it's made to create a new situation in accounting Research.

1,2,1 theoretical framework for value chain accounting
Yan of five professors and other Research to build the value chain, the idea of ​​the theoretical framework of accounting problems, they think, to build the theoretical framework of the accounting value chain value chain is one of the fundamental accounting Research. The basic idea is to strengthen the value chain management as the main line , respectively, along the two dimensions of space and time reconstruction of accounting management framework in the space dimension, the original form of a single company accounting for the value chain, expanding the main form of alliance management accounting body, the original money as a means of measuring the object of the accounting value chain extended to form the accounting of all managed objects can be quantified so that management accounting perspective on the greatly expanded financial information and non-financial information on the value of unified information.


1,2,2 dimensions of value chain analysis of the accounting
(1) time dimension analysis.

Value chain management has been more than the traditional management science in the Department, the management of space is that it not only extend to the entire value chain, thus contributing to the complete chain of operations under the grasp of the important strategic links and synergies, but also because it in line with the era of information management requirements to control things in a timely manner based on the effectiveness of time management in the time dimension, the application of information technology to real-time control as the core of accounting, to manage the process of time series, based respectively advance the management of overall planning, management, matter management, real-time control and after extensive analysis carried out for the comprehensive evaluation, the whole process of accounting management.

(2) analysis of spatial dimensions.

Value chain analysis of the spatial dimensions, according to the analysis of objects and different perspectives into the enterprise value chain analysis, value chain analysis of horizontal, vertical value chain analysis, analysis by three to establish competitive advantages and development strategy. Enterprise value chain management emphasizes the link between the optimization of internal operations, identify value drivers and profit drivers to improve overall efficiency, cost control strategies to achieve internal coordination. horizontal value chain analysis refers to the business being in the industry environment, and other industry business operations through a certain link, or simply by analysis of their competitors, identify business value chain in the lateral part of the strategy to build firm-specific competitive advantage. vertical value chain analysis as a core business value of the entire industry part of a, and upstream and downstream of interdependence, it is the central idea of ​​the construction value chain to help companies build more sustainable core competencies.


2 Advantages of activity-based costing

2,1 The core idea of ​​activity-based costing
Costing (Activity-Based Costing) referred to as the ABC, is the most cost-management theory development in the past two decades the main directions and results. Costing the core idea is to first spend the resources allocated to business operations, and then assigned to the job cost object due to the introduction of "operating" the vehicle for the distribution of costs, operating costs wears the traditional cost allocation methods for a more objective description of the resources and the cost of the relationship between objects, so that the result of more accurate cost accounting. Job cost method can not only provide accurate product costs, customer costs, can also provide departmental costs, personnel costs and operating costs of these extensive cost information for the companies provide data to support management decisions.

Costing of the basic idea of ​​four elements: resources, operations, motivation, and cost objects, three levels: including allocation of resources to operations, that is the motivation of resources: resource consumption caused by the job, when multiple jobs are using the same resources, resources motivation is the allocation of resources spent to each job to form operating cost database based on the job to the cost of object allocation, that job motivation: the operating costs of libraries in the allocation of costs to cost objects based resources to the cost of object allocation, in this case directly to cost objects imputation of consumption of resources.


2,2 costing and value chain accounting fit
Costing is different from traditional cost method, the object will work as a cost accounting to cost drivers for the cost allocation basis, to overcome the past to products, production for the accounting object to working hours and the machine sets the standard when the drawbacks of cost allocation can be provide a more accurate cost information.

Idea that the value chain operations through effective evaluation and integration in various operating their own value-added and operating synergies of the process of bringing the entire value chain, value-added. The value chain is both a cost accounting method is a cost management system it with the traditional method of calculating the cost difference is it from the "product"-centered to "work" as the center, through the recognition of operating costs, value creation through operational evaluation of activities to identify: profit operations and non-profit operations, high and low operating profit operating profit, which is the key to the value chain or operations, suitable for companies which do their own work activities, which operations should be transferred to other companies to do as much as possible to eliminate non-value added operations, improve operations, to minimize losses and waste, increasing the value of the job it is designed to help companies establish a competitive and adapt to the market, digital management model to optimize core business processes, reduce operating costs and business organizations, enhance market competitiveness.

Operations management aimed at increasing customer value and deliver value to profit from it in order to calculate the operating costs as the main source of information, including job analysis, dynamics analysis and performance evaluation, which is in line with the value chain, the core accounting requirements of management thinking, to work for the elements, not only for the internal integration of all sectors, but also between enterprises, the value chain of the binding sites. Links to free download http://www.hi138.com 3 costing and value chain accounting combination

3,1 the value chain in the operating cost method of accounting
Stressed that the overall value chain, linked, multi-angle view of value chain management in the accounting costing both the breadth and depth of the extension of its focus on internal and external environment of the organic integration and collaboration, emphasizing the interaction between job that the job is not just in the process of production and business operations, but eventually extended from the supply of raw materials to customers throughout the value chain links, not just to spend some real tangible cost of operations, including cost of the intangible costs of virtual operation, all of these operations should be of value chain management areas of accounting, but also should be an activity-based costing and management accounting content
Accounting of the value chain costing highlighted the "process management" operations management, accounting for the single feature out of it is based on the "process view" basis and understand the relationship between the cost of operations and, in fact, referring to the process operating collection of the work chain. In order to effectively control the incidence of costs and further reduce costs, operating cost management to keep costs as "the process of operating costs" means the full implementation of operating process analysis linked, dynamic management control.


3,2 Costing in the value chain in the use of accounting
3,2,1 in the value chain costing the implementation of accounting
Effective recognition of the value chain is the first step in using activity-based costing, but also the imputation of the premise and basis of operating costs. To determine the basic four elements of operating cost method to distinguish between products operations, the operations are divided into basic operations and support operations, specifically resource motivation, job motivation, cost-effective imputation. and conduct benchmarking, product cost accounting is intended to strengthen the control, to provide a basis for decision-making, the industry should be used more and more itself, more can be found through the industry's efforts to control the direction of corporate costs. find out more through its own internal costs, but the breakthrough point, can be found through industry benchmarking the industry's best cost value-added operations to objectively evaluate the level of business costs, and a correct understanding of the value-added product cost space after evaluation of the value chain is an important part of accounting, job benchmarking process that reflects the role of linking both the accurate accounting of the costs before the conclusion, the next step is the starting point for value-added operations.

Value chain in the operating cost method of accounting requirements from the perspective of business value chain, cost behavior of the structural factors. Business is product of the environment, external environment and internal environment factors in the behavior of the value of the influence and and thus affect the cost of these factors, the interaction between, determines the value of the business behavior, but also factors which can not become the sole determinant of the level of costs The analysis of factors affecting the value of its operations to help the enterprise to determine its cost from the source on the behavior, and how to change the behavior of the cost of an in-depth understanding of this, including the level of integration, namely enterprise by controlling their size, market share and influence the geographical scope of horizontal integration, vertical integration , enterprise expansion and contraction of the core upstream and downstream businesses, as well as businesses across the value chain network location management, including business location, technology positioning, positioning system, etc. These are companies positioning in the value chain is the ultimate source of cost through the reconstruction of the enterprise value chain will help reduce the cost from a strategic perspective.

3,2,2 Costing in the value chain dimensions on the application of accounting
(1) Costing in the use of internal value chain.

Analysis of internal value chain, the application of operating cost analysis methods to effectively reduce the internal costs both in the value of strategic management, to create the core competitiveness of the premise, according to business value added activities in the various operations in different roles, its fine divided into direct value-added work activities, supporting non-value added activities and operations work activities for the direct value-added operations to maintain its value added activities in the premise of not reducing as much as possible to improve efficiency, reduce resource consumption and occupation, for supporting value-added work activities its supporting role in maintaining the same circumstances, to minimize resource consumption, for the non-value added work activities should be minimized and clear.

(2) Activity-Based Costing in the horizontal value chain use.

The level of operating costs with competitors or value-added level of comparison, developed for its own competitive strategy, such as when the high cost of competitors, companies can take low-cost expansion strategy, survival and development. When the competitors have a cost advantage when companies can avoid the edge, value-added high levels of focus areas, the use of differentiation strategies to gain competitive advantage can be applied Benchmarking technology, by business status and performance of existing comparable looking after the best performance compared the gap, to seek continuous improvement activities, business operations, the level of performance and effective way. the best operating results usually have three categories: internal benchmarking, competitor benchmarking, generic benchmarking. business major competitors, value chain analysis of the composition and work motivation, and cost level, analysis of competitors to achieve a higher level of value-added operating costs and lower levels of the causes and ways to understand the opportunities and threats facing their own, a clear need for improvement, continuous improvement for the company to provide impetus and direction.

(3) Activity-Based Costing in the use of the vertical value chain.

The value of the production process can move forward, extends back to the supplier, the customer part of the largest corporate competitive advantage may come from the production of the extended enterprise value chain analysis, so the vertical value chain analysis based on the company, in addition to concerns itself has been involved in that part of the value chain optimization, but also concerned about the production from the initial raw materials to final product sales and recycling production processes between all value. vertical value chain concept to final product as a series of operations collection of business is operating a chain ring or several rings. the value chain, with the broad "job chain" formation and the formation of the so companies can get from the basic raw materials to final disposal after use this product an overall level of value chain analysis of costs and benefits of products, from the perspective of a reasonable profit-sharing strategic planning. vertical value chain analysis, one can find companies in the value chain development, on the other by sharing information, establish collaborative relationships between enterprises, enhance business alliances within the market competitiveness of all members. business major analysis of the vertical value chain analysis of the product until the customer from the resource to the value of sport, considering the cost value of the factor, by value analysis, cost analysis for the job the internal and external, upstream and downstream activities in all aspects or the cost, revenue and return, to see which areas or activities that have greater value-added space, which links or low value activities, which determines the acquisition or its upstream and downstream value chain some of the lower part of the value of outsourcing or the sale or activities, reconstruction of the enterprise value chain, to fundamentally change the composition of the enterprise value chain. reach win-win situation, improving the competitiveness of enterprises and value-added level. In this sense, the value of the longitudinal analysis of the cost of decision-making is at the strategic level, macro decision-making costs, the cost of decision-making on the future level of operating costs play a decisive role.

(4) Activity-Based Costing in the time dimension is used.

Value chain, accounting time and space management are two dimensions simultaneously, mutual penetration as activity-based costing, companies operating mainly in pre-planning orientation, value orientation. The operation of forecasting and planning, which should go into business operations , which should reduce operating companies, which value-added work space, which does not have value-added jobs, which is the main job, which is to assist the operation. operations prior planning and management is costing businesses a reasonable and effective cost imputation premise jobs things in real-time control is the core value chain, accounting, activity-based costing is the core of a single function to get rid of the original account, the value chain operating cost method of accounting in the process of job stress management, not just the imputation of the cost, more how to control operating costs. how the progress of operations, effective management, strategic and timely adjustment costs, which will be the fastest speed of response costs to a minimum, while ex-post evaluation is both to complete the work on the precise cost accounting and cost management summary , is a management process developed under the premise.

3,2,3 Costing and Business Process Reengineering with
Business Process Reengineering meaning is based on information technology, to better meet customer needs service, the systematic organization of work processes and related activities, it breaks through the traditional division of labor theory of ideology, emphasizing the organizational form of " process-oriented "alternative to the original" function-oriented "for the business management of a new idea.

Business process reengineering is accompanied by the maturity of the value chain and business management thinking the introduction of information and computer technology to form the ERP environment requires further deepening it to customer value-oriented, with value chain analysis, in part, based on a clear strategy to focus corporate resources to nurturing the development potential of the core business and strategic aspects of competitive advantage, but they do not have a competitive advantage to the core value of non-separated value chain, outsourcing to social enterprises have a comparative advantage in meeting customer service based on the enterprise in terms of cost, quality has made significant improvements, and build sustainable competitive advantage. This is entirely in line with value chain management subject in the enterprise business process reengineering, but also accompanied by the accounting business process reengineering, which also Costing application put forward new demands.

Process-oriented business process re-emphasized that, in fact, can be understood as a combination of multiple job-oriented, process reengineering is the restructuring of operations, breaking the internal functions, but also extends to the upstream and downstream enterprises. Costing in value chain, the effective use of accounting, it must be these emerging management thinking, fully integrated, enterprise value maximization.


4 Conclusion

Competition, customers, change has become the global market of the three major factors facing the information age of corporate governance requirements, changes in management thinking with the accounting, the accounting value chain has become increasingly respected by people on the industry. Costing is more scientific accounting system, its management is in line with the idea of ​​the value chain, accounting for cost accounting and cost management requirements, the combination of both will build a lasting enterprise core competitiveness.


References
[1] Michael Porter's book, Xiaoyue translation, competitive advantage 1985 [M], Beijing: Huaxia Publishing House, 1997
[2] Yan five, Li Yong, under the guidance of the spirit in Congress to create a new situation of accounting theory - to establish a "value chain accounting" new thinking [N], China Financial and Economic News, 2003
[3] Yan five, value chain accounting Research: A Review [J], Accounting Research, 3004, (2), 3-7
[4] Zhang Li flowers, winter flowers Yang, operating cost management and value chain analysis [J], Economic and technological cooperation, 2004, (16) :32-33
[5] Zheng Zehua, costing in the value chain analysis of the advantages of the mouth], Henan University business schools of higher professionals, 2004,17 (4) :35 -26
[6] Chen Guo Zhong, business process reengineering - a new management revolution [J], Chongqing Three Gorges College, 2005,21 (2) ,76-78 Links to free download http://www.hi138.com