Management Review

›› 2017, Vol. 29 ›› Issue (9): 262-272.

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The Practice of Value Increment Target of Management Accounting——As Exemplified by the Private Enterprises within Huaihai Holdings Group

Zhu Xueyi1, Zhu liangfeng2   

  1. 1. Business School of Nantong Institute of technology, Nantong 226002;
    2. Business School of Changzhou University, Changzhou 213164
  • Received:2016-08-18 Online:2017-09-28 Published:2017-10-09

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Abstract:

This study promotes the "decision" service management accounting objectives to the "value added" level and, based on the case study of private enterprises within Huaihai Holdings Group private Enterprises, details the specific value-added target of their internal departments. The case study results show that:(1)Under the Industrial 4.0 background, the content of management accounting should change with the "intelligent manufacturing" environment and information technology change, and then upgrade to a high level where the accounting controls knowledge and financial management, cost management and financial accounting knowledge are combined into an organic whole. (2)By implementing target management mode of the management accounting value increment, the enterprises can organically unify their targets, including:owner's equity maximization, enterprise value maximization and cost management benefit maximization.(3)The responsibility center for decentralized management of enterprises is turning to "value increment center", which helps connect the unit of each "value-creation" visually, concretely, and caliber uniformly by using the value chain management idea. (4) "Functional" management to "value increment" management in the internal management department of enterprises, "product cost control" management to "production capital operation increment" management in the internal production departments of enterprises, will challenge the "economic batch law" and "ABC management Law" of traditional inventory management, and so on. (5) Enterprises to "supply side structural reform" concept to the accounting department, "production-oriented" budget control to "market order type" of real-time tracking, conducive to the harmonization of material flow, capital flow, value flow and workflow. (6) The transformation of the management accounting target mode will be a change of accounting theory and management mode, which is expected to produce strong vitality.

Key words: management accounting, management accounting target, value increment, private enterprises, case analysis and research