The modern enterprise system is characterized by the separation of two powers, independent operation of enterprises, self financing and independent accounting.

Under this kind of enterprise system, the understanding of the role of cost can not be limited to product cost, but must be explored from various perspectives and omnibearing aspects in different links and sides of enterprise production and operation activities.

The author believes that the role of cost under the modern enterprise system should be reduced to the following points.

Under the modern enterprise system, it is necessary to strictly distinguish the rights and responsibilities between the owners and creditors. It requires the legal person to be responsible for the rights and interests of the owners and creditors of the enterprise.

To a large extent, the enterprise's reflection on the financial situation and the accuracy and reliability of the profit and loss measurement depend on the right.

Validation and measurement accuracy.

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The role of cost compensation scale is of vital importance to enterprises with independent corporate status and self financing and legal status.

Whether operating income can compensate for operating costs is a problem that any enterprise including state-owned enterprises must consider first.

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The enterprise funds are allocated exclusively by the state. Property and materials are controlled by the state. The production plan is formulated by the state. Products are purchased and sold exclusively by the state, and the finance is unified by the state.

As a result, the economic accounting of enterprises is bound to be greatly restricted.

The state's management of enterprise cost is mainly confined to the examination of the cost reduction and the reduction rate of comparable products.

The purpose of modern cost management should be to obtain as much value as possible with the least cost, so as to provide the best possible foundation for profit making, and then improve the cost effectiveness.

With the upheaval of the economic environment and the fierce competition in the market, the acquisition of cost advantage is crucial to the survival of an enterprise.

We should pay close attention to the trend of the whole market and competitors to find problems, adjust and change their strategy and tactics.

Starting from strengthening strategic cost management, enterprises should increase investment in technological content in product development and design stage, avoid unnecessary production links, manage product life cycle costs, achieve continuous cost reduction, and achieve cost control purposes by restructuring production processes.

To sum up, modern enterprise management needs more attention to cost management, and cost management must be more scientific and systematic.

It should be pointed out that any cost management method is not static. It will change with the development of society and the change of environment.

Therefore, we should study the way of cost management with the concept of development, and constantly innovate the way of cost management, so as to meet the needs of the development of the situation.