THE USE OF FULL-COST REFINEMENT

MANAGEMENT IN ENTERPRISE ECONOMIC

MANAGEMENT

Yong-Cai*

• Hunan College of Finance and Economics, Changsha, Hunan, 410000, China.

•Email: 313486070@qq.com

Reception: 2 January 2024 | Acceptance: 26 January 2024 | Publication: 24 February 2024

Suggested citation:

Yong-Cai (2024). The use of full-cost reﬁnement management in

enterprise economic management. 3C TIC. Cuadernos de desarrollo

aplicados a las TIC, 13(1), 139-157. https://doi.org/10.17993/3ctic.2024.131.139-157

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ABSTRACT

This paper firstly structures the control system to ensure that the full-cost refinement

management has a basis and forms a closure in the management chain. Secondly, it

enhances the project system management, solidifies all the nodes, puts the

communication mechanism in front, and ensures the efficient synergy and reasonable

division of labor while establishing the efficient management and communication

mechanism, so that it is located in the full-cost refinement management. Finally, the

AHP method is used to choose the implementation method of the information system,

so as to adapt the full-cost refinement management to the needs of each level and

realize the application of full-cost refinement management in the economic

management of the enterprise. The final simulation results show that the consistency

ratio calculations of the decision-making level management organization, the

executive level management organization, the basic level production department, and

the other learning and growth, CR are 0.017, 0.023, 0.031, and 0.013, respectively,

which are all less than 0.1, and pass the consistency test and do not need to be

adjusted. It shows that the results of the calculation of the stratified weight

assessment of the full-cost refined management provide an effective guarantee for the

economic management of the enterprise, and can be found to be unreasonable in the

process of practice, and make timely adjustments to solve the problem.

KEYWORDS

Full-cost refinement management; enterprise economic management; communication

mechanism; AHP approach

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INDEX

ABSTRACT .....................................................................................................................2

KEYWORDS ...................................................................................................................2

1. INTRODUCTION .......................................................................................................4

2. FULL-COST REFINEMENT MANAGEMENT APPLICATION DESIGN ..................6

2.1. Control System Architecture ...............................................................................6

2.2. Establishment of process communication mechanisms .....................................7

2.3. Composition of control informationization system ..............................................9

2.4. Design of management evaluation indicators ..................................................12

2.5. Upgrading process of enterprise economic management ................................13

3. FULL-COST REFINEMENT MANAGEMENT SIMULATION EXPERIMENT

ANALYSIS ..............................................................................................................14

3.1. Validation of the calculation of hierarchical weights for evaluation indicators ..14

3.2. Analysis of the benefits of enterprise economic management .........................16

4. CONCLUSION ........................................................................................................17

REFERENCES ..............................................................................................................18

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1. INTRODUCTION

In the very competitive economic market, based on the cost control refinement

management, is conducive to improving the cost control environment and promoting

new development. Improving the efficiency of enterprise economic operation and

management is a favorable condition for realizing the economic development goal,

cost control refinement of economic management, focus on economic management

objectives, under the management perspective, create operation and management

environment [1-2]. Effective management system is to ensure that the basic

conditions of standardized management of enterprises, and at this stage, enterprises

in the cost control refinement of economic management, the lack of a sound system

as a safeguard, resulting in the refinement of the management of the form of a nullity,

still applying the sloppy management, cost control effect is very significant problems.

For modern enterprises, the cost control refinement management economy focuses

on the management of multi-faceted, cost control is the most important performance is

arbitrary, easy to cause the phenomenon of cost control confusion, resulting in the

construction of internal control of the enterprise is hindered [3].

Profit-oriented nature of every enterprise, in the complex market environment,

based on the short-term economic benefits of the development of the layout, will affect

the enterprise cost control refinement of economic management work. Affected by the

planned economy, business leaders and financial personnel do not pay attention to

cost management, only take into account the immediate interests, resulting in a lack

of control consciousness [4]. From the strategic development level to start controlling

costs, the need for enterprise cost control implementation of refined management,

and effectively optimize the current cost control problems. In the enterprise cost

control refinement economic management needs to increase the enterprise cost

control refinement economic management efforts to promote its existence of the

significance of the full play out, and promote the healthy development of enterprises

[5-7].

Literature [8] There is a tendency for economic growth targets to expand from top

to bottom across regions, which is explained by the decreasing level of capacity

utilization by local firms. The government used hard constraint vocabulary when

setting economic growth targets and intervened in the production capacity decisions

of local firms, including strengthening private exchanges with local firms and

liberalizing business policies for local firms. Empirical studies have found that the

government is detrimental to the regional economy and the long-term development of

regional firms. Literature [9] Water has complex cost factors and is considered a

scarce commodity under a reduce-recycle-reuse system that employs a full cost

recovery strategy. Single and multi-block pricing models were created and the effect of

externalities were considered to analyze their impact on the cost of water production

and payback periods were calculated. The results showed that the unit cost of potable

and non-potable water was reduced by 34.04% and 43.13% with the use of multi-

block pricing strategy. Literature [10] describes two different types of SOEs in China,

i.e., SOEs in Chinese towns and cities and township and village enterprises in

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Chinese villages, both of which are unique to China. Successful cases of TVEs and

SOEs are compared and an in-depth analysis of capital and labor relations after the

restructuring of SOEs is presented. Literature [11] examined how economic policy

uncertainty affects firms' innovative capabilities in innovative cities, and obtained

conclusions that differed from existing studies. The empirical analysis found some

credible evidence that government investment in firms is incentivized in innovative

cities. Literature [12] conducted an empirical study on the perspectives of 81

Romanian non-profit organizations on sustainable development. Five main

sustainability factors were measured, namely talent, business model, operating

model, strategy, and culture, through the success factor analysis of the

multidimensional sustainability measurement system as a theoretical model. Literature

[13] In the context of digital economy, strengthening the quality management of e-

commerce enterprises can promote fair competition in the e-commerce market, and it

is of great significance to enhance the brand rights and interests of e-commerce

enterprises, and improve their core competitiveness. On this basis, the eco-network

problem in enterprise quality management is discussed in the light of the actual

situation in practical work. Literature [14] summarized the existing studies on initial

public offerings of family-owned enterprises and reviewed the related studies at home

and abroad. The new conceptual framework of Input-Process-Output is introduced to

provide targeted policy interventions for the IPO process of private enterprises, which

has important academic value and practical significance. Literature [15] explored the

relationship between the internal elements of the enterprise and other business

activities of the enterprise and external environmental factors, and qualitatively

modeled the model using the impulse component weight map method to obtain

predictive information about future development trends. The results of the study found

that even when macroeconomic risks arise, being able to take positive measures on

some of the indices can enhance the potential of enterprises' overseas investment to

a greater extent.

In this paper, the full-cost refinement management is applied to the enterprise

economic management design, firstly, through the structure of the control system, so

that the enterprise's full-cost refinement management chain is more clear and

visualized, and the management implementation is more in place. Secondly, the

process communication mechanism is established to pull through the management of

the various costs of the enterprise, solidify all the nodes, realize the real responsibility

cost management information system, and take AHP as the design idea of the

construct to achieve the purpose of decision-making mechanism refinement. Finally,

the economic management upgrading and transformation process is designed for the

new demand, and the demand collection is carried out at each level of the enterprise,

and the operation management demand indexes are rearranged and summarized, so

as to make the full-cost refinement management adapt to the demand of each level,

and to realize the application of full-cost refinement management in the economic

management of the enterprise. And through simulation experiments to its consistency

test, and combined with the analysis of the economic benefits of an enterprise for six

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years, to verify the feasibility and effectiveness of the full-cost refinement

management.

2. FULL-COST REFINEMENT MANAGEMENT

APPLICATION DESIGN

2.1. CONTROL SYSTEM ARCHITECTURE

The establishment of the control system needs to be safeguarded through a

scientific and reasonable organizational structure, and it is necessary to clarify the

lead department of the full-cost refinement control system, which is responsible for the

full-cost budget issuance and execution assessment, and secondly, to set up a

professional management team of the full-cost refinement control system to form a

comprehensive and professional working group, which will focus on the preparation of

the management system and guidelines, and the formulation of the assessment logic

and bylaws. The organization can set up an auditing agency under it to carry out

special supervision and rectification of problems found in the business to ensure that

the full-cost refinement management is based on evidence and to form a closure in

the management chain. Finally, from the ideological point of view, the company

executives should firmly support the establishment of the structure of the full-cost

refinement of the control system, and require the business departments to be unified

in their thinking, attach great importance to and actively cooperate with the

implementation of all kinds of cost management initiatives, and to give the lead

department a larger assessment authority and incentive authority, and to form a fixed

cycle of reporting decision-making mechanism. Only the enterprise organization as a

solid guarantee, the establishment of the management structure of the full cost

refinement control system management structure has the basis for stable

development [16-18].

If you want to make the cost management of the enterprise effective, the main

management aspects focused on the control level, combined with the cost data

measurement, you can get the full cost data of the entire project, and then combined

with the respective cost classification and special matters matching classification

becomes the target cost of the project. Each plan to control the cost of decomposition

to the various departments and related personnel, enterprises and regions to

encourage the fine control of functional lines through certain assessment incentives,

the contract is expected to be contracted for the decomposition of a good

comprehensive contract planning work. Through the target contract plan to guide the

project's full cycle of business development, to maintain the unity of opinion of each

department and leadership of the enterprise, to realize the whole staff has a cost

consciousness, the department of interoperability, in the project system through the

establishment of the project as a unit of the full cost of the communication

mechanism.

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In the specific contract implementation process of a certain stage of the cost of the

occurrence of tracking summary, continuous analysis and update the contract

planning, to provide accurate guidance for the project's target cost, and then use the

dynamic cost management process of all kinds of matters in the process of

supervision and early warning, to achieve the dynamic process control based on the

target cost, the cost of fine management control system management structure as

shown in Figure 1.

Figure 1. Management structure diagram of the whole cost refinement control system

The establishment of the full cost refinement control system structure can better

organize all departments to carry out cost management work in accordance with

business processes and operational nodes, so that the cost management chain of the

enterprise is more clear and visualized, and the combination of operational nodes and

dynamic cost management can be realized. Under the guarantee of orderly

organization of the enterprise, it makes the execution of the control system smoother

and the management execution more in place.

2.2. ESTABLISHMENT OF PROCESS COMMUNICATION

MECHANISMS

Process communication mechanism to establish the main focus on the

interdepartmental fuzzy space, the first need to enhance the project system

management, project system members need to pull through the management of the

enterprise's costs, communication mechanism needs to be landed at the project level,

in the regional enterprise level by the functional line responsible for specific business

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decisions and upward communication. The second need to form a cost control system

process, the project since the beginning to the end of the whole process of node

sorting, and then set up a specific timeline under the respective nodes, all the nodes

solidified, the communication mechanism front. And in the establishment of efficient

management and communication mechanisms to ensure efficient collaboration and

rational division of labor, located in the cost of division of labor management,

emphasizing the horizontal division of labor at the level of cost accounts and expense

accounts, through the horizontal division of labor to clarify the cost of the main body of

the responsibility to achieve the real responsibility of the cost management system.

Adopting the structure of project system, the division of labor is shown in Table 1.

Table 1. Horizontal division of labor for project costing

The horizontal division of labor should also focus on solving the four key divisions

and synergies of the whole process cost management, i.e., cost and design, cost and

contract, cost and engineering, and cost and finance. Cross synergy with different

departments to form a scientific and integrated process communication mechanism is

shown in Table 2.

Position Main Responsible

Subjects

Description of Main

Duties

Project Responsible Person Full Project Costs

Responsible for all

project costs. Checking

and supervising.

Project Cost Manager Development Costs

Responsible person for

development cost.

Lead and responsible for

the preparation of target

cost and contract

planning and dynamic

cost monthly review.

Statistics and early

warning of marketing

costs.

Project Marketing Manager Marketing Costs Responsible person for

marketing expenses.

Project Finance Manager Sectoral cost-sharing

Responsible for

departmental cost

sharing. Project

budgeting.

Project revenue analysis

and tracking.

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Table 2. Horizontal division of costs among multiple sectors

Good communication mechanism can create more efficient management value for

the enterprise, through the project system within the cross-complementary and the

coordination of the management of each department, emphasizing the cost of

interoperability, only the cost of connecting the line, so that each department knows

each other the impact of cost implementation will make the company's cost control

system work. After the management boundaries of each department are clearly

defined, the division of responsibility for cost overruns will be clearer in the future, and

the company will be able to better carry out cost review work.

2.3. COMPOSITION OF CONTROL INFORMATIONIZATION

SYSTEM

The implementation of information technology system is a complex and heavy

workload of the complete system project, which requires enterprises from the

organization of human resources to support the work. If this work is not done properly,

as professional skills level is not enough, with coordination is not effective, poor stress

tolerance and other direct impact on the project schedule and the smooth

implementation of the project. Decision-makers led by corporate management to set

up a steering group, the group's main job is to make decisions on the general

direction of information technology, to determine the scope and depth of the

implementation of information technology. Each project department should set up a

fixed position dedicated to the implementation of information technology with the

implementation team to carry out the implementation of information technology, each

project department as a representative of a person to collect demand for the

implementation of the team, to be on-line as a representative of the system to

Relationships Collaboration

Essentials Collaboration Notes

Cost & Design

Development of target

cost, implementation of

limit design and

management of design

changes

Design provides corresponding planning and

design target costs, and the design should be

based on the company's established limit targets

to guarantee the target costs.

Cost &

Contracting

Preparation and

execution of contract

planning and

coordination of

procurement process

Contract planning is led by the contract

department and corresponds with the cost

accounts to clarify the target cost of the contract.

Cost &

Engineering

Contract planning, visa

management

Contract planning requires the participation of

the engineering department to give advice on the

division of project sections to facilitate the

preparation of contract planning.

Cost & Finance Cost accounts, cost

accounting

The setup of cost accounts should consider the

correspondence with the cost accounts of the

financial system, not forcing complete

consistency, but to clarify the correspondence.

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familiarize themselves with the operation of the system, a person will first lead a

department will gradually expand the impact of the area to reduce the pressure of

training.

Using the AHP method to select the implementation of information technology

system, the goal of the demand, key factors and demand objects according to their

interrelationships are divided into the target layer, guideline layer, program layer

[19-20]. The drawn hierarchy is shown in Figure 2.

Figure 2. AHP model

For each pairwise comparison matrix, the largest eigenvalue and its corresponding

eigenvector are calculated, and the consistency test is done by using the consistency

index, random consistency index and consistency ratio. If the test passes, the

eigenvectors are the weight vectors, if not, the pairwise comparison matrices need to

be reconstructed. Finally, calculate the total ordering weight vector and do the

consistency test, calculate the weight vector of the bottom layer to the top layer total

ordering, and use the total ordering consistency ratio CR to do the test. The formula is

as follows:

(1)

In general means pass and the decision can be made according to the

results expressed by the total ranking weight vector. Otherwise, the model needs to

be reconsidered or the pairwise comparison matrices that have larger consistency

ratios need to be reconstructed.

The judgment matrix is constructed using the target layer and criterion layer of

the hierarchy, and its mathematical expression is as follows:

(2)

+…+a

a1RI1+a2RI2+…+amRIm

CR < 0.1

A= (aij)n×n

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Where denotes the difference in importance of over . If we set the

importance of to be , we have:

(3)

The judgment matrix constructed in hierarchical analysis is called the objection

judgment matrix. If exists, holds. The purpose of

constructing the judgment matrix in the hierarchical analysis method is to

mathematize the thinking process of decision-making, and then derive the weight

vector of each evaluation object from it for the purpose of decision-making.

The method of calculating the single-level weights and maximum eigenvalues

according to the square root approximation is as follows:

(4)

(5)

Normalizing to , is the required eigenvector formula as follows:

(6)

Since it is usually difficult to satisfy the consistency principle for the order

construction of judgment matrices, test metrics were introduced in AHP to measure

the consistency of judgment matrices, where:

(7)

Where CI is the stochastic consistency index, a constant of statistical significance

given that the inconsistent judgment matrix is acceptable when . It can be

seen that the smaller CR is, the better the consistency of the judgment matrix is, and

when CR is equal to zero, the judgment matrix is perfectly consistent.

For each judgment matrix constructed from CR, the weight vector can be derived

using the eigenvalue method:

(8)

When A is a consistency matrix, , therefore it is most

efficient to measure the consistency of the judgment matrix by the deviation of from

aij

Ak(k∈I,I= {1,2,…, n})

aij =wi−wj,i,j∈I

∀i,j∈I

aif =−aji,aii = 0

∏

j=1

uij,i= 1,2,…,

Wi=nMi

∑n

j=1

,CI =

max

−n

n−1

CR < 0.1

w=(w1,w2,…,wn)T

aij =wi/wj,i,j= 1,2,…, n

aij

wi/wj

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This can be derived from the maximum deviation value and the definition of the

mean square deviation:

(9)

(10)

In the formula, the maximum deviation is , and the mean square deviation is ,

which can be concluded that the consistency is better when the values of the

maximum deviation and the mean square deviation are smaller. Then, summarizing

the above consistency test results, the feature vector is derived as the weight vector,

and the design idea of AHP as a construct is realized to achieve the purpose of

decision-making mechanism refinement.

2.4. DESIGN OF MANAGEMENT EVALUATION INDICATORS

The main points of establishing layered indicators are process, planning and

systematic, in order to increase the turnover of the enterprise, improve the utilization

of assets and control a reasonable financial structure at the guideline level set two key

indicators, which are the profitability of assets, asset turnover [21]. Satisfaction of the

company's departments, increasing the share of the enterprise's business in the

market, and the increase in market share are the main indicators of performance

assessment at the management level. So that enterprises always maintain a strong

market competitiveness continue to improve the quality of talent, thick and thin to

provide potential power for future development. The analysis of evaluation indexes of

each aspect of full-cost refinement management is shown in Table 3.

= max

i,j

aij −wi

∑n

i=1 ∑n

j=1

(

aij −wi

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Table 3. Analysis of evaluation indicators for full-cost refinement management

2.5. UPGRADING PROCESS OF ENTERPRISE ECONOMIC

MANAGEMENT

In the implementation process of full-cost refinement, a dynamic escalation project

management method is adopted, and the construction project is sequentially divided

into project preparation, demand solicitation, workflow routes, system architecture

design, implementation preparation, implementation support, and later maintenance

and upgrading phases, so that the key steps are found and focused on in the

implementation sequence. By adopting the project management method of dynamic

upgrading, the specific work of basic data entry can be carried out in different

operation processes at the same time, and the timeframe for the implementation of

full-cost refinement management is shortened to a large extent. Workflow refers to the

automated network environment, the enterprise employees in various positions in

accordance with the schedule and production, need to enter program data on the full-

cost refinement management platform. Using the method of job flow can be

categorized and organized for all the jobs in the enterprise, all the work is first

qualitative in quantitative, standardized delivery of information, written materials and

management of work tasks. Job process design, for the new needs to design the

process of economic management upgrading and transformation is shown in Figure 3.

Objective Elements of Establishment

Relevant stratified

indicators

Increase in operating income to

reduce costs Increase business turnover Asset profitability

Improve asset management

efficiency

Improve the efficiency of the

comprehensive use of funds Asset turnover ratio

Departments are satisfied with the

management module Increase employee satisfaction Departmental

satisfaction

Getting more business Increase market share Market share

Get more vendor resources Increase resource utilization Amount of resource

accumulation

Product quality that exceeds

customer expectations Improve the quality of engineering Quality product

productivity

Understanding customer needs Create a good reputation for the

enterprise

Order fulfillment

rate

Improve production office efficiency Improve labor efficiency Residual value rate

Optimize production business

processes

Dynamic continuous process

optimization

Business process

optimization

Enrich the cultural life of the

enterprise Enhance the quality of cultural life Enterprise

personnel cohesion

Enhance employees' sense of

identification with the company Improve employee satisfaction Employee adhesion

to the company

Enhance labor skills through training Improvement of personnel quality Employee labor rate

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Figure 3. Full cost refinement management upgrade process

It collects demands from all levels of the enterprise, classifies, analyzes and

decomposes all the work contents, separates the main work, rearranges and

summarizes the demand indicators of operation management, so that the full-cost

refinement management can adapt to the demands of all levels, and the process can

be more easy to operate, so that it is easy to optimize and upgrade in the later stage

of scale expansion. In line with the hierarchical management of the linear

organizational structure of the enterprise, key indicators are selected after

summarizing the indicators at each level through hierarchical weight calculation.

Records of management lessons learned from each module are summarized and

shared openly, and management work is optimized without interruption to meet the

dynamic needs of enterprise economic management.

3. FULL-COST REFINEMENT MANAGEMENT

SIMULATION EXPERIMENT ANALYSIS

3.1. VALIDATION OF THE CALCULATION OF HIERARCHICAL

WEIGHTS FOR EVALUATION INDICATORS

In order to test the performance of full-cost refinement management, the total

indicators of each layer of weight calculation, 10 directors randomly selected from the

members of the board of directors of an enterprise, fill out a questionnaire, the results

are shown in Table 4 below. The consistency ratio of the weights of the 2 design

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indicators under the decision-making level management organization, calculated by

the formula of this paper, is CR=0.017<0.1, which passes the test, indicating that the

judgment matrix construction passes the consistency test and does not need to be

adjusted. And the weight consistency ratio of the three design indicators under the

executive level management organization is calculated as CR=0.023<0.1, which

passes the test and also indicates that the judgment matrix construction passes the

consistency test and does not need to be adjusted. While the weight set of the

performance evaluation index system of the production department of the basic layer

and the weight set of the performance evaluation index system of other learning and

growth are calculated, the consistency ratio calculation results are CR=0.031<0.1 and

CR=0.013<0.1 respectively, which indicates that it passes the consistency test and

does not need to be adjusted. It shows that the results of the calculation of the

stratified weight assessment of the full-cost refinement management provide an

effective guarantee for the economic management of the enterprise, and it can find

irrationality in the process of practice, and make adjustments to solve the problem in

time.

Table 4. Indicators for the design of the tiered assessment system

As can be seen from the table, all four indicators account for more than 90% of the

votes for important and above, so all the indicators above important should be

retained. Applying the pairwise comparison indicator scale of Table 4 to assign values

to the importance, set unimportant as 1, slightly important as 3, important as 5,

obviously important as 7, absolutely important as 9. If only important and above are

counted, the weight of important is 0.24, obviously important is 0.33, and absolutely

important is 0.43. The following calculates the weight value of each indicator as

shown in Table 5.

Indicators Not

important

Slightly

important Important Significantl

y important

Definitely

important

Indicators for

policymaking-level

governing bodies

0 1 4 3 2

Indicators for executive

management

organizations

0 2 3 4 1

Indicators for the

production department

at the basic level

0 2 4 3 1

Other cultural

management indicators 0 1 3 4 2

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Table 5. Weight Table of Hierarchical Evaluation Design Indicators

3.2. ANALYSIS OF THE BENEFITS OF ENTERPRISE ECONOMIC

MANAGEMENT

This paper validates the economic management benefits of enterprises under the

application of full-cost refinement management, and the experimental test object is a

trade circulation enterprise that has achieved certain results, and investigates the

operating profits of the enterprise. After the application of full-cost refinement

management, the enterprise business volume has been stimulated by a certain

promotion, income has been increased to a certain extent, Figure 4 shows the results

of the enterprise business indicators during the six-year period.

Index Weight Index Index weight

Weight value of indicators of leading

institutions at decision-making level 265

Asset profitability 87 23

Asset turnover ratio 83 22

Weight value of indicators of executive

management institutions 236

Departmental

satisfaction

420 99

Market share 370 0.0873

Amount of resource

accumulation

340 782

Index Weight Value of Production

Department in Basic Layer 225

Quality product

productivity

280 63

Order fulfillment rate 180 40

Residual value rate 230 52

Business process

optimization

190 43

Weight values of other cultural

management indicators 233

Enterprise personnel

cohesion

170 39

Employee adhesion to

the company

190 44

Employee labor rate 130 30

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Figure 4. The results of business indicators in six years

As can be seen from the data in the figure, the enterprise operating efficiency

increases year by year, the gross profit increases year by year, the enterprise

economic efficiency continues to grow, compared to the first year, the 6th year than

the gross profit increased by 7.49%, which indicates that for the enterprise profit

growth, this paper is designed to help the enterprise economic management under the

application of the full-cost refinement of the enterprise's economic management. And

the operating income of the enterprise for 6 years, respectively, is 1067,668,100 Yuan,

1080,601,000 Yuan, 1104,603,000 Yuan, 118,524,100 Yuan, 124,642,750,000 Yuan,

138,507,400,000 Yuan, under the application of the full-cost refined management, the

operating income in the 6th year has increased by 317,423,000 Yuan compared with

the 1st year, which is an increase of 22.92%, with obvious economic benefits. The

reason is that the full-cost refinement management based on the analysis of

enterprise data hierarchy, the analysis of the relationship between the asset

profitability, market share, production and operation efficiency, employee labor rate, in

the process of enterprise development to give full play to the role of each other, which

to a certain extent, to increase the operating income of the enterprise as well as the

economic management of the favorable, and the development of the enterprise with

the actual status quo.

4. CONCLUSION

This paper realizes the use of full-cost refinement management in enterprise

economic management, through the structure of the control system, the management

chain is more clear, visualization, so that the management implementation is more in

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place, and the cost of the various pull-through management, to realize the real full-

cost management information system. Secondly, the AHP method is used for the

construction to achieve the purpose of decision-making mechanism refinement, and at

the same time, demand collection is carried out for each level of the enterprise, and

the economic management upgrading and transformation process is designed for the

new demand, so as to make the full-cost refinement management adaptable to the

needs of each level. The final simulation experiment results show that the weight

consistency ratio CR of the decision-making level management organization is 0.017,

the CR of the executive level management organization is 0.023, the CR of the

production department of the basic level is 0.031, and the CR of the other learning

and growth is 0.013, which are all less than 0.1, and have passed the consistency

test. At the same time an enterprise economic management benefit analysis results

show that in the use of full-cost refinement management, the enterprise economic

benefits continue to grow, compared to the first year, the sixth year than the gross

profit increased by 7.49%, which shows that for the enterprise profit growth, it can be

shown that the full-cost refinement management of the enterprise's economic

management to provide an effective guarantee, and the development of the actual

status quo of the enterprise is in line with.

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