Hoàn thiện kế toán quản trị chi phí trong các doanh nghiệp sản xuất thuốc lá thuộc tổng công ty thuốc lá việt nam TT TIENG ANH

MINISTRY OF EDUCATION AND TRAINING MINISTRY OF FINANCE FINANCE ACADEMY ––––––––––––– LA THI THU PERFECTING THE COST MANAGEMENT ACCOUNTING IN THE CIGAGETTES MANUFACTURING ENTERPRISES OF

MINISTRY OF EDUCATION AND TRAINING MINISTRY OF FINANCE

FINANCE ACADEMY –––––––––––––

LA THI THU

PERFECTING THE COST MANAGEMENT ACCOUNTING IN THE CIGAGETTES MANUFACTURING ENTERPRISES OF THE VIETNAM NATIONAL TOBACCO CORPORATION

Major: Accounting Code: 9.34.03.01

SUMMARY OF DOCTORAL THESIS IN

ECONOMICS

HANOI - 2021

This thesis has been completed at: FINANCE ACADEMY

Supervisors: 1 Assoc Prof Dr Tran Thi Hong Mai

2 Assoc Prof Dr Nguyen Manh Thieu

Examiner 1……… Examiner 2……… Examiner 3………

The thesis will be orally defended at the Examining Committee

Venue:

at…… (day) of …… (month), 2021

This thesis is available for the purpose of reference at:

LIST OF SCIENTIFIC WORKS PUBLISHED BY

THE AUTHOR

1 La Thi Thu (2018), theory of contrast and application in cost management accounting at tobacco manufacturing enterprises, Journal of Industry and Trade, No 9, p.332-

338

2 La Thi Thu(2019), Completed cost management accounting at enterprises of Vietnam Tobacco Corporation, Financial Magazine, period 2 (701), p.74-

76

3 La Thi Thu(2019), Building environmental cost management accounting in enterprises in Vietnam,

Journal of Economics and Forecasting, No 14, p.59-61

4 La Thi Thu, Tran Thi Hong Mai, Nguyen Manh Thieu (2021), Studying factors affecting the application of cost management accounting in tobacco manufacturing

of the Vietnam national tobacco corporation, Sustainable economic development and bussiness management in the context of globalisation (SEDBM- 4), Finance Publishing, p.1253-1259

INTRODUCTION

1 Rationale for the research

In the context of international economic integration and development, Vietnamese enterprises have the opportunity to exploit many new markets, increase revenue sources, but the challenges of competitive pressure at home and abroad are extremely large To win in competition and dominate the enterprise market, it is necessary to constantly improve technical facilities and management methods to adapt

in new conditions Cost Management Accounting (CMA) is one of the management tools that can be adapted under new conditions In addition

to providing useful information to the administrator; Modern CMA also offers measures and technical methods to help managers exploit, use, link, distribute resources effectively, save, identify the cause and provide timely remedies to limit risks, minimize costs incurred without increasing value, improve profitability

Tobacco is a material production industry, annually contributing

to the state budget revenue of more than VND 11,000 billion, solving a large number of jobs for workers, creating a value chain throughout from agricultural production to industrial production However, in the current period, tobacco manufacturers in general, the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation in particular face many difficulties such as: unstable supply of tobacco materials, uneven material quality, the output market is tightened due to the direct impact of the State's policy mechanism and the recommendations of agencies on consumer health protection; unfair competition of smuggled cigarettes; Thecumbersome management system is a burden for managers to be able to overcome difficulties The problem for managers

is to control to cut costs at the same time as the operational decisions at each stage must improve the efficiency of using resources, decide the production level at each time in accordance with the demand to avoid capital stagnation and reduce product quality due to inventory In many the cigagettes manufacturing enterprises in Vietnam, MA in general, CMA in particular has not received enough attention, the existence is not

entirely due to the purpose of the enterprise The selection of the model

of CMA suitable to the characteristics of tobacco manufacturers is very necessary in the current period That is also why the author chose the

thesis "Perfecting the Completing cost management accounting in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation "

2 Overview of research issues

2.1 Overview of foreign research works

Studying the historical process of forming and developing MA and CMA in the world, showing that the CMA has lobbied and transformed itself from a functional part of accounting gradually to be reviewed the role and function of MA, CMA IFAC (2002), Gary Cokin (2011) and many other scientists by concrete arguments and evidences demonstrating the role and function of MA, CMA in corporate governance, consulting and leading businesses through crises, growth, sustainable development The thesis has reviewed the studies according

to the following contents:

* Trends in the view of MA according to IFAC's research framework

* Overview study of the application of CMA by function to serve the needs of managers

(1) CMA with the function of serving the control

(2) CMA with the function of serving the consultancy and decision-making

(3) CMA serves to increase the value of enterprises

* Research on factors affecting the application of CMA in manufacturing enterprises

2.2 Overview of domestic research works

* Research on the development process and trends in the application of CMA in Vietnam

* Research on CMA for corporate governance objectives

* Research on factors affecting the application of CMA in manufacturing enterprises

2.3 Research gaps and projected research frameworks

Research gaps

Firstly, based on the approach of its predecessors on CMA in Vietnam, the thesis found that there is no topic that integrates research directions together to clarify the objectives, roles and functions of CMA

in manufacturing enterprises specifically towards the goal of strategic development and sustainable development The author agreed with Bui

Tien Dung (2018) when he said that combining the two research directions (approaching the CMA according to the information function and according to the content of the work) will clarify the information function of the CMA as well as how to organize, provide information and demonstrate the strategic role of information in the enterprise

Secondly, the ability to apply CMA in practice in Vietnamese enterprises compared to the development of modern CMA theory in the world is still greatly gaping Meanwhile, in the world, there has been a

lot of research on CMA and how to complete to achieve the threshold

of maximum management of resources and increase the value of enterprises for sustainable development and development

Thirdly, the study of factors affecting the CMA in enterprises

produced in Vietnam is not much, at the same time our economy is in the developmentstage, in each stage of development of the country there are many changes Therefore, there needs to be new research, more up-to-date than the reality in our country

Fourth, the study of CMA in cigagettes manufacturing enterprises is very limited

Frame of the projected research content of the thesis

Based on the research results and arguments to identify gaps, the thesis offers the expected analysis framework of the thesis with the content of the enterprise's CMA including:

- Identify and classify costs

- Building a system of estimates and norms

- Collecting production cost information

- Analyze and provide information to serve the needs of managers:

+ The need of the manager to perform the control function of the CMA

+ The need of the manager to perform the consulting function of the CMA

+ The need of the manager to perform the function of increasing the value of the CMA

- Identify and evaluate the impact of factors on the application of CMA in research enterprises

3 Objectives of the research

3.1 General objectives

The study proposes solutions to improve the CMA in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation

Third, Proposed a number of solutions to complete the CMA in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation

4 Research questions

- How is the current situation of CMA in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation?

- What is affecting factors to apply of CMA in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation?

- How is The solution to complete the CMA in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation?

5 Subjects, scope and methods of research

5.1 Study subjects

The current situation of CMA in the cigagettes manufacturing

enterprises of The Vietnam National Tobacco Corporation

5.2 Scope of study

About space: Studying the status of tobacco industry in 12

cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation Especially, the case study of 4 enterprises, in which Thanh Hoa tobacco are studied more intensively to model the direction of building application solutions

About time: Researching the status of CMA in the cigagettes

manufacturing enterprises of The Vietnam National Tobacco Corporation from 2015 to the present

About content: Research on the cigagettes manufacturing

enterprises of The Vietnam National Tobacco Corporation, in which the content of accounting the cost of tobacco production is of special interest due to the diversity and complexity of this type of cost

5.3 Research Methodology

The thesis uses a combination of quantitative and quantitative research methods, in which, the method of calculation to learn and analyze the status of CMA in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation Quantitative research supports quantitative research by identifying topics that match the survey sample based on in-depth interview questions Quantitative research supports quantitative research by generalizing the findings with larger survey samples For research documents: Collecting, synthesizing and analyzing research works related to the application and completion of CMA at manufacturing enterprises in Vietnam and the world

For the method of quantitative research: The purpose of

quantitative research is to study the current implementation of CMA in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation From there, adjusting the scales reflects the affecting factors the application of CMA in research production enterprises To carry out quantitative research, the thesis uses methods such as: case study method; methods of group discussion, expert consultation to adjust the scale and complete the survey questionnaire; Methods of in-depth interview of managers, chief accountants, specialized accountants; Methods of processing documents such as systematization, synthesis, classification, comparison, analysis to build

a theoretical and practical basis for research and survey content

For quantitative research methods: Conducting the

construction of questionnaires on the basis of quantitative research results

in the content of quantitative research and conducting surveys The survey subjects are managers at all levels, chief accountants, cost accountants on factors that have influenced the application of CMA in manufacturing enterprises I'm doing research Statistical analysis methods apply to assess and analyze the impact of factors on the application of CMA in the above manufacturing enterprises The thesis uses SPSS 20 software to synthesize and analyze data according to the research contents Statistical results are presented in the form of tables, diagrams and graphs to draw findings on the status of the CMA in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation

6 Contributions of thesis

- Theoretically: Systematize and clarify more basic theoretical

issues about CMA in manufacturing enterprises with a combined approach according to information functions and according to the content

of work Therefore, clarify the content and meaning of the CMA in the production enterprises

Practical:

+ Study the status of tobacco insurance in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation, assess the impact of factors on the ability to apply the CMA

in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation

+ Proposing solutions and directions to complete the CMA in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation Solutions oriented to apply modern technology to use saving resources, improve economic efficiency, contribute to increasing the value for enterprises

7 Thesis structure

Chapter 1: Theoretical framework on cost management

accounting in manufacturing enterprises

Chapter 2: Study of the situation of cost management accounting

in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation

Chapter 3: Solutions to complete cost management accounting

in the cigagettes manufacturing enterprises of The Vietnam National Tobacco Corporation

CHAPTER 1: THEORETICAL FRAMEWORK ON COST MANAGEMENT ACCOUNTING IN MANUFACTURING

1.1.2 Cost Management Accounting

MA is a part of the MA and has three main tasks, (1) Performing the function of collecting, processing, analyzing, synthesizing, presenting and reporting on financial information, non-financial information, past information and predictive information for managers to help perform the inspection function, supervision, planning and decision-making; (2) Providing and advising useful, timely and strategic forecasting information to all levels of management within enterprises; (3) As an important link in the enterprise-wide management system, implemented incombination with modern management techniques, management level system, human resources system in the departments performing work to form a unified body to realize the objectives of enterprises, improve the efficiency of resource use, save and eliminate redundant activities, constantly increasing the value for enterprises

1.1.3 Cost management accounting with management function

CMA supports corporate managers to perform planning functions, organizational functions, inspection and evaluation functions, decision-making functions

1.2 THEORY OF CONTRAST AND APPLICATION IN COST MANAGEMENT ACCOUNTING

1.2.1 Theory of contrast

Research and apply this doctrine to identify and analyze the limited factors that hinder the realization of the objectives of the enterprise

1.2.2 Application of theory of contrast (TOC) in cost management accounting

"In the process of managing the business, business managers always want to have the appropriate source of information to make optimal decisions, so it is necessary to build an information toolkit TOC

is an important part of this toolkit, providing unique insights and a focus

on ongoing challenges in identifying products and services to maximize added value and profitability on the part of customers" (IMA, 1999, p.1)

The process of applying theory of contrast: in 5 steps(Reid,

2007)

* Application of TOC in combination with the technology of CMA for management functions

- Serving the function of cost control: CMA will combine with

TOC to detect bottlenecks incurred wasteful costs in an invisible and tangible form such as delayed costs from supply activities, waiting costs

of machinery and equipment, workers at the production stage after waiting for the pre-production stage to move to excess supply costs cause waste of warehouse costs, storage costs the cost of producing excess results causes stagnation of output, incurs warehouse costs The application of combining TOC with JIT (just in time) rules is both timely and sufficiently used at all stages from supply, production, distribution will minimize wasteful costs that do not increase value

- Serving the function of consulting and decision-making:

TOC combined with traditional recording tools, monitoring, reporting, analyzing, detecting bottlenecks, production options create different profit lines from which advice helps managers handle bottlenecks, choose production plans, supply and distribution bring maximum profit to the business

- Serving the function of optimal use of resources, increasing enterprise value: TOC combined with MAC tools such as ABC helps

enterprises monitor the production process, operate according to the flow

of costs, thereby accurately calculating the cost of products, on the basis

of which advising managers on price strategy, build a reasonable, accurate and strategic forecasting system The combination of TOC and ABC helps business managers identify and manage the cost flows incurred without adding value, contributing to advising managers on production options, operating to make optimal use of finite resources and constantly increasing the value of enterprises both in the visible aspect, invisible

In addition, CMA uses TOC in combination with other management tools such as Lean lean management, a tool to evaluate achievements through kpi measurement index system, BSC to help manage, make optimal use of available resources and constantly increase the value of enterprises

ACCOUNTING IN MANUFACTURING ENTERPRISES

1.3.1 Identify and classify costs

In enterprises, there are many activities serving the SSC

process, each activity incurs one or more types of costs Based on the management objectives of NQT, there are different ways of classifying costs as according to the use of costs, according to the relationship with the level of operation, cost factors,

1.3.2 Cost of budget

(1) Standand cost

Developing cost norms is an important stage of resource control management and monitoring of the implementation process The closer and more detailed the development of the standand cost for all types of expenses incurred helps the manager to plan and allocate resources appropriately Standand cost are set for factors of production cost and

non-production costs

(2) Cost of budget

Based on the cost norms system that has been built, enterprises build the estimating system This process helps manager develop a reasonable resource allocation plan and through the process of implementing cost estimates to monitor, control the implementation and

use of resources in the enterprise The more detailed the estimate for all types of costs, the easier and more reasonable the process of compiling the overall estimate of the enterprise Combining static and flexible estimating methods will help businesses to spare resources and be flexible

in dealing with unforeseen problems in the future

1.3.3 Collecting information cost

This is the process of collecting costs and collecting cost information for the corporate governance objectives of the CMA Based

on information sources, methods of collecting information, methods of determining costs for the CMA to determine the costs incurred for the object, for the implementation process, for the location of implementation build a cost reporting system according to the information needs of the enterprise administrator This information advises managers: control of attrition resources, closely assess implementation costs, choose appropriate cost methods, adjust implementation plans, make price decisions in the competitive market

When collecting cost information, the CMA should pay

attention to: The source of information collected; Methods of collecting and systematizing information cost; Method of determining costs The contents to be concerned, implemented:

(1) The process of collection Cost

(2) Method of determining the price of fees

(3) Application technique for determining costs

1.3.4 Analyzing and providing information for corporate governance

According to IFAC (2002), the function of the CMA in phase 4

performs 3 major functions: one is to serve the control function, the other

is to serve the function of decision-making consultancy, the third is to

serve the function of effectively using resources to increase value for businesses The thesis defines the contents of the CMA in this work including:

Analysis and provision of information for control functions Analysis and provision of information for the function of advising managers

Analyzing and providing information for the purpose of increasing the total mobilization of resources in the enterprise, increasing the value of the business

When implementing the CMA, businesses can apply tools such

as operation-based, lean management Lean manufacturing techniques will help manufacturing enterprises eliminate a lot of waste during operation Maskell (2007) established a four-step transformation model: (1) Maintaining the current accounting system and current methods of control, but began to cut the costs that were clear and visible within the scope of the production process; (2) To reduce transactions as well as unnecessary expenses during the review of production reports as well as

to try to reduce the amount of unfinished products; (3) Linking waste reduction to the current accounting cycle of the unit as well as the sales, production and distribution cycle to perform in a more holistic manner; (4) Gradually transfer of operations incurred with new ways of calculating costs according to the steps cut above in order to have a complete production process

Within the scope of research, the thesis said that for enterprises that are just starting to apply lean accounting should only be carried out for lean production activities, managing the flow of value in the production activities of the unit

1.4 AFFECTING FACTORS THE APPLICATION OF COST MANAGEMENT ACCOUNTING IN MANUFACTURING ENTERPRISES

1.4.1 Basis theories

Scientists around the world have conducted research and attempted to explain the application of the theory of CMA in enterprises affected by which agents through the underlying theoretical basis system, such as: Random theory; Representative theory; Sociology theory; Institutional theory; The theory of relationship of interest, cost The thesis summarized the system of background theory, the impacts on the CMA and the theoretical framework model for applying CMA in

manufacturing enterprises

1.4.2 Develop a research model for factors affecting the application of cost management accounting in manufacturing enterprises

From previous studies, the thesis exported a model of research

on factors affecting the application of CMA in manufacturing enterprises:

The Legal

Regulations

(ROL)

Pressure from the government

Pressure from local authorities Pressure from the mother

Pressure from public health organizations Business

Environment (EOB)

Input resources of the production process Market demand

Competitors Social problems

Employees with deep expertise in CMA Having experience and appropriate application of the implementation of CMA in the business lines of enterprises

ACCOUNTING OF COUNTRIES AROUND THE WORLD

The thesis summed up the experience of cost management accounting in a number of countries with representatives of developed countries, which have many similarities with Vietnam, From there, we have learned some lessons for our manufacturing enterprises

1.5.1 Cost Management Accountant in Japan

1.5.2 Cost Management Accountant in China

1.5.3 Cost management accounting in some Southeast Asian countries

1.5.4 Lessons learned from cost management accounting for Vietnam

- Lessons on information provision to strengthen control, internal control, orientation control in countries that emphasize safety, collecticity, reduce loss of economic resources in CMA activities

- Lessons on providing useful information for decision counseling

- Lessons on providing information to help managers identify, be aware and strategic in effectively using finite resources, constantly mobilize resources to increase business value

CHAPTER 2: THE STUDY OF THE SITUATION OF COST MANAGEMENT ACCOUNTING IN THE CIGAGETTES MANUFACTURING ENTERPRISES OF THE VIETNAM

NATIONAL TOBACCO CORPORATION

2.1 OVERVIEW OF TOBACCO PRODUCTION AND TRADING ACTIVITIES IN UNITS OF VIETNAM TOBACCO CORPORATION

The Vietnam National Tobacco Corporation was established in

1985 specializing in producing special products, which, although bringing large revenues to the state budget, are not encouraged to consume The Corporation is on the way towards the goal of building into

a strong economic group in the tobacco and food industry sectors, so far there have been 18 subsidiaries, 15 affiliated companies (Figure 2.1)

Diagram 2.1 The Vietnam National Tobacco Corporation

Organization Diagram

Source: The Vietnam National Tobacco Corporation Website

Production organization process in tobacco productionenterprises: The process of tobacco product processing

technology at tobacco products in vietnam tobacco exports is complex continuous processing style, organization of production is much and stable, production cycle is short and continuous alternating, half of the finished product at the previous stage is transferred to the next stage to continue processing, not sell half the finished product out

Diagram 2.1 The technology process of Product

Put the cigarett

e into a

Tobacc

o

sliced leaves into

Roll yarn into a

Product quality inspection

Importing finished products

* Characteristics of organizing accounting in the cigagettes

manufacturing enterprises of the Vietnam National Tobacco Corporation: Enterprises do not organize separately and do not have

specialized employees in terms of information technology, mainly accounting staffs of production costs and responsible for some contents

of the CMA as required and assigned by the chief accountant closely apply circular No 200/2014/the document of Ministry Finance issued on December 22 of the Minister of Finance and circulars guiding amendments and supplements of the Ministry of Finance

* Characteristics of tobacco industry in the cigagettes

manufacturing enterprises of The Vietnam National Tobacco Corporation: Enterprises are applying Circular 53/2006/the document

of Ministry Finance on guidelines for applying tobacco technology in enterprises All enterprises shall classify, control and evaluate costs according to each sector and department of operation; to review and evaluate product costs, mainly prices in each production process; Collect and analyze data from which to establish appropriate information, serve the construction of selling prices, short-term and long-term business plans according to each field and department of operation

ACCOUNTING IN TOBACCO DNSX UNDER VIETNAM TOBACCO CORPORATION

Survey thesis at 12 cigagettes manufacturing enterprises of the Vietnam National Tobacco Corporation Survey subjects: cost-intensive accountant/chief accountant Survey method: direct interview with CMA specialists (or accountants assigned equivalent tasks) Survey results: 12 employees/12 businesses agreed to answer To illustrate the survey results, the thesis selected a case study for the content of the CMA in Thanh Hoa Tobacco Co., Ltd., Thang Long Tobacco Co., Ltd., Ben Tre Tobacco Co., Ltd

2.2.1 Status of cost identification and classification

The surveyed enterprises all categorize costs based on two criteria: sorting costs by factor and classifying costs by cost item in the total cost There are two units, Thang Long Tobacco Company and Saigon Tobacco Company (accounting for 16.7% of the survey units) to classify costs according to the level of operation, but the application is

still narrow-scale testing

2.2.2 The state of norming and estimating costs

Enterprises that are members of the Vietnam National Tobacco Corporation comply with the general system of economic and technical standard of the tobacco production industry prescribed by the tobacco industry However, in order to match the specific production conditions

at the unit, enterprises rely on the general prescribed standard system of The main firm to build their own standard system for their units to orient and control the actual costs incurred during the period The cigagettes manufacturing enterprises mainly sets standard for direct raw material costs, many of which do not set standard for other production costs and non-production costs

* The reality of making cost of budget

Based on the technical economic standard that the cigagettes manufacturing enterprises has developed and the expected production plan, 100% of the survey units make an estimate of the cost of raw materials and make cost estimates according to static estimates Only 16.7% of the manufacturing enterprises make estimates for expenses incurred other than production costs and usually make them once at the beginning of the accounting year The purpose of estimating other amounts is to help the unit quantify and plan allocation for the year of implementation and to the subsidiaries

2.2.3 Current situation of collecting cost information

(1) Method of determining costs

100% of enterprises choose the traditional cost-gathering method

of each workshop or each production department, this collection applies

to the main products under the exploitation and production of enterprises

100% of the enterprises surveyed applied the method of determining the actual cost in combination with norms, methods of determining costs from a modern point of view are almost unused

(2) Method of calculating product prices

100% of enterprises calculate the cost of producing finished products according to the total cost method The method of calculating prices is selected by enterprises: simple method of calculating prices, allocating The cost of labol and the cost of general product according to the conversion output; or applying by coefficient method; or calculate the price according to the order