Research on refined cost management in enterprises based on the integration of business and financial systems

Abstract

In the context of economic globalization, enterprises should focus on the integration of business and finance and leverage refined cost management methods to continuously improve their cost control capabilities. By effectively managing costs, enterprises can achieve higher profits. This paper first proposes a method for refined enterprise cost management based on the business-finance integration model. It designs an algorithm that integrates the classic ID3 decision tree with principal component analysis, thereby circumventing the limitations of pre-pruning. This approach enables the selection of more representative decision attributes, reduces the time required for decision tree modeling, and enhances the efficiency of the modeling process. This method is applied to a real-world cost management case study at E-commerce Company A. Analysis of indirect cost allocation across various production processes reveals that, within the production operations center, the three processes—cup body and base stamping, bottom heating, and rim curling—take the longest to complete. These processes account for as much as 36.61% of total production indirect costs, and the scrap rate for defective products is significantly higher than the industry average. This demonstrates that the method proposed in this paper can resolve the issue of unreasonable cost allocation at Company A, enabling the tracing of resources to specific operations and allowing the company to implement effective control over cost allocation.