Research on the Impact of the R&D Department on Corporate Cost Expenses and Optimization Pathways

Dingfu Zhang

Chengdu Vocational University of the Arts

Abstract：

Corporate cost management often focuses on the production backend, neglecting the decisive role of the R&D phase in the cost structure. Over 70% of a product's cost is solidified during the R&D design stage. This paper selects two A-share listed companies, SMIC and BYD, as research subjects to analyze the mechanisms by which the R&D department locks in corporate cost patterns through three pathways: material selection, process routes, and resource utilization. The study finds that the main issues leading to ineffective R&D cost control are the ambiguity of cost sharing in the shared R&D-production model, insufficient budget rigidity, and departmental collaboration barriers. The article proposes optimization strategies from three aspects: refined pre-budget management, R&D-production linkage mechanisms, and standardized accounting, providing a reference for enterprises to build a proactive cost control system.

Key Words：

R&D costs; integration of business and finance; manufacturing expenses; budget control; SMIC; BYD