Research On The Application Of Standard Cost Method In X Small And Micro Manufacturing Enterprises

Manufacturing industry occupies an important position in my country’s national economy.Due to the rising prices in recent years and the impact of the epidemic,some manufacturing companies have stagnant sales and stopped production,and the profit margins of the manufacturing industry are getting smaller and smaller.There are a large number of private small companies in my country’s manufacturing industry.Some small and medium-sized manufacturing industries do not have specific cost accounting methods,lack effective cost management,and are difficult to adapt to the fiercely competitive market environment.To this end,combined with the cost reduction aspect of the "supply-side structural reform" policy issued by the state,this paper studies and strengthens the cost management of the small and micro chemical manufacturing industry X company through the standard cost method,and standardizes the accounting method to increase the cost.Accuracy of accounting,effective monitoring of enterprise costs,and thus put forward the basis for cost management assessment.The standard cost method is an effective cost management tool by formulating standard costs,analyzing the difference between actual costs and standard costs,and then distinguishing the responsibilities of relevant parts and implementing cost control in a targeted manner.This paper mainly focuses on case analysis,combining literature investigation and actual interview investigation,to investigate and analyze the internal cost management status of small chemical enterprise X Company,find out the problems existing in its cost management and control,and analyze the reasons for these problems.,to discuss the necessity and feasibility of applying the standard costing method to it,and on this basis,combined with the actual situation of X Company,it proposes an application scheme of the standard costing method.Through on-the-spot investigation,this paper finds that X Company has problems such as complicated and extensive process cost accounting,poor cost management effectiveness,and general performance target setting.The amount of direct materials is not controlled,and most of the cost management processes are managed by experience.Since the supply of raw materials and the production and sales of products of Company X are relatively stable,and the degree of standardization of its production equipment and production process is relatively high,it is necessary and feasible for Company X to apply the standard cost method.This paper proposes a plan for applying the standard cost method for Company X,including the specific formulation of Company X’s standard cost and cost control under the standard cost method.Under the guidance of formulating principles,when formulating standard costs for company X,the cost items of materials,labor and expenses should be distinguished,and they should be formulated according to material technical standards and price technical standards,using empirical data,on-the-spot measurement,and market pricing.For the standard cost of different projects,after the standard cost is initially formulated,it needs to be tested and inspected by the relevant technical personnel and then applied.The follow-up may involve regular adjustment or exception adjustment according to the situation.The application of standard costing method for cost control includes setting goals in advance,standardizing operations during the event,and analyzing and feedback after the event.After discussing with the company management personnel,the standard costing method proposed in this paper will be put into trial operation within the company for one month.There are assessments and rewards and punishments.The awareness of cost control and responsibility of all employees and departments will be improved,which will help improve the comprehensive management level of the company.,Improve economic efficiency.It is hoped that this paper can bring some reference methods to the application of cost management methods for small and medium-sized manufacturing enterprises,and help more small and medium-sized manufacturing enterprises to improve cost management,improve operating costs,strengthen cost management,strengthen cost analysis,and Optimize cost assessment methods.