The Method And Application Study Of Activity-Based Cost Control By Objectives

As China joins WTO, the competition that the enterprise faces is becoming fiercer with the globalization of the market day by day. To survive and develop, The enterprise must take every measure to low costs and carry on the production at the cost which is lower than the rivals. The paper studies the traditional cost control theories, putting forward that combining target cost control (TCC) with activity-based cost control (ABCC) is the trend of enterprise cost control.Based on the research of domestic and international cost control theories, the paper analyzes the feasibility of applying ABCC in our country, proposing concrete lessons from the train of thought used by activity-based cost control. Otherwise, it sets up the system of activity-based cost control by objectives tentatively and carries on comparatively detailed case study.The system of activity-based cost control by objectives is formed of the three subsystems: feed forward, course and reaction control. Concrete saying, firstly we should set up the activity-center, define the standard cost and resolve the index ring upon ring to every activity-center cooperating with the goal of enterprise. Especially this kind of standard is the dynamic standard, which is up to the market constantly changeably. Then we can utilize the activity-based costing to calculate the actual costs of the activities and products. Finally by carrying on comparative analysis of real activity cost and standard activity cost, we can carry on the activity management, reduce the cost of goods further and more effective to reach the goal of lowering costs.The difficulty of applying cost control is the implementing. For this purpose, the paper researches on how to found the simulation market-oriented cost, how to build the target costs, and how to decompose and allocate the target costs in Liyan Mining industry of swallow Co., Ltd. After designing the system of the activity-based cost the author carries on concrete application. Regarding the firm' actual condition, the author lays out the consumption quota of all kinds of resources. For formulating the rational standard, the author has strengthened the management about consumption quota of all kinds of resources, at the same time, developing the corresponding software. Among them it is mainly formulation and control to the quota consumed by materials. By applying the system to the coal enterprise, the author has carriedon feasibility analysis of the theory. As conclusions, the activity-based cost control by objectives is a kind of new-type cost control which accords with the advanced manufacturing environment, Though at present in our country the conditions that we adopt the system are not very much ripe, undeniable it will be the development trend that the cost will be controlled in future.