Research On Cost Control In R & D Phase Of Automobile Company

The openness and transparency of the market has contributed little difference with the similar products. For those companies, which aim at the sustainable growth in the industry,should invest much more proportion on research and development for the innovation in terms of promotion for new markets. However, the investigated data represents that the output for most of Chinese companies does not match with the input in the process of R&D as a result of concentration on the quantity of investments and the qualification of technical indicators, regardless of managerial control on R&D. Since R&D has played an important role in all sectors. It is known thatthe companies should focus on the reduction of costs to boast the profits they will be earned for sustainable developments, in spite of relying on the high technologies they would have had. Whilst the cost on R&D has attributed a small proportion of the total costs in the life cycle, the remaining costs for manufacturing will be decided in terms of qualification and the batch of engineering. It is recognized that any decrease of costs in the normal ways of production should be depended upon the restriction of purchasing and the improvement of labor efficiency. Consequently, a completed development contributes on cost controlling and innovation in terms of reduction of costs as well as improvement the cost indicators.This dissertation explores the state of cost control upon development of the firm B in terms of common rules of postgraduate thesis. Firstly, it is known that the article refers and invokes corresponding domestic and overseas’ theories to support the outlines of each chapter, which fully discusses the way of cost control associated Activity-Based Costing with Targeted Costing. Furthermore, it is required that the questions and solutions of the firm B in the process of development & engineering and cost controlling have been listed and summed up, which facilitate the improvement of the company B on the development.This article also indicates the necessity and feasibility of Activity-Based Costing and Targeted Costing, which illustrates the applied steps and procedures on firm B. It is aware that case studies can be executed and traced in this article in terms of applied Activity-Based Costing and Targeted Costing. The dissertation concluded that the state of applied Activity-Based Costing and Targeted Costing contributed to those companies,which have had higher proportion on research and development, and in turn, it is provided an example for implementing cost control on R&D companies.