Research For Cost Control System Construction Based On Abc

Scientific and reasonable cost control system is the key factors for the enterprise to reduce the cost and achieve a lasting competitiveness. The accurate cost information not only can improve the validity of enterprise cost control and the efficiency of cost management, but also can reduce prices, improve product quality, expand market share and other strategic objectives. However, high and new technology and network technology bring impact to enterprises, cost structure is complex increasingly and customers’ needs diversified and personalized, all of these require enterprises to change the traditional cost management thoroughly.Activity-based costing method, which effectively overcomes the shortage of traditional cost calculation method for the allocation of indirect costs caused by uneven cost information distortion defect, passes into China in90s. It not only comes to an agreement in theory, but also has been widely used in practice. Based on the existing activity-based costing theory and cost control theory, the paper summarized and absorbed the domestic and foreign research results, then analyses the existing problems in-depth. In the advanced manufacturing environment, the allocation of indirect costs is imprecise in enterprise generally, the cost information distorted, cost control standard single and control efficiency low. So this paper combines the activity-based costing and the" benchmark-model " dual-cost control standard together, then produces a new cost control model. The new cost control system absorbs the advantages of activity-based costing, and overcomes the shortcomings of traditional cost control supervision and incentive paradox. The article not only obey the thought" cost of operation, exercise drains resource ", track activities in dynamic and highlight the cost advantages, but also, to a certain extent, solve the enterprise standard of cost control in the process of establishing the supervision and encouragement of contradiction through the establishment of dual control standards, which highlight the people-oriented management concept. The activity-based cost control system not only provides more accurate cost information for the enterprise cost control, makes the enterprise cost control activities more dynamic adaptability and humanization, improves enterprise cost control system and cost control validity, and provides reference for tap fully the enterprise cost reduction potential. There is a need to explain, the dual standard of cost control is not derogatory. It is based on a basic of human ability and self transcendence. It puts forward new cost control system in a predefined standard. The purpose is to solve the traditional cost control system supervision and incentive conflicts, and to play the dual role of supervision and excitation fully so as to arouse their enthusiasm, develop their potential and really achieve the effect of cost control.The normative research and case study are mainly used in this paper so as to research the activity-based cost control system. The article consists of five parts:The introduction part mainly introduces the research background, purpose and significance, summarizes research status at home and abroad and explains the main research content and research methods. The first chapter introduces the activity-based costing and cost control theory. This part introduces the main concepts of the activity-based costing and activity cost accounting procedures. The theory of cost control mainly introduces the whole process of cost control theory and dual-based cost control concept. The focus of the double cost control, which is an emerging concept, is the reason and the real economic activities in the common existence of double standards. The second chapter summarizes the traditional cost control, introduces the characteristic of traditional cost control and its limitations exposed in modern economic environment. The three chapter designs the dual-based control standard cost control procedure. Firstly, introduces the thinking of building the whole system and then explain the principles in building process. The whole cost control system based on the activity-based costing, and divided three links which contain prior, during and after control. In addition, this paper adds cost control system evaluation and continuous improvement mechanism in the difference analysis and performance evaluation. In the fourth chapter, based on the CAIG data, the paper verified the activity-based cost control system raised above, with exception it can provide reference for the system operation successfully. Then the conclusion gives advises for using Activity-Based Cost control procedure. In conclusion, this paper combines the supervision and incentive effect of dual control standards and activity-based costing advantages, and establishes an Activity-Based Cost Control system.