Research On The Cost Accounting Of Hunan Motor Spring Manufacturing Enterprise

Cost accounting is the process of tracking, accounting and controlling the cost ofproducts and services. Unlike the initial function of cost accounting, modern costaccounting not only be asked to provide cost information, but also be required toprovide information security on planning, controlling and decision making formanagers. At present, the traditional cost accounting method is widely used inenterprises and other institutions, but cannot accurately reflect auxiliary costs andindirect costs in the practice of enterprise management. The accounting results cannotshown loss of waste products separately. However, Material Flow Cost Accounting(MFCA) can effectively overcome the one sidedness of traditional cost accountingmethod. It separately recognizes and measure waste costs, so that make costs andlosses in the manufacturing process are clearly visible and effective to ensure theauthenticity and accuracy of the measurement of product costs and losses.This thesis mainly uses the case study method to analyze traditional costaccounting problems of a motor spring manufacturing company in Hunan provinceand provide a feasible solution. Firstly, this thesis presents the background andsignificance of the topic, describes the domestic and international literature reviewrelated to MFCA, and puts forward to the idea of writing and research framework.Then, in the theoretical section, explains MFCA concepts, basic elements,characteristics and comparison with the traditional cost accounting. The case studypart describes the status of a current cost accounting of the Hunan motor springmanufacturing company and problems faced by the company. In order to solveproblems of cost accounting, this thesis introduced MFCA to account for importantproducts of the company. After a series of process, such as the identification of targetproducts and processes, the determination of MFCA calculation basis, data collectionand cost confirmation, deriving of accounting results from MFCA, identificationexisting problems in the production processes, the thesis put forward improvementmeasures of suiting the remedy to the case and achieve good results. Ultimately, itmakes successfully apply MFCA to the motor spring manufacturing company inHunan province.Case results show that:(1) Compared with the traditional cost accounting, thebiggest advantage of MFCA is the cost of visualization. It can track the material flow in the whole manufacturing process, find the reason from the flow loss and putforward the improvement scheme.(2)MFCA put all costs into the scope of accounting.In the cause of loss of inquiry, not only can find the factors of material input, defectsand can find technology, achieve in all aspects of the production process to improvethe technology.