Research On The Cost Control Of Steel Enterprises Based On Activity-based Costing

Steel is a very important raw material in the human production and life, steelindustry has an important position in the national economy, however, there is anincreasingly competitive in the steel industry, in order to win in the fierce competition,controlling and reducing costs has become an important way to iron and steelenterprises to improve efficiency and enhance the competitiveness. But now in themost companies, cost controlling is still traditional cost control mode of productionsite control that can not provide accurate information about the real cost of theproduct and thus not conducive to the timely development of effective managementdecisions. In the paper, the cost of the advanced control mode used in Qian’an Ironand steel company to establish a new regulatory framework for operating costs, tochange the company’s cost management system, to improve the company’s costmanagement level and competitiveness.This paper describes the theory of activity-based costing and cost control, usingcorporate interviews and field survey methods, I went to the internship to research theproduction and management, information management systems, financial accountingand management systems, craft production processes and other business conditions ofQian’an iron and steel enterprises. The paper analyzed current cost management,pointed out the problems of the company and the necessity and feasibility ofimplementing activity-based costing, and then used a combination of theory andpractical methods, under the correct guidance of the relevant theory study, designedoperating cost management based on the basic idea proposed ABC cost managementcontrol system. Finally, the paper putted the implementation into practice in thecompany’s steel-making plant in the system and proposed the implementation of costmanagement based ABC control safeguards system.