Cost Control Research Of AODA Textile Company Based On Resource Consumption Accounting

In recent years, constant innovation and development of technology and continuous change of economic environment has brought huge impact on survival and development of various enterprises in China. Thus, in order to adapt to complicated and changing operation environment and to assist enterprise managers to make decision through timely cost analysis, enterprises need a cost management method that can accurately reflect current operation and management status of enterprises. Traditional cost accounting method is no longer appropriate to current high and new technology. Activity—based costing is with high implementation cost. It only provides static monetary indices information and cannot clearly reflect consumption situation of sources. GPK cannot comprehensively present indirect cost information. Facing these statuses, it is difficult for cost control to proceed nowadays. A cost control method which can accurately reflect cost situation—resource consumption accounting emerges at the right moment. It combines activity—ased costing and GPK. It is resource—oriented. It can provide reliable information for enterprises to conduct cost control and for enterprise managers to make right decisions. It can powerfully improve comprehensive competitiveness of enterprises.Const control research has been made to Jinzhou AODA Textile Co., Ltd. with a cost control method based on resource consumption accounting. It mainly analyzed and designed according to cost control status of AODA Textile Co., Ltd. and analyzed exiting issues of AODA Textile Co., Ltd. by using correct cost accounting method. For specific issues, cost control was designed and executed on the basis of resource consumption accounting. Analysis and comparison has been made between control results of AODA Textile Co., Ltd. when using traditional cost control method and control results of the company after enforcing resource consumption accounting. It is found that consumption situation of resources can be traced back accurately through resource consumption accounting. In this way, managers can obtain more real decision information more conveniently. Various problems encountered in traditional cost accounting have been solved. And cost control efficiency has been enhanced obviously.Cost control of the company is improved and optimized with resource consumption accounting principle as research basis. Meanwhile, the company commits to change management accounting and mainly focuses on status of activity—based costing in the hopes of broaching the subject, enriching and expanding research field of management accounting as well as providing reference and practical basis for other enterprises to perform cost control with resource consumption accounting.