The Research On Product Cost Control Of Z Company

The product cost plays an important role in the survival and development of enterprises.The cost level determines the profits of enterprises.Enterprises could get a better profit return and promote the development and growth through good cost reduction.With the development of industry and the advent of the electronic age,globalization and internationalization bring increasingly fierce competition among the manufacturing concern.The market has gradually become saturated.The manufacturing brands have to compete on price to gain more market share.The product cost control of the brands has become a management focus.Z company who produce sanitation trucks is under the competitive environment.Whether it will make progress or not is determined by the level of product cost.To form its own competitiveness,Z company has to strengthen cost control based on standard cost variance analysis,reduce product cost,and improve management level and comprehensive strength.This article introduces cost control method like standard costing,target costing,lean manufacturing and activity based costing with related theory of cost control.And then it introduces the profile and current cost status of Z company.It also analyzes the problems both during design stage and mass production stage.Afterwards,this article finds out the reason why the problems occur.It raises the solutions for cost control improvement of Z company then.Product design and direct material cost variance is the key stage of cost control.Besides,this article raises safety precautions of the solutions for cost control improvement of Z company at the end of the article.By implementing the solutions of cost control improvement and safety precautions,Z company realizes that the cost control is not only cost reduction during mass production stage but also during the product design stage.The scope of cost control is extended to design stage.Product cost is prevented and controlled from the beginning design stage.The continuous reduction and improvement are implemented during mass production stage.It forms an attitude that "Everybody is responsible for cost control" which runs through all over the production and business section.