Research On Application Of Activity-Based Costing In SD Company's Cost Control

The third scientific and technological revolution is undoubtedly an important part of the history of the world economy.The mode of production has undergone tremendous changes because of the development of high technology.With the increasingly fierce competition in the market,many manufacturing enterprises have to change the traditional production mode.The key to the survival and value maximization of enterprises is how to effectively control costs under the new market environment and manufacturing environment.SD company is a domestic aluminum alloy casting company that produces auto parts.In recent years,the rise in raw material prices and the increase in labor costs are the dual pressures faced by the aluminum alloy foundry industry in China.The idea of strengthening the cost control of such enterprises has been rising.Although the company has taken some cost control measures,the effect is not satisfactory.The reason is that the proportion of SD company's indirect costs in product costs has risen.The traditional cost accounting methods that allocate indirect costs in a single way have the disadvantages of cost information distortion.It caused the company's business decision-making mistakes,product cost out of control,and then affect the effective operation of SD company's cost control.The purpose of this paper is to introduce activity-based costing into SD company's cost control and establish a product cost control system that is more in line with the actual situation of the company,so as to achieve the goal of reducing costs and increasing market competitiveness.This article first elaborated the related theories of ABC,cost control and operation cost control,and laid a theoretical foundation for the application of ABC in the cost control of SD company.Secondly,a more comprehensive analysis of the current status of SD company's cost control through a questionnaire survey,explained the SD company's cost control problems and analyze the reasons.Under the guidance of the ABC ‘s design principles,the construction of the activities-based cost control system is combined with the characteristics of the SD company's production process.Through the establishment of the SD company's operation center,the setting of cost control standards,the product cost accounting and cost variance analysis under the activity-based costing method proposes specific cost control measures forthe causes of the differences.Finally,the implementation of job management,giving a continuous strategy to reduce costs,make SD company cost control more standardized and effective,and enhance the competitiveness of enterprises.It is hoped that through the study of this paper,it can provide reference and help for the SD company and other enterprises in the same industry in the practice of activities-based cost control.