Research On The Cost Control Of AK Company

With the development of science and technology and the changes of economic environment,foreign and domestic competition pressure that the enterprises are facing are larger.If the enterprises wish to obtain the sustainable competition advantage in the fierce market,they must make a careful plan,strengthen cost control and seek the path and methods to reduce the cost.The traditional cost control mode is a kind of cost control oriented by production,which has been unable to meet the actual needs of management with the change of enterprise’s technological progress and product structure.This article takes AK Company as the study object and makes a study on the application of cost control methods in this enterprise.Through access to a large number of documents,the article analyzes the process and status of its cost control and finds out the problems of AK Company’s cost control which include that cost accounting procedure can’t support the need of cost control,and it was lack of strategy awareness of cost control,cost control system and systematic cost control.Aiming at these problems,the article makes in-depth analysis of the view of cost control and its feasibility of implementation based on Activity-Based Costing and applies this theory and methods on AK Company.When the enterprises use Activity-Based Costing Control,it will widen the scope of cost accounting object,better meet the requirements of accurate cost data of cost control and be benefit for enterprises to make the right decisions.Under the Activity-Based Costing system,the focus of AK Company’s cost control has witnessed the fundamental changes,which turns to Activity process and center from units and individuals.Under the condition of the continuous improvement,the transformation of cost control’s concept would increase the revenue,reduce costs,improve asset utilization rate,improve the core competitiveness of the enterprise and enhance the future development potential of AK Company.Finally it would provide the reference for AK Company to further improve the benefit and be of much practical application value for the enterprises.