Research On Raw Material Cost Control Of Company C Based On Standard Costing Method

Under the national strategic plan of “One Belt and One Road”,China put the policy of industry structure upgrade and optimization into practice.The new policy carries out a mode of container on multi-type transportation,thus the container manufacturers are facing unexpected challenges and opportunities.The company C,which mentioned in this thesis is a state owned enterprise which mainly produces containers and its cost of raw materials has reached 60% of the price of its final products.This thesis will first analyze C company's cost control of raw materials as a gate,in order to find problems and propose solutions with certain cost accounting theories.Finally,this research will discuss the feasibility about standard costing method and how this cost control method can help company C implement the strategy of cost leadership and consolidate its competitive position.This thesis will conduct study from the following parts: Part 1,introduction,this part will briefly summarize current cost accounting backgrounds,explain the purpose of this thesis,using appropriate tools,approaches,methods and theories.Part 2,cost accounting literature review and methodologies,this section will present cost accounting methodologies,theories,meanwhile,it will show relative research papers and findings in detail.Part 3,the background of C company's cost control,this section will generally introduce C company's entire background and technically state the current application of standard costing method.Meanwhile,this part will present the existing problems in procurement,requisition and utilization process.Part 4,improvements for C company's cost control based on standard costing method,this sector will discuss the application of standard costing method in C company's cost of raw materials.It suggests the company to establish a ranking system for standard cost variances,particularly on procurement,requisition and utilization process.Also,it compares the results of “before and after” application.Part 5,supports for these improvements,this part reviews that the reconstruction of cost control progress,the training of cost savings for entire group and the incentives for cost saving activities and individuals will help the improvements to be implemented.Finally,the conclusion will be presented.The objective of this thesis is to explore C company's cost control of raw materials,in order to improve its cost saving strategies and help it keep dominant position of cost leadership.This thesis can be a reference for other relative researchers and enrich the literature.