Research On Production Cost Management Of Tongda Company

In the global economic competition environment,the cost is rising,and the demographic dividend with competitive advantage in China is gradually disappearing.As a big manufacturing country,how to reduce the cost of enterprises,because the cost of production accounts for a very large proportion of the whole manufacturing enterprises,especially for the long-term survival of manufacturing enterprises to reduce the cost of production.Existence and development play an important role.Tongda Company is a private enterprise and now is a large enterprise in the plastic products manufacturing industry.Its products have very strong seasonality and occupy more than 90 % of the market share of similar products.All its products are exported to European and American countries.As a large private enterprise with Chinese characteristics growing up from a small private enterprise,with the continuous development and growth of the company,the business volume of the enterprise continues to grow,the variety of products is increasing,the seasonal nature of products is strong,the fixed cost of maintaining production capacity to ensure timely delivery is very high,the production process of the product itself is complex,some of the processes rely heavily on labor,the whole enterprise is densely staffed,the staff mobility is large,the organizational structure is complex,the job responsibilities are unclear,and there is no performance appraisal,and management is still like a small enterprise model that only attaches importance to the four links of ordering,production,shipment and delivery,with the average age of employees being older,the majority of enterprise management being older,with a lower average level of education and lower level.Although the whole enterprise has made the self-made strategy of the whole product link,thus improving the overall profit margin,the production cost still accounts for a very high proportion compared with the sales revenue,with low profits,labor costs,raw material costs,manufacturing costs and other expenses all rising continuously,but customers still demand lower sales prices every year.The enterprise has unfavorable factors such as competition in the same industry,government taxation,environmental impact assessment and the pressure to meet the standards of safety production inspection and the reversal of the global economic environment,and there are internal pressure on employees to continuously improve treatment and shareholders to demand dividends.Who can efficiently organize and mobilize enterprise production resources and reduce production costs will have a more competitive advantage in the market,resist internal and external pressure,survive and achieve greater development.Therefore,the establishment of cost analysis management control system and group,improve the level of production accounting analysis management and control,reduce production costs,development and expansion is the goal of enterprise management.In China where the demographic dividend is vanishing,the costs and expenses are rising continuously,and the customers demand price reduction every year,which brings enormous pressure to the continuous development of enterprises.How to allocate the resources of enterprises,organize production well and reduce production costs through scientific and meticulous management is very important for the survival and non-existence of Tongda Company.Breaking development and growth is particularly important.It also responds positively to China's strategic goal of achieving a manufacturing power in 2025.Based on the analysis of the present situation and existing problems of the production cost management of Tongda Company,this paper combs the present situation of the cost management of Tongda Company in advance,in-process and after-process,and re-examines the expense audit and reimbursement system,quota management system and responsibility of Tongda Company.Allowable Costing System,and through the application of management accounting guidelines in cost management,target costing,standard costing,variable costing,activity-based costing provisions of the general principles,principles to be followed,its application environment,application re-learning,as well as reference to the research results of the whole operation,the value of the link is large.On the basis of summarizing the thought of pattern layout,the paper establishes some systems for Tongda's production cost management and other aspects.At the same time,it also plans more detailed management objectives for Tongda.Finally,by using scientific management methods for reference,the detailed rules for implementing safeguard measures from the aspects of organization,system and informatization are formulated to solve the existing problems in production cost management of Tongda Company,reduce production costs,and improve management level and profit margin.