Research On The Application Of The Combination Of Standard Costing And Activity-Based Costing In Iron And Steel Enterprise

Under the background of supply-side structure reform,manufacturing industry is difficult.As a big country of iron and steel production,how to develop into an iron and steel enterprise,especially the small and medium-sized steel enterprises,is worth pondering after the "cold winter" of overcapacity.Due to the lack of high-grade iron ore in the upstream of China's iron and steel industry,the bargaining power between iron and steel enterprises and upstream suppliers is weak.Downstream industries widely lead to a variety of customer needs,and their production mode changes to the direction of small batch and order type.Although the direct cost of raw materials and fuels is relatively high,but there is little room for control,it is necessary to start with indirect costs in cost control.However,there is a great deal of cost control in iron and steel enterprises today.Most adopt the standard cost method,pay attention to the analysis of results and lack of control over the process,focus on the control of direct cost and lack of analysis of indirect cost,which is not conducive to the improvement of competitiveness of steel enterprises.Under the requirement of refined cost management and control,the cost management and control method of iron and steel enterprises should pay more attention to many advantages of process control in modern operation management thought.On the basis of standard cost theory and activity-based management theory,this paper analyzes the advantages and disadvantages of the two in cost control,and discusses the steps concrete application of the combination of standard cost method and activity-based costing method.Taking SJZ Iron and Steel Company as an example,this paper introduces the general situation of the enterprise,the production process of the product and the current standard cost control system,and analyzes the necessity of combining the standard cost method with the activity-based costing method: the manufacturing cost of iron and steel products accounts for a relatively high and controllable cost characteristics.There are many problems in the current cost management of SJZ Iron and Steel Company,such as extensive cost management,difficult to run through the production process,single cost management system and so on,from information water.This paper demonstrates its feasibility from three aspects: flat height,high personnel quality and strong awareness of cost control,and draws the conclusion thatSJZ Iron and Steel Company urgently needs to change the cost management method of manufacturing cost,and needs to be refined and strengthened in the process of cost management.Therefore,the standard cost method and activity-based costing method are combined in the steelmaking link of SJZ Iron and Steel Company: direct materials and direct labor still use the standard cost method to determine the standard cost and carry on the cost control;The cost performance of indirect cost is analyzed concretely,and the standard cost is worked out and the cost control is carried out on the basis of activity-based costing,and the standard cost is advanced with the standard cost established under the traditional standard cost method.Compare and find out the cause of the difference.Finally,it is concluded that dividing the operation center based on the production process and formulating the standard cost can improve the scientificity and rationality of the standard cost formulation,facilitate the pricing of the product,enhance the bargaining power with the customers,and optimize the product structure.It is convenient to control the production process of the product in real time.Through the above research,it is hoped that it can provide a reference template for cost management and control of iron and steel enterprises.