Research On Cost Management Of RG Companies Based On Activity-Based Costing

The transformation and upgrading of manufacturing industries and the use of advanced manufacturing technologies have caused great changes in the cost structure of manufacturing enterprises in our country.Manufacturing costs in the proportion has greatly exceeded the cost of labor,which has become a key factor in determining the size of the product cost.However,the traditional cost accounting method based on direct labor-sharing manufacturing cost and the cost management method that derived from it have not been able to meet the needs of modern enterprise costing and cost management because they have not given enough attention to the distribution and management of manufacturing costs.And the cost-based operations and cost management methods can only solve the enterprise cost accounting and cost management issues.What's more,the academic research on ABC is mainly conducted on the theoretical level,and its applications are rarely described.In this paper,the author takes RG company as a case to study on the application of ABC in the enterprise.First of all,the author analyzes the main problems that RG company has in ABC and management,such as inaccurate cost accounting and pricing,distortion of cost management information,etc..;and as the proportion of manufacturing cost increases,RG Company realized that the traditional cost accounting method has been Not suitable for the development needs of enterprises.With the support of RG's management and the sophisticated application of information system,it is possible to use the ABC method for cost accounting and management.Then,taking the main product of RG company as an example,the author uses the ABC method to solve the company's existing cost accounting and other issues.In addition,activity-basedvalue chain management is based on RG's A product.Analyze and identify the value chain of A product on the basis of costing using ABC method,eliminate non-value-added operations and the value chain is optimized.Finally,put forward feasible scheme and system guarantee for the cost accounting and management of RG company.In this paper:(1)As the proportion of manufacturing costs increases,traditional cost allocation methods and cost management expose the problems of cost accounting and management,which leads to problems such as inaccurate product pricing and distorted cost information.Therefore,RG Company has the necessity of implementing ABC and possesses the feasibility of high-quality personnel,management support,the high proportion of indirect costs ratio.(2)The difference between the cost accounting under the traditional cost method after using the operating cost accounting,and the fact that the ABC method is more accurate.(3)By analyzing the management of activity-based value chain,identify non-value-added operations,so that it can achieve a reasonable allocation of resources to optimize the purpose of the value chain.Nowadays with the transformation and upgrading of manufacturing industry in our country,the research of this paper has some practical significance for the accurate cost accounting and cost management of small and medium-sized manufacturing enterprises.