Research On Cost Management Optimization Of K Company

The management accounting tools used in the field of cost management mainly include target costing(TC),standard costing(STC),variable costing(VC)and activity-based costing(ABC).Enterprises should follow the principle of integration in the cost management,applicability and cost-effectiveness principle will be also embedded in the cost management in all areas,levels,links,and cost management responsibility to person,controlled in place,rigorous assessment,and target implementation.However,many scholars and enterprises on broad and abroad have different opinions and practical operations on how to combine the above-mentioned cost management accounting tools and bring them into full practice.This paper draws lessons from the cost management guidelines of the Ministry of Finance and the research of scholars on broad and abroad,combines the specific cost management system and situation of K Company,and combines the target cost method,standard cost method and activity-based costing method together.Target cost method is introduced in project design,mold development and customer quotation stage.Target cost is set according to the market orientation.The whole process,all-round and all personnel participate in the management and control of target cost.The standard cost method is adopted in the specific product cost accounting.Standard material cost,standard labor cost and standard expenses cost are formulated.According to the logic of activity-based costing,resources should be allocated to activity-based costing through resource drivers,and activity-based costing should be allocated to the final cost object by activity-based costing.And through the monthly accounting of cost variance,and allocated the cost variance between the cost of goods and inventory by a reasonable distribution,and the standard costs should be booked in the finance system,bookkeeping the standard costs and cost variance by GAAP,and ultimately reverted to the actual cost of accounting system requirements.In this paper,from the point of procedure and practical operation,the cost center is set up with the machinery and equipment of each manufacturing workshop as the operation center.The manufacturing cost will be allocated to the cost center according to the cost driver,and the standard machine cost rate will be calculated.Finally,the above three cost management methods will be organically integrated to form a more feasible and scientific cost accounting system.This method is unique and innovative.