Research On Cost Control Of ZC Zhuzhou Company Based On Activity-Based Costing

Under the low-carbon economy,smart grid has an unprecedented development opportunity.As the power output equipment transformer,the demand is very strong.On the one hand,it provides opportunities for the development of small and medium-sized transformer enterprises,at the same time,it also faces greater challenges,and the market competition among the same industry is fierce.How to choose the competitive strategy to gain the competitive advantage is the top priority of such enterprises.ZC Zhuzhou company is a typical small and medium-sized transformer enterprise.Through strategic analysis,the company chooses the cost leading strategy.The effective implementation of this strategy puts forward higher requirements for cost controlBased on the basic theory of cost control under activity-based costing,this paper takes ZC Zhuzhou company as a case study.It is found that under the traditional cost method,the cost information is seriously distorted,the cost control cannot be straightened out,and the cost control system is imperfect,which seriously restricts the realization of the cost leading strategic goal.Based on this,the company introduces the cost control system based on activity-based costing,including the construction of activity-based costing system and activity-based standard cost control system.The case analysis of the company shows that the cost control system based on Activity-Based Costing has achieved remarkable results providing accurate cost information;improving the scientificity of decision-making;continuously reducing activity-based cost through activity-based improvement to achieve the strategic goal of cost leadership.In order to ensure that ZC Zhuzhou company can use the system more effectively,the following measures are taken:improving the organizational structure;shaping the advanced corporate culture;improving the cost control information system;establishing a performance evaluation and incentive system.Hope to provide reference for similar companies’ cost control based on activity-based costing.