Research On Application Of Activity-Based Costing In Y Food Company's Cost Control

With the rapid development of the food industry,many companies generally have problems such as high cost and low profit in cost accounting.A large part of the cause of these problems is that companies cannot reasonably perform cost accounting and take effective control measures.As a medium-sized food manufacturer,Y Food Company has made some efforts to avoid the above problems in terms of cost control,but the results have been minimal.The paper aims to introduce the activity-based costing method into Y Food Company,providing the company and similar enterprises with new ideas for improving cost control.The paper takes Y Food Company as the research object.Firstly,it analyzes the current situation of cost accounting and cost control of the company.It finds that the company has problems such as unreasonable indirect cost allocation,lack of prior cost control measures,and cost information cannot meet the needs of cost control.It summarizes the necessity and feasibility of introducing the activity-based costing method in the company.Next,according to the characteristics of Y Food Company,the procedural steps that meet the company's operation cost accounting operation are designed.Then,taking the company's three products “Fruit Basket”,“Glass Heart” and “Kissing Xiao Huang” as examples,the cost information of these three products based on the activity-based costing method is calculated and compared with the original.The cost information and the company's standard cost are compared.The comparison results show that the costing of the activity-based costing method is more accurate.It can reflect the product cost information more realistically and effectively reduce the economic loss caused by the wrong estimation cost,which is beneficial to the enterprise manager to rationally price the product.And to develop an effective business strategy,these advantages are incomparable to the original cost accounting method of Y Food Company.Finally,it is pointed out that if Y Food Company wants to better promote the application of the activity-based costing method for cost control,it is necessary to start from the management team of the enterprise,improve the modern management level of the enterprise,strengthen the management of the operation of the enterprise,strengthen the training of employees and also establish a reasonable and effective performance appraisal system to ensure the implementation basis,then gradually implement the activity-based costing method from partial to overall.