Application Of Activity-Based Costing In Cost Control Of Company A

With the rapid development of market economy and the rapid development of science and technology,the company is constantly developing various products and services,and the living environment facing the company is becoming more and more serious.Especially for manufacturing companies,the competition is more intense.Therefore,there are some defects in the existing cost accounting mechanism,which can not provide accurate decision-making basis for company managers.However,in China,most enterprises still adopt the traditional cost model,which takes a single working hour as the basis for the distribution of manufacturing costs.This traditional manufacturing cost distribution model not only can not accurately reflect the real cost of products,but also is not conducive to the public The management of the company makes real decisions based on the financial data.The advanced cost control mode and cost management system can effectively solve the problems in the process of cost management.Activity-based cost control is a cost control method which focuses on activity,emphasizes the importance of resources and cost,and provides effective,accurate and timely cost information for enterprise management,so as to improve enterprise efficiency and enhance enterprise value.In the context of this change,the use of activity-based cost control method is particularly important.Compared with the traditional quantity based cost calculation,activity-based costing collects more comprehensive cost information and links these costs with the increase of value,provides more accurate product cost data,analyzes the economy of business operation more accurately,improves cost management and control,strengthens internal control,improves business strategy,improves competitiveness and profitability?It has important leadership significance.In the previous research results of cost control,the application of activity-based costing to small and medium-sized manufacturing enterprises in China is less,so it has important theoretical and guiding significance for small and medium-sized enterprises based on ABC in China.Firstly,this paper comprehensively explains the theoretical knowledge and concepts involved in cost control and activity-based costing.Secondly,it analyzes the basic situation of company a,the current situation and existing problems of cost management,describes the production process and cost structure of company a,and expounds the necessity and feasibility of implementing activity-based costing.Based on this,we set up a cost control system based on activity-based,and applied it to the production practice of company a,analyzed the difference between the actual situation and the standard situation,and put forward the improvement measures;and put forward the corresponding safeguard measures,and finally summarized the conclusion and deficiency of the implementation of company a's work cost method,and looked forward to the future research direction.