Research On The Application Of Activity-Based Costing In Small And Medium-Sized Enterprises

The unique flexibility and innovation of SMEs make them an important contribution to China's national economy,both in terms of the number of enterprises and the provision of employment opportunities.It has become a new force in China's economic development and is possessed in China's national economy.Very important position.With the reform of the company registration system,the number of small and medium-sized enterprises in China has increased dramatically,and market competition has intensified.How to survive and continue to develop in the fierce market competition has become an urgent issue that SMEs must consider.Excellent and effective cost control management is the key to profit and market.Cost control is an eternal subject in enterprise management,and it is constantly innovating and improving with the changes of science and technology,market competition and social environment.Faced with increasingly severe market competition,more and more enterprise managers actually feel that cost control is an important measure to enhance the market competitiveness and economic benefits of enterprises.Activity-based cost management relies on activity-based costing to provide accurate cost information,analyzes job attributes,optimizes operational processes,and finds breakthroughs for companies to reduce costs.On the other hand,due to the deficiencies of the cost control method itself,a full cost management cannot be achieved using a single cost control method.In practice,companies have begun to adopt a “multi-pronged” cost control approach to help establish a sound cost control system.It is worth noting that job analysis is widely used in the practice of multiple cost control methods.This paper selects the small and medium-sized manufacturing enterprise—M Electric Company as an example.Taking the basic theory of activity-based costing as a breakthrough,on the basis of analyzing the current situation of M-electricity cost control,it demonstrates the necessity and condition guarantee of M electric company applying the activity-based costing method.According to the unique operating characteristics and production process of M Electric Company,the specific scheme of the company's applied activity cost method was designed.This paper selects several representative products of the company as the accounting standard,recalculates the cost of these products according to the accounting procedure of the activity-based cost method,and compares the difference between theproduct cost under the activity-based cost method and the traditional cost method.In the two methods,the differences between product cost and product profitability are compared and the reasons are explored.The empirical judgment of the cause of the difference has objective data support and theoretical support.Finally,the corresponding measures are proposed to ensure the operation cost method to achieve the smooth implementation of the company's cost control.The research in this paper hopes to provide reference for the accounting of operating costs in other industries.