Activity-based Cost-volume-profit Analysis In LS Company Applied Research

In recent years,with the rapid economic development,people’s living standards have improved significantly,and the development of the auto parts industry has also been unprecedentedly prosperous.However,according to relevant data from the National Bureau of Statistics,the profit margin of my country’s auto parts sector has been declining month-on-month.This is mainly due to higher product quality thresholds and increased labor costs.If the auto parts manufacturing industry wants to better control costs and improve economic efficiency,it must pay attention to the prediction,decision-making and control of parts and products,and realize the dynamic management of costs and sales.Cost-volume-profit analysis is an important model for company forecasting,decision-making and control.It has always been favored by many managers.However,with the expansion of company scale and the enhancement of market competition,traditional cost-volume-profit analysis methods have increasingly shown their limitations In particular,it is not suitable for long-term predictive control,and cannot adapt to changes in parts product structure and auto market changes in time.Therefore,it is urgent for auto parts companies to introduce a more advanced method to compensate for simple model predictions.The resulting deviation.Activity-based cost-volume-profit analysis is the addition of "Activity" elements to optimize traditional cost-volume-profit analysis,realize dynamic management of various indicators,analyze data in real time,control and guide,and help companies better achieve target profits.This thesis takes LS company of a listed company in southern Jiangsu Province as an example,adopts the methods of literature survey,case analysis,comparative analysis and so on,carries on the application research of cost-volume-profit analysis based on Activity.First of all,this thesis expounds the activity-based CVP analysis of the research background,purpose,significance and research status both at home and abroad,and then the homework cost method,CVP analysis method and based on the theory of operation of CVP analysis and summary are introduced,and based on the theory of building the CVP analysis model based on homework.Then it introduces the LS company,and analyzes the status quo of the traditional CVP application in LS company,finds out the problems,analyzes the reasons,and leads to the necessity and feasibility of the implementation of activity-based CVP analysis in this company.Then,which is the focus of this thesis,the model of Activity-based CVP is applied to LS company through resource to Activity and then to product process.Finally,the results of activity-based CVOP analysis and traditional CVOP analysis are compared and analyzed to emphasize the superiority and scientificity of activity-based CVOP analysis.Through the case study of this thesis,it is also hoped to provide some reference experience for other companys in cost analysis,budget management and other production and operation.