Research On The Application Of Standard Costing Method Based On Activity In SQ Company

As competition in the auto parts manufacturing industry becomes more and more day-today,as an auto parts manufacturing company,the key to improving its competitiveness is to obtain cost advantages,which requires more accurate cost information and effective cost management.Nowadays,medium and large manufacturing companies have become more and more mechanized,so the common cost is gradually rising,on the contrary,the labor cost is showing a downward trend.At the same time,customer needs have also changed from the original singularity to the current diversification and individualization.Therefore,in order to meet the needs of customers,companies must shift from a single large-volume production model to a small-batch multi-variety production model.Therefore,in this case,a new costing method is needed.The traditional standard costing method cannot meet the needs of today’s manufacturing companies for cost management due to a single allocation method,while the activity-based costing method can allocate indirect costs reasonably,but the activity-based costing method cannot provide differential information.Therefore,combining the advantages of the two methods has formed a standard cost method based on the operation basis,so that the cost management of manufacturing enterprises is more effective,and the product information is more accurate,thereby enhancing the competitiveness of manufacturing enterprises.This article mainly researches and analyzes the application of standard cost method based on the operation basis of SQ company.Through field research in SQ company,the characteristics of SQ company’s current production products,its production process and cost accounting status were researched and analyzed,and it was found that SQ company’s manufacturing cost allocation was unreasonable,the cost accounting information was inaccurate,and the difference analysis was excessive.General issues.Based on the research results at home and abroad,and combined with the particularity of the auto parts manufacturing industry,this paper introduces the idea of operation,so as to control and manage the cost of SQ company,thereby improving the problems of SQ company’s cost accounting.In the practice of standard costing based on activity,direct materials and direct labor are still costed according to standard costing,and manufacturing expenses are allocated according to activity-based costing.Finally,through the difference analysis of the company’s product costs under the standard costing method based on the operation basis and the standard costing method,the application effect of the new method is evaluated,and safeguard measures are proposed for the auto parts manufacturing industry under cost pressure.Provide reference suggestions.