Study On Cost Control Of Ly Company Based On Activity-Based Costing

With the rapid development of science and technology and the change of external economic environment,manufacturing enterprises constantly improve their technical level to adapt to the development of society,and the production process is complicated,resulting in the continuous increase of indirect costs.However,the traditional cost accounting method can not allocate the indirect cost reasonably,and then can not get accurate accounting results,and can not provide help for the enterprise decisionmaking level of the regulation and development.Therefore,it is more effective to use activity-based costing.Based on the theoretical results of activity-based costing and related concepts,this study discusses the cost control of LY Company.First of all,the first part of the paper mainly introduces the application of activity-based costing related research background and significance,research status at home and abroad,and the content and method of this study.The second part roughly analyzes the concept connotation,general principle and application process of activity-based costing and cost control,and compares it with traditional costing to explore its advantages and conditions in the application of cost control.Then,the third part introduces the LY enterprise general situation of the organization structure and business processes,LY company cost data in recent years are analyzed,and the current situation of cost control as well as the existing internal staff cost control consciousness weak,cost drivers consider not comprehensive,appraisal system is not sound,and implementation of the enterprise operation cost method to analyze necessity and feasibility.Second,the fourth part for LY company based on homework cost method of cost control system design,including selecting research products,confirm the work center and the motivation to work,the collection resources cost to each activity center,computing cost drivers rate,assign homework cost products,according to the calculation results compared with the traditional cost method,On the basis of the cost data obtained by activity-based costing(ABC),the value-added analysis is carried out and improvement measures are proposed.In the fifth section of the article put forward the enterprise based on homework cost method,can improve the system of cost management,optimizing the cost drivers,standardization of original data,and so on safeguard measures of cost control system,make the enterprise can under the activity-based cost method for effective cost control,market development,management,and strategic positioning for the enterprise provides the basis.Finally,this paper summarizes the current situation of LY company’s cost control and the advantages of applying activity-based costing,and also analyzes the shortcomings of this study and the prospect of future research.