The Variable Costing Manages In Policy-making In The Enterprise The Application

The current full-cost method is the cost to classify them according to their purposes, and the direct materials, direct labor and manufacturing costs as product costs, selling expenses, administrative expenses and other non-production costs as period costs in order to estimate a cost profit and loss method. The determination of net income is to meet the accounting standards and accounting system requirements. and it's also a general approach in which external financial statements are prepared. However, this method also has its serious flaws, it does not meet the enterprise management, performance evaluation and so on. Therefore, to strengthen internal management, the product costs are calculated using full-cost method to changes in cost as an advantage.This paper introduces the theory of variable cost method, followed by the two methods in the product cost, cost structure and other aspects during the period were compared, and finally analysis of variable cost method of application conditions and application methods, based on the example of its in enterprise management and decision-making and its applications have been evaluated, pointing out that enterprises should pay attention to application of the method matters, so as to promote changes in the cost of the application of law in our country.