Based On Activity-based Costing, Cost Control

Traditional manufacturing cost control mode, which was a producing-oriented cost control, was based on producing cost and focused on lowering the cost in practical production. This kind of mode can't meet the requirement of the development of scientific technology and economical and environmental change. That is to say, this mode not only can't meet the demands of managerial development, but also limit the development of cost control theory itself. This paper is intended to talk about enterprise cost control from the standpoint of activity-based costing method to counter the problem that traditional cost control gradually can't meet the requirement of environmental change, taking meeting customers' demands as a starting point in consideration. The basis of cost control theory and methods is also shifted from product cost to activity cost. That is an all-process and all-inclusive cost control based on activity cost.The paper analysises the limitations of traditional cost control mode. The tradition cost control control of the product cost of production emphatically is unfavorable for to. find out the chance of reducing production costs, and information processing way falls behind, and is unfavorable for that the enterprise makes correct policy decision. expounds the basis of activity cost control-the basic theory of activity cost control method. The cost of operation is used to control, and can solve traditional cost information distortion problem, and be favour of finding out the chance of reducing production costs, and be favour of the enterprise to make correct policy decision, and be favour of the optimization of enterprises resource distribution. presents activity analysis, activity improvement analysis and value chain analysis, on the basis of which managers make organizational structure adjustment, activity improvement and business process reengineering. thus reach the purpose of optimizing the value chain. Focuses on the practical restraining factorsand and solution the enterprises in our country in the process of implementing activity cost control. How many points below the main restricting factor has: the technical foundation is weak; The labor-intensive enterprises still occupy the majority; Production organization and internal control system are still not too perfect; Compound accountant is short of. solution the enterprises in our country in the process of implementing activity cost control Such as :l.set up strict inner control and managerial reg(?)lation.2.put JIT and TQC into practise.3.adopt mordeniztional information managerial system.4.set up perfect cost system valuating.5.cultivat all mumbers cost managerial conciousness.6.improve quality of accountant. finally the paper and points out some problems appearing in the study and decides the direction of later work.This paper presents certain viewpoints from the following aspects: 1. Study enterprise cost control from a visual point, therefore avoiding the limitations of traditional cost control which stresses the producing and manufacturing process within an enterprise. In this way, enterprise cost control becomes more scientific and reasonable in scope, contents, and effectiveness for a given period of time, measures and so on. 2. Enterprise cost control doesn't happen only within an enterprise, but any more is extended to the conformity between suppliers and buyers.3.give new solution to activity-based costing control in our country.