Based On Part Of The Change In Cost Accounting And Control Research

Cost is a lifeline to an enterprise. How to account and control the cost of product effectively is one of the key factors for the enterprise survival and development. Although there are some important theoretical results by using the cost accounting and controlling tools, there is not a specific operational method adapting to the current situation for most domestic enterprises.This paper designs a method named Accounting and Controlling for Variable Costing basing on processes in order to guide China's enterprises to develop cost accounting and controlling work. This paper discusses the steps for this new method in detail. Firstly, it allocates production parts by using 'Experiential Processes Allocation' method, then analyzes cost behavior in each process, and accounts the variable costing of each product to form cost statement. Enterprises can easily find these key processes, which will affect cost enormously and be the best starting point for cost control. This paper will introduce a method for how to define the cost control point.This paper presents Process-based costing (PBC). The key point of this method is how to account cost, as well as how to find cost control point. It discusses the objects including but not limited to Telecom equipment maker. Its application scope can be extended to all enterprise in different fields that cost can be divided in part.