The Research Of Standard Cost System In P Company

In today’s competitive market, with manufacturing model updates, diversification of customer needs in the environment, in order to strengthen enterprise management, achieve more accurate costing, effective control of the resource-consuming, cost management with main content of cost accounting and cost control has become the indispensable management activities in enterprises.P Company is a wholly-owned manufacturing enterprises in China set up by a US-owned group, consists of multiple production lines, respectively, belong to different platforms. Same as other production-oriented sister company set up by the Group in China, P Company produce products and serve customers via different sales companies in Asia Pacific which selling products and services in respective domestic markets, and P company mainly produce products for China market. As defined cost center, P Company uses standard cost system.This article is starting from related cost management theories, after introducing the background of P Company, the standard cost system; making analysis on the implementation status of the system, then do the summary. We explore how to make the standard cost method become more suitable for the new modern manufacturing environment, more accurate, credible, and how to make standard cost variance analysis and evaluation methods become more effective, we believe that there is certain referential significance for further the standard cost advantages in simplified cost accounting, as well as in cost control and cost accounting.This article has practical significance not only to improve the cost management level of P Company, but also have a certain reference value to other enterprises in the industry, especially for manufacturing companies.