Research On The Cost Control In A Enterprise Based On Activity-Based Costing

The rapid development of China’s automobile industry leads to the development of the domestic auto parts industry, and there has been a large number of the strength of the joint ventures in the auto parts supply, but how to accurately calculate the cost of various components are the key to these enterprises for product pricing and the development of production strategies, It is a major problem modern that auto parts enterprises have to face.Only by accurately calculate the cost of all kinds of products, the enterprises can control and manage the cost effectively and solve the cost control problems during the producing. According to the characters of auto parts enterprises, the paper takes the example of "A company" to study the cost accounting and control in this company and to discuss whether or not the activity-based costing can perform well in the enterprise in order to illustrate the advantages of the activity-based costing compared with the simple costing method in calculating the costs. The paper gives priority to normative research, with supplemented by empirical research. The combination of qualitative and quantitative methods is used to explain the application feasibility of activity-based costing in A auto spare parts manufacturing enterprise.The main contents of this paper are as follows. The first chapter introduction part introduces the research purpose and significance, the domestic and foreign literature review and the paper ideas, which is focused on the comprehensive introduction of the literature review at home and abroad in accordance with the comparison research order. The second chapter presents the basic principle of the activity-based costing, mainly including the connotation, the related concepts and general process of the activity-based costing. The third chapter analyzes the cost control present situation and the problems of A enterprise under the traditional costing accounting method. The fourth chapter analyzes the implementation of ABC in A enterprise and briefly introduces the general conditions that A enterprise needs to have if it wants to implement this accounting method. The fifth chapter is the key one, according to the specific conditions of A enterprise, it applies the activity-based costing into the lens production and sales cost accounting process in order to illustrate the advantages of using activity-based costing in it by comparing the traditional simple cost accounting and activity-based costing. And finally the paper gives some feasible advice to solve the problems. The last chapter is the end and summarizes the activity-based costing.