Application Of Activity-based Costing In The Cost Control Of Gaoyuan Company

Cost control is the key to improve the competitiveness of enterprises. The activity-basedcosting widely used in China’s manufacturing industry is the necessary request to achieve thebest financial cost targets and to improve the efficiency of the capital appreciation.Activity-based costing is the calculation method of activity-based cost. Its guiding ideology is"products consume activities, activities consume resources". Indirect costs can be sharedmore reasonably to the product through the recognition and measurement of operating costsusing activity-based cost, so that the cost of every link in the production can be more accurate,and then it can provide effective information for the enterprises to control costs.This study is based on the theoretical research of the management scholars both at homeand abroad. We focused on the actual situation of the Gaoyuan Company’s cost managementto achieve maximize economic efficiency of enterprises. We aimed to determine the operatingcost model of the control system on the basis of the traditional cost management ideas andmethods, so that Gaoyuan Company can effectively control costs and improve its marketcompetitiveness. Finally the new method can lay a solid foundation for Gaoyuan Company’ssteady development.