Cost Management And Control In The Application Research Of CP Packaging Co., Ltd

In the current market economy, price competition has been the main means for competition in various companies. In order to achieve high quality using low cost, cost control management is gaining more extensive attention. The theory of cost management control begins with cost accounting after the occurrence of transaction, then it emphasizes the cost controls in the occurrence of transaction, after that, it goes after cost management before the occurrence of transaction to carry on cost management strategically. With the improvement of cost control management, the means for cost control have developing continually, to participate in market competition.Currently, many enterprises in medium-size in our country, such as the CP enterprise, are adopting the traditional cost accounting method still, with the obsolete means for cost management, and the weak consciousness for cost control, and unsound system for financial accounting.Therefore, the paper introduces the principle and calculation of Activity-Based Costing, and analyzes the feasibility of its application in CP enterprise. Subsequently, this paper analyses the cost control system in CP enterprise, which includes the system for cost budgeting, cost accounting and cost assessment. In system for cost accounting, the cost of products of A and B in CP is calculated respectively by the means of Activity-Based Costing traditional cost accounting, to analyze the reasons for calculating differences and the possible decision options resulting from that.Most of packaging and printing enterprises in our county have changed production process, resulting in the increment in proportion of indirect cost, cost information calculated by the traditional cost accounting means has been distorted, leading to unreasonable cost management control, which is not conducive to the healthy development of the enterprise. By introducing the method of Activity-Based Costing in the enterprises of medium-size in our country, we can establish a more scientific production process, and improve the accuracy of cost accounting, and set up a more reasonable cost management and control system which bases on activities.