Research On The Cost Management Of M Company AA Project Based On Activity Based Cost

The competition of modern enterprises, mainly because the competition between the products and services, price, quality and speed. In other words, how to lower costs, faster response to customer demand, and production of customer satisfaction, product is the key to corporate competition to win. Paper industry as the daily life of the relationship between national consumer goods manufacturing industry is one of the ten pillar industries in China to determine, but also one of the important industry to promote social and economic development in China. The trend of global economic integration, China’s paper-making enterprises are facing tremendous pressure and challenges. Therefore, the paper industry as a typical traditional industries need to further deepen reform and development and technological innovation, increase the intensity of the introduction of foreign advanced management ideas, to enhance the overall level of enterprise cost management on the basis, in order to effectively enhance the international competitiveness of the industry occupy a favorable position in the increasingly fierce market competition.Although Western countries have been widely used activity-based costing, but for various reasons, the Chinese enterprises, especially the paper-making enterprises have not gained popularity. Overall, China’s paper-making enterprises are mostly "standard cost" rather than activity-based costing to cost sharing. However, the standard cost method does not fully explain the product consumption of resources, especially in the apportionment of indirect costs, reach a true and accurate requirements. This is not conducive to the paper-making enterprises to cost management and control, and improve market competitiveness.With the deepening of reform and opening up and development of market economy, China has become the world’s second largest paper products after the United States consuming countries. To actively deal with the fierce market competition, and to effectively meet diverse customer needs, the paper-making enterprises in China must be reasonable allocation of indirect costs, the cost of a comprehensive accounting of ABC, so as to enhance the core competitiveness. Therefore, M AA cellular base paper items, for example, were discussed on the specific application of activity-based costing in the paper-making project cost management, job cost analysis, and from the application of the guiding philosophy of the project cost control, business process reengineering made specific suggestions.In this paper, the activity-based costing and job cost management theory as a guide, collected on the basis of relevant literature data, the status quo for the current cost management and control of paper-making enterprises in China, discusses the significance of activity-based costing role. In the course of the study, using qualitative analysis, quantitative analysis method, theoretical research, case analysis, and M AA cellular base paper project examples for case studies, on this basis, has practical value of the project cost management.In accordance with a question-analysis of the problem-to solve the problem "line of thinking, the content of this study:the introduction introduces the topics of the purpose and significance, and project cost management, activity-based costing, the paper industry as a whole state the contents of the Review. The first part is the activity-based costing overview, introduces the concept of activity-based costing defined the specific use of activity-based costing, to avoid errors in the use of activity-based costing, etc.. The second part of the Company M AA cellular base paper project cost management an overview of AA cellular base paper project as an example a detailed analysis of the cost of the project management status and deficiencies are discussed. The third part is the application of countermeasures of activity-based costing in the management of the project cost of AA cellular base paper from the application of the guiding philosophy of the operating cost analysis, project cost control, business process reengineering to the four angles, corresponding countermeasures and suggestions. In the conclusion part of a major retrospective of this study and future research trends prospect.