The Application Research Of Activity-based Standard Costing In The Cost Control Of Kunming Machine Tool

With the developing of our society and economy, the reform of our market economy system is constantly deepened. In this background, the changing of enterprise internal environment is facing a very big challenge. In order to achieve the advantages in the increasingly competitive market, it is necessary to develop a scientific and reasonable cost control method, After 18 th National Congress of the Communist Party of China. the development of machine tool industry has entered a critical period, Kunming Machine Tool Co, Ltd is a medium-sized machine tool enterprise which keeps pace with the development of whole industry as well as fousing on the enterprise itself by finding shortcomings during the operation to decrease consumption. This is the only way to gain advantages in the fierce competition.Based on previous studies, the current situation and characteristics of cost control practice in the manufacturing industry in China. this thesis analyzes the production features and cost control practice in Kunming Machine Tool, and identifies the deficiencies in its cost control practice. Based on this thesis discusses the main ideas, core processes and major differences between standard costing method and activity-based costing method, and investigate the effects of combined method on cost control practice in the company. The thesis can serve the purpose to advise Kunming Machine Tool to set up a cost control system that maintains the advantages of the standard cost method in processing and controlling direct costs, and also incorporates the strength of activity-based cost in allocating costs and analyzing costs. At last, by comparing the two methods in accounting differences, this thesis brings up that the combination of two methods has problems in the process of implementation and gives advice on organizational guarantee, system guarantee and security of personnel.