Research On The Application Of Standard Cost Method For A Corporation

In 2015 VW automobile sale' s volume decreased,Chinese market share is shrinking which was also an attack for Chinese auto component suppliers,so the “price battle” has become the main theme of both international and domestic automotive markets,facing challenge of low sales price from local Chinese auto components supplier,international brand in Germany,America and Japan was alarming.Even Chinese Auto Market has strong need,the pressure of cost control for international brand still exist.OEMs are exposed to high cost pressure resulting from multiple factors such as transition from seller's market to buyer's market,manufacture capacity surplus,fierce competition for market share,etc.With the extensive application of information technology and the rapid development of economy,customer have more channels to compare the product price,so enterprise cost control has received a great deal of attention.Standard cost method is one of the important methods of cost control,and it is widely used in the world.Enterprises in the practice of this theory in the course of the problem also increasingly emerge.So it is urgent to solve the problem of standard cost method in enterprise application.In the meantime enterprise cost control need adopt advanced production management mode and efficient cost management methods,to deepen product cost calculation and control,achieved activity-based cost control from subjective judgments of extensive cost accounting.An accurate standard costs can be as far as possible to narrow the difference of the standard cost and actual cost,as far as possible to avoid the impact of product cost variance which caused by changes in sales volume,to ensure standard cost was set more close to the actual cost.The accuracy of the calculation and the change of the market,the real-time monitoring of the cost of manufacturing can enable enterprises to set up an effective evaluation of the standard cost method,and play an incentive role in the real sense of the products cost control.A company has a hundred years of history,to research its' application of standard cost method would solve same problems of most multinational manufacturing enterprises worldwide.Based on the standard cost method and product cost control theory,with the status of the use of A company's standard cost method as the basis,to analyzes problems A company faced during using standard cost method,combined with experiences of A company over the years to establish a more accurate standard cost method which based on research of cost variance analysis,and to avoid the risk of market changes.To encourage production incentive and control production cost with the standard cost method to narrow the difference between the standard cost and actual cost.