A Study On The Cost Control Of B Agricultural Product Processing Company Based On Activity-based Costing

Nowadays,in economic development,the manufacturing level reflects the country’s productivity,and the agricultural progress is an important part of the manufacture.The agricultural processing industry in China is developing rapidly,but comparing with developed countries,the overall level still stands behind particularly in cost control.Now traditional cost control method is not suitable in agricultural cost accounting which having many problems.So the unsuitable cost control based on the traditional costing account becomes the hinder of the agricultural development.The study of more reasonable and effective method appears to be urgent.This paper first summarized the present cost control situation of B company,and analyzes the existing problems in cost control.Using the activity-based costing method,the cost accounting of B company in 2014-2016 was calculated.Then its influence on B company’s cost calculation was analyzed compared with the traditional cost method.The key points of the activity-based costing calculation are the division of the manufacturing center and the determination of the cost drivers.Through cost of operations management,enterprises can effectively control cost mainly in the following areas: Improve the operations to control cost such as the introduction of high-tech equipment,eliminating the useless process operations,and merging the work to reduce the cost drivers.Fully automated production can eliminate the useless cost drivers.The activity-based costing method is conducive to decision-makers in product design and adjustment in accordance with customer design thereby reducing costs.The result of activity-based calculation finally divided into the various products,and the sales and production departments can use these results to set a reasonable pricing to improve the market competitiveness.If we want to use the activity-based costing method to control costs,we must strictly control the work process,improve the enterprise information,good quality management and join of all staff.The cost control using activity-based costing method in company B leads to the suitable decision of administrators and high-speed sustainable development whether in the project management or cost accounting.