Research On The Cost Control Based On Activity-based Costing Of XC Enterprise

Since the third revolution of science and technology,automated production manufacturing has been a trend with the application of high and new technology,as well as the promotion of information technology.While promoting the economic development,it also affects the way of thinking and life style.The needs and preferences of consumers are increasingly diversified and personalized,which lead to the change in the mode of production among manufacturing enterprises as they are faced with the fierce market competition.Besides,huge changes in the way of production have brought reforms to the business administration.The traditional cost control system has been challenged as it may seriously distort the real cost of a product,and then affect the management decision-making and the implementation of the enterprise value.How to effectively control costs and reduce the cost becomes the key to corporate survival and value maximization under the new market and the manufacturing environment.XC Co.,Ltd.is a domestic compressor R&D center and compressor producer with a complete range of varieties,wide application field,high market coverage,completely independent intellectual property rights in R&D.In recent years,XC company has been expanding business scale,achieving sales revenue growth by relying on scientific and technological progress and product structure adjustment.However,the cost,especially indirect manufacturing costs increased year by year,sales gross profit margin is far lower than the average level.The traditional cost accounting control system of XC company is not a perfect match for the current production pattern.As a result,a more scientific cost control system is needed to adapt to the contemporary advanced manufacturing environment and the fierce market competition environment.This paper first introduces the research background,purpose and significance,as well as research contents,the train of thoughts and research methods.The second chapter first introduces industry development situation,a brief introduction to production and operation situation of XC company.Then it puts forward problems by analyzing the current cost control system from three aspects including cost accounting,cost analysis and cost assessment.The third chapter is about establishing a cost control system for XC company,which is the core of this paper.The system introduces the targets,the principles,the subjects,the objects and the method of cost control,forming a more scientific cost control system framework.And the effect of the cost control system is tested through a specific case analysis.Finally,from the angle of theory and practical significance,the paper put forward several suggestions and prospects of the activity-based cost control system.