Research On Cost Management Improvement Of Kaira Electric Co,Ltd

Validity of cost management,one of the key factors determining the profit of enterprise and benefit of stakeholders,is also decisive in generating overall competitive force of a company in marketplace.Although there have been an abundance of researches,in the domestics and overseas,centering on how to improve validity of cost management by integrating standard cost method with activity-based cost method,those researches,more often than not,merely touch upon the theoretical level of feasibility and necessity of combining these two methods together.On the other hand,relatively few researches concentrates on constructing intact systems of standard activity-based cost management from the perspective of enterprise cost managing.Therefore,this dissertation aims to applying activity-based method to the enterprise standard cost management,which would make it possible to utilize activity-based method to allocate manufacturing expense to each specific task and sector,while retaining the valuable information gained by standard cost method at the same time.By doing so,this thesis will provide for electronics manufacturers new empirical evidence on how to conduct more effective cost management in the context of practical activities.There is a case-study in this dissertation,the subject of which is Changzhou Kaira Electric Co,Ltd.In this case-study,an integral standard activity-based cost management system was constructed,based on an analysis of the problems of the corporation’s current standard cost management system and its 2016 management and production data.Directed by this system,and by comparing the product costing document of the standard activity-based cost management and that of the standard cost management,analyzing the differences between these two different sets of data,and examining the cost performance of each management,a crucial conclusion can be made,which is that standard activity-based cost management can reflect the force-driven relationship between the consumption of resources and producing costs more accurately,and thus is able to help corporation control its no-value-added-activities,adjust its pricing strategy,and extend the sphere of cost management system from the product-level deep into the operation-level.Finally,the dissertation also offers a variety of suggestions as to improvement of cost control,further optimization of organizational structure,production operation,and cost management information system,among many others,based on theoretical analysis and the results of the case-study research.