The Research On Application Of Production Cost Control In HP Company Based On Standard Cost Method

In recent years,the relevant industrial policies of the steel structure industry have been warmly blown.For example,in early 2016,the "Opinions of the Central Committee of the Communist Party of China on Further Strengthening the Management of Urban Planning and Construction" proposed that China should strive to use 10 years or so to make assembly buildings account for 10 years or so.The proportion of new buildings is 30%.At the same time,the domestic construction market,rail transit construction,warehousing and logistics park construction and energy construction projects promoted by urbanization are developing rapidly,which is also the main driving factor for the steel structure industry to continue to improve.However,due to the low barriers to entry in the steel structure industry,the market competition is fierce.In the bidding process,prices are being pressed against each other,resulting in a smaller and smaller profit margin for enterprises,and higher and higher cost control requirements for enterprises.As a small and medium-sized enterprise engaged in the production and processing of steel structures,HP also faces the problem of cost control.In recent years,the company’s production costs have not been effectively controlled,and the cost per unit of product is high,resulting in gross profit margins far below the industry average.This paper intends to use PDCA management cycle theory combined with standard cost method to study HP’s product manufacturing cost control.On the basis of reviewing the research status at home and abroad,this paper expounds related concepts and theories such as cost control,PDCA management cycle theory and standard cost method.The paper adopts literature reading method,questionnaire survey and other methods to manage and cost HP company.The current situation is analyzed.Then,the status quo of HP’s production cost control is studied in detail,and the problems in the key points of HP’s production cost control are found,and the causes of the problem are identified.Then,the necessity and feasibility of the standard cost method as the cost control method of HP company are analyzed.It is suggested that the standard cost method should be applied in combination with the PDCA management cycle.The paper mainly focuses on the standard cost formulation and process of materials,work and fees.Relevant issues such as control,standard cost execution variance analysis,responsibility assessment during the implementation process,reward and punishment system,and how to improve the next phase were discussed.Through the research,this paper finds that the implementation of the standard cost method requires the enterprise to have a certain cost control basis and related technical guarantees.The standard cost method focuses on the formulation of the standard cost in the early stage.This is the basis of control and the goal of enterprise cost control.The advanced nature must be in line with the actual situation of the market and the enterprise.At the same time,it is also important to focus on how the standard cost is implemented in the process.It is difficult to achieve the goal without strict implementation in the process.The analysis of the difference is also necessary in the implementation process because In this way,the cause of the problem can be found,and it is easy to improve and improve.Finally,the responsibility assessment and reward and punishment system in the implementation process is also a guarantee of cost control.Through the research of this paper,it is hoped that the application of standard cost method in HP can change the status quo of HP’s production cost control and improve market competitiveness,and it can be used as reference for the production cost control of other steel structure enterprises.