Research On Cost Control Optimization Of BR Company

The rural revitalization strategy put forward by the 19 th National Congress of the Communist Party of China will promote the modernization of China’s animal husbandry.Animal husbandry is an important part of China’s agricultural production system,especially pig breeding is in an important position in animal husbandry.However,with the continuous growth of pig breeding industry,the market development of enterprises is also facing many challenges.Therefore,in order to adapt to the complex economic environment,the company should control the breeding cost.Pig breeding requires a lot of manpower,land,feed,vaccines and other resources.Each link has its own input cost and profit from building pig farms,buying equipment,introducing pig seedlings,feed supply,medical care and marketing.Therefore,cost control is one of the key factors affecting enterprise competition.Because the traditional cost accounting method will distort the cost information,enterprises use activity-based cost method to control the pig breeding cost from the aspects of feed,manpower,vaccines and veterinary drugs.Through reading a large number of domestic and foreign literatures on activity-based costing,this paper makes a case study based on the basic principle of activity-based costing,"activity consumes resources,product consumes activity." First of all,combined with the actual situation of pig breeding industry in our country,the activity-based cost method of BR Company was designed,and the activity center,cost drivers and cost targets were established.Secondly,according to the established activity-based costing system,the breeding cost of BR Company is calculated from the cost items such as feed cost,labor cost,medical and epidemic prevention cost,and compared with the traditional cost,and the actual situation that the breeding cost is closer to the enterprise after using the activity-based costing method is analyzed.At the same time,the grey correlation degree analysis of BR company’s product cost is carried out,and the correlation degree between various cost factors and product cost is discussed.Finally,the optimization suggestions are put forward for the current cost control of BR Company from four aspects: strengthening the control of feed cost,improving the cost control of procurement process,strengthening the control of labor cost,and doing a good job in biosafety and epidemic prevention.This paper aims to optimize the cost control of BR Company by using activity-based costing,to provide reference for the application of activity-based costing in the cost control of pig breeding enterprises in China,and to increase the feasibility of enterprise application.