Study On The Improvement Of The Cost Management Of H Company Based On The Activity

In recent years,China pays more and more attention to the application and development of new environmentally and friendly products with high efficiency and low pollution.As an important research and production of high efficiency,energy saving and environmental protection materials and products enterprises,H saw company has a good market environment and development prospects.But with the expansion of market demand and the rising of productivity,H saw company significantly changed in the production environment.In that case,the traditional cost method tends to get cost information distorted,and unable to meet the need of business management and also restricts the H saw company seize the opportunity,meet the challenge and achieve rapid development.Activity-based costing system is an important cost control systems and strategy support system,which consists of activity-based costing and activity-based cost management.Activity-based costing can overcome the shortcomings of traditional cost method,and provide more accurate cost information for the company’s strategic management,and it is able to apply the cost information that comes from the activity-based costing to the strategic management.Based on the activity cost system management theory,this paper explores the improvement program of H saw’s cost control system.First of all,this paper introduces the basic theories and application methods of ABC and ABCM.Then focus on the actual situation of H saw company,analyzes the main business activity,technological processes and production costing system of H saw company,and found that its existing costing system has the limitation of distort cost information and can’t not support strategic decision making.Then,bases on the activity-based costing system theory,design the application system and identify the improvement program for the H saw company.Finally,make some safeguard measure of promoting the activity-based costing system in the manufacturing enterprises in china from both internal and external dimensions.The research results verify the activity-based costing system in H saw company is applicable and can more accurately provide the decision-making information to the cost control,pricing making and performance measurement.In the same time,the activity-based costing management can also provide support programmer to the rational allocation of company resources,optimize activity and improve business process.The results of this paper have practical operability for the implementation of activity-based costing system in H saw company and have some references value for the implementing of activity-based system in manufacturing company in China.But owing to some objective factors,the analysis for H saw company is based on the theory of applied research and not really be used to the H saw company,so the effect of the implementation of activity-based costing in H saw company needs to be further verified in the future practice.