Application Research On Target Activity-based Costing Management In CM Company

Since the thirty years of reform and opening up,China's manufacturing industry has developed rapidly and has become an important pillar of the national economy.In the third Plenary Session of the 12 th CPC Central Committee,our country put forward "made in China-2025",which is the first ten year plan of action for the Chinese government to implement the strategy of manufacturing power.However,due to the extensive development mode,unreasonable industrial structure,and the core technology,the development of domestic manufacturing industry is hindered.More seriously,with the increase of manufacturing cost in recent years,manufacturing enterprises are faced with greater pressure.In such a prominent challenge,manufacturing enterprises must have sufficient profit support if they want to grow and stabilize themselves.One of the effective ways to improve profits is to reduce the cost of the product and to manage the cost effectively in the enterprise,which has a very important impact on the development of manufacturing enterprise in the competitive market.The target activity-based costing management model comes from the foundation of target cost management and activity-based costing management,draws the essence of the two,and generally speaking,that is,implements cost management from both macroscopic and microscopic perspectives.The establishment of enterprise target cost is a macro level,and on the microscopic one,it adopts activity cost accounting.The two are used together,compared and analyzed to find ways to reduce costs.Finally,an analysis feedback mechanism is added to implement a comprehensive cost management for the enterprise in a cyclical mode.This method can make up for the defects in the current cost management of China's manufacturing enterprises,such as focusing on the cost accounting stage,despising cost control and analysis.This article takes the manufacturing company CM company as the research object,introduces itschallenges in the market and the problems existing in the cost management of the company at the current stage.This article applies target activity-based costing management mode to the entire production process of the CM company's products,and finds the problems,and puts forwards suggestions for improvement to solve the insufficiency of the current cost management in order to prove the effectiveness and practicability of this management model.The article obtains the following conclusions through the study of CM's use of target activity-based costing management:(1)Target activity-based costing management,as an advanced cost management method,has significant advantages.(2)It is necessary for CM company to improve cost management,and target activity-based costing management can be fully used in CM company's cost management improvement.(3)Cost management is a systematic process and cannot be simply understood as a reduction in cost.(4)Advanced cost management models also need to develop corresponding supporting measures as a guarantee.