A Case Study Of RL Company Applying Standard Activity-based Costing To Cost Control

With the continuous increase of operating pressure,the traditional standard cost management has gradually reflected its shortcomings after a long period of management application,and the effect of cost control is increasingly limited.The diversified demands of customers in modern society directly lead to the increasing complexity of production processes in manufacturing enterprises,and the proportion of processing costs continues to rise.However,the traditional standard cost method uses the idea of "average distribution" to share processing costs,which inevitably leads to the limited effect of processing cost control,and the overall level of cost control cannot be continuously improved.Therefore,in-depth study of enterprise cost control,accurate grasp of the cost state,reduce product manufacturing cost,for elevator manufacturing enterprises to improve product competitiveness and business performance is crucial.This paper mainly uses the copywriting research,the case study,The Dupont analysis and the comparative analysis.Combined with scholars and related theoretical research,through in-depth analysis of RL company at this stage of the actual manufacturing process and application of standard cost method to cost control,this paper points out the weakness of cost control under the situation,and put forward the applied RL company standard operating cost method to improve the level of cost control.Applying Activity-based costing to the company is to use the traditional standard cost method to control standard materials and to adopt the Activity-based costing to control processing costs.Finally,through difference analysis cost management and activity-based cost management,the application effect is evaluated.The standard activity-based costing method is uesd to enhance the cost control,which accurately shows the product cost composition.The value activity analysis is introduced to improve the cost control effect.At the same time,the production process is optimized and the performance evaluation benchmark is enriched,which provides good data support for the major economic decisions of senior managers.Through the analysis of in-depth,some related conclusions are obtained:1.Based on the management idea of the "value" and cost control working,in combination with Activity-based "value analysis",it removes non-value added work and improves enterprise cost control level.The whole product production process,at the same time,towards efficient and high-value development,which achieve a perfect fit with business goals;2.The standard activity-based Cost management is mainly to apply activity-based costing method to control processing cost under the traditional standard cost management.Its objective is to realize the "cost drivers" management,which is divided into different cost control dimensions according to cost drivers.Each cost dimension,that is,the production operation centers with different products,spreading the net of cost control to different processing responsibility centers corresponding to the specific operation procedures,so as to truly review the rationality of cost occurrence from the source.