Research On Cost Control Of J Company Based On Activity Based Costing

Since the 13th five year plan,with the guidance of national industrial policies,the increasingly stringent safety and environmental protection policies and the increasing industrial concentration,the market competition of China’s dye industry has become increasingly fierce.Cost control runs through the whole business process of each enterprise in the industry.In order to survive in the fierce competition and occupy more market share,it is necessary to carry out effective cost control in the enterprise.Combined with the characteristics of the dye industry,as well as the disadvantages of the traditional cost method,such as the distribution of indirect expenses is too simple and can not accurately reflect the cost,it is a positive and effective attempt to introduce the Activity-Based Costing into the cost control system.In this paper,J dye company as the research object,combined with the company’s data,using the theory of activity-based costing to study the cost control of J company.First of all,through the analysis of the current cost control situation of J company,this paper reveals and summarizes the main problems existing in the cost control,and expounds the necessity and feasibility of adopting activity-based costing in the company.Secondly,this paper uses activity-based costing to calculate the cost of J company,and designs a new cost control scheme based on activity-based costing;Finally,the paper puts forward the guarantee of J company’s implementation of cost control scheme based on activity-based costing.The findings are as follows(1)Using activity-based costing in J company,this paper designs activity-based costing calculation scheme and activity-based costing control system,which improves the cost control of J company.Activity based costing has applicability in J company.(2)Compared with the traditional cost accounting method,activity-based costing is more accurate in the calculation of J company’s cost,which effectively solves the problem that the traditional cost accounting method allocates indirect expenses in a single way,resulting in the distortion of cost information.(3)The application of ABC in J company can provide accurate cost information and make the pricing strategy more practical and scientific.In terms of product profitability,there is more space to adjust product quotation and improve J company’s product competitiveness and market share.