Research On Optimization Of Standard Cost Method Application In M Company

With the increasingly fierce market competition,in order to deal with the operating pressure caused by the global competition,we need to improve the financial management level,find the deficiencies in production and operation,and put forward corresponding management suggestions to help enterprises achieve the maximization of wealth value.As an important tool in financial management,standard cost management can help companies increase the efficiency of cost accounting,and at the same time,find out whether there have problems in production and operation management,such as direct materials cost,direct labor cost,and overhead costs,exceed the reasonable standard.Then,combining with activity-based costing,analyze the specific reasons for cost overrun and savings from the perspective of cost drivers to improve the market competitive position.This article analyzes the current situation of M company’s standard cost management through literature analysis,case analysis and interview,finds out the shortcomings of the existing standard cost control,and uses activity-based costing to optimize the management level of manufacturing costs.Through the case study and the study of the standard cost formulation,implementation and difference analysis of the company’ s existing direct materials and direct labor,this article found that the value of direct material consumption and outsourcing standard price in the standard cost formulation of direct materials is unreasonable,and the value of labor hours in the standard cost formulation of direct labor is unreasonable,and formulated corresponding improvement plans,for example,In the formulation of direct labor standard working hours,more reasonable direct labor costs have been formulated by putting the reasonable debugging machine and staff’s midway rest time in production into the direct labor working hours,and the standard cost accounting and management level of direct labor have been improved.The current standard cost of the company’s manufacturing expenses is collected and accounted through the manufacturing expense account,which is too simple to reflect the economic essence of the manufacturing expenses.By combining standard cost and activity-based cost,the company maintains the current manufacturing expense accounting and cost variance analysis from the perspective of activity and cost drivers,for example,The use of cost drivers to calculate and analyze manufacturing costs by operation centers has improved the management level of standard cost of manufacturing costs compared with the previous single accounting of manufacturing costs by production hours.This article studies the current situation of standard cost management of M Company through case study,finds and improves the deficiencies in the company’s standard cost management,and also provides reference for other companies that encounter similar problems in the use of standard cost management.