Research On Production Cost Management Optimization Of A Company Based On Activity-based Costing

This paper starts from the perspective of A company,an auto parts enterprise.In recent years,A company has witnessed rapid growth in business volume and steady increase in product market share,which is both a rare opportunity and a huge challenge for A company.On the one hand,the growth of business volume makes Company A need to expand production capacity,improve advanced production and automation level;On the other hand,customer needs are becoming more personalized and diversified,and the complexity of the production process is also increasing,and the overhead costs are rising.In this process,cost management has become the core factor to determine the competitiveness of Company A.Faced with the cost transfer caused by the price competition of upstream OEMs and the substantial increase of downstream raw materials,Company A,caught in the middle,urgently needs to make use of the innovation of enterprise cost management mode to achieve more effective cost control,so as to continuously optimize the product cost.Maintain and expand the advantages of enterprises in market competition.This paper is limited in length and energy,focusing on the optimization of A company’s production cost management.Firstly,the research background and significance are outlined,and the research status,research content and methods at home and abroad are reviewed as well as the main views of relevant scholars,and the research topic and research direction are determined.Through field investigation,meeting communication,and consulting materials,I have carefully understood the production process and production cost management status of Company A,and summarized the 1in the production cost management of Company A.Lack of cost driver analysis and unreasonable cost control;2.Inaccurate cost accounting and distortion of product pricing;3.Single cost performance appraisal standard and other major problems,and clarify the root causes of the problems,and make clear the direction for the optimization program.Then,according to the actual situation of A company,with the help of relevant theories such as cost management and activity-based costing,the design ideas and implementation principles of the optimization scheme of activity-based costing are determined.Through the application of activity-based cost management optimization scheme,the accurate accounting of indirect expenses was realized,the cost structure was correctly reflected,the cost drivers were identified,the adjustment and improvement of production operations were realized,the cost control was optimized,and the basis for the optimization of product pricing strategy was provided.Finally,this paper expounds the measures to ensure the efficient operation of ABC in A company.The smooth implementation of activity-based cost management requires the enterprise management to carry out A comprehensive reform on Company A in terms of organization and process,and provide adequate financial guarantee.In addition,the thesis and research limitations are summarized.