Optimal Research On Production Cost Management Of Chongqing SL Company

With the rapid development of science and technology and the continuous change of production mode,there is great competition in China’s manufacturing product market.Consumers’ demand for products is gradually diversified and the production process is highly complex,which makes the direct materials and indirect costs account for a large proportion of the production costs of various manufacturers.According to the current cost management model,it may not be suitable for this cost structure.How to improve the effectiveness of enterprise production cost management in the new market environment has become the key to enterprise survival and value maximization.On the basis of reviewing the research status at home and abroad,this paper expounds the related concepts and theories such as cost management and activity-based cost management,which lays a theoretical foundation for the subsequent research on production cost management of Chongqing SL Company.First of all,the paper takes Chongqing SL Company as the research object,and uses the methods of literature reading and questionnaire survey to understand the present situation of production cost management of Chongqing SL Company.Through in-depth research on production cost analysis,industry comparison,cost control management and cost performance management of Chongqing SL Company,it summarizes the problems existing in production cost management of Chongqing SL Company:the direct material cost remains high,the purchase price of raw materials is high,the cost accounting results are distorted under the traditional cost method,and the cost performance assessment is a mere formality;And further analyze the causes of its existing problems:poor management of raw material procurement,inapplicability of cost accounting methods,and the management of cost performance evaluation needs to be improved.Secondly,according to the above problems found in the production cost management of Chongqing SL Company,practical solutions are found,which are mainly optimized from three aspects:raw material procurement management,cost accounting management and cost performance appraisal management.Finally,on the basis of the above research,this paper puts forward corresponding safeguard measures to implement the improvement plan of production cost management of Chongqing SL Company.Through the optimization research of production cost management in Chongqing SL Company,this paper makes up for the defects of the traditional production cost management model,which is of practical significance for the company’s strategy and decision-making,as well as improving the competitiveness of costs.Especially in the manufacturing industry,the direct material cost and indirect cost account for a relatively high proportion in the product cost structure,which provides reference value for its production cost management.