Research On Cost Management Of HJWL Manufacturing Company Based On Activity-based Costing

HJWL Manufacturing Company is a manufacturing enterprise that produces turnover tools for loading automotive parts.In recent years,the company’s business volume has developed rapidly,and the market share of its products has steadily increased.This is not only a rare opportunity but also a huge challenge for HJWL Manufacturing Company.On the one hand,the growth of business volume requires HJWL Manufacturing Company to expand production capacity,improve advanced production and automation levels;On the other hand,customer demands are becoming increasingly personalized and diversified,and the complexity of production processes is also increasing,with indirect costs constantly rising.In this process,cost management has become the core factor determining the competitiveness of HJWL manufacturing company.Faced with the cost shift brought about by downstream BMW car manufacturers’ price competition and the significant increase in raw materials from upstream manufacturers,HJWL manufacturing company,which is sandwiched in the middle,urgently needs to use the update of enterprise cost management mode to achieve more effective cost control,thereby continuously optimizing product costs,maintaining and expanding the enterprise’s advantage in market competition.In the research on the application of Activity-based costing in cost management of HJWL Manufacturing Company,the research background and significance of the thesis were first summarized,the main views of relevant scholars were consulted,and the research topic and direction were determined.Through extensive literature review,relevant theoretical knowledge was elaborated in detail.After careful understanding of the production process,production process and current cost management status of HJWL Company through field research and data review,the main problems in cost management of HJWL Company,such as unreasonable cost control,inaccurate cost accounting and product pricing distortion,were summarized,and the root causes of the problems were clarified,which defined the direction for the implementation of Activity-based costing.According to the actual situation of HJWL Company,with the help of cost management,Activity-based costing and other related theories,the design ideas and implementation principles of activity-based costing management are determined.Through the application of activity-based cost management,the accurate accounting of indirect expenses is realized,the cost structure is correctly reflected,the cost drivers are clarified,the cost control is optimized,and the Pricing of products is optimized.Finally,the measures to ensure the efficient operation of Activity-based costing in HJWL Company are described.The smooth implementation of activity-based cost management requires comprehensive organizational and procedural changes by the management of HJWL company.