Research On Application Of Target Activity-based Costing In Hunan Tairu Sanitation Company

With the increase of financial support for garbage classification,the pilot work of garbage classification is gradually carried out.In particular,driven by the mandatory implementation of the garbage sorting policy in 2019,domestic enterprises have gradually promoted garbage sorting from local demonstration to the whole country.Sanitation work is an important link in the implementation of garbage classification.How to reduce costs and increase efficiency,expand market share and influence,under the policy of both opportunities and challenges,has attracted the attention of people from all walks of life.After the implementation of garbage classification,how to control the cost,supervise the important links,and obtain the best economic benefit at a reasonable cost is a complex and difficult problem facing sanitation transportation enterprises in the fierce market competition.From the current cost management methods,total cost method has been widely used in sanitation enterprises.But this management method accounting is not accurate,lack of timeliness,is not conducive to enterprise decision-making,this management model has been unable to meet the needs of modern enterprises.While target-based costing is based on target cost and can make up for the deficiency of traditional cost management method and control the cost.Taking Hunan Tairu Cleaning Co.,LTD.(hereinafter referred to as Hunan Tairu),a private building cleaning service company in Hunan Province,as the research object,this paper analyzes the application of target costing,activity-based costing and target activity-based costing combined with the two methods in enterprises by domestic and foreign scholars.This paper discusses the defects and deficiencies of hunan Tairu Company’s cost management from many angles and puts forward the applicability of target-based costing in its waste transportation project cost management.Based on enterprise data,using the method of target cost,to the preliminary estimate of the total cost,and through the operation cost accounting model to calculate the hunan’s,such as transportation cost under the background of garbage classification,and will target the homework cost method using data with hunan tiger after the original cost management mode of the cost data comparison,this paper analyzes the reasons of difference.On this basis,explore the problems in the field of cost management of Hunan Tairu,and improve the cost management plan,and finally conduct a comprehensive and objective evaluation of the practical effect.The study found that target activity-based costing can implement various management responsibilities,timely find non-value-added activities,control costs through three stages before,during and after the event,and improve the level of enterprise management.Under the garbage classification policy,Hunan Tairu has changed the original traditional cost management mode,established a target activity cost management system,and obtained a more suitable cost management mode for the development of Hunan Tairu enterprises through the simulation application of garbage collection and transportation projects.The research for hunan Tairu cost management level,as well as the cost management of the same industry has a reference and inspiration.