Research On Cost Control Of M Company Based On Standard Cost Method

With the rapid progress of science and technology and the rapid development of market economy,the competition between enterprises is becoming more and more fierce,and the profit space of enterprises is getting smaller and smaller.Due to the impact of the trade war between China and the United States,prices are rising,further aggravating the survival pressure of small and medium-sized enterprises.As a big grain producer,China has many rice processing enterprises,and the rice processing industry has a good prospect.However,the entry threshold of this industry is low,and most of them belong to small and medium-sized enterprises,with serious product homogeneity,single product structure,and excessive concentration at the low end of the industrial chain.At present,many military manufacturing,steel,pharmaceutical and catering enterprises in China have begun to adopt a cost control system based on the standard cost method,and have achieved success.In contrast,the cost control of rice processing enterprises is still in a backward position,the lack of cost control concept,the production efficiency is not high,the imperfect system is the problems existing in most rice processing enterprises.As the M company engaged in rice processing,also faces the problem of cost control.By studying the relevant theories of standard cost method,this paper constructs a set of scientific production cost control system in M company,so as to improve the company’s profit level and management level,and enhance the market competitiveness of the company.This paper mainly adopts the literature research method,field research method,case study method,takes M company as the research object,control the cost of the enterprise as the purpose,studies the applicability of standard cost method in small and medium-sized rice processing enterprises,combined with their own work experience and first-hand operation data,to build the cost control system of small and medium-sized rice processing enterprises.first,On the basis of reviewing the relevant theories of standard cost method and analyzing the current situation of research at home and abroad,Combining with M company’s organizational structure,production process characteristics and the current situation of cost control,Covering M’s financial data from 2020 to 2022,And compared with YH companies in the same industry,It is preliminarily found that M Company has some problems,such as imperfect cost control system construction,high direct material cost,high direct labor cost and high manufacturing cost,And make a detailed analysis of the causes of these problems,Through the analysis of the field visits,Knowing that the problem is the lack of a sound cost control system,Low production efficiency,Staff comprehensive quality is not high,Overproduction capacity,etc.;next,To address these problems,After further analyzing the necessity and feasibility of implementing the standard cost method,Combined with the PDCA cycle,Construct a standard cost control system,Take the M company’s main products,early rice and late rice,Develop the product standard cost,Calculate and analyze the difference between actual costs and standard costs;last,Put forward to improve the cost control system,reduce the direct cost of materials,improve the comprehensive quality of staff,improve the utilization rate of equipment and other solutions;To some extent,help M company to solve the problem of cost control.Through the research,it is found that the formulation of the standard cost method needs to conform to the market situation,and also needs to apply the development plan of enterprises.Standard cost method can not only improve the cost control system of M company,but also strengthen the awareness of cost control of employees;can make the cost control work of the company more organized,visual and scientific;not only can be successfully used in large companies,but also has practical guidance and extensive use space for small and medium-sized manufacturing enterprises;this paper studies the application of standard cost method in M Company,changes the cost control status of M Company,improve the market competitiveness,and can play a certain reference significance for the cost control of other rice companies.