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rgin = unit sales revenue - unit variable cost and carrying out standard cost management, enterprise can confirm the unit contribution margin, which is beneficial to work out the break-even point, thus improving the veracity of decision and effectiveness. Traditional cost management, especially full cost management, considering the product income, not only including the variable cost, and including fixed cost, this interfere with the decision maker's decision. The implementation of standard cost management provides a scientific basis for decision makers in order to rightly account unit variable cost of products, so as to facilitate the enterprise to make the correct decision.

Cost variance generally refers planned cost and actual cost, the difference of current actual cost and prior period actual cost, difference of current actual cost and actual cost in the same period last year, difference of current actual cost and enterprise history advanced cost level and advanced level of cost difference, cost variance analysis is to analysis the above differences, find out differences between production reason, distinguish favorable variance and unfavorable differences and take measures to reduce the production cost in the analysis process according to different variance caused by different causes.

Cost variance analysis is very important in this system. Through the analysis of cost variance, the enterprise can find the real causes and establish countermeasure and take effective measures to correct. Therefore, it is rather significant for corporations to improve the level of cost management and enhance the efficiency of equipment. Especially, in the fierce competition of market economy, cost variance analysis can improve cost control and formulate cost competitive advantage in order to become a important means for enterprise competition.

4. The advantages and disadvantaged of activity based costing method

Activity based costing is one type of method to account cost which puts the work as its account object, accounts the amount of production resources expensed by each homework, then allocates the cost of each homework into each final product according to the final product consumption work quantity of each activity, thus, calculate all kinds of final product total cost and unit cost (Arnaboldi, Lapsley, 2005). Firstly, we can know accounting content. In the cost calculation method, the product cost is completely cost instead of manufacturing cost. For a manufacturer, as long as all costs are reasonable, all these costs should be included into the product cost. The activity based costing method emphasizes the causes of expense, no matter whether it can be directly related with production process. Secondly, we can learn accounting method. 

Activity based costing method believes that enterprise’s management activity is composed with a series of activities. Product consumes operation and operation consumes resources. The cost accounting object operation based costing method is all operations, accounts resources of each operation, then accounts the cost of each operation, allocates the cost of all operations in to the final product according to the quantity operations of the final product and fi本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。