Linear Algebra and Calculation of the Margin Rate of Product Safety

Authors

  • Ruolin Li

DOI:

https://doi.org/10.54097/fbem.v7i1.4174

Keywords:

Cost-volume-profit analysis, Theory of activity-based costing, Furniture enterprises, Cost control.

Abstract

 Based on the existing scholars' theoretical researches on the traditional cost-volume-profit analysis and theory of activity-based costing, this paper introduces the activity-based cost-volume-profit analysis into the actual cases, redivides the cost of M Company on the basis of theory of activity-based costing, and analyzes the break-even point and sensitivity coefficient of the redivided cost. Moreover, the results of the traditional cost-volume-profit analysis are compared with the results of the activity-based cost-volume-profit analysis, in aid of helping M Company find the most critical points that really affect the profit of the enterprise and find the profitability of each product. Furthermore, combined with the actual situation of M Company, this paper puts forward the corresponding cost control countermeasures, and draws the conclusion that the work-based cost-volume profit analysis is more suitable for the current production of the enterprise, which also provides certain reference value for other similar furniture manufacturing enterprises.

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References

Lulu. (2019). Cost and Profit Analysis and its application -- A case study of M Factory. Operation and Management, 09: 31-34.

Chen, X., Li, Y.(2022). Analysis and Research on the Application of Capital, Volume and Profit of Yili Group. Accounting of Township Enterprises in China, 01:114-116.

Zhang, X.(2021). Research on Innovation Application of cost-Quantity-profit analysis based on Competitive Strategy. China Chief Accountant, 02: 44-47.

Zhang, K. (2013). Research on the application of Activity-based costing in the cost control of logistics enterprises. Friends of Accounting, 20: 41-43.

Gao, B. (2015). Homework cost method in the application of a company's cost accounting fine research. Market modernization, 13: 195.

Wei, Y. (2016). Research on Project Cost Control of HT Construction Enterprise. Master Dissertation of Shaanxi Normal University, 3: 51.

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Published

03-01-2023

How to Cite

Li, R. (2023). Linear Algebra and Calculation of the Margin Rate of Product Safety. Frontiers in Business, Economics and Management, 7(1), 232–234. https://doi.org/10.54097/fbem.v7i1.4174

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Articles