The Effectiveness of Variable Cost Method on Cost Reduction in Mobile


Introduction: In this paper, job cost accounting software we analyze the cost reduction example of Shenzhou mobile software value creation by taking the variable cost method as the breakthrough, and integrate the basic theory and operation process of the variable cost method in the research process, and discuss the efficacy of the variable cost method in the cost reduction of Shenzhou mobile software, and expand and broaden it to sort out the characteristics of the application field of the variable cost method.

I. Preface

In this paper, we analyze how noise cancelling earbuds SHINZHOU uses the variable cost method to reduce costs and improve the company's management and operation, control costs, and increase production, based on an example of how SHINZHOU implemented the variable cost method and improved management methods to achieve profitability by building lean management system software.

II. Detailed introduction of the example

Along with China's Internet low volume injection molding big data development strategy landing style, enterprise technology innovation, intelligent process accelerated, cell phone software service industry stepped into unprecedented opportunities. Software technology service companies with business processes continue to grow revenue at the same time, but also widely encountered the test of cost fee increases too quickly. As the only software technology service company under the Aerospace Science and Technology Group, Shenzhou Mobile Software has taken the initiative to carry out social transformation and development, but it has been in the dilemma of high costs and financial constraints even as its business processes are rapidly expanding. This example describes the whole process of Shenzhou Software Development Company to achieve profitability by building lean management system software, implementing variable cost method and work improvement management method, etc. The key study shows how the company can realize work costing and operation control according to lean management method, and finally achieve the business goal of improving quality and efficiency.

Introduction of variable costing method

The variable cost method, commonly known as the ABC method, is a work-based costing method. The variable cost method thinks that all production operations of the company are composed of a series of interrelated work, and the company needs to lose certain network resources to carry out each work; and the goods manufactured by the company must be carried out through a series of work. Thus, the cost of production is, in fact, the total amount of resources expended by the company for all the work involved in the production and manufacture of the good.

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