Research On The Cost Accounting Of D Company Steelworks Based On The Operating Cost Method

Iron and steel industry is a significant pillar industry of our national economy,committed to ensure that the national economy is good and rapid development.In recent years,the steel industry has been hit by overcapacity and economic crisis,and the market competition is increasingly fierce.Cost is the lifeline of enterprises,especially for enterprises in industries with fierce competition situation.Mechanized production covers the whole industry,and its average linear distribution model of indirect costs leads to inaccurate accounting results,which is not conducive to enterprises to make correct decisions.Activity-based costing,as an advanced cost accounting method,tends to be reasonable the allocation of indirect costs,making the accounting results more accurate,which is conducive to enterprises to make correct decisions.Based on the research object of D company’s steelmaking plant,this paper analyzes how to apply activity-based costing method,and provides new ideas for steel mills to obtain more accurate cost information and realize sustainable development.Firstly,it introduces and analyzes the research background,purpose and significance,introduces the current situation of domestic and foreign countries from the theory and application of activity-based costing,and clarifies the research ideas and methods used in this paper.Then it introduces the relevant theoretical knowledge of activity-based costing,including related concepts,characteristics,accounting process,and distinguishes it from traditional cost methods in many aspects.After introducing the general situation,production characteristics,current cost accounting method and existing problems of D steelmaking plant,it is pointed out that its current traditional cost accounting method is no longer applicable to the product cost accounting of steelmaking plant.Combined with the process flow design of steelmaking plant,the result of activity-based costing is compared with that of traditional cost method,and the difference is analyzed.Finally,the author puts forward the corresponding safeguard measures for D company’s steelmaking plant to implement activity-based costing more effectively to help the company improve its own competitiveness and achieve the goal of sustainable development.