Application Of Activity—based Costing In JX Enterprise

After 40 years of reform and opening up,China’s economy has made great progress,and its GDP has leapt to the second place in the world.At the same time of economic development,it also faces some problems.First of all,there are some low-efficiency and heavily polluting enterprises in many industries.They need to improve processes,increase production efficiency,and reduce environmental pollution.At the same time,however,the cost of enterprises will increase,and the profitability of enterprises will be challenged.Secondly,the homogenization tendency of enterprises to produce products is serious and competition is fierce.It is necessary to identify market segments and improve their own competitiveness,otherwise profitability will be more difficult,and even the survival of enterprises will be affected.In addition to seeking solutions from the business itself,the above problems are solved by using the operation cost method to calculate costs,and find the accurate cost drivers,and start from the key cost drivers to control costs,thereby maintaining and improving the profitability of the enterprise.A practice that is more and more commonly recognized and used(or tried to be used)in modern enterprise management.In view of the fact that the current operation cost method has been recognized by more and more people in China,but the actual promotion and application is quite difficult,so that the actual application of this method in enterprises is still very limited,this paper selects a As a case company,a representative company studies how the operation cost method is applied in the company,in order to provide useful reference for other companies.Based on the theory of activity cost method,this article takes JX enterprises as the research object,uses comparative analysis method and case analysis method to study and discuss the specific application of activity cost method in enterprises.This article mainly contains the following contents: First,relevant introductions are made around the basic principles of the activity cost method.Then,on this basis,systematically elaborate how JX companies implement the activity cost method,and discuss the implementation results.In terms of all the analysis done by JX Enterprises,this article is promoted according to the following process.First,based on the overall introduction to JX companies,the current status of JX companies is analyzed.After analysis,it is believed that the scale of the enterprise is moderate,the data is sufficient,the production process is stable,and the basic conditions of the operation cost method are met;secondly,the necessity of the JX enterprise to adopt the operation cost method is discussed.For the benefit and development of the company,it is necessary to compete with competitors,and it is particularly important to further reduce costs.The operation cost method meets the development requirements of the enterprise itself.Then select the JX enterprise’s large line as the cost accounting object and use the operation cost method to calculate the product cost.According to the production process of the enterprise,set up a cost operation center to determine the corresponding cost drivers;and then calculate the cost of various products.Finally,the results calculated using the activity cost method are compared with the results calculated using traditional methods to find out the differences between them to find out the cost management problems in the enterprise.Then it was proposed that enterprises should set more scientific performance evaluation indicators and popularize the cost control ideology.In order to make the enterprise cost method more effectively implemented,this article also points out the issues that need to be paid attention to in the process of implementing the operation cost method.To sum up,this paper believes that the operation cost method can effectively carry out cost management,and can play an effective role in improving the surplus level of enterprises.Applying the activity cost method in an enterprise can improve the management level of the enterprise and make the enterprise more competitive.