Research On The Application Of Activity-based Costing In Company

With the development of trade liberalization,the competition among enterprises has become increasingly fierce,especially the price competition and cost competition among homogenized products.Product cost control is particularly prominent for the production and operation of enterprises.At present,the vast majority of enterprises in our country still use relatively simple traditional cost accounting methods for cost accounting.With the manufacturing of increasingly high degree of automation,production more and more,the indirect costs still by traditional calculation methods for accounting,the cost information deviation is inevitable,the distortion of information will lead to errors on the enterprise cost control and product pricing,not conducive to the actual needs of modern enterprise cost management.Compared with traditional cost accounting methods,more accurate accounting results are the outstanding advantages of activity-based costing method,which will help product pricing more accurate,enhance product competitiveness,and improve the advantages of enterprises in the competition.A company is a float glass manufacturer,whose products mainly include float glass original pieces and deep processed products.Based on A company as an example,this paper expounds the calculation process and result of ABC in A company.Firstly,this paper mainly describes the concept and basic principles of ABC,and specifically introduces the main content of ABC.Then it analyzes the current cost accounting method of A company and the distortion of cost information and other problems,and focuses on the necessity and feasibility of A company to implement activity-based costing,highlighting the advantages of ABC.On this basis,taking the hollow workshop of Company A as an application example,according to the actual production situation of the hollow workshop,it is divided into 9 operation centers,determines the corresponding cost drivers,the specific operation center is divided,and the corresponding specific cost drivers are found on this basis.Based on this,the operation cost is allocated in detail.Finally,further with the existing cost accounting cost method result comparison,found that the homework cost method of cost information more accurate,more in line with the company’s long-term interests.By introducing the current situation of cost accounting and management of Company A and comparing it with activity-based costing method,it is pointed out that the cost accounting information obtained through activity-based costing method is more accurate,and on this basis,it will help Company A improve the cost management control and operation level.At the same time,for similar manufacturing enterprises,the application of activity-based costing also has a certain reference value.