A Theory And Application Study On The ABC Of Process Manufacturing

For a long time, the count of the cost of process manufacturing company is a difficult problem for itself. Process manufacturing Pattern is continuous or batch, and to go through a series of chemical reactions and physical changes, relatively fixed production technology, high-volume, and raw material inputs to a continuous uninterrupted manner. Process manufacturing compared with the discrete process industrial products, the cost share of indirect costs and share a significant proportion of the total cost, and some products share of indirect costs and costs can account for 60% of the total cost -70%. At present, the cost of process industry followed the traditional method of calculating indirect costs can not be accurately and sharing the cost of accurately allocated to the product up. There has been a serious shift the cost of the phenomenon, and therefore the cost of business analysis and financial decision-making will easily lead to distortions and errors . Therefore, to find a new suitable mode of operation of process manufacturing production and cost structure characteristics of the costing method has a strong theoretical and practical significance. In this paper, the characteristics and operation of the process manufacturing to conduct a systematic analysis of cost method, based on the operating costs of the introduction of the cost calculations for process manufacturing. Help these enterprises to build a more reasonable cost system, thereby increasing the level of costing and financial decision-making.This paper use the normative study and case study method, which is divided into theory, and conclusions of the proposed three-part case. The theory is divided into introduction, activity-based costing research synthesis and process manufacturing activity-based costing analysis of three parts. Introduction part of the comprehensive analysis of the characteristics of process manufacturing production and cost structure characteristics, and fully understand the basis of activity-based costing, and feasibility studies for industrial applications of process-based costing theory of the necessity and feasibility; Activity-Based Costing Survey sections, domestic and international developments in activity-based costing, and to involve the activity-based costing and process industry to be a combination of theoretical presentations and comments; Process manufacturing activity-based costing analysis section, first introduced the current cost of process industry composition and calculation of method, pointed out that the cost of the existing major problems. And with full analysis of process manufacturing production cost structure, operating mechanisms and characteristics of proposed activity-based costing principles. For enterprises to build a comprehensive operating system, including the division of operations and operations center, cost driver selection, materials costs operating centric computing model and the operational costs of computing model. The operating system can accurately calculate the operational costs of products and materials costs; Second part of the case, the typical process manufacturing enterprises - ZJHZ pharmaceutical companies for example, verify the theory part of the proposed method and conclusions will be used activity-based costing method to calculate the cost of the product cost. With the traditional method of calculating the results obtained compared to analyze differences in the results of two methods the nature of reason and the reason why it used activity-based costing method to calculate the results obtained is more reasonable; Third part of the concluding recommendations, the main contents of this article were owned by summing up arguments and explains in practical application of activity-based costing to pay attention to the problem.The study of the Activity-Based Cost of process manufacturing is very limited in China and overseas. So the topic of this paper itself is an innovation. In this paper, the traditional costing and activity-based costing theory, based on the coefficient of material costs and operating costs of transferring the partition coefficient. It gives a very good solution to material costs and operating costs of finished products and the distribution between products, in line with process manufacturing cost of computing requirements.