Research And Practice Of Activity-Based Costing Based On BP Neural Network Theory

Product cost is a critical basis for the enterprise to price its products and make strategic decisions, and reasonable allocation of costs is an important factor in the accuracy of product cost. In the aviation maintenance industry, the product is to provide maintenance services to meet customer needs with professional technologies. These services typically include complex production processes and technical requirements, which involve professional personnel and equipment with high requirements. This has increased the indirect costs of enterprise. Therefore, the traditional cost accounting methods do not accurately reflect the cost management requirements of such enterprises. This paper combines BP neural network theory and activity-based accounting, applying in costing to make cost more accurate. So the research involved has practical value.Based on the research of existing products in investigated enterprise, the procedure and cost calculation model for activity-based costing application on aviation maintenance industry were proposed by re-costing product cost. And the costing results were analyzed and compared with that of traditional way. The conclusion comes to: when costing the product in the aviation maintenance industry by activity-based costing, it is necessary to reasonably determine resource cost drivers and activity cost drivers; it is also necessary to reasonably allocate resource and activity costs. However, there are high requirements of activity-based costing on the accuracy and completeness of history data in finance and production. More accurate partition ratios were obtained by applying the computer system theory - BP neural network to deal with the data and special production.The practice illustrates that combined application of BP neural network theory and activity-based costing (ABC) could make cost more accurate. And it provides new solutions for small and medium enterprises as well.