Study Of ABC-based Cost Accounting Method For Turbocharger Products

Based on ABC (activity-based costing) theory and the practical production and operation in Automobile Components Department, Qishuyan Locomotive & Rolling Stock Technology Research Institute, this paper studies the corresponding cost accounting methods which can be used to precisely calculate the costs of various turbocharger components for automobiles, in the hope of laying a solid foundation for better cost control and production management.The paper is composed of three parts: Pat One outlines ABC's origin, development, relevant theories, calculation principles and some critical concepts; and Part Two studies ABC-based cost accounting methods involving the production of turbocharger components, identification, definition and selection of key operations, establishment of operation center, centralization of resource cost in the operation center, determination of operation drivers, calculation of the allocation rate for operation drivers and centralization of the operation center cost in specific cost objectives; while Part Three deals with the summary of ABC-based cost accounting methods and the prospect for their application.