The Appliance Of The Activity-Based Costing In WEPEC

Cost and cost control would be the foundation for its survival and development if we may say quality is the life of an enterprise. Having followed the evolution of the production process and the progress of the cost management theories, the concept, the content, the methodology and even the objective of cost management have been developing and upgrading. With the technology advancement, the conventional cost management method of calculating costs based on products is no longer sufficient to meet the expectation. While Activity-Based Costing(ABC) method has not only been developed in theory to be a complete system, but also applied widely in some enterprises in the development countries and evolved to be an scientific and effective cost management method and methodology.Based on the systematic elaboration and analysis on the ABC concept, principles, methodology as a relatively complete cost management system, As Dalian West Pacific Petrochemical Co,. Ltd (WEPEC) an example, with focus on the specific characteristics of the refining processing and applied the ABC theory and methodology with creations, by which a theoretical base and operating procedure could be provided in order to improve enterprises' cost management and profitability. Quantified and qualified analysis have been applied in the thesis with case studies particularly on refinery to analyze the issues about the viability and feasibility of the ABC system, system design and its application etc. The theoretical conclusion in this thesis is that the ABC system shall be widely applied among enterprises, which will improve remarkably the enterprises' production efficiency, management efficiency and economic profitability as well as enhance significantly the social economy as a whole.