Costing In The Application Of Power Enterprises

With the deepening of the power system innovation, power generation companies face increasing market external environment; with China's rapid economic development, our country's electricity capacity grows very fast, leading to faster growth in generating capacity, coupled with the slow growth of electricity demand, gradually balance power supply and demand, energy market has gradually become a real buyer's market, the countrywide average utilization hours of generating units decreased significantly; electricity infrastructure investment exceeded the power equipment manufacturing capacity, as a result, electrical equipment supply is not enough for the market, and with the rising price of raw material, the electrical equipment rise as well. Thermal coal is the main raw material of power production, in recent years, affected by the rising price of resources, international energy and other factors; the relationship of coal supply and demand is serious. Though the coal price is keeping rising, the price of power did not rise timely, even if the price of power rise, power enterprises will pay a lot of cost at the same time. Our country's national" energy saving " policy influence power enterprises, technical innovation, environmental protection facilities make the cost of power enterprises increase a lot; thermal power industry now is in the low profit era, we must break the traditional extensive management model, and establish cost leadership in the strategic sense, which has become the consensus of all power generation companies. At present, power enterprises'management capability can not meet the increasingly fierce market competition, facing shortage of enterprise cost management, as a more advanced cost management method, activity-based job costing method was introduced to China's power enterprises。ABC application was started from the United States and Japan, from the initial manufacturing industries to electricity, finance, postal and medical services industries. Many hi-tech manufacturing companies, hospitals, postal services, insurance, telecommunications, profit and non-profit organizations in our country are being tried or has been successful implementation of the operating cost method, even in small and medium enterprises, there are also successful costing cases. Job costing method has been developed from a concept, establishment of the theoretical system to the application of business, and now it is much more mature and has withstood the challenges. Its successful usage in Domestic and foreign enterprises provide a foundation for our power enterprises.Job costing method is also called job costing calculation method, it is based on the jobs, identify and measure all the jobs consumed enterprise resources, and calculate all the consumption of resources included into job, and then select the cost drivers, allocate all the job costs to cost calculation object. Job Costing method is consist of four basic elements, namely resources, jobs, cost objects and cost drivers, the basic idea of job costing method is jobs consume resources, products consume jobs. Activity-Based Management (ABM) is an extension of job costing calculation, and also is a new management method based on the ABC. Job costing method make full use of ABC analysis information to analysis how job bring values to businesses, products and customers, at the same time to make rational management decisions. Job costing method advantages compared to traditional method:provide more detailed and accurate cost information for the company's business products, provide performance evaluation, strengthen budget management and cost control, make a reasonable pricing。Operating Job cost method has four main steps, the first step is preparation, understanding of business procedures, collection of job information, determine management priorities; second step is select and develop implementation tools for system operations costs; and third-step is job cost model design, mainly include the establishment of resource library, the establishment of jobs libraries, design costing object, design cost drivers, and determining the process of calculation of job costing; the fourth step is analysis of the data obtained by ABM. In this paper, as power enterprises an example, detailed implementation and application procedure of job costing method will be showed.