Activity Based Costing Iron And Steel (group) Co., Ltd. In North Camp

Product cost occupies a crucial position in enterprises competition. We should currently work on improving cost management level of enterprises and narrowing the gap between our companies and foreign ones combining the reality in our country and learning from foreign advanced experience in cost management. This article applies the domestic and international experience of cost management to Beiying Iron and Steel (Group) Co.,Ltd and takes ABC to reform its original cost management system in order to improve the cost management level and competitiveness.There are five parts to illustrate. First part is the exordium. It generally introduces the research background and its significance. And then the actuality of cost management research at home and abroad. At last it describes the purpose and framework of this research.The second part is mainly summarized the basic theory of ABC. It introduces the emergence and development of ABC, its principle and basic concept and summarizes the general process of calculating cost in ABC. It analyses the key points of ABC theory and compares ABC with traditional cost accounting method.The third part presents the application of ABC in China and abroad and points out the qualifications we ought to have in promoting ABC in our country.The fourth part deals with the cost management situation in Beiying Iron and Steel (Group) Co.,Ltd and introduces the general condition of the current cost and cost accounting structure. It analyses the existed problems in depth followed.The necessity and feasibility of ABC application for Beiying Iron and Steel (Group) Co.,Ltd are demonstrated in the fifth part of this article and the author tries to design an ABC application that constructed for Beiying Iron and Steel (Group) Co.,Ltd.The sixth part reaches the details during the implementation of ABC in Beiying Iron and Steel (Group) Co.,Ltd. It starts with the design of ABC system and finds the problems that should pay attention to and the advantages compared to the original cost accounting system.Finally, it summarizes the research and points out the further research target with the purpose of finding out the problems in cost management and establishing some administrative policies that tally with the actual situation guided by the ABC theory to strengthen the enterprise cost management and enhance management efficiency.