Application Research Of Activity Based Costing (ABC)Method In Aluminum Alloy Enterprise

With China’s accession to the WTO and the formation of the global market, aluminum alloy casting industry competition is no longer limited to domestic, but in the wider international market space. The market competition is mainly manifested in the cost of product quality and sales service, while product cost competition is no doubt the basis and key. Cost reduction has become the main method and approach for aluminum alloy casting enterprise to improve benefit and promote market competition. However, at present, thick cost management of aluminum alloy casting industry in our country causes unreasonable apportionment of expenses and distorted product cost information, which causes error of enterprise management decision and runway of product cost. Therefore, aluminum alloy casting enterprise urgently need to solve how to establish enterprise product cost accounting system and control model that are more in line with the actual conditions of the enterprise, and then realize cost reduction, benefit improvement and market competition promotion,The thesis takes cost management practice of JNHC as an example, applies thoughts methods of ABC management, studies ABC accounting system adapted to characteristics of aluminum alloy casting enterprise production and operation, and on this basis, explore the ABC method of cost management mode and control mode in aluminum alloy casting enterprise, which offers ideas for aluminum alloy casting enterprise to improve benefit and competitive ability.First of all, give a brief and clear introduction of ABC method, including its origin, theory development and application situation both at home and abroad, ABC accounting principle and procedure, and ABC control etc., from which realize the basic thoughts of "products consume activities, activities consume resources" and detailed operation procedures, which offers theoretical support for the establishment of ABC accounting system and design of ABC control model.Secondly, through research, on the fully discussion basis of production procedure characteristics, current cost accounting situation and problems existed, necessity and feasibility of ABC method applied in aluminum alloy casting enterprise, it is proved that aluminum alloy casting industry has the applicable conditions to apply ABC method. Then, according to general principle of ABC method operation procedure, general procedure that aluminum alloy casting industry applies ABC accounting and control is designed.Lastly, according to production procedure and current situation control analysis of JNHC, general design thought to implement ABC method. Meanwhile, according to the test, analysis, comparison, and evaluation of design result, specific application suggestion about quotation and cost control of aluminum alloy casting parts, which is based on ABC information, is proposed.