Research Of Activity-based Costing In JYG Company Based On ERP Environment

Abstract:Iron and steel industry is the mainstay industry of economic development in China. With the popularization and application of information in iron and steel enterprises, the traditional cost management mode is no longer suitable for the development of these enterprises. In the more and more fiercely market competition environment, iron and steel enterprises urgently need to find a new cost management method to reduce the costs and improve the market competitiveness. JYG iron and steel company is a large-scale iron and steel production enterprise. After the investigation and analysis, we can find that there are many problems in this company. Such as the company’s concepts in cost management lag behind, extensive cost accounting, and irrational distribution of manufacturing overhead etc. Therefore, JYG iron and steel company needs to improve the existing cost management mode. This article uses JYG iron and steel company’s cost management system as a starting point to design the activity-based costing management in ERP environment.The paper does some research as followed. Firstly, the author does some detail research on the ERP management principle and the activity-based costing management theory. And based on this the author make a deep analysis on the ERP management system combined with the activity-based costing management, and then introduce the theoretical basis and the advantages of the combination of the two theories. Then according to the characteristics of the production of the iron and steel products and the problems of cost management that exist in JYG iron and steel company the author propose the activity-based costing management in ERP environment improvement program. In this program the author does operation analysis, cost drivers analysis, and establishes the activity-based costing model based on the analysis of the production process of iron and steel products. The author tries to solve the problems of its cost management through these measures. And finally the author puts forward the measures of implementation and safeguard according to the program. There are7graphics,24charts and47references in this paper.