The Research And Application Of ABC In JK Technology Company

Since the1990’s, along with the information technology widely applied and the increasingly fierce market competition, the enterprise business environment has been changed greatly, the traditional cost allocation method is unable to reflect the product cost correctly, this brings a series of negative consequences to the enterprise cost control, more and more developed countries enterprises began to research and apply ABC. But most of China’s enterprise is still in a passive state at present, don’t know what is the advantages, and the quantity of enterprise which applied the ABC actively is also very few. This dissertation aims to provide experience and suggestion by the practical application of ABC in JK company for China’s manufacturing enterprise.First of all, this dissertation expounds the limitations of traditional cost accounting, which lead to the background of ABC and describe the present application situation, the basic theory, and further discussed and summarized ABC history and the research situation on abroad and in china.Secondly, the dissertation describe the disadvantage of the traditional cost calculation method from two aspects:the cost structure and the change of distribution standard, pointed out the deficiency of the traditional cost calculation method, and at the same time puts forward activity-based costing can be a good remedy, emphasizing the theory and practice basis for ABC, around the ABC’s principle, the accounting elements, cost driver, cost calculation object, other related basic concept and cost calculation path were studied.Finally, the dissertation further study ABC’s application in JK company and confirmed the significant cost control effect:get a more accurate and more detailed cost information after JK cut in ABC. And be able to work through the process analysis to eliminate unreasonable fees, fundamentally enhance the staff cost saving and cost control consciousness. And on the basis of the above, through the activity-based costing accounting provided cost information, establish an effective cost control mechanism, and actively optimize production line layout and adjustment of product structure, in order to improve the company’s competitiveness and boost the operation profit.