The Application Research On Activity-Based Costing Method Of YH Company

As the change of the global economic environment and the advancement of China’s deepening reform, business environment of enterprises become increasingly complicated, competition is more and more fierce, competitors around the ends of the earth. Therefore, stable business management, developing accurate strategy, rapid decision-making reaction is one necessary condition for long-term survival in the situation of Internet+. In the real business management process, many business decision makers can’t complete the three-step-"steady, accurate, fast", especially for manufacturing industry who is losing advantages.In recent years, edible casing in food manufacturing industry, is gradually turning natural casing industry into collagen casing industry. At present, this industry has developed rapidly, production process has developed at all levels, gradually formed some enterprises with certain scale. As more companies join into the collagen casing industry business, the amount of varieties of production enterprises is rising, collagen casing companies has shifted from pure production process to production and management process. On the condition of constant breakthroughs in science and technology and the business model of Internet+, the traditional cost accounting method is hard to adapted to constantly changing management methods. Therefore enterprises should focus on finding a new method of product cost calculation, that can provide accurate accounting information for production and management decision-making of the enterprise.To solve the above problems, the author studied relevant theoretical knowledge of ABC method and apply business category, contrapose the YH company, a collagen casing manufacturing industry which use ABC method for a long time,and does some research, striving for designing a set of suitable ABC method of production and processing for YH company, making a little contribution to the cost accounting innovation in more collagen casing manufacturing enterprises. First, this article introduces the background and significance of the research, and then states the research contents and research methods. At the same time, briefly lists the definition, elements, design principle and content of the ABC method, providing the theoretical foundation for the design of the ABC method for YH company. Taking the collagen casing manufacturing company-YH, for example, on the basic of understanding the current situation of this company’s cost accounting and the concrete issues existed, by analysing the necessity and feasibility of implementing the ABC method, making a comprehensive design for YH company’s introduction of the ABC method. On this basis, the article further discussed about how to carry out the product cost accounting through the ABC method, and the different effect on making business decisions between the product cost data information providing by two methods of accounting. Finally, in order to complete the cost accounting innovation smoothly and safely, and combined with the analysis of the previous section, the author puts forward several suggestions.