The Application Of Activity-based Costing In The Cost Accounting System Of J Group

The Activity-based costing(ABC) is a new method of cost management which provides timely, accurate and relevant cost information used to make decisions, control and manage,aimed at making up for the defects of the traditional cost method. Since the mid-1980 s, ABC has attracted more and more attention to all kinds of enterprises in developed countries. With the successful promotion and application of ABC used in manufacturing enterprises, it not only solves the cost distortion problem, but also provides new ideas of cost management for enterprise. So the new management and control methods which use of cost information are constantly emerging, such as cost control, budget management, production management,performance evaluation and so on.Both theorists and practitioners in China have begun to study on the application of ABC in domestic enterprises since its introduction. However, there are few enterprises to implement ABC in all directions now. The application condition of ABC is not enough for most domestic enterprises which meet with many difficulties and obstacles in the process. In order to meet the more and more domestic enterprises to establish a modern system and realize the modernization of management and improve the ability to adapt to the competitive market environment and profit ability, it is necessary and important to study on the more independent and further applications of ABC in domestic enterprises, which also has guidance significance.This paper takes J group for example to launch the study of the application of ABC,which is a small medium enterprise to produce the agricultural and sideline products. The knowledge of ABC theory is understood and mastered by learning the domestic and foreign literature and successful application cases. The feasibility conditions about the application of ABC in J group and the reason that J group is necessary to implement ABC are first explained,combining with the actual situation of J group. On the basis, the design scheme of ABC in the cost accounting system of the plastic industrial park which is an independent accounting industrial park of J group is introduced. The product costs of the traditional method and ABC are calculated according to the production data for a month of J group collected, and analysis of the two kinds of results in contrast. In order to provide the information system conditionsof ABC to J group, the development plan of the cost accounting information system based on ABC on the platform of B/S is detailed. The results between the system and the artificial calculation based on ABC are compared after the input of the same sample data to the system.After obtaining the cost information, its extended application about product pricing of J group is discussed.