The Research On Activity-based Cost Management In The First Oil Production Plant

Activity-Based Cost management is an advanced cost management method. Byapplying the Activity-Based cost method in enterprises in which indirect expenses arecomplicated and huge, indirect expenses can be accurately allocated and factors that causechanges in the product cost can be clearly revealed. As the birthplace of the Jilin Oil Fieldcompany, the first oil production plant is the main production and cost center of the Jilin OilField company. After many years of high intensity mining, it is already in the mid-laterexploitation period. Low profitability has gained affected by national polices, theinternational oil price, technologies and other factors. Applying the Activity-Based costmanagement in the First oil production plant, deeper causes of cost changes can beaccurately analyzed, all sorts of ineffective or inefficient activities can be disclosed timely,and Optimized operation chain and value chain can be achieved. Moreover it helps the firstoil production plant to further tap the potential behind the Numbers, lower the cost, increaseefficiency, and realize the optimal allocation of resources. It is an efficient way to realize lowcost and high benefit development.