Application Research On Activity-based Costing Under Collaborative Production Mode Of Enterprise

Since the1970’s, technology innovation has improved the production equipment ofenterprises, changed the traditional production mode of enterprises and formed a highlyautomated production mode. It causes the product cost structure to change, for example, directmaterials and direct labor fall sharply, manufacturing costs rise accordingly, because themanufacturing cost is composed of different overhand s that are accounted by differentstandards, if enterprises still use a single distribution standard, there is a large error, so thetraditional cost method doesn’t apply to the cost accounting under the collaborativeproduction mode. Accurate calculation of cost is related to the market competitiveness and thefuture survival and development of the enterprises. To solve this problem, Activity-BasedCosting was found by experts and scholars. The accounting principle of Activity-BasedCosting is that activities consume resource and products consume activities, and the principlesolves the disadvantages of the single distribution standard of traditional cost method and canaccount products cost more accurately.The paper introduces the related theory and characteristics of cooperative productionmode and Activity-Based Costing, accounting problems of the traditional cost method underthe collaborative production mode, and the feasibility and advantages of Activity-BasedCosting under the collaborative production mode. The paper produces the Activity-BasedCosting based on an example of M company, according to the data of products cost of Mcompany, calculates the product cost under Activity-Based Costing, then compares andanalyzes its results with the traditional cost method to find out the reasons for difference.Finally, put forward Suggestions for enterprises to use Activity-Based Costing better.