Research On The Cost Accounting In T Enterprise Based On Activity-Based Costing

With the development of the society, market competition becomes increasingly fierce. It is a big challenge for the manufacturing enterprises of the pressure coming from domestic and foreign competition. Many enterprises pay more and more attention to enterprise cost management. Because of advanced manufacturing technology, the manufacturing costs in the proportion of the product cost rise gradually. Therefore, the traditional cost accounting method provides not only information distortion, but also cannot meet the demand of enterprise management. Activitiy-based costing (ABC) arises at the historic moment. Through the cost drivers in cost accounting and center in activity, ABC method makes up for some defects of traditional cost method, and has strong practicability. ABC method changes the way of indirect cost accounting, so the cost information is more accurate, objective and comprehensive.Activity-based costing (ABC) is the consumption of the enterprise resources according to resource agent assigned to the project, and then assign activity according to homework cost drivers a cost calculation method of the cost object. ABC method is wildly admired both theoretically and practically. Because of the high and new technology development and technology intensive, direct labor and other direct costs accounted for the proportion of the total cost of the enterprise products or services gradually reduced, and the proportion of manufacturing costs is increased. The traditional cost accounting method of manufacturing cost allocation is simply by artificial hours or machine hours, which is not rigorous, thus it may produce enterprise cost structure distortion phenomenon. It is not reasonable to determine the price of the cost of the product and related decisions. ABC method makes up for the limitations of traditional cost calculation method, based on the idea that operation through resources will eventually reach the more reasonable allocation to the product cost. More important is that the ABC method can be widely used in product pricing, forecasting, customer profitability analysis, purchase quantity, cost management, and many other aspects. ABC method bring enterprise the accurate cost information, which is of great benefit for the enterprise in a competitive environment at home and abroad.ABC method in foreign researches are more mature. Many enterprises successfully applied the method. ABC method is widely used in cost management, product pricing, supplier management, customer management, etc. Due to environmental factors such as technology, law, management and staff, the practical application of ABC method in our country is not too much, but there is still a typical successful cases for reference.T enterprise is a company specializing in the domestic power transmission machinery manufacturing enterprises. The current products are mainly used in steel industry. With the development of the enterprise, customers and products become more pluralistic, so cost and its structure is also in constant change.It is a pressing problem facing the management of how to deal with challenges of enterprise product structure and competition. It is also a problem of how to timely and accurately understand the product and customer’s profit contribution and the cost of consumption, and to establish a set of accurate and efficient cost management plan. Facing the transformation and upgrading of enterprise operation and management, the traditional cost accounting and management can’t compete with the environment. There’s a need to design and implement the activity-based accounting method and management scheme, given priority to product dimensions.This paper first reviews the basic theory of activity-based cost method. After analyze the production characteristics of T enterprise and the industry, this paper analyze the feasibility and necessity of T enterprise applications. Then on the basis of the traditional accounting method, ABC method was applied to enterprise cost accounting, and improvement suggestions are put forward.Based on T enterprises as an example, the main study of the following:first one is the homework cost method in the feasibility and necessity of T enterprise application analysis. Only on this basis can make the ABC method application actual; Second is the ABC method application in the T enterprise cost accounting, which mainly discusses the based on the construction of homework cost method of cost accounting system, as well as the implementation of the key links in the process of processing design, such as the selection of cost drivers, the basic data collection, etc.; Finally, on the basis of case analysis, T enterprise are pointed out in the paper of some problems that should be paid attention to in application of homework cost method, for other enterprises to the homework cost method is applied to the cost accounting and management decision-making to provide the reference.T Enterprise as a case, this paper analyze the necessity and feasibility of activity-based costing. Based on the actual situation, we design the ABC method of the system structure, select the drivers, do specific accounting work and so on. This paper provides cost accounting scheme not only in manufacturing, but also in other parts like marketing, procurement, maintenance, quality supervision and so on to make the manufacturing enterprise’s product cost more comprehensive, scientific and accurate than traditional calculation method. This paper also discuss which to improve in the later use of the ABC. It will have strong reality value for similar machinery manufacturing enterprises’application of activity-based accounting.Innovation point of this paper is that the current domestic papers for the expression of Chinese ABC method applied research mainly in the job selection, especially manufacturing enterprises are mainly concentrated in manufacturing segment of activity. For manufacturing enterprises of manufacturing operation and its corresponding selection of cost drivers is not detailed explanation. In this paper, the manufacturing and the manufacturing operations, resource allocation, catalyst selection are systematically expounded and the specific examples to explain in detail. Based on the actual listed manufacturing companies as an example, the method of its application problems found in carding, the enterprise in the future for the use of ABC method provides the direction of improvement, and expect to provide industry enterprise with templates and reference on cost accounting operation and management.