Application Design Of ABC Method In Precision Casting Enterprise

At the present precision casting industry in China, not only has the competition from domestic, but also from international. So for precision casting industry, the operating pressure is more bigger. In the "Twelfth five-year development planning of precision casting industry in China" mentioned the precision casting enterprise quantity will be reduced from thirty thousand to twenty thousand by 2015, reduced to around ten thousand by 2020. This not only means the precision enterprise entered a new development period, but also faced more severe challenges. To make matters worse, with the common application of high-tech, the original artificial advantage gradually weakened. Instead, the efficient machinery and equipment is more and more obvious. This mode of production change caused the cost structure has changed. From the accounting point of view, the traditional cost method cannot completely meet the needs of the precision casting industry of cost accounting. At this point, the ABC cost method provides a new thought for us. In this paper, select SX precision casting limited company as an example to design ABC accounting system. Also would like to take this cost accounting process for other precision casting enterprise.This article adopts the method of combining normative research and case analysis. Based on the study of summarize the theory of ABC cost method that both at home and abroad. In this paper, set forth the theoretical of ABC system.This article through the analysis of the applicability of casting industry in the application of activity-based costing.Then designed the ABC cost accounting system of precision casting enterprise at macro level. And then to SX precision casting co., LTD., for example, the author under the guidance of the office personnel into workshop to understand the production process and collect cost drivers. At the same time,we compared the expected results of ABC cost method with traditional cost accounting method. Finally, put forward the conclusion of the case.As for the selected data based on the real data in August 2015, carries on the processing and select the main production of four kinds of products.The innovation of this paper is to try to apply ABC in the field of investment casting industry. Although in the past research has always stressed that the ABC cost method suits formanufacturing, however, after 20 years of development and research, few studies have to ABC cost design refinement to precision casting industry. This article from the view of precision casting industry, the research development of the application scope of the ABC cost method. Based on field investigation of precision casting enterprise, indentify the production process of main jobs. In terms of the production process will be divided into its shell making,molding, casting and post-processing the four operations center. For the same type of precision casting industry provides a reference of cost accounting method.