Activity-based Cost Application Case Study In NG Company

With the developing of information technology application and the increasingly fierce market competition, there are great changes in business environment, the traditional accounting cost allocation method can not correctly reflect the real cost, brings to the enterprise cost management of a series of negative consequences, more and more enterprises begin to pay attention the research and application of homework cost method. In this case the most of the enterprises in our country at present is still in a passive state, they don’t know what are the advantages for enterprises, and active application of homework cost method of enterprises is rare, it mainly by the traditional concept and the influence of market structure in our country, and many managers of enterprises to the understanding of the homework cost method has certain error, because the homework cost method not widely used in enterprises in our country. Especially the domestic mold processing enterprises, still adopts the traditional accounting method, the calculation result is reasonable. Based on the mould processing cost accounting as the research object, it mainly studied the division of work center in the homework cost method and the choice of cost drivers, mould processing enterprise in our country for implementation of homework cost method to offer help, and the innovation of this paper lies in that the author according to the production process of mould processing enterprise, tracking, and calculate the difference between accounting method under the traditional cost accounting as a result, the contrast obtained the real mold processing industry has the advantage of the products, help to mould processing the production of the enterprise decision-making.In this paper, the first chapter expounds the basic contents, the research meaning and the research background.This paper expounds the research status of activity-based cost method at home and abroad. It pointed out that in the mould manufacturing enterprises choose the activity-based cost method is helpful to reduce the production cost, increase the cost management. The second chapter tells the basic theory of activity-based cost method and cost management. Interpretation of activity-based cost method of related concept, definition and theoretical basis for the analysis below. The third chapter expounds the NG, the previous situation of the company and the current situation of the company’s accounting highlighted the mould making activity-based cost method is used to the necessity of cost accounting. The current cost accounting in the company the allocation of manufacturing costs and summarize the existing problems, and illustrates the mould manufacturing company the urgency of the activity-based cost method is adopted. activity-based cost method applied in the fourth chapter expounds the NG company of a few questions, first of all, illustrates the NG company at this stage the traditional cost accounting methods and limitations and NG firm implementation of activity-based cost method have good management, and the application of computerized system conditions. Second illustrates the NG companies implement the overall goal of activity-based cost method and principle and application condition of NG company implement the activity-based cost method. The fifth chapter discusses the practical application of mould manufacturing enterprise of activity-based cost method, the specific illustrates the NG company is carried out a series of problems of activity-based cost method and example calculation process are introduced in detail, and as a result, finally sums up the experience of their own. The sixth chapter summary to full text conclusion is given.