Research On Calculation And Application Of Activity-based Costing In B Drilling Company

On the circumstance that the price of crude oil drops dramaticly across the world,the condition of oil and gas exploration in China has become more difficult.With the change of drilling technology and the increase of labor cost and raw materials,the cost of oil filed exploration and development increases continuously as well.The oil filed which B drilling company is now serving is an old oil filed that is in its middle and late period,which means the cost of exploration and development will surely increase greatly.Thus,the economic profit will decrease and the core competence of the company is affected as well.Based on the analysis of management environment of the company,relative policy and current cost situation,conduct the investigation and research on the production oil field,and collect and get the information of the process of drilling and production.Besides,the activity-based cost method is applied in calculating the drilling cost of B drilling company.By the verification of drilling activities,classification of activity centers and analysis of the driving factors of cost,a whole suit of activity cost calculation scheme is designed to meet the drilling company's need.Besides,the calculating method is also applied in three different wells to test the scientificity and feasibility of the scheme.Also,through the statistics analyzing method,the advancement of activity-based cost method,compared with the current cost calculating method of the company,is proven.In the end,the activities are improved and the results from activity-based costing method are applied into calculating the basic budget of activities.And then the implementation and assessment method of basic budget are carried out.By the activity-based cost method,the quality of accounting information and the cost management of B drilling company get improved,which can make the company do better in dealing with the influence of the dropping of the price of oil.The research provides the reference value to the drilling cost calculation of B drilling company and solution to the difficulties of cost control caused by unscientific calculating methods.Effective cost control measures are conducted to ensure the company to fulfill its cost target.Besides,this can also offer referable experiences for domestic companies of the same type and using the same exploration methods.