Application Of Activity Based Costing In Z Drilling Company

In recent years,the domestic oil drilling industry competition is becoming increasingly fierce.Currently,the international oil prices are in low level and the oil field first parties are confronted with a sharp fall in their profits,so they have to reduce the cost of exploration and development to deal with.Facing the new situation and environment,as a professional petroleum engineering technology service corporation,Z drilling company must strive to improve its enterprise cost management standard and take various measures to reduce cost in order to enhance its market competitive ability.Activity-based costing is an advanced cost management method,which can provide more timely,accurate and comprehensive cost data and richer financial and operating related information compared with the current cost management system of Z drilling company.Therefore,the application of activity-based costing is an effective way to solve the problems in the current cost management system,conduct cost management innovation and improve the cost management standard in this company.According to the characteristics of the oil drilling industry and the reality of Z drilling company,this paper researches the present situation of cost management and the production technological process in Z drilling company in depth and detail,completes the activity confirmation,activity center division and cost driver analysis.On this basis,this paper designs a whole set of activity-based costing calculation scheme which is suitable for this company,and tests the scientificity and feasibility of this scheme through practical application in NS-103 well.At the same time,this paper proves the advantage of activity-based costing compared to the company's current cost calculation method through statistical analysis.Finally,this paper puts forward relevant suggestions for the activity improvement and corresponding measures to guarantee the implementation of activity-based costing in Z drilling company.