Design Of Cost Accounting System Based On Activity-based Costing For Environmental Protection Equipment Enterprise

Activity-based costing is a kind of advanced cost calculation and management method that takes activity as the core.Indirect costs are distributed to the cost objects through resource cost drivers and activity cost drivers.The basic principles of activity-based costing are that products consume activities and activities consume resources.The whole cost of the product is assigned to different jobs through the resource driver.Then,selecting reasonable activity cost drivers to assign activities to products.The traditional cost accounting method can not adapt to modern production methods.The inaccuracy of cost accounting can lead to faulty decision of an enterprise.ABC has remedied the deficiency of the traditional cost accounting method,and reflects the production costs dynamically based on activities.Manufacture environment for manufacture enterprise is changing.In order to satisfy the needs of customers and the market,enterprises pay more and more attention to innovation and continue to develop new products.So the type of product gradually increasing.The production mode of the enterprise changes from the mass production of a few products to the small batch production of a variety of products.the cost structure of manufacturing enterprises has changed significantly.In order to produce high-quality products efficiently,enterprises use the machine instead of manual production and and toward to the direction of automation and mechanization.As a result,the proportion of direct labor cost has increasingly reduced and the indirect costs have increased significantly.The traditional method for cost calculation which assigns overhead costs based on productive man-hours has already could not gradually satisfy the requirement of enterprises.This paper attempts to introduce Activity-Based Costing into case company to help improve the cost accounting and management of case companies and similar enterprises.QK environmental protection equipment business is a hi-tech enterprise in Jinan,which is engaged in the development and production of environmental protection equipment for treating gaseous pollutants,sewage treatment equipment.Production has achieved a high degree of mechanization and automation,but it still uses the traditional cost accounting method to calculate the cost of the product and leads to inaccurate accounting results.This paper summarizes the research status of activity based costing at home and abroad andexpounds the related theory of activity based costing,then analyses the research on cost accounting status in QK environmental protection equipment enterprise and discusses the necessity and feasibility of applying activity based costing in the Enterprise.The cost accounting system based on ABC in environmental protection equipment factory was constructed.Taking micro bubble machine as an example and the results of activity based costing are compared with the traditional calculation results.Cost accounting system based on activity based costing is designed and developed.Then the results of the system are compared with the results of manual calculation.The accuracy of the cost accounting information system has been verified.Then,the paper analyzes the effect of the application of ABC in QK environmental protection equipment factory and Compares the difference between the profitability of the product under the ABC and the traditional cost method.Combined with the cost accounting process of the activity-based costing process,the paper proposes the process of optimizing the operation chain and analyses the activities in the production process of micro-nano bubble machine.And some suggestions are given according to the application of activity-based costing in QK environmental protection equipment factory.The last part of the article is the summary of the paper and the whole content of this paper is summarized and prospected.