Application Of Activity-based Costing In AH Cement Company

With the huge change of the production technology environment and the market economy environment of the traditional manufacturing industry,the proportion of direct labor costs of the product cost dropped and the indirect costs significantly increased.The drawbacks of traditional cost accounting system becomes more and more obvious.Activities-Based Cost Method as A new and scientific method of cost calculation has received widespread attention.However,the majority of enterprises in our country are still in a passive state,the actual implementation of activity-based costing is not a lot of enterprises,especially cement enterprises.AH cement company is a typical manufacturing enterprise.It has the domestic leading mechanized production line and manufacturing environment.In recent years,to improve their own competitiveness,the company expanded the production of cement varieties and label and increase environmental protection investment in scientific research,and its cement product differentiation was significantly enhanced.But the company is still using the traditional method of cost accounting and cost management.This situation causes some issues,like cost information is not accurate,incomplete and so on.These have seriously affected the company's pricing decisions.Therefore,this paper applies ABC to AH cement company,and makes a comprehensive analysis of the production process.It has combined the principle of activity-based costing with AH model to do the research of AH cement company.Then it has compared and analyzed with the results of traditional cost accounting,and has given reasonable suggestions for the main difficulties to provide reference for cement enterprises in china.In this paper,firstly,it sorts out the development process and status of domestic and foreign activity-based costing by accessing to information,then sum up the breakthrough of the research on the activity based costing and the practical experience of applying ABC in cement enterprises.Secondly,this paper systematically expounds the theory of activity based costing,and then get the distinction and connection by comparing it with the traditional cost method.All of these jobs are prepared for the implementation of ABC.Then,to get the necessity and feasibility of practicing activity-based costing method,this paper analyzes the present situation and existing problems of the existing cost accounting system of AH cement company which is the research object by field investigation.Next,it combines with the actual situation of AH cement company Carrying out a series of work.Such as developing the implementation plan of activity based costing,establishing a series matrix model according to the accounting procedure of activity based costing,making sure the accounting workshop and period,conducting a comprehensive job analysis and cost driver analysis and so on.Most of these studies are based on three production lines of AH cement company.Finally,it gets the results of the two methods and analyze the difference between the production cost and profitability.In addition,by combining the actual situation of AH cement company,this paper analyzes and illustrates that the use of activity-based costing method will have a positive impact on job analysis and improvement,product pricing and cost control and can provide support for the company to promote ABC.At the last,this paper puts forward some suggestions for the implementation of ABC in AH cement company.