Design And Research Of ABC In J Company

According to the index of scale-based development provided by the National Energy Administration,by the end of 2020,a total installed capacity of photovoltaic power generation will reach 150 million kilowatts.Predictably,during the 13 th Five-Year Plan,photovoltaic industry in China will remain a state of high-speed development.Huge market potential is attracting more and more enterprises entering the photovoltaic inverter industry,which causes the growing of competition and the falling of the gross profit rate of photovoltaic inverter product.Therefore reasonable cost management accounting method is particularly important for enterprises to improve their competitiveness.However during the process of cost management and control,a lot of photovoltaic enterprises cost only focuses on the production process,while ignoring other related links of indirect cost information,using single distributive criteria,which causes the distortion of their product cost information.Meanwhile,the current concept of cost accounting management still remains old-fashioned,lacking the application of accounting information in the process of operating decisions.Therefore,this paper attempts to apply Activity-based Costing in Company J,expecting to help improve the level of cost accounting of the company and the similar enterprises.Firstly,this paper illustrates the basic theory of Activity-based Costing,including the basic concepts and accounting procedures.Through the comparison of the traditional cost method and Activity-based Costing,the paper tries to analysis the differences between the two and demonstrates the advantages of ABC.Secondly,from the perspective of practice,taking Company J as the object,through field investigation and data collection,the paper analyzes the company’s existing cost accounting system,finds the problems in cost accounting,and concludes the necessity and feasibility of the implementation of ABC in Company J.Then,with Datong Project as an example,the paper extends the cost accounting from the original production of a single link to the production and operation of all sectors.Through the analysis of various aspects of cost driver,a cost accounting system is tailored for Company J,the cost of Company J’s products and consulting services is calculated,and the existing cost of Company J is analyzed and compared,all for the enterprise to provide more accurate cost information.Then the operating cost method can be used in the pricing and parts purchased decision,in order to help enterprises’ decision-makers tomake more effective and rational decisions,thus improving the competitiveness of enterprises.In the end,the paper analyzes the obstacles of implementing ABC in Company J,puts forward the measures for Company J,and provides a reference for the similar operation of PV enterprises.