The Study Of Activity Based Costing Accounting In HD Corporation

In this paper“Relevance Lost:The Rise and Fall of Management Accounting”,Professor Kaplan expressed that:Owning to the product line expanded,the produce technology reformed,the competition intensified and the information technology improved,the relevance about the Costing single allocated criterion has lost.In order to explore the rational cost accounting,Activity-based costing appears and the problem is solved.This method have achieved a positive effect in abroad.However,In our country this method applied is still at initial stage and only a few enterprises which adopt this method have a positive effect.The company of HD is a sanitary ware manufacturer enterprise,which introduced in German advanced mechanical equipment and automated production line,but it still adopts the traditional costing method.Owning to the standard of “tons of porcelain”,the costing information is inaccurate and untrue.It also influences the company's budgeting and performance appraisal.It will benefits for the product pricing,cost controlling,budgeting and performance appraisal if ABC method applies.With the guidance of correlated theories and based on the literature at home and abroad,Take HD for example,the paper is mainly analysis following aspects: At first,we analysis the present situation of the company's costing and point out its problems;Se cond,the necessity and probability analysis about the company applies the method;Third,with the general process of Activity-based costing method,we design the costing accounting model;Fourth,Compared to the actual situation of the produce factories,our applied target object is the new line of 18 kiln;Finally,when evaluated after comparison with the traditional cost accounting method,this paper will put forward a little advice on the application of activity-based costing for this enterprise and even the whole industry.