Research On Improvement Of Costing Method For S Company

Business administrators have always paid great attention to cost,and accuracy of cost accounting plays a significant role in price of products and production decisions.Production management of chemical enterprises becomes increasingly automatic and mechanized,which lowers the proportion of direct cost in production cost,and increases percentage of depreciation charge and maintenance cost in indirect cost.Therefore,the products cost calculated by traditional cost method severely lack fidelity,resulting in a series of errors production and determination in chemical enterprises.Accordingly,companies need to seek a new cost accounting method in order to make up for the drawbacks of traditional cost method,providing more effective cost accounting information for production and management in firms.Thus,the paper raises a method of applying activity-based costing,and calculates and distributes indirect fees in S company.Based on actual business environment of S company,this paper reviews existing documents all over the world,systematically analyzes cost accounting current condition of S company.It finds existing problems of unreasonable distribution patterns in indirect fees,non-standard cost accounting contents,and proposes that activity-based costing method should be applied in S company in order to distribute and calculate indirect cost of products.According to basic steps of activity-based method,combined with operation flow and actual conditions,this paper deigns a suitable activity-based cost accounting method for S company,and achieves proper distribution of indirect cost in S company according to the order of identifying operations,operation centers,analysis of cost driver,collection resource cost and assignment cost.Finally,the paper lists practical measures of implementing ABC in S company from three aspects,the full participation in the implementation of activity-based costing,to enhance the level of information management and to strengthen personnel training.The paper adopts method of combining theoretical research and case analysis,and introduces activity-based costing method into S company.It not only improves accuracy of cost accounting in the company,and helps to make scientific management for cost in the company.It expects to provide suggestions for application activity-based cost method in similar chemical enterprises,thus improving whole cost management level for the field.