Accounting Study Of Activity-based-costing In R Enterprises

In recent years,the country attaches great importance to the pharmaceutical industry,and actively promotes the reform of the pharmaceutical industry.The development of Chinese patent medicine enterprises is facing great challenges,and the market competition is becoming increasingly fierce,so the theprofit spaces of them is becoming narrowing.Effect of external factors can not be changed in a short period of time,in order to improve the profits of enterprises,so that enterprises continue to develop,need to pay more attention to the internal factors of enterprises,enhance the enterprise cost management,strong then enterprise cost control level.With the rapid development of science and technology in our country in recent years,the production mode of enterprises has changed,the mechanization has increased,and the proportion of labor has decreased,the cost structure of Chinese patent medicine manufacturing enterprises presents new features,the proportion of indirect costis increasing.And the traditional cost accounting method that is now widely used is more and more suit for the new features of the cost structure and is increasingly unable to meet the requirements of enterprise cost accounting,makingthe cost information inaccurate.In 1980s,Activity-based costing was introduced into our country.By mean of establishing the model of product consumption operations and operations consume resources.We can make the traditional cost accounting well solved in the allocation of overhead costs.Activity-based cost is combined with cost management and it considers all the processes of the enterprise operation,which is beneficialmanagement decision.Through the comparison of the two accounting methods,this paper analyzes the advantages and disadvantages of the traditional costing methods and activity-based costing methods in practice.Then,combine the existing theoretical knowledge at our country and foreign country.Compare the relation and difference between Traditional costing and Activity-based costing.Analyze the necessity and feasibility of Activity-based costing.Then,use R pharmaceutical factory as an example accounting its production,determining the resource center,activity,activity center and cost drivers,calculate the product cost.Finally,analyze the cost results of R pharmaceutical factory and summarize the problems of activity-based costing and propose solutions.