Research On Application Of Activity-based Costing In W Textile Company

With the development of economic globalization and the improvement of social production level,the proportion of indirect expenses in the cost of enterprise products has increased.However,the traditional cost method has a single distribution standard in the indirect cost,which distorts the product cost information to a large extent,and has a negative impact on the decision and development of the enterprise.Activity-based costing(ABC)is a method of cost accounting by dynamically tracing all activity activities,measuring operation and object cost,evaluating job performance and resource utilization.Compared with the traditional cost method,ABC can share the indirect cost more scientifically,thus improving the rationality and accuracy of product cost information.W textile company is a typical traditional manufacturing enterprise.It has the leading production line and manufacturing environment in China.Its manufacturing process is complex and has obvious difference.The indirect cost accounts for a large proportion.But at present,the company still uses the traditional cost accounting method to calculate and manage the cost,resulting in inaccuracy and inaccuracy of the cost information,which has seriously affected the company’s product management decisions.This paper applies activity-based costing to W textile companies.This paper summarizes and analyzes the application status of activity based costing at home and abroad,puts forward the research contents and methods,and systematically expounds the related theories of activity-based costing.Through a thorough understanding of the current cost accounting methods of W textile company,the problems and the impact are analyzed.From two aspects of necessity and feasibility,the application of activity-based costing(ABC)in W textile company is demonstrated and analyzed and three representative products of W textile company are selected.Through comprehensive operation analysis and cost driver analysis,the operating cost accounting system is designed,and the result of product cost calculation under the work cost method is finally obtained.Through the comparison of the accounting results of W textile company’s activity based costing and the traditional cost method,and the analysis of the proportion of resources consumed by each job,the practical significance of activity-based costing and its expected effect are expounded.According to the practical obstacles that the W textile company may have in the implementation of the activity-based costing,the W textile company has put forward some pertinent proposals for implementation.