Application Of Activity-based Costing In SD Enterprises

With the development of society,the current market competition continues to intensify,China’s manufacturing companies are also facing tremendous pressure,in this case the management of enterprise costs becomes more important,with the introduction of high-tech,manufacturing costs in the cost of products began to occupy Increasing proportion.The use of traditional cost method to calculate costs not only lacks authenticity but also cannot meet management requirements.In this context,the ABC appears.This method uses operations as a core concept,then calculates costs and uses motivation as a basis.This method is a remedy to the previous situation compared to the original cost method,and its practical value is relatively strong.It can be said that for the accounting method,this method changes the indirect cost calculation and can also provide more comprehensive,objective and accurate information.This article is aimed at SD companies,and it has to calculate the cost of SD enterprises.It can be said that the company belongs to small and medium-sized manufacturing enterprises and mainly produces coal transportation machinery.For such enterprises,their production models belong to multiple batches and are small.Bulk,so in the traditional cost accounting,it is easy to have a large deviation.At present,the scale of SD companies is getting larger and larger,and SD companies are increasingly demanding costing.In the past,it was difficult to meet the SD company’s need for cost determination and rapid development.For the problems in SD enterprise costing,this paper starts from the actual situation and proposes to solve it by applying the ABC.This paper first analyzes the current status of SD enterprise cost accounting.Through the use of SD enterprise’s existing cost accounting methods for the specific accounting of the company’s main products,combined with on-the-spot investigation of the SD enterprise’s production and operation situation,it is analyzed that SD enterprise’s current cost accounting exists five.Problems in each aspect: Reasonable allocation of manufacturing costs;limitations in the analysis of costs;unreal cost information;lack of awareness of cost control.And analyze the reason: The current allocation criteria for cost nucleus algorithm are single and cannot meet the current manufacturing environment of SD companies;Insufficient motivation for financial reform.This led SD companies to implement the ABC to solve the corresponding cost accounting problems.The specific application of the ABC in SD companies first analyzes the necessity and feasibility of the SD company’s implementation of the ABC,and then uses the principle of cost-effectiveness to balance importance,comprehensibility,and operability to consume resources.The two-phase accounting concept of product consumption operation is used as the guiding ideology for the design of the ABC accounting system,and the specific steps for the SD company to apply the ABC are defined,including the determination of various operations in production,the establishment of an operating cost database,and the identification of resources consumed.Analyze cost drivers and allocate operating costs.Using comparative analysis method and carefully comparing the previous accounting cost under the traditional cost method,it can be concluded that using this method for accounting helps to obtain more accurate cost information;and the activity-based costing method makes price positioning more accurate.Accuracy;Activity-based costing helps companies implement a comprehensive budget;ABC calculation process is more multi-level,and the allocation of costs is traceable.Based on the theory of activity cost,combined with the actual production and operation of SD companies,this paper also puts forward the problems that SD companies should pay attention to in the actual application of the ABC,and related guarantee recommendations.Finally,this paper concludes that: according to the current situation of SD enterprises,the current cost algorithm can no longer meet the needs of the SD company’s development at the current stage,and it is not specific to the allocation of indirect expenses;the ABC makes the distribution of manufacturing costs more accurate and has Traceability can replace the existing cost accounting methods of SD companies and solve the problems existing in the current cost-based nuclear algorithms.For strengthening the company’s competitiveness,the activity-based costing method is also very effective.