Activity-Based Costing Method In The Application Research Of Xuanhua Iron And Steel Group

In recent years,due to the entire steel industry is facing a severe form of overcapacity and rising production costs,the profitability of the enterprise itself is hardly improved.At the same time,the fierce competition from the international market and the large-scale foreign iron and steel enterprises makes it difficult for steel enterprises to survive and develop.As a typical traditional iron and steel enterprise,Xuanhua Iron and Steel Group Co.,Ltd.must make its own departure if it wants to change the situation rapidly and survive for a long time under the form of "foreign invasion within itself." As the first lifeline of the steel industry,the cost is directly related to the survival and development of the enterprise.Therefore,the reform of cost management is an effective means for Xuanhua Iron and Steel Group Co.,Ltd.to reverse the current unfavorable situation.Through the introduction of operating cost method,the operation of Xuanhua Iron and Steel Group Co.,Ltd.production division,the cost of re-collecting the cost of the product,and strengthen cost control of the enterprise.The article is divided into six parts.First of all,from the international background and the domestic background,this paper expounds the current crisis faced by the steel enterprises and leads to the emerging cost management method of ABC,which expounds the effective way of solving the current corporate dilemma in theory and practice respectively way.Introduces the domestic and foreign research literature that has a far-reaching impact on the theory,and puts forward the research ideas and research methods in this paper.Secondly,it elaborates the main concepts,basic principles and computational processes involved in ABC,and provides theoretical support for the dissertation.Thirdly,the basic situation of Xuanhua Iron and Steel Group Co.,Ltd.is described from three aspects: the general situation of the enterprise,the organizational structure and the characteristics of production and operation.The present situation of cost management in Xuanhua Iron and Steel Group Co.,Ltd..Is emphatically analyzed.The main problems existing in it are clarified,which leads to the necessity and feasibility of implementing ABC.Fourthly,it introduces in detail the pre-preparation work such as establishing the operating cost system of Xuanhua,the implementation process and the selection of pilot units.From the initial analysis of indirect costs,the steel rolling mill is used as the pilot unit to divide the work and the operating cost pool Collection,to the distribution of product costs throughout the process of careful design,by re-rolling the indirect costs of rolling products distributed to collect,so that product costs more accurate,and finally the ABC method with the traditional cost accounting of the cost of the product In contrast,improve the current cost management system.Fifthly,from the perspectives of the company’s management,advocating and making full use of information system,establishing the concept of integration of industry and finance,strengthening personnel training in various departments and formulating performance appraisal standards,the paper put forward the safeguard measures to be adopted in establishing the system of operating cost.In the end,it summarizes the whole thesis research and puts forward the shortcomings of the article.