Study On Application Of Standard Activity-based Costing In Fengzhen Xintai Company

On the premise of pursuing the goal of maximizing profit and the iron and steel industry in our country is due to the particularity of the industry,controlling the production cost of the product is complex and low precision.The traditional cost accounting method has not been satisfied with some high mechanization cost companies which production process of product is increasingly complex and the proportion of indirect cost is increasing.Fengzhen Xintai company is an enterprise processing the iron and steel raw materials,it's product high carbon ferro-chrome is mainly supplied to enterprises which product ferroalloy.In the era of rapid economic development,the company's production activities tend to be technological and automated,so,the requirement of product diversity makes the production process more complicated.Combined with the particularity of iron and steel industry,Standard Activity-Based Costing can improve the cost management problems of the company at present,and the company will better adapt to the increasingly standardized production process and achieve the goal of fine management.This paper studies the standard application of Activity-Based Costing in Fengzhen Xintai company and analyzes the production cost structure and production process.Some production cost management problems of Fengzhen Xintai company are found,such as indirect cost exists allocation is unreasonable and cost control is not in time.The root of these problems is that the company lacks matched production cost control centers and the object of cost research is too general.In order to solve the problems of production management and control at the present stage,the company studies the company's application of Standard Activity-Based Costing.Firstly,researches on the application of standard Activity-Based Costing in the company.Second,direct material costs and direct labor costs deal with the traditional standard cost method,and indirect manufacturing costs deal with Activity-Based Costing.Third,analysis of the specific application of standard Activity-Based Costing in the company is done.Finally,on the basis of the present,the guarantee measures for the implementation of the method are put forward.The article finally proposes improvement plans of Standard Activity-Based Costing method and reference measures of cost control.These safeguard measures for the application of Standard Activity-Based Costing method in Fengzhen Xintai company are used to enhance the application feasibility of this method in production practice.For the iron and steel industry in China even other industries,this article can provide reference in cost controlling.