Application Of Activity-Based Costing In Tangshan JL Special Steel Co Ltd

Cost plays a very important role in enterprises.With the development of economic globalization,countries are closely linked,which brings opportunities to enterprises and competition at the same time.If enterprises want to develop and have more opportunities,they must pay attention to cost.Only by controlling the change of cost,can they maintain a favorable position in international competition.Since 1980,with the rapid development of science and technology,technology has been innovating,the degree of automation of machinery and equipment has been greatly improved,and manual labor has slowly begun to lag behind.Compared with the past,the direct cost in the production process of enterprises has decreased significantly,while the consumption of indirect cost(manufacturing cost,etc.)has increased significantly.Since then,it is no longer accurate for us to allocate the cost of our products by working hours and production.The traditional cost accounting method tends to define the direct cost,ignoring the indirect cost,which is becoming more and more important.Therefore,the calculated cost is no longer accurate and true.The deviation of cost calculation will lead to the mispricing of products.Iron and steel industry is an indispensable part of national development.The construction of automobiles,houses and various public facilities is inseparable from the steel industry.The development and prosperity of China's iron and steel industry has made China a big iron and steel country.However,the spread of the financial crisis in 2008 has seriously affected the development of iron and steel enterprises.China's iron and steel industry has also suffered heavy losses.Many small enterprises went bankrupt and liquidated directly.At the same time,the invasion of well-known foreign iron and steel enterprises and the rising prices of raw materials make the development of China's iron and steel enterprises difficult.Therefore,how to make the iron and steel industry prosperous is still the subject we need to study.This paper mainly uses the methods of literature research and comparative analysis.Firstly,it introduces the background and significance of the topic,followed by the research status at home and abroad.Secondly,it introduces the theory,mainly the concepts related to activity-based costing,accounting procedures and the differences between traditional costing and so on.Then,the background,existing problems and application of Activity-Based Costing in JL Special Steel Co.,Ltd.are analyzed.Thirdly,the specific application of Activity-Based Costing in JL Special Steel Co.,Ltd.has made a specific design for its production process.Comparing the accounting results with the traditional costing method,it is found that there are indeed differences.Afterwards,it puts forward the relevant safeguard measures for the existing problems of enterprises.Finally,the difference between the cost results calculated by activity-based costing method and current cost accounting method is analyzed and summarized.