Research On Production Cost Of Steelmaking In X Company Based On Activity-Based Costing

Cost management is an important part of enterprise management,the scientificity of cost management method is particularly important.At present,China's iron and steel enterprises are facing the situation of fierce market competition brought by overcapacity,urgent need to accelerate transformation and upgrading,and increasingly common customer demand of multiple batches and small batches,which puts forward higher challenges to accurate cost accounting and effective cost control of iron and steel enterprises.Traditional cost methods are difficult to meet the management needs,and a more scientific and rigorous cost management method is urgently needed.To improve the competitive position of enterprises and meet the needs of enterprises' survival and development.According to the urgent need of cost management in iron and steel enterprises,combined with the characteristics of production process in iron and steel enterprises,this paper puts forward a production cost management scheme based on Activity-Based Costing in the steelmaking plant of X company by means of literature review,field investigation,interdisciplinary research and other methods.First of all,the theory of activity-based costing is systematically studied.The core is "activity consumes capital,output consumes activity".The key is to divide the activity and determine the cost drivers.Secondly,this paper introduces the basic situation of production and operation in X company's steelworks,points out the existing problems of cost management on the basis of studying the current situation of production cost management,and analyzes the necessity and feasibility of Applying Activity-based costing.Thirdly,based on the existing research results,the production cost management scheme of X company's steelmaking plant is constructed based on activity-based costing.According to the accounting process of activity-based costing,the production cost of seven grades of steel billets in steelmaking plant is calculated,and compared with the traditional costing,it is considered that the cost information of activity-based costing can better reflect the real situation,and is more effective for cost management and scientific decision-making.It is helpful to improve the value of operation activities by providing reliable basis.Finally,it points out that the implementation of activity-based costing is a systematic project,which needs the strong support of the management and the active cooperation of all departments,and continues to consolidate the basic work.As an advanced cost management method,activity-based costing has its unique advantages.It can provide new ideas and methods for Chinese iron and steel enterprises to improve their management level,make scientific decisions and achieve high-quality development,and has strong practical value.