Research On Activity-based Costing And Its Application In XD Company

Under the current economic situation,more and more enterprises participate in the price war,so it is very important to obtain accurate and reliable cost information.The enterprises that still use the traditional cost accounting method can not get the real cost information,which greatly affects the competitiveness of enterprises.Activity-based costing can improve the accuracy of cost accounting,show the real reason of cost completely,compare with the traditional cost accounting method has great advantages,and it is suitable for the cost reduction needs of modern manufacturing enterprises.Therefore,this paper selects XD electric company as the research object,and on the basis of analyzing the enterprise operation process,explores to build a set of activity-based costing system for XD electric company.It is hoped to provide some theoretical support for the accounting and management of activity-based cost in electrical industry,and also hope to make some contribution to the reasonable cost reduction and market competitiveness of such manufacturing enterprises.In this paper,literature research method is used to summarize the related literature of activity-based costing.Using case study method,this paper analyzes XD electric company's current cost accounting system in detail,selects three main products for cost accounting,and points out the existing problems in the current cost accounting system,including unreasonable allocation of indirect costs,distortion of cost information;narrow scope of cost accounting;lack of control over cost drivers.It is necessary and feasible for XD electric company to use Activity-Based Costing system.Combined with the business process and internal value chain of the enterprise,the business process of the enterprise is roughly divided into several important links of purchase,R & D,production,sales and management.On this basis,the activity-based costing system is designed for XD electric company.The above four main products of XD electric company are selected again for the cost accounting of the business process,including the division of the activity and activity center,and the collection of resources The process of allocating resources to activity center and collecting activity cost to products aims to discuss in detail the whole process of product accounting by activity-based costing in manufacturing enterprises.By using the method of comparative study,the indirect manufacturing cost and product unit cost calculated by XD electric company before and after the application of activity-based costing system are compared and analyzed,which proves that XD electric company can provide more accurate and comprehensive cost information when implementing activity-based costing system.On this basis,this paper also analyzes the advantages of using activity-based costing system,including that activity-based costing can bring more reliable cost information,make the product pricing more reasonable,and make the cost control more effective.Then it puts forward a series of safeguard measures,and suggests XD electric company to strengthen the cooperation between departments,strengthen the training of relevant personnel,and speed up the construction of accounting information,so as to guarantee the smooth implementation of the activity-based costing system.