Design Of Activity-based Costing System

In recent years,the steel industry has faced a complex pattern of overcapacity,rising product costs and shrinking profit margins.At the same time,domestic steel enterprises also have to deal with fierce competition from the international market.Therefore,production cost management becomes particularly important in the steel enterprises.However,most of the current steel enterprises adopt the traditional cost accounting method,that is,they pay more attention to the direct cost with small controllable space and ignore the accounting of indirect cost.To cope with the complex market environment,enterprises must improve the current level of cost management.The application of Activity-based costing will become an effective way for JL iron and steel Company to control costs,reduce enterprise costs,enhance profit space and enhance competitiveness.This paper will introduce activity-based cost management method,take JL steel making plant as the target unit,and according to its production process and technological characteristics,apply literature analysis method,case analysis method and comparative analysis method to analyze the problems existing in the current cost management method of JL Steel plant,and discuss the applicability of activity-based cost method.Design activity-based cost model based on the actual production process of JL Steel Plant;Study how to allocate the cost of resource account to the operation center based on the basis;Selected target products to try out the above design of activity-based costing and compared with the current cost accounting results,the expected effect of the application of activity-based costing is summarized.Through the research,the main conclusion of this paper is: JL steel company product cost accounting process information distortion;The indirect cost of products with different production processes and different production scales varies greatly.Activity-based costing is more accurate in product cost accounting,which can effectively solve the distortion of product cost accountinginformation of JL steel company.The degree of information and data of JL steel can support the operation of its activity-based cost system.