Application Of Activity-Based Costing In BG Steel Plant

As global economic growth slows down and international trade protectionism prevails,China's steel exports are becoming more difficult.At the same time,China's steel industry has overcapacity,steel supply exceeds demand,and a large number of steel products have shifted from export to domestic sales.For decades,although Chinese steel companies have made great progress in terms of product technology and automation of production workshops,their cost management level is still relatively backward,and enterprises lack advanced cost management methods.Under such circumstances,it is particularly important to find a more advanced cost accounting method for Chinese iron and steel enterprises in order to improve their current cost information distortion.Activity-based costing is a method to evaluate the performance and resource utilization of an activity by dynamically tracking all activity activities,measuring the resources consumed by operations and the activities consumed by products.It can improve the traditional costing method.The product cost information caused by the overly simple method of allocating overhead is a real problem,and it helps companies to make better operating decisions.As a large-scale state-owned steel company in China,BG Steel Plant has taken improving the management level of enterprises and controlling cost per ton of steel as an important goal of the company's development in response to the state's supply-side reform.Based on an in-depth understanding of the BG steelmaking plant,on-site inspections,and careful study of the production process of the steelmaking plant,the current cost accounting method of the steelmaking plant is studied in depth,and a cost-of-operation approach is set up for the enterprise Provide more accurate product cost information,and provide guarantee for enterprises to improve their product market competitiveness and achieve long-term stable development.This article is a brief introduction to domestic and foreign experts and scholars on the current research status of activity-based costing.Then,based on the study of related knowledge of activity-based costing,this paper investigates and studies the BG steelmaking plant of the case company in this article,and reviews its current costs.The accounting method is analyzed in detail,and various problems brought to the enterprise by the current cost accounting method are described.It is pointed out that the BG steel plant is necessary and capable of introducing the activity cost method.Then,this article designs the activity cost method scheme for the BG steel plant based on its production and operation characteristics.After analyzing the different impacts of the activity cost method and the current cost accounting method of the steel plant on the cost management of the company,the BG is described.The expected implementation effect of the introduction of activity-based costing in steel mills is that it is believed that the introduction of activity-based costing in BG steel mills to calculate the cost of enterprise products can bring many benefits to enterprise cost management.Finally,it proposes corresponding countermeasures for the problems that enterprises may encounter in the introduction of ABC,and guarantees the effective implementation of ABC in BG steel plants.