Research On The Application Of "ABC-EVA" Model In The Company A

With the change and development of science and technology,the automation of enterprises has accelerated,“management accounting” has become more and more mature,and people’s thought of accounting has also changed.They have gradually shifted from the pursuit of accounting profits to the pursuit of economic profits.Managers pay more attention to the overall concept,clear the goal of maximizing shareholders’ wealth.On the one hand,the large-scale mechanized production mode of modern enterprises has changed the cost composition of enterprises,increased the proportion of indirect costs,on the other hand,the expanding scale of enterprises has also absorbed more external financing,the impact of capital cost on enterprises has gradually deepened,activity-based costing has been unable to meet the competitive needs of enterprises,and modern enterprises have the integrity of cost accounting The need for accuracy has become urgent,the "ABC-EVA" model has emerged at the historic moment.The "ABC-EVA" cost control system integrates ABC,a cost accounting tool and EVA,a performance evaluation model,and introduces the concept of capital cost,which reflects the true full cost in the true sense and helps companies to grasp the accurate cost information,provide more realistic cost information for profitability analysis,product pricing decisions,etc.,and use economic profits instead of accounting profits to demonstrate the true value creation ability of the product,enhance the sensitivity to value creation,and enable operators to look at problems from the owner’s perspective and avoid Short-sighted,making strategies and decisions that are really conducive to the survival and development of the enterprise which will help achieve the goal of maximizing shareholder wealth.The article first introduces the related theoretical research of the "ABC-EVA" model,and then clarifies the background,principle,advantages,applicability conditions,and implementation steps of the "ABC-EVA" model.The "ABC-EVA" model combines the advantages of the activity-based costing model.From the perspective of management accounting,capital costs are introduced to help companies improve the content of cost information,improve the accuracy of product costs,and increase the sensitivity of value creation.Secondly,after judging the applicability,the case company A was introduced,and the company’s operating conditions and cost accounting were analyzed to determine the cost drivers,allocate operating costs and capital costs,analyze the operation and cost accounting of company a,determine the cost drivers,allocate the operation cost and capital cost,Then compare and analyze the cost difference analysis and profitability analysis of company A’s cost accounting before and after the implementation of the "ABC-EVA" model.At the same time,some suggestions are provided to ensure that case companies better implement the "ABC-EVA" model.Finally,the results of comparative analysisprove that the "ABC-EVA" model not only revolutionizes accounting thinking,but also is an effective cost management model.