The Application Research Of ABC In Kate Transformer Manufacturing Company

Nowadays,the large amount of power construction funds has brought opportunities to the transformer industry.The lower threshold of the industry has attracted more people to join,which leading to the bubble-type growth of the transformer manufacturing enterprises.The transformer industry is over-productive and the operation is out of order.In particular,when the power grid enterprises adopt centralized bidding mode to purchase transformers,many enterprises have to obtain orders by decreasing the price,which makes the price competition more intense.Each transformer manufacturing enterprise who wants to occupy the competitive advantage in the industry reshuffle,must carry out effective cost control.At present,China's transformer manufacturing enterprises generally adopt the traditional cost accounting method to calculate the cost,which leads to serious distortion and cannot meet the needs of cost management.The introduction of advanced cost accounting methods is imperative.This article has tried to introduce the ABC into the case company,in order to help improve the cost accounting and management level of the firm and similar enterprises.Like most enterprises in the industry,Kate Transformer Company still adopts the traditional cost accounting method,which is confronted with problems such as single cost accounting index,the subject of cost responsibility is unclear,the cost control scope is narrow and the obvious deviation of pricing decision-making.Combining the production background of transformer industry,the organizational structure characteristics of Kate,this article provides a plan of activity-based costing.To supply production operation approaches and products pricing strategies to companies,the article compares cost information of activity-based cost accounting with the current cost.This paper aims to help case company to make effective scientific decisions and improve the level of cost management.Meanwhile,this study also hopes to provide reference for the cost control and accounting optimization to the whole transformer industry.