Application Of Activity-based Costing In X Iron And Steel Enterprises

With the continuous improvement of production capacity,China has become the largest steel producer in the world,and in the process of social and economic development,the steel industry also faces many problems.First of all,with the promotion of the policy of reduce excess capacity,it is necessary for the steel industry to readjust its production status,reduce inefficient production and accelerate the transformation and development.Secondly,the iron and steel industry is more competitive because of economic globalization.In order to survive and grow,accurate market positioning and cost control ability are needed.Therefore,the adoption of a new cost management method in iron and steel enterprises is conducive to clarifying the cost composition,enhancing the cost control ability of the enterprises,and providing the basis for the strategic decision maked by enterprises.Guided by the theory of activity-based costing this thesis takes the specific iron and steel production enterprises as the research object and case analysis and comparative analysis to study and discuss the specific application of activity-based costing in enterprises.Accounting process according to the specific enterprise,and analyzing the enterprise data by setting up the corresponding activity-based cost.It is concluded that,first of all,the iron and steel enterprises have the characteristics of large scale and abundant data,and the classification of each process is clear and the technical link is mature,which satisfies the condition of cost accounting using activity-based costing method.Secondly,due to the change of business environment and the improvement of production technology,the traditional cost method can not provide sufficient cost management information needed by enterprises.Enterprises need to use the advantages of activity-based costing to solve their own problems.Thirdly,according to the production characteristics of iron and steel enterprises,eight operation centers such as smelting and continuous casting have been set up,and the corresponding cost drivers have been determined according to the actual production conditions.Fourth,setting up the appropriate activity costaccounting process in the enterprise,and calculating the cost information of each product under the new accounting method,comparing the traditional accounting method data,and clarifing the cost difference.Finally,in view of the cost management problems existing in enterprises,enterprises should adjust their product orientation,increase cost difference analysis,scientifically set performance evaluation indexes,popularize the concept of cost management,and put forward the problems that enterprises should pay attention to in the implementation of activity-based costing.Through the above analysis,this paper thinks that the iron and steel enterprises need to strengthen the cost control,and Activity-based costing is an effective cost management method in the transformation and upgrading of iron and steel enterprises.