The Application Of The Activity-based Costing In The Food Processing Company

With the changes in the market and technology,the food processing industry has undergone tremendous changes.In the aspect of market,with the gradual completion of the well-to-do society and the improvement in the material level of the people,the demand for food has changed a lot.The market demand is from the original basic model to high quality,health,and diverse type model.In the aspect of technical,with the development of science and technology and the introduction of various automated machinery,the production of the food industry has changed from the original manual production to the production of automated machinery.The situation of food processing enterprises is that a higher level of mechanization and the diverse state of products.This reflects that cost accounting is that the proportion of indirect costs is increasing.It is more difficult to accurately allocate products and cost accounting is increasingly complicated.In this case,the use of traditional cost method will cause product cost distortion and inaccurate accounting.Based on the principle of “operating consumption of resources and product consumption”,the activity-based costing method uses the operation as the basic unit of cost accounting.The first step is counted for the resource consumption of operation center.The last step is distributes the resource consumption of the operation center to the product according to the contribution of the operation to the product.So that the distribution of the manufacturing cost is more reasonable and the product cost is more accurate,which can exactly solve the cost accounting problems of the food processing enterprises currently faced.This article mainly uses the case study method to expound the application of the ABC in food processing enterprises,starting from both theoretical and practical aspects.Theoretical: It mainly expounded the research dynamics of the ABC such as its sprouting and development,and current application of it,as well as related concepts,principles,and accounting procedures.At the aspect of practical,the A food processing plant is used as a research case.First,it points out the reasons and feasibility of implementing the ABC by analyzing the limitations of its current cost accounting methods.Secondly,the specific steps for applying the method at the factory designed,according to specific conditions of the factory.Finally,the cost data is introduced and the cost of each product consumed is calculated and compared with the cost under the current costing method.The results of the study indicate that the current costing method in the A processing plant cannot meet the allocation of overhead costs for the A processing plant.The ABC can improve this situation,achieve a reasonable cost allocation,and obtain more accurate cost information.A processing plant should update its cost accounting method.At the same time,it has also proved that if the traditional cost method is adopted,regardless of whether there is an unreasonable distribution of manufacturing costs between product categories or subcategories in processing plants,the use of the ABC cannot ignore the distribution of costs among product subcategories.