Research Of Activity-based Costing Application In LT Home Appliance Manufacturing Enterprises

General Secretary Xi Jinping's report at the 19th CPC National Congress point that "We will work faster to build China into a manufacturer of quality and develop advanced manufacturing,promote further integration of the internet,big data,and artificial intelligence with the real economy" In the current increasingly competitive market environment.cost accounting has been playing an increasingly important role in manufacturing industry.A growing number of Chinese companies started to apply activity-based costing and comprehensive budget management which are advanced and innovative to managing their cost accounting.Nowdays,with the rapidly development of home appliance industry,electrical appliances enterprises are also faced with increasing competitive pressure.However,because of price competition,There is a decline in companies's revenue growth and profit margin even their sales revenue is increased.And in the process of improving the core competitiveness of enterprise.Their research and development expenditure account for increased proportion of the cost of production.If company keep managing cost accounting with traditional way,it may result in a serious distortion of product costs accounting.Therefore,It is difficult to make the right decision for enterprise.According those accounting information,based on this background,in this paper,we will apply activity-based costing on LT counting management which can avoid defect of traditional way,and attempt to make cost account more accurate.Moreover,to improve the performance of decision making.First part of the paper is literature review about activity-based costing.Then,the definition of activity-based costing.Besides,in the paper we compare activity-based costing with traditional cost accounting method.And also talk about the application of activity-based costing under the background of accounting informatisation.According to the empirical analysis,this report take LT 'co as an example.First,we talk about the problem existed when this company is managed with traditional cost accounting.Then we discuss the necessity and feasibility of applying activity-based costing.And according to the enterprise production situation and process flow,design and establish a set of operating activity-based costing system and its implementation process.This paper takes the process of producing four kinds of air conditioning products by LT company as an example.Obtain the analysis of cost drivers and job analysis,then we accounting according the model.Compare and analyze the differences of this two accounting method.Then the paper puts forward the possible challenges and the corresponding optimization suggestions for LT company to apply the activity-based costing.Finally,base on this simple analysis,It is concluded that it is feasible for LT company to apply activity-based costing and that activity-based costing model is operable.This hope for providing a case of applying activity-based costing in electrical manufacturing enterprises,so that it can better carry out cost control,improve the economic benefits of enterprises.