Design Of ABC To FDL Printing And Dyeing Co

With China's accession to the WTO and the acceleration of economic globalization,Chinese companies are facing increasing fierce competitive environment with the global capacity relocation.In order to cope with the changes,the production pattern of the manufacturing and processing industry has been greatly improved and upgraded.The ordinary human workers being gradually replaced by advanced automated production lines and related supporting information systems directly leads to a great change in the structure of cost of production.Labor costs,which previously accounted for a significant proportion,have fallen sharply and being replaced by the overhead of maintaining advanced equipment and information systems.The change in production cost structure directly leads to the traditional cost accounting method unable to meet the management needs,and the Activity-Based Costing(Activity-Based Costing,referred to as ABC)that accords more with the modern production pattern is gradually favored.FDL printing and dyeing company is a traditional labor-intensive enterprise engaged in dyeing and printing.It has long been in the condition with low profitability and low automation.In recent years,the company decided to transform.It introduced a large number of high-quality talents and purchased expensive high-tech instruments and equipment.With a large amount of input and increased automation of production,the company's original cost accounting method and provided information can't meet the management needs.If the traditional cost method is continued,not only will there be a certain error in cost accounting,but also cost the cost management will become a mere formality.More importantly,distorted cost information will have a negative impact both on the company's future development and management decisions.Therefore,this paper attempts to introduce the ABC into FDL printing and dyeing company,hoping to provide a more reasonable cost accounting method for the company.This paper uses the combination of theoretical research and case analysis and has five parts to discuss and analyze the introduction of ABC to FDL company.The first part mainly introduces the background and significance of the research.The research methods and ideas are drawn after reviewing the existing research.Finally,the basic framework of this paper is briefly introduced.The second part is an overview of the relevant theory of ABC.It introduces the basic concepts,accounting principles,advantages and theoretical basis of the ABC,and lays a theoretical foundation for the design of the FDL printing and dyeing company cost accounting system.The third part is to analyze the necessity and feasibility of FDL printing and dyeing company implementing the ABC.Firstly,it introduces the current situation of FDL printing and dyeing company and the current status of its cost accounting,and then explains the necessity and feasibility of implementing ABC for FDL according to the environment and situation of the company.The fourth part is the design and application of FDL printing and dyeing company's cost accounting based on ABC.Firstly,establish the principles of FDL printing and dyeing company's cost accounting scheme including cost-effectiveness principle,stability principle and comprehensive principle according to the condition of FDL printing and dyeing company.Then,confirm the cost driver of FDL printing and dyeing company-resource driver and activity driver and finally propose the FDL printing and dyeing company's accounting solution based on ABC.The fifth part proposes the supporting measures for the implementation plan based on the design of activity-based costing system.It includes the establishment of a special activity-based costing implementation team,the training of employees,the development of appropriate progress quality supervision feedback mechanism,the creating of a suitable activity-based costing implementation environment,the establishment of a sound departmental communication and coordination mechanism and the improvement for the control over risks.