Research On Application Of Activity-Based Costing In ZY

With the development of intellectual information system in industrial manufacturing enterprises,the information integration of business and accounting is developing,which provides more possibilities and more advantages for management accounting.The cost of intangible assets which includes intelligence property,software,factories and enormous equipment,has increased.The impact of amortization and depreciation on operating costs is increasing.The activity-based costing method uses cost driver analysis to allocate resources consumption to the activities according to the cost drivers,and then distributes it to the product according to the cost driver rate.It allocates the overhead cost more scientifically,and more accurately allocates the actual cost.In this way,ABC method makes up for the shortcomings of the traditional costing accounting which is lack of effectiveness.The analysis of current operating situation of ZY company reveals that the sales volume of ZY company has risen but the profit has not.Based on that,the improper pricing strategy problems caused by traditional cost accounting method emerged.Therefore,this paper refers to the activity-based costing method to collect the production cost of ZY company according to its cost drivers.Based on the production process of ZY,we designed the activity-based costing calculation system and applied it to the data comparative analysis of samples.We found that the different cost accounting methods would affect the profit accounting and targets setting of companies.Therefore,this paper explored the design and the research procedures of the activity-based accounting system,in hoping that it can be used as references for the reasonable pricing of ZY company and the realization of target profit.