Research On Application Of Activity Based Costing In YD Electric Company Cost Accounting

Activity-based costing is a kind of cost calculation and management method which can dynamically reflect all activities,measure the cost of activities and cost objects,and evaluate the performance of activities and the utilization of resources.It aims to provide more relevant and relatively accurate cost information for enterprise activity management.Compared with the traditional cost method,activity-based costing can share the indirect cost more scientifically,so as to improve the rationality and accuracy of product cost information.As a traditional electrical manufacturing enterprise,YD electric company has made great investment in automation and intelligent production in recent years.While improving production efficiency,its cost structure has also changed.However,the company still uses the traditional cost method for cost accounting,resulting in inaccurate cost information,unreasonable allocation of manufacturing costs and other issues,which is not conducive to the company's production and operation decisions.Based on the analysis of the actual situation of YD electric company,combined with the concept of activity-based costing,this paper studies the design and application of Activity-Based Costing in YD electric company,aiming at the problems brought about by the traditional costing method.This paper first discusses the basic concepts,basic principles and cost accounting process of activity-based costing from the theoretical level,and then analyzes the production process and cost accounting status of YD electric company through on-the-spot investigation.Combined with its actual situation,this paper designs the activity-based costing process of YD electric company,divides the activities,confirms the operation center and works.Finally,the product cost under ABC is calculated.On this basis,the calculation results are compared with the results obtained by the current cost accounting method of the company in all aspects,which confirms the advantages of the activity-based costing method in the cost accounting of YD electric company,and further reflects that the activity-based costing method is more practical and scientific than the traditional costing method in the manufacturing enterprises.