Research On Application Of Activity-based Cost Method In F Chemical Enterprise

At present,the main performance is that most chemical enterprises carry out diversifi ed development,the product types of various companies keep increasing,and the total output keeps increasing.This has led to an increasing supply,but the overall demand for chemical products has remained basically stable,which has further led to companies competing to lower prices.In order to improve the competitiveness of chemical products at this time,from the perspective of enterprise cost,we should change the existing cost control mode,find the point of cost control,and reduce the cost of non-value-added activities.Thus,the cost can be effectively reduced.Currently,most chemical companies use traditional cost control methods.This method can no longer meet the company's current competition needs due to its single cost allocation standard.Moreover,it cannot provide managers with real and effective cost information to help them make management decisions,which is not conducive to the further developm ent of the enterprise.Therefore,it is necessary to introduce activity-based costing(ABC)for cost accounting to improve the authenticity of costs.According to the existing literature,most of the researches on ABC have focused on manufacturing enterprises.Case analysis is used to determine whether the ABC is suitable for this industry.However,there are few related studies in th e chemical industry.Therefore,this study selects the chemical industry to improve its cost control methods.The research methods are mainly based on case analysis methods,which are supplemented by literature analysis methods and qualitative and quantitative methods.This study uses the company F,which is among the top 20 companies in China's chemical industry in terms of production capacity,as an example to analyze.The second plant with large production capacity of company F is taken as an example.Due to its large scale and high production capacity,it has a great impact on the division of operations and resource selection of peers in the same process.Combined with the company's current traditional cost control methods,it analyzes the reasons why its capacity has increased year by year,but its profits have declined,and some problems existing in the company.Therefore,the ABC is introduced to improve the company's cost control plan.First,analyzing the company's current cost control,compare the gap between budget control and actual output,and then introduce the ABC.Before carrying out detailed analysis of the ABC,confirm the company's cost management objectives and the formulation of the process,which are mainly divided into four stages:division of activity,data preparation,comparative analysis,supportive measures.However,the study also found that there are still some deficiencies in the establishment of the ABC,and provide a database of corresponding indicators for cost control of enterprises from a cost accounting perspective.