Research On The Application Of Activity-Based Costing In Hualinghenggang Steelmaking Plant

The iron and steel industry is a supporting industry for our people's livelihood,and it occupies an important position in the national economy and people's livelihood.After decades of development,the competition among steel companies in my country is becoming increasingly fierce and there is a serious overcapacity.How to accurately calculate costs and strengthen cost management is a problem that every steel company must face.Activity-based costing is a cost management method and method.Undoubtedly provide us with the key to solve the problem.This article takes Hualing Henggang Steelmaking Plant as an example,and obtains first-hand information through field investigations,using literature research methods,case analysis methods,and comparative analysis methods,and discusses the activity-based costing method based on the analysis of the current status of cost management in Henggang Steelmaking Plant.The specific application of the research content is as follows:This paper investigates and analyzes the cost data of Hualing Henggang Steelmaking Plant in November 2020,and tracks the 8main products A(10Mn Cr Ni Mo),B(14Mn5),C(Q345B),and D(30Cr Mn Si)produced in November 2020.,E(SAE1527),F(20),G(29Mn5),H(20G).Analyze its production status and divide the steelmaking plant into 8 operation cost centers: LF furnace refining operation cost center,VD furnace operation cost center,ladle operation cost center,continuous casting operation cost center,dust removal operation cost center And value management activity cost center.Then,the cost is redistributed according to the driving factors such as the number of lifting,smelting man-hours,man-hours consumed,and the number of continuous castings.By comparing with the cost results calculated under the planned costing method,it is found that the costs of A,B,C,D,and H are underestimated under the planned costing method,and the costs of E,F,and G are overestimated,and the largest difference reached 15.27%.This reflects the difference between the activity-based costing method and the planned costing method: under the planned costing method,the cost of products with high output is higher,and the cost of products with low output is relatively low.In turn,it has a greater significance for the cost pricing of steel pipe mills,which in turn affects the profitability of steel pipe mills,indicating that the implementation of activity-based costing has greater practical significance for steel mills.This article takes Hualing Henggang Steelmaking Plant as the research object to discuss in depth the specific application of activity-based costing which has a positive effect on improving the cost management level of the enterprise,and has certain reference significance for the enterprise's product pricing and contract bargaining.At the same time,it has certain reference significance for similar enterprises to strengthen cost management and optimize production management.