The Application Research Of Activity-Based Costing In SK Company

With the tremendous changes in the global economic environment,the rapid development of science and technology and the input of advanced production technologies,there are more and more categories of indirect costs and the proportion of indirect costs in product costs is also growing.The manufacturing enterprises continue to assign indirect costs by artificial hour or output is not accurate enough.The cost information obtained by the traditional cost accounting method may distort the real product cost and can no longer meet the needs of enterprise management.Activity-based Costing came into being.It changed the way of calculating indirect costs,distributed and accounted indirect costs through cost drivers,and provided cost information more accurately,objectively and comprehensively.Based on the ABC theory and SK’s cost accounting case analysis.Firstly,introduce the basic concept and calculation procedure of ABC.Then,point out the shortcomings of SK company’s current cost accounting method and analyze the problems.Finally by using the basic principle of ABC method,design the SK ABC framework,integrate internal resources collection classification,establish activity center,cost driver analysis,etc.In this paper,after the application of ABC,this paper studies the results obtained from the application of ABC of SK company,and points out the difficulties and improvement suggestions in the application process.Not only can SK company accurately calculate the product cost,but also help to carry out cost control and reasonable product pricing,and also hope to provide reference for companies in the same industry.