Activity-Based Cost And Application Research In DB Corporation

With the rapid changes in the science and technology revolution around the world,the age of information technology and knowledge industry has arrived.With the accelerating pace of industrial restructure over the world,the development of China’s national economy has been transformed from the pursuit of quantitative growth to qualitative improvement,the economic approach has changed from extensive to intensive,and the degree of economic marketzation and socialization have continued to increase.Under the situation,China’s machinery manufacturing industry has a huge domestic market and broad prospect for international cooperation,at the same time,it also faces competition from strong domestic and foreign rivals.Therefore,China’s machinery manufacturing companies must start from their own,improve management efficiency and reduce costs in order to continue the development in the competition.Faced with the age of mechanization,the traditional cost accounting method which regards product quantity as the only basis for allocating manufacturing costs has been unable to adapt to the development of the times.The advanced thinking of the Activity-Based Costing(ABC)method is based on the causal relationship between the cost drivers and the role and uses many factors to allocate the manufacturing expenses,which greatly improves the accuracy of cost accounting,helps enterprises to control and make decisions on costs,boosts the competitiveness of the company.Firstly,the article is based on the research achievement about ABC of domestic and international scholars,defining related concepts of ABC and contrasting with the traditional cost accounting method,at the same time,introducing related theoretical basis of carrying out and applying ABC.Secondly,based on the actual production process and cost data of DB company’s products,this paper analyzes its cost structure,accounting method and accounting process,then finds the existing accounting methods will result in low accuracy of cost information,poor accuracy of production decision,and poor utilization of resources.Thirdly,according to these actual conditions,with the direction of"resources-operations-products" idea,this paper designs the process of operation cost accounting,calculates the product cost under the operation cost method,compares itself with the traditional cost results,analyzes the causes of the cost difference,and proves the advanced nature and accuracy of operation cost method.Finally,combining with the actual situation of DB company,this paper studies the application of activity costs from the three aspects,they are the quantitative analysis,production decision-making and activity-chain optimization.Through the analysis of guaranteed cost analysis,profitability analysis,product decision-making principle and application,and job chain optimization analysis,it is proved that the implementation of the ABC method plays an active role in promoting DB companies to reduce costs,optimize management decisions,and enhance resource utilization effects,which provides a reference for improving the management level.