Application Of Activity Based Costing In Cost Management Of WL New Energy Automobile Company

With the continuous improvement of people’s living standards,the concept of energy conservation and environmental protection has also penetrated into the automobile industry,and the new energy automobile industry has made great progress under this trend.At present,the new energy vehicle industry is still in the initial stage of development,and the scale effect is not obvious.Enterprises are often faced with greater business pressure.If enterprises want to maintain advantages in competition,they must strive to reduce costs and maximize profits.The traditional cost accounting method is suitable for enterprises with single product,small production scale and low technology content.Its characteristics are that the proportion of direct materials and direct labor is large,and the proportion of period cost is small.Enterprises can allocate manufacturing costs according to simple collection method.However,with the continuous improvement of mechanization and intelligence in modern enterprises,direct materials and direct labor account for less and less of the total cost.The traditional activity-based costing method has been difficult to meet the actual needs of modern enterprises for cost accounting.The advantage of activity-based costing is mainly manifested in the multiplicity of allocation standards.Through in-depth understanding of the occupation of resources by activities,the allocation of period expenses can be more accurate.Based on the analysis of the current situation of cost accounting of WL new energy automobile company,this paper points out that there are some problems in the cost accounting of WL new energy automobile company,such as the lack of reliable cost data in decision-making level,unreasonable cost allocation and product pricing.The feasibility of adopting activity-based costing method is analyzed from the support of management and the application basis of cost improvement of the company.On this basis,this paper uses the cost accounting of core components(stator,rotor and inverter)of WL new energy automobile company to apply the activity-based costing method,and compares the results with the traditional cost accounting mode,and points out the significance of Activity-Based Costing in strengthening cost management and improving decision-making effectiveness of WL new energy automobile company.At the same time,this paper puts forward the potential challenges of adopting ABC in WL new energy automobile company,and puts forward safeguard measures from strengthening staff training,reasonably selecting operation motivation,overall planning and distributed implementation,so as to promote the implementation of ABC in the company.This paper systematically studies the specific cases of applying ABC in WL new energy vehicle company,and provides some feasible suggestions for the application of ABC in new energy vehicle manufacturing enterprises.