Research On ZW Enterprise Cost Control Based On Activity-Based Costing

Coal is the traditional energy in China,but in recent years,with the adjustment of energy structure and the birth of clean energy such as wind power and water power,coal enterprises have brought no small impact.The economic Plenary Session of the CPC Central Committee held in the second half of 2021 clearly stated that traditional coal production and new energy technologies should be combined and optimized to promote the new energy revolution.This poses no small challenge to traditional energy sources.At present,most of China’s domestic coal enterprises still use the traditional accounting mode,but the traditional way of accounting is not the right allocation of indirect costs,unable to make reasonable pricing so as to provide basis for coal products,can’t give enterprise managers provide effective economic decisionmaking information,and homework cost rule to overcome the traditional cost method shortcomings.Coal enterprises using activity-based costing,not only can accurately measure product cost,but also can enhance the control of enterprise cost,improve production efficiency,improve enterprise competitiveness.This paper takes ZW enterprise as the research object,after summarizing the related concepts of cost control and activity-based costing,finds the existing problems and causes of the problems in ZW enterprise,and then analyzes the necessity and feasibility of implementing activity-based costing in ZW enterprise.Secondly,activity-based costing(ABC)is introduced into the enterprise,and according to the production process of ZW enterprise,activity centers are divided,cost drivers are determined to calculate the actual product cost,and the difference between traditional costing method and ABC is analyzed.Then apply the designed cost control system to enterprises,it can be found that the optimization effect of cost control is more obvious.At the same time,it also puts forward relevant safeguard measures to ensure the smooth implementation of ABC system in ZW Company.The implementation of the cost control system makes the enterprise cost accounting more specific,thus optimizing the operation process.Through specific research,we can find the problems existing in the current cost management of ZW enterprises:(1)unreasonable allocation of indirect costs.At present,ZW enterprises have a high degree of mechanization,which leads to the increase of indirect cost method can not accurately distribute the indirect costs.(2)The cost information is not reflected comprehensively.The traditional cost method can only reflect the product cost information but not the cost information of each production process.(3)Low utilization rate of production resources.Due to the lack of production data reflected by traditional cost method,enterprises cannot make efficient use of resources.(4)cost budgeting is not scientific.At present,the cost budget of ZW enterprise only starts from the production situation of last year,without considering factors such as policy and management ability,so the budget number is not scientific.(5)Cost assessment is a mere formality.The current performance appraisal of ZW enterprise is not connected with the production situation,and the rights and responsibilities cannot be accurately distinguished.The cost control system of activity-based costing can make the product cost accounting of ZW enterprise more accurate,and the resources consumed by products can be traced to find which link consumes the most resources,so as to make targeted improvement.This paper studies the cost control of ZW enterprise based on activity-based costing,and the following conclusions can be drawn:(1)grasp accurate cost information.By analyzing the cost of each operation center,we can accurately understand which resource the operation center consumes the most,and then we can control the enterprise cost scientifically and reasonably,reduce the production cost and enhance the competitive advantage of the enterprise.(2)Value-added judgment of operations can enable enterprises to eliminate or optimize the operation process that does not generate economic benefits,and strengthen the value-added operation process to bring more economic benefits to enterprises;(3)Optimized the performance appraisal system of the enterprise.Through the performance assessment of operation centers,we can measure the cost target realization status of each operation center,analyze the difference between standard operation cost and actual cost,and truly connect the performance assessment with the work results.In this paper,activity-based cost control system is introduced into coal enterprises,which provides a new idea for the cost optimization management of coal enterprises to a certain extent.This paper discusses the implementation process and calculation of activity-based costing in enterprises in detail,and analyzes the optimization effect brought by the implementation of activity-based costing in enterprises,which can provide certain theoretical basis for similar production processes of enterprises.