Research On The Application Of Activity-based Costing In A Chip Manufacturing Company

With the rapid development of technology,China’s manufacturing industry is facing tremendous changes.China is currently transforming from a manufacturing power to a manufacturing power,advocating the integration of manufacturing informatization and industrialization,and vigorously developing the intelligent manufacturing industry.As a representative industry in the intelligent manufacturing industry,the chip manufacturing industry has received extensive attention in recent years.In 2020,the United States imposed a "chip ban" on China,and the U.S.Department of Commerce strictly prohibited the supply of chips to Chinese companies.In this environment,Chinese chip manufacturing had to seek self-breakthroughs.The first thing a chip manufacturing company must ensure is that the company has enough profits to ensure R&D investment,which brings a lot of challenges to the cost control of the company.Among them,accurate cost information for producing chips is indispensable..With the continuous improvement of the degree of mechanization and automation in the production process,the proportion of direct labor costs of enterprises is less and less,and manufacturing costs have gradually become the focus of enterprises.The traditional cost accounting method is too single in the allocation standard of manufacturing expenses,which cannot meet the accuracy requirements of enterprises for cost information.The activity-based costing method has more advantages than the traditional method in allocating manufacturing costs.The activity-based costing method can help enterprises to control the cost in the production process and optimize the production process by using accurate cost information,so as to compete in the market.Obtain cost advantages and improve corporate profits.How to apply ActivityBased Costing in enterprises,and what advantages does it have over traditional costing methods? These issues deserve further discussion.Through the method of combining literature research and case study,this paper firstly summarizes and summarizes the specific content of the cost accounting system based on the activity-based costing method through the analysis of relevant literature at home and abroad,and then selects Company A as the case enterprise,and combines the specific production of the case enterprise.The specific steps are as follows:Firstly,it analyzes the current situation and existing problems of the cost accounting system of Company A,and then analyzes the necessity and feasibility of introducing the activity-based costing method from Company A.Cost accounting system;then this paper combines the newly constructed cost accounting system with the actual data of Company A to conduct cost accounting of its main production products,and compares it with the traditional cost accounting results to compare the differences between the two cost accounting methods.It is concluded that the activitybased costing method can improve the accuracy of cost accounting information,cost management control ability,process optimization ability,operation management ability and profitability of enterprises.Finally,the analysis results are summarized and relevant suggestions are given.Compared with the traditional costing method,it is proved that the activity-based costing method can provide more accurate product cost information than the traditional standard costing method.This paper hopes that by building a cost accounting system based on activity-based costing in company A,it can provide a certain reference value for other companies’ cost control work.