Research On The Application Of TDABC In MTO-type Enterprise’s Cost Accounting Improvement And Order Evaluation Optimization

Manufacturing is the foundation of our national economy.On the one hand,as the market becomes diversified,customer needs gradually show individual and diversified characteristics.Customization and rapid response have become the core elements for manufacturing companies to gain competitive advantages.On the other hand,in the Industry 4.0 stage,information technology is fully embedded in the manufacturing industry,gradually breaking the traditional production process,production mode and management method.Based on the above background,the production mode of more and more manufacturing companies has shifted from make-to-stock(MTS)to make-to-order(MTO).However,compared with the innovation of production methods,the cost accounting methods of MTO companies have not "advanced with the times." Most of the current MTO companies still use the traditional cost method for cost accounting.However,with the continuous improvement of enterprise production automation and the continuous expansion of product categories,the traditional costing method to allocate indirect costs with a single allocation standard not only cannot accurately reflect the true cost of different products,but also cannot help enterprises to scientifically evaluate order values,and then affects the efficiency and effectiveness of enterprises’ ’make to order’.So how to accurately calculate the product cost of MTO-type enterprises and scientifically evaluate the value of their orders?Based on the relevant theoretical analysis,this article believes that the time-driven activity-based costing method can solve this problem well,and takes the NF company in the valve industry as an example to conduct a case study to explore the use of time-driven activity-based costing method for cost accounting improvement and order evaluation optimization,which is expected to provide experience reference for the cost accounting improvement and order evaluation optimization of similar enterprises.Firstly,this article introduces the principle of time-driven activity-based costing based on system science theory,contingency theory,and value management theory,and analyzes the mechanism of time-driven activity-based costing method on the evaluation of MTO enterprise orders.Secondly,based on the status quo of NF company’s cost accounting and order evaluation,we reveal its existing problems and analyze the applicability and feasibility of applying TDABC in NF company.Then,this article takes NF’s butterfly valve series products as an example,according to the characteristics of butterfly valve production and process flow,we divided the production activities.Through inquiring production workers and field visits and observations,we estimate the production cost per unit time of butterfly valve production,unit operating time,and establish time equation under TDABC so that we could calculate the cost of five batches of general butterfly valves in detail.And on the former basis,this article apply GI-The Grey Relational Analysis method to evaluate the priority of butterfly valve orders and explain the expected effect of the evaluation.Finally,we discuss the implementation of the TDABC reform plan and relevant safeguard measures.The main conclusions drawn in this paper are as follows:First,the time-driven activitybased costing method can adapt to the precise cost accounting requirements of MTO-type manufacturing enterprises with a high degree of production mechanization well by virtue of its easy updating of models,relatively simple accounting,and consideration of idle capacity.Second,the use of time-driven activity-based costing information for order evaluation can effectively help MTO companies identify the value of orders.Under the time-driven activitybased costing method,companies can use the product cost information calculated by TDABC to optimize order contribution indicators,use the time equation introduced by TDABC to optimize product complexity and product quality requirements indicators,and identify the company’s idle capacity and bottleneck resources based on TDABC in order to optimize the company’s production capacity constraint indicators.Third,the implementation of the time-driven activity-based costing method requires enterprises to do a good job in the construction and maintenance of information systems.