Research On Application Of Time-Driven Activity-Based In K Company

In today’s era of economic globalization,market competition has become white-hot.Compared with the past,most manufacturing enterprises have significant differences in the internal and external environment.In addition,the space for product profits in the increasingly competitive market continues to decrease,while the difficulty of the enterprise profitability gradually increases.Cost leadership strategy is proposed by Michael Porter.As a famous American strategic theorist,he has a high influence and appeal.Thus,many companies have joined the price war,and the battle is fierce.If a company wants to stand out in the price war,cost management is crucial,so it is highly sought after in the management of enterprises.Costing management plays a key role in business management.Modern production technology continues to innovate,pushing the management and production of manufacturing enterprises to the direction of automation and mechanization respectively,and production costs are also rising.The traditional manufacturing costing methods have a certain effect on the allocation of manufacturing costs,ultimately affecting the authenticity of costing data,and the real needs of enterprises at this stage cannot be effectively matched.The traditional operation costing method needs a lot of energy and time to realize the information system construction,and it is complicated in maintenance and adjustment,which is affected by many factors and gradually abandoned by some enterprises.The time-driven job costing method is a highly efficient and simple costing method,which is an upgrade and optimization of the traditional job costing method.It is able to allocate manufacturing costs scientifically,and can make up for the defects of the traditional job costing method.It has a good performance in terms of both difficulty of updating and operability,and can play a positive role in product pricing,production process management,performance evaluation and decision support of enterprise management.As a result,the time-driven job costing method has been recognized by more and more enterprises.This paper first conducts theoretical research on the topic of time-driven job costing.The paper collects and composes domestic and international literature on this topic and elaborates on it,which serves as a tool for optimizing cost management and cost accounting in manufacturing enterprises.Secondly,the study introduces a case study of Company K to validate the positive effects of the time-driven job costing method in cost management after a manufacturing company introduces the time-driven job costing method.The conclusions are as follows: the time-driven job costing method has better performance in both timeliness and accuracy in the process of cost information reflection,which can improve the accuracy and effectiveness of business decision making,and has certain inspirational effect on promoting manufacturing enterprises to strengthen their own cost management level.