Research On Cost Accounting In Y Company Based On Activity-based Costing

As an important component of the national economy,small and medium-sized enterprises undoubtedly play a role in various aspects,including promoting economic development,promoting technological innovation,and increasing employment opportunities.The COVID-19 has had a huge impact on the economy.The country has introduced a series of policies to help small and medium-sized enterprises tide over difficulties.Now it is in the period of economic recovery,and a large number of small and medium-sized enterprises are competing fiercely in the market.In the absence of obvious competitive advantages,they mostly rely on cost leadership strategies to maintain or even expand market share,which requires companies to have a clear understanding of their own cost situation.However,small and medium-sized enterprises often overlook cost management during their development process,making it difficult for them to obtain accurate,timely,and effective cost information as the basis for cost decision-making and other business decisions.Y Company is a typical medium-sized manufacturing enterprise that has expanded from a small workshop to its current scale.However,due to the management’s lax cost management and long-term non-standard cost accounting,there are significant cost issues that are not conducive to the company’s long-term development.Moreover,the cost structure of enterprises in today’s era is constantly changing,and traditional cost accounting methods based on material and labor costs cannot adapt to the trend of economic development.Activity-based costing has emerged to trace product costs from a new perspective,establishing a connection between consumed resources and products through decomposed operations,providing clearer and more accurate cost information,and effectively identifying value-added and non valueadded operations,Point out the direction for cost control in enterprises.Therefore,implementing activity-based costing is a good choice for Y Company to improve its cost accounting status.On the basis of reviewing a large number of domestic and foreign literature,this article summarizes the theoretical research and application of activity-based costing in both foreign and domestic contexts.Taking Y Company as the research object,it analyzes its current cost accounting situation and finds that there are four major problems: non-standard cost accounting methods,imperfect material management systems,lack of value management for secondary aluminum,and cost information that cannot meet management needs.Afterwards,the necessity and feasibility of applying activity-based costing in Y company were analyzed,and the application scheme design of activity-based costing in Y company was explored.Based on Y company’s production process and manufacturing process,activity centers were divided,cost drivers were determined,and product costs were calculated and allocated.The differences in product costs between traditional costing and activity-based costing were compared.The comparison results show that activity-based costing significantly improves the accuracy and timeliness of product cost information,which helps the company improve its cost accounting status,improve production processes,and increase profitability.Finally,considering the obstacles and difficulties faced by small and medium-sized enterprises in implementing activity-based costing,three measures were proposed to standardize the cost accounting process,ensure personnel support,and improve the management information system to help promote and implement activity-based costing in Y company.