| With the rapid development of high-technology, nonferrous metals enterprises in China introduce advanced production technologies consistently. It makes enterprise manufacturing environment undergo great changes, and demand to improve the quality of accounting information. There are two costing methods in nonferrous metals enterprises in China, which is traditional costing and Activity-based Costing, called ABC for short. However, they don't adapt enterprises'manufacturing environment. Traditional costing exposes more and more disadvantages, ABC is complicated and difficult to implement, which led to false cost information. So, nonferrous metals enterprises need a costing method that reflects enterprise manufacturing environment in a timely and accurate manner. In the context, Resource Consumption Accounting, called RCA for short, come into being at the opportune historic moment, which is a new generation of costing management system. The paper will address whether or not RCA can make up for the shortage of traditional costing and ABC.RCA combines ABC and Grenzplankostenrechnung, called GPK for short, which uses GPK theory to extend and remedy ABC. The paper explains why to choose RCA through introducing the costing journey. And then, it elaborates RCA's advantages in both theory and practice. In theory, the paper summarizes the basic concepts of RCA, compares the differences with traditional costing and ABC, concludes that RCA improves the accuracy of cost information and conforms to the objective requirements of costing. In practice, the paper discusses the necessity and feasibility to implement RCA in nonferrous metals enterprises of China. And it introduces approaches to allocate cost to relevant products, concludes that the results of RCA is much better to reflect actual situation and control cost. RCA's application prospect is optimistic, hope to promote new cost management reform and improve the management accounting in our country. |
PDF Full Text Request