Costing In Manufacturing Cost Accounting Application

Since the 80s 20th century, production of highly automated formed the basis of the high-tech, has greatly changed the product cost structure, as well as product diversification and increased customer Features. Direct materials and direct labor costs fall in the share of cost and the proportion of manufacturing costs have increased substantially, which makes the traditional method of cost allocation of a single manufacturing cost of the number of standard methods were not suited. Traditional costing methods couldn't adapt modern management requirements. And this pattern becomes more and more serious. It should be to change. Cost has become the vital resources which copes with market competition and maintain enterprise customer relationship. To realize business strategies, enhance enterprise competitiveness, the cost must be carefully studied, enterprises should analyze cost behavior, control their changing patterns. Therefore, an enterprise faces a new task in costs and cost management. In traditional cost management system, the cost of business is different according to the purpose and it is distributed in different apartment. The enterprise can't understand it in detail. Since there is no complete cost information, enterprises are difficult to find the problem from the cost management and to conduct the rationalization and improvement of economic efficiency. With the backward of traditional cost management methods and the problems rises gradually, it needs to find new ways to change the cost management and status quo behind urgently.This article indicates from the principles that the present of the Activity-based Costing is due to the failure of the traditional costing approach in providing the enterprises with precise cost information and the advantages of the Activity-based Costing is obtained on this basis; and next, this article analyses the current cost status of the manufacturing enterprises and obtain the feasibility and necessity of the implementation of Activity-based Costing in the manufacturing enterprises of our country; and then, the author establishes a general procedure design steps for the implementation of the Activity-based Costing for manufacturing enterprises on the basis of his study. At the same time, he sets Cost Driver Selection model combining with AHP method.; At last, combining with the implementation practice of the Activity Based Costing in Tong Zhou Plastics Co., Ltd., through the analysis on current cost status of the company, the author finds out the problems existing in the cost accounting system the company currently uses and specially design an Activity-based Costing system for the company based on its current practice, further demonstrates the feasibility of the Activity-based Costing for manufacturing enterprises and provides efficient technical support for the application of the the Activity-based Costing in manufacturing enterprises.