The Application Of Activity-Based Costing In The Shi Coal Machine Company

With the development of high science and technology, the diversity of products and strengthening the guidance of customer, the traditional method of calculating cost is more and more incompatible with the needs of modern management. The traditional method must be changed. Enterprises must carry out activity management with the building of modern enterprise system. in some suitable parts of an enterprise, the method of activity-based costing based on view of cost reason may be adopted. The accurate cost information based on the method of activity-based costing can be gained, which provide the basis for pricing product, producing and marketing decision. Meanwhile, the achievement of activity and process can be measured and assessed by analyzing activities and calculating cost. In this paper, the method of activity-based costing is applied to practice in a coal machine tool plant. The results show that the cost information is relatively accurate by the method of activity-based costing. The method is suitable for advanced manufacturing units now.