An Applied Research On Product Cost Accounting In X Enterprise By The Use Of Activity-based Costing Method

Along with social progress, economic development, and the intervene of non-public ownership medical company, the monopoly of pharmacy in China has passed out of existence. Till2011, China has nearly7000pharmaceutical enterprises in large or small scale. Most of them produce imitations of foreign patent medicines or produce non-patent medicines without the protection of China’s patent law. The situation----"a drug, a number of imitations" makes the drug production enterprises have to compete in price. With the reform of national medical system, drugs are purchased by centralized procurement system. Production, import and export of drugs are managed unifiedly by the nation, and pricing of drugs are controlled by economy and administrative intervention. These measures make the profit space in production of drugs shrink considerably, and some enterprises even have a deficit in successive years. Currently, pharmaceutical enterprises are generally smaller. And with no effective cost control, the traditional cost control way can not be able to meet the needs of economic development. So the effect of cost control reduced greatly, and the information that the financial sector provided can not meet the needs for other sectors of the enterprise. Therefore, a new way-the method of activity-based costing is introduced. This method can make up for the deficiency in traditional cost management, strengthen cost control, and improve business decision-making level. And it also can obtain the cost advantage, then improve competition ability and profit ability of an enterprise.Activity-based costing (ABC) originated in the late of1980s in the United States. It was first presented by Eric Kohler (Eric Kohler), and it was introduced to China in the early1990s. Activity-based costing is a core task costing method. By this method, resources consumed by the enterprise are assigned to the job according to resource driver, then the cost drivers are selected, and operating cost is allocated to collect of all the cost objects (products or services). Activity-based costing method will lead the manager to focus the management center on cost reasons and cost drivers, not just concern about the results of the costing itself. That makes uncontrollable overheads become controllable operating cost method, and therefore the cost of all-around control is achieved. The activity-based costing method has been widely used in manufacturing, logistics, transportation, design development and many other industries. In thesis, x pharmaceutical enterprises is taken as an example. The whole process of the implementation and application of the activity-based costing is elaborated through field research.This thesis is divided into five chapters:Chapter I and chapter II are the theoretical parts. Chapter Ⅲ and chapter IV are the core parts. Chapter V is the conclusion of this thesis. Chapter Ⅰ is the introduction, and it mainly elaborates the research background, research significance, research motivation methods home and abroad. And the present situation for the research on activity-based costing method is also reviewed in this part. In chapter Ⅱ, the theory and method of activity-based costing are introduced, and the present situation in application of activity-based cost in our country is also analyzed. Chapter Ⅲ is mainly about the necessity and feasibility analysis of the application of the operating cost method in the pharmaceutical industry. X enterprise is taken as an example in chapter IV. In this part, against the production continuity, complex process, production process in production of drugs, a system design based on the application the activity-based costing is put forward. By the design, target for prior forecast, a matter of control in the thing and reasonable cost-sharing in corporate costing is achieved. And through field case studies, the differences in activity-based costing and traditional cost management are compared and analyzed. In chapter Ⅴ, the conclusion and possible shortcomings in this thesis is mainly elaborated, and an industry outlook for application of the activity-based costing is elaborated.