Case Study Of Application Of ABC In Agricultural And Animal Husbandry Enterprise By NL Company As An Example

With the rapid development of world economy, China is participated in the international market in wider range. From the initial small advantage industry to the agricultural and animal husbandry enterprises joining, we enhance national power and improve standing in the world. However, even though our agricultural and animal husbandry enterprises are ceaselessly growing, but facing competition in world market without protection of national policy, they still have a tough test. Therefore, Agricultural and animal husbandry enterprises must improve their strength to meet the challenge.Effective cost control is very impaortant for an enterprise which wants to improve their strength and usefully cut cost, especially for the agricultural and animal husbandry enterprises that just begin to participate in market competition. The traditional cost accounting method is overly concerned with the accumulation and distribution of the direct expense and use a single standard to distribute the indirect expense that share growing in the modern enterprise, which obviously can’t meet the demand of the cost for agricultural and animal husbandry enterprises paticipating in whe allocation of indirect costs are still using a single standard, obviously, this is unlikely to meet the demand of the cost of agricultural and animal husbandry enterprises participate in international competition in the market. Therefore, activity-based costing, as a kind of advanced cost accounting method, arises at the historic moment.The basic principal of ABC is that products consume activities and activities consume resources.With the standard of the cost driver, through activties, the final product cost is reached by the accumulation and distribution of the resource cost. According to ABC, the product cost is conposed of actual contributions of the resources, which reflects the true composition and provides the basis for enterprise to carry on the cost analysis and control, and to reduce costs and improve competitiveness for enterprise further.Based on the relevant literatures about ABC in home and abroad, the basic principal and case study is discussed in this paper. According to the specific situation of agricultural and animal husbandry enterprises in china, application framework, system and model of ABC for c and animal husbandry enterprises is structured. The framework is verified with the real cost data of NL company, which illustrates the feasibility of ABC in agricultural and animal husbandry enterprises in china. This paper provides reference for ABC applied to agricultural and animal husbandry enterprises.