Research On The Application Of ABC In A Lamp Manufacture Company

Activity-based costing is an advanced cost calculation method and cost managementtheory which originated from the western country. Its basic idea is that the Product consumesthe activity，and the activity consumes the resource, and it focuses on activity, first distributesthe costing of resource to activity according to the resource driver and then distributes theactivity cost to the production and service according to the activity driver. Compared With thetraditional cost method，the activity-based costing method can scientifically allocate theindirect cost.First，this article gives a comprehensive and systematic summary of the basic theory ofactivity-based cost， including its basic concepts， its theoretical foundation and basicprocedures， etc. And the difference between the cost of activity cost method and thetraditional method.Then the article introduces LED industry status, A Company，s existingcost accounting method is uniquely fixed working hours all prospective to allocate indirectcosts, pointing out the problems of this approach: twisted product costs, resulting in a productthe information distortion. Combining with activity-based costing theory, A should proposethe introduction of activity-based costing. The article demonstrates the necessity andfeasibility to introduce activity-based costing in A company.Then the article designs the application of activity-based costing in A company. Accordingto the depth understanding of the company, the business process of A company is divided intoeight activity centers, the resource is divided into six types, and the cost drivers are chosenbased on the availability of data and the rationality.Finally，the article analyses the case of A company，which applies the activity-basedcosting，and compares it with the original method，then draws conclusions. On this basis,according to the actual situation of Company A, the article proposes Managementrecommendations.