Research On The Application Of ABC In The Cost Management Of Power Grid Enterprises

Electric power industry is an important national basic industry, which is closely related to the country’s economic health and sustainable development. After the power system reforming, China’s power industry has achieved a separation of power generation and distribution. As an important service enterprise serving for the people’s livelihood and national security and stability, the internal management mechanism of power grid enterprises has made some improvements. However, the cost management is still imperfection, which has much room for improvement.Activity-Based Costing is an advanced enterprise cost management, which has been widely used in many industries. In this paper, the cost management of power transmission and distribution business was studied based on the Activity-Based Costing. Firstly, the basic concept, applicable conditions, accounting processes and different from the traditional cost method of Activity-Based Costing were analyzed and discussed; secondly, the feasibility of application Activity-Based Costing for power grid companies was analyzed, which include the basic characteristics of the power grid enterprises, power companies cost structure and management analysis, and the feasibility of applying Activity-Based Costing to the cost management of power grid companies; then, taken the TJ power grid company as example, Activity-Based Costing applied to TJ power grid company was studied in detail, including operating costing implementation steps, operating costs element analysis, operating cost drivers and cost library analysis, and operating center cost allocation; finally, the safeguard measures for practicing ABC in TJ power grid company were analyzed.In this paper, the following conclusions can be drawn:the total cost of transmission operation of TJ power grid company in 2012 amounted to 56.87 billion RMB, and the transmission line operation take the largest proportion; the total cost of distribution operation of TJ power grid company in 2012 amounted to 47.87 billion RMB, and the distribution regular inspection operation take the largest proportion; the transmission line operation, transmission substation operation, communications transmission operation, distribution patrol operation, distribution duty operations, fault repair work are the enterprise value-added operations, and transmission public operation and distribution public operation are the enterprise non-value-added operations. The safeguard measures have promote ABC to play a role in TJ power grid company.