The Research Of Activity-based Costing Based On LM Company

This paper reviews the origin and background of the ABC, composition and ba-sic theory of ABC are described, and the ABC calculation step carries on the system analysis, first to identify the main activities and cost drivers, second division opera-tions center and the establishment of activity cost pool, then the resource costs allocated to work and then assigning activity costs to another job, the job assigned to products.Through the discussion of ABC and the traditional cost accounting method dif-ference, that in today’s large enterprise groups, the indirect costs of enterprises to grow too fast, can be assigned directly to the product resource usage decreased ra-pidly, traditional cost method for indirect costs exist some shortcomings, there are certain limitations, prone to error or distortion. And the activity-based costing more attention cost and to produce results, at the same time tracking more accurate cost of the source, can reduce waste, reduce the consumption of resources, improve enter-prise efficiency, a reasonable guide investment direction.In this paper, and through the analysis of existing in our country’s concrete op-eration costing problems, summed up in the should take the implementation of activity-based costing our measures:in the promotion work nationwide cost method to get the support of government, from the advanced enterprise to point, step by step, and to the timely establishment of consulting organization, development of ABC software, and enhance staff training, improve staff quality, human resistance reduc-ing operating cost method in the implementation process, and improve the implementation efficiency. Finally, combined with the author in the LM company’s operating cost method in practice, based on the analysis of defects in LM company’s existing accounting system, the implementation of activity-based costing can bring benefits for the enterprise, and through the actual data to conclude, the use of activi-ty-based costing method can effectively control and allocation of indirect costs, from the accounting data more easily find out the non value added operations and val-ue-added operations, against the decision of the enterprise more importance. At the same time, attention should be paid to the summary of the problems and the applica-tion of activity-based costing LM found on the operating cost method in the course of operation, provides the reference for the other similar enterprises.