The Study Of Activity-based Costing Method In The Thermal Power Enterprises

With the continuous development of power market in our country and further promoting the electric power system reform, China power market have build up the power market on power generation side through separate powerplants from power network and price competition. The National Electricity Company (SNEL) divide the assets into generating electricity and grids. Monopoly industries should carry out reforms to introduce competition mechanisms. Under the new power system, thermal power enterprise’s competition will be more and more fierce and Costs will be the power of the key factors of enterprise management. Activity-based costing method (ABC)as a kind of advanced cost accounting methods, both at home and abroad has been successfully used in manufacturing, that caused thermal power enterprise’s extensive attention.This article summarized management condition of hermal power plants through consulting literature materials. It adopts the combing of theories and cases as research methods and regards the application of ABC method in the thermal power enterprises as core research objects.Firstly, introduces the basic concepts of the activity-based costing method and calculation principle, points out it is a kind of advanced cost accounting method relative to traditional accounting method. Secondly, analyzes the problems of cost accounting and management in the thermal power enterprises,explain the necessity the feasibility and the implement in adopting ABC costing. Then, introduces the classification principles of each element in ABC and ABC model of the thermal power enterprises is established.The main conclusions are briefed as following:ABC calculation involves division of operation, cost drivers, cost object which has great significance in determining responsibility center, optimal allocation of resources in applying ABC method. Enterprise’s decision-making departments can learn a professional, system, device resource consumption with cost effective, easy to TongLiao power plant on a standard management, performance management, operation cost management of continuous improvement and maintenance strategy management.Altough this is only a case analysis for the thermal power enterprises, it also has some inspirations for the whole power industry to cost accounting, in the meanwhile providing experience leaning for some similar industries.