Study On The Application Of TD-ABC

After the economic crisis, the packaging and printing industry has developed very rapidly under the circumstance of China’s steady economy which has ranked first in the world of packaging in China’s GDP. While there are about 40,000 packaging printing enterprises of all sizes. The number of packaging and printing companies has increased dramatically, resulting in excess capacity and the price has been falling, but the labor costs is increasing as well as the price of raw materials. Because of the exits of established market demand and buyer’s market in nowadays, the industries are not able to decide the yield and price on their own, then the cost of effective control becomes particularly important.Traditional cost accounting method used is on the premise of direct materials and direct labor costs in a larger proportion of the product, a relatively small manufacturing costs, relatively simple product cost elements, a single product category, the small production, the low level technology, and the convergence of consumers which preferences for our previous labor-intensive production. Based on the modern machinery high-tech industries, with the faster development of machinery and equipment updates, the direct materials and direct labors are gradually reducing and proportion of indirect costs becomes higher and higher. But the appearance of Costing makes the allocation of corporate overhead costs becomes more scientific and accurate, so that operations management becomes an effective way to control the cost of doing business. But from the perspective of international usage, owing to its own limitations it doesn’t make successful in the long-term implementation of large-scale enterprises. While the Time-Driven Activity-Based Costing only select the time as a single cause which greatly reduces the difficulty of making the job cost accounting application in the enterprise. Under this background, this paper analysis the applicability of the application of company A Time-Driven Activity-Based Costing, and sets its corrugated box production plant for example. Through it, the author designed specific accounting step for Time-Driven Activity-Based Costing in the production of internal workshop, then presented Helpful Time-Driven Activity-Based Costing embodiment for the company. It not only gives the enterprises new ideas in cost control management, but also provides a new perspective for other businesses.Bring the Time-Driven Activity Based Costing into the enterprise is a new method of cost control, so that business managers truly understand the cost structure, and then find a more specific direction of the cost of management which could makes labor-intensive enterprises transform to the capital-saving perfectly. So the company’s Time-Driven Activity-Based Costing application inquiry has a strong practical significance.