The Applied Research On Activity-based Costing In BF Company

The second half of the twentieth Century, with the improvement of production technology and changes in production methods, enterprises cost structure has also changed, indirect costs in product costs a substantial increase in the proportion, even more than the proportion of direct costs. Traditional costing methods defects, unable to adapt to this change, distort the costing data, misled the decisions of managers. Activity-based Costing is a response to these changes in the production and management accounting developed a new discipline, it is “cost drivers” theory, is a effective way to avoid the shortcomings of the traditional method, and can provide more accurate and more cost- information for business managers.Chinese Ministry of Finance issued the “Enterprise Product Costing system(Trial)" in 2013, the system provides manufacturing enterprises can use activity-based costing to accounting. Activity-based Costing as an advanced cost accounting method in the application of Chinese enterprises has also been the basis and guarantee system.Thesis is based on BF Biopharmaceutical Company as the research object. First of all, Thesis elaborated the basic concept of activity-based costing and general theory, and was compared with the traditional cost method, pointed out the advantage of Activity-based Costing. Second, the thesis introduces the BF company’s profile and organizational structure, and focuses on the characteristics of the biological pharmaceutical industry, and production processes, discussed the status of BF company and costing problems, further illustrate the cost of traditional methods were not suited to the BF company’s current situation, BF company has a job cost accounting basis and the environment now. Then the thesis application Activity-based Costing cost products in 20 × × December, was calculated main production line, and was compared with the results of the traditional, and analyzed the differences. Through comparative analysis, the results proved Activity-based Costing is more efficient and accurate job costing, applications in the enterprise can improve cost management level. Finally, the thesis is proposed solving methods of applied problem, and the next step in the full implementation of activity-based costing BF’s some suggestions, we want to help other biomedical companies and BF company applications costing and Management decision-making.