The Research On The Application Of ABC In TC Company

In cost accounting history, there have been three times of revolution. In the first revolution,the cost calculation was involved in the accounting system for the first time.The Second revolution was about responsibility cost control system, this system was the combination of product cost accounting and control systems.The third time was the generation of the activity-based cost method. It provided a new perspective for cost accounting and control,and changed the way of cost collection and distribution, since activity-based cost method came into history. The correlation between cost collection and distribution is becoming more and more relevant. The accuracy of the cost calculation improves, which advantages for the enterprise to identify value-added activity and strategic activity that relates to the enterprise’s competition and strategy. ABC helps to improve the working efficiency and eliminates the non-value-added activities.It provides useful information for marketing, quality design and R&D activities in the whole company, which is the basic data for effective decision.With fierce competition in the market, the radiator production companies face increasing pressure to reduce production costs. Traditional costing method can not meet the requirements of the cost information, due to the high prices of raw materials and labor, the demand of consumer becoming diversified and specific, the difference between products becoming more pronounced.In this paper we took the example of TC company and introduced the application of ABC in TC company. We analyzed the implementation and the necessity of the application of ABC and tried to find the calculating steps and help the manufacturer to enhance the activity-based costing management. Trough the thesis, we attempted to help the manufacturer to pay attention to the problems existing in the application of ABC and provide any better reference for decision-makers to optimize the management and control of the enterprise cost.