Study On The Application Of Activity-based Costing In S Company

With the improvement of science and technology and the application of information technology,China’s manufacturing industry market competition is becoming increasingly fierce.At the same time,the internal and external business environment of the enterprise has also undergone tremendous changes,the change of cost structure and the increase of product variety are all shaken with the basis of traditional cost accounting,making the traditional cost method can’t calculate the accurate cost data,And thus affect the production optimization and management decision-making.The emergence of Activities-Based Cost Method makes up for this shortcoming,and its theory has become more mature,there are many companies of developed countries have implemented ABC,and produced a good profit,accumulated a wealth of experience.In this case,most of our enterprises are still in a passive state,the knowledge of the ABC is not enough depth,its application effect is still not clear,the real application is more less.This paper hopes to further study ABC to provide enterprises with more accurate cost information,and thus help enterprises to improve the level of cost management and improve market competitiveness.First of all,the article first explains the background of the study,discusses the current situation facing China’s manufacturing industry,as well as in cost management,especially the cost of accounting problems.This paper reviews and summarizes the research status and application of ABC at present and abroad,and introduces some basic theories of ABC to help us better understand this paper.Secondly,selects S company as the research object,introduced the basic situation of S company,the industry situation and the company in the cost accounting some problems,and carried on the concrete analysis,thinks S company also needs to introduce ABC.And then combined with the actual situation of S company,based on the basic design process of operating cost method,for specific details of the problem continue to be resolved,making every link are standardized and procedural,and ultimately complete the system design.Taking J workshop of S Company as the example,the ABC of ABC was carried out in the J workshop,and the total cost of the different models was obtained.The comparison of the data difference further explained the effect of ABCFinally,this paper summarizes the paper,indicating that the activity-based costing method provides a more scientific way for S Company to improve cost management and improve market competitiveness,and further prospects the wide application prospect of ABC in China.