Application Of Activity-Based Costing In SD Rubber Products Company

In the background of today's rapid development of science and technology,the competition between enterprises and enterprises become more and more intense,and the internal cost structure is also significantly different from the previous.The traditional cost accounting information of the manufacturing industry has been obviously incompatible with the chang of internal and external environment,and can not meet the needs of cost management.In order to maintain or even increase the market share,and further improve the economic efficiency,the enterprises have to continue to seek ways to reduce costs.This requires enterprise to use reasonable cost accounting methods to give a objective and accurate accounting for cost information materials.On the basis of accounting,enterprises can make a optimal design of enterprise cost management system.Activity-based costing method can make up for the shortcomings of traditional cost accounting method in cost accounting,and can make objective accounting of cost information of enterprises,and can meet the needs of modern economic development and cost management.However,many enterprises still use the activity-based costing method in the production process of enterprises.It have some limitations in the scope of the cost of accounting methods.Therefore,in the use of activity-based costing,we should actively expand the scope of costs accounting and management and explore new cost management model.The value chain analysis covers the whole process of production and operation.It can be re-considered the approach,focus and objectives of the activity-based costing from the perspective of the value chain.Using the value chain analysis,we can find the chain of the whole function activities of the enterprise,and then use the activity-based costing method in the process of these functions to account for the cost from the point of view of the activity,and the resulting resource costs are allocated to the job and then further assigned to the product cost,so that enterprises can provide a more comprehensive and objective cost information,so as to support the enterprise cost management.In this paper,SD Rubber Products Co.,Ltd,which has large indirect cost,is used as the research object.In the context of the value chain analysis,the paper use the activity-based costing to cost and manage.First of all,the paper introduce the theory of activity-based costing,costing management and value chain,and analyzes the relationship between activity-based cost management and value chain.Secondly,the paper analysis the current situation of the cost of SD rubber products company,point out that the SD rubber products company have some shortcomings in using the traditional cost accounting method of cost information distortion in a certain extent,illustrates the necessity and feasibility of applying activity-based costing in SD rubber products company.Next,according to the principles and procedures of the implementation of the activity-based costing method,use the activity-based costing method to calculate the product cost with the existing cost accounting data of SD Rubber Products Co.,Ltd.and compare it with the traditional cost method.Finally,based on the above analysis,it is concluded that the activity-based costing method can be used to provide more information support for the activity-based costing management and to continue to improve the market share of the enterprise on the basis of the value chain analysis.