Research On Application Of Time-Driven Activity-Based Costing In QJ Pipe Co.,Ltd,

The domestic plastic pipe industry with the development of the real estate construction industry has gradually developed.Currently,the development of plastic pipe industry has slowed down and has an overcapacity.Good cost management is a key issue for the pipe industry's competitive advantage in the severe market competition.Cost control and management can only be effective under the premise of accurate costing of various types of product Therefore we need “right medicine for the right symptoms”.It is necessary to solve the cost control problems in the enterprise's production process.Time-driven activity-based costing is a scientific method for cost accounting and analysis.Evidence shows that the rational use of this method has a positive effect on company's cost control and competitiveness.This thesis attempts to introduce time-driven operating cost method into QJ Pipe Co.,Ltd.to improve the company's practice in cost management,and also provide some implication for industry peers and other manufacturing enterprises.This thesis firstly introduces the research background,reviews literature and overviews relevant theories of time-driven activity-based costing.Secondly,it analyzes the case company's current cost structure and cost accounting method.A number of problems has been identified,such as weak sense of staff costs,manufacturing costs of a single standard,unreasonable cost of the assessment system and other issues.The thesis argues the necessity and feasibility of the introduction of time-driven ABC method to QJ because of the company's characteristics,such as product variety and large proportion of indirect cost.Thirdly,embracing the idea "select the pilot,from easy to difficult,and gradually promote",based on the workshop production process,the study selects the core manufacturing sector as a pilot,determines the job center and relationship between resources,operations and products.According to the activity-based cost method,the cost driver of each resource is calculated and the resource is allocated to PE,PP-R,U-PVC and PE-RT according to the cost drivers and the driving force.Then,the difference between the four products is 7.35%,2.34%,0.83% and 0.47% respectively.According to the difference analysis,five key points for the implementation of the time-driven ABC is introduced.The company should pay attention to idle capacity management,pricing decisions,cost accounting system updates and other five key points.Finally,in order to.better implement the time-driven cost method,QJ Pipe Co.,Ltd should put forward targeted safeguard measures,such as publicity and training work,improve the level of information collection information system,the establishment of supporting incentive system,to take a parallel two-track approach using financial accounting system and time-driven operating cost method accounting system.At present,the research on time-driven activity-based costing mainly focuses on medical and service industry.The number of research used in manufacturing industry is limited.Therefore,the research of the thesis not only enriches the academic research,but also has implication for other plastic enterprises and other manufacturing enterprises to provide a new cost accounting avenue.,The study provides some guidance and reference for other enterprises to introduce time-driven operating cost method in the future.