A Case Study On The Application Of Activity Based Costing In CK Company

With the rapid development of the railway sixth times,China's rail transportation equipment manufacturing industry has been rapid development.In the "13th Five-Year" planning period,a railway investment in fixed assets amounted to 800 billion yuan per year,which fully shows that the state is determined for the development of railway transportation! Chinese President Xi Jinping and Premier Li Ke qiang's visit to foreign countries will often sell our own production of the EMU,which also laid a good foundation for the expansion of overseas markets in China's high-speed rail has laid a good foundation for the development of China's high speed rail vehicles,which will be the basis for the development of China's high-speed rail vehicles,which will be the basis for the development of China's high-speed rail vehicles,which will help to expand the overseas market.Due to the diversity of market order and the complexity of rail transit technology,the drawbacks of the traditional cost accounting methods have begun to be exposed.For the manufacturing process clear,the use of "homework" accounting cost method can accurately calculate the product cost,and can eliminate the value-added activities,improve enterprise management,for enterprises to be able to provide good data in support of management decision problems on cost accounting,product pricing.Therefore,the application of activity based costing(ABC)is a major innovation in the management of rail transit enterprises.The activity based costing has been developed for nearly eighty years.It was proposed by Professor Eric Kohler,a famous American Accounting scholar.Since then,many scholars,such as professor George Stobts,have further explained and studied the "operation accounting",and perfected the rudiment of activity-based costing.Yu Xuying,a famous professor of our country,introduced the advanced idea of ABC in the early 90 s of last century,and made a comprehensive introduction to the concept,the principle and the concrete operation mode of abc.This has also set off a wave of research on activity-based costing,from theoretical research,case studies to empirical research,there are scholars in-depth discussion.Especially for different industries,the case study of activity-based costing method provides a train of thought and research methods for the study of activity-based costing of rail transportation equipment manufacturing industry.This paper through case analysis approach to the study of ABC in Chinasubsidiary of CK company.First of all,the activity-based costing and traditional cost accounting methods are studied,and the advantages and disadvantages of Activity-Based Costing in management and accounting are studied from their respective characteristics.Secondly,the paper analyzes the problems of the traditional cost accounting methods,and focuses on the necessity and adaptability of the application of abc.Then,according to the activity-based costing method in the case of the specific process of the company's gradual analysis,through two specific operations center division to highlight the characteristics of rail transit equipment manufacturing industry.Finally,through the application of the data display to analyze the benefits of ABC for the company,so as to give some inspiration to the relevant or similar enterprises.