Application Of Activity Based Costing In GH Thermal Power Plant Cost Control

While the level of social productive forces is improving,a large number of advanced equipments are widely used in modern electric enterprise production environment.The change of production environment has increased the proportion of indirect costs,which indirectly lead to the traditional cost method no longer adapting to the new production mode of enterprises.This accounting method is not allocating manufacturing cost in a fair and reasonable way;it cannot provide an accurate basis for pricing decisions of electric enterprises.Companies may fall into trouble due to inaccurate cost information.Activity-based costing suits this new production environment,which is a transform of the cost accounting development,this method is based on the product process and its allocation criteria for indirect costs are multiple.The cost will be reasonably allocated to the product process based on different cost drivers,in this way,the indirect costs can be allocated reasonably and the distortion of cost information can be avoided.Activity-based costing can not only help electric enterprises get accurate and practical cost information,but also plays a certain role in promoting electric enterprise management level of decision-making and cost control.Therefore,the study on the application of ABC in GH thermal power plant cost control,not only for the enterprise itself but also for the overall operation of state-owned economy are obviously great significant.Based on research results,The paper analyzes the basic situation and the current cost control situation of GH thermal power plant from basic theoretical concept of activity-based costing,content and procedures of departure,and sorts out GH company difficulties and cost accounting problems.Then based on the explanation of the ABC implementation procedures,the basic principles and objectives of the ABC of power plant,the method of the division of working unit,the determined method of operation of the chain,as well as cost calculation and optimization,and combined the ABC and the particularity of coal-fired power enterprises,the paper designs specific ABC programs of GH enterprise,and analyzes the ABC application performance in GH plant.At last,the research puts forward the use of GH power plants and supporting measures.Activity-based costing is a new method of cost accounting,so the GH company at the initial stage of the operation should not be anxious for success,but make continuous improvement and perfection in the process,in addition,pay more attention to the cooperation of various departments,so as to ensure the effectiveness of implementation.Activity-based costing can provide a better basis for management decision-making,improve the competitiveness of the company and ultimately reduce costs and increase efficiency.