Application Of Activity-based Costing In A Food Processing Enterprise

The development of China's economy has driven people's pursuit of food quality.Competition in food processing companies has begun to shift from price competition to competition in quality and product differentiation.The introduction of advanced equipment for improving food quality and ensuring food safety has made the proportion of A company's indirect costs account for a large proportion of the total cost,.The current method of traditional cost accounting adopted by the company is based on the premise that the proportion of indirect costs is relatively small.It is easy to cause financial information inaccurately to affect production decisions.activity-based costing method considers the reasons for the formation of product costs and increase the accuracy of cost data,it can solve the problem of A company's cost management to some extent.On the basis of summarizing related theories of activity-based costing and cost management,A company in the food processing industry was selected as a case to introduce the ABC.Analyze the establishment background of A company,clarify the internal and external conditions of the company's quoted activity-based costing method;investigate the production situation through field research,understand the company's production process and production process,determine all operations and operation centers,analyze and confirm resource drivers and operational motivation,according to the cost drivers to allocate costs to the final product,thus designing the A company to implement the ABC procedures and related forms;to calculate the product cost under the ABC,and to compare it with the cost information under the current costing method.analysis of differences and impact on the company's cost management,found that the ABC can provide more and more accurate financial and non-financial information applied to production decisions and improve employee enthusiasm.Solve the problem of current costing methods.In this process,the problems existing in A company's application of ABC are summarized,and suggestions for solution and maintenance are given to ensure that the ABC can be effectively implemented.