A Study On The Application Of Activity-Based Costing In G Chemical Company

The Activity-Based Costing(ABC)is a method of cost accounting which can dynamically track all the activities of production,measure the cost of the activity and object,Compared with the traditional method of cost accounting,the assignment of the Activity-Based Costing to the production cost of the product is considered in multiple dimensions.Through the transition of the activities,the cost of the resource is allocated more accurately to the different products,and then the production cost which is more suitable to the actual product is calculated.G company is a chemical manufacturing enterprise developed from a micro enterprise.In the early product cost structure,direct labor and direct material cost account for the majority.The company adopts the traditional method of cost accounting to calculate the product cost.With the development of the company,the company has updated some advanced automation equipment in recent years,and changed the driving force of the equipment from coal to electricity,which has led to the reduction of direct labor costs in the production of G company and a substantial increase in the cost of manufacturing.The distribution of manufacturing costs is becoming more and more important.Therefore,the Activity-Based Costing method is introduced to G company to help it make more accurate product cost accounting.In the application of research,this paper makes an in-depth analysis on the production process and cost accounting status of G company through field survey and combines the actual situation of G company,and designs the framework of G company’s application of Activity-Based Costing system.The plan is carried out,such as division activities,confirmation of operation center,and analysis of activity motivation,and then the product cost of G company,especially the distribution of manufacturing cost is recalculated by the Activity-Based Costing.The method of statistical comparison is used to compare the calculation results under the Activity-Based Costing and the product cost under the current cost calculation.It is proved that the Activity-Based Costing method is more advanced than the current cost calculation method of the company.Finally,it summarizes the safeguard measures of G company in the comprehensive application of activity-based costing.It is hoped that it can provide constructive references for other domestic chemical companies to do Activity-Based Costing.