| With the rapid development of the automobile industry,auto parts industry in China has also shown a surprising development.Pistons as the “heart” of the engine,the demand also tends to increase simultaneously.Some foreign piston manufacturers begun to march into the Chinese market,domestic piston factories also expanded production capacity.However,since2011,China's auto industry came into a low-growth stage,the oversupply made the competition more severe.Cost control has become a critical way for enterprises to maintain competitiveness.Nowadays enterprises are highly automated,the proportion of direct labor is decreasing,and the market demanding is diversified day by day,traditional cost method is found weak in providing accurate product cost information and prediction.In this context,based on an example of a piston manufacturing enterprise,this paper discusses how to design and implement Time-driven Activity-based Costing system,and elaborate the contribution of the application to enterprise management.As an advanced concept and method of modern enterprise cost management,the time-driven activity-based costing manages the cost from the level of activity,scientifically calculates product cost,and provides accurate decision-making information for the manager.Based on the theoretical basis and calculation principle of activity-based costing and time-driven activity-based costing method,after overall investigation of J piston manufacturing company,this paper analyze the current cost management situation,sort out business processes,divide activity centers,set resources pools,determine the cost per unit of capacity,select cost diver,establish the equation of time,and on this basis build up a time-driven activity-based costing structure with two separate costing models,one for product and another for customer,with which the managers are able to get more accurate product cost information and profitability of customer before a strategic decision was made. |
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