Research On Y Iron And Steel Enterprise’s Environmental Cost Accounting Based On Activity-based Costing

Iron and steel enterprises are the pillar industries of China,but they are also heavy polluting enterprises.According to the relevant statistics report,they discharge wastes and pollutants,which account for more than 14% of industrial emissions,and produce a negative impact on the environment and human health.At present,the society,including the people and the national government,has also put forward higher environmental protection requirements for the production of enterprises,environmental expenditure of enterprises increases.However,most companies have not found the right way to account for environmental costs,resulting in incomplete environmental costs,unclear path and unclear connection between product and environmental costs,etc.It is harmful to make the right decision for manager,damage profits of enterprises.Under the premise,this paper selects Y iron and steel enterprise as the research object,to explore the application of Activity-Based Costing in environmental cost accounting of Y steel enterprise.Firstly this paper introduces environmental cost and activity-based costing according to the literature;Secondly,under the guidance of theory and through the field research method,it analyzes the current situation of environmental cost accounting in Y iron and steel enterprise,finds Y steel enterprise’s present environmental cost accounting problems,and expounds the feasibility of using ABC method to solve the problems of environmental cost accounting of Y steel enterprises;Then based on the combination of theory and practice,this article constructs Y steel enterprise’s new environmental cost accounting system based on ABC method: the first is to confirm and measure environmental costs based on environmental operations,the second is to establish environmental activity cost repository based on resource drivers,thus collecting environmental costs and simplify the accounting process,finally,relying on activity motivation to allocate the environmental costs to the products,which are in the activity cost repository,to calculate the environmental costs of various products;According to the comparison between the new method and the current method,we can obtain the conclusion of the advantages of the activity-based costing method: the activity-based costing method can confirm environmental costsmore comprehensive,collect more detailed and share more reasonable;At last,in order to control costs,under the ABC,we can analyze the causes of environmental cost in Y iron and steel enterprise from the four aspects of motivation,activity,composition and product,and put forward the measures to control environmental cost accordingly,then the paper forecasts the application prospects of applying ABC method to calculate environmental costs in Y steel enterprise and give suggestions correspondingly.The conclusion of this paper is ABC as an effective method to solve the problem of how to distribute environmental cost more reasonable.It not only provides reasonable accounting data,but also can find targeted solutions to control the environmental pollution and provide managers with relevant decision information.The value of this paper is associating the environmental cost with the ABC,it also provides a new idea for the accounting of environmental cost in polluting enterprises.