Application Of Activity-Based Costing In Hunan Valin Xiangtan Iron Steel Wide And Heavy Plate Plant

With the increasingly fierce competition in the iron and steel market,the market environment has changed significantly.More and more iron and steel enterprises begin to update equipment and technology and take the road of automated manufacturing.Hualing Xianggang is a large iron and steel manufacturer,whose production line covers high-speed wire,bar and wide plate.The rolling line of wide and heavy plate mill comes from equipment suppliers of Siemens and Austria Steel Union.The level of automation of machinery and equipment is high.The proportion of indirect cost in production process is increasing,the proportion of direct material cost is decreasing,and customers are also involved.Diversified demand,complex varieties of small specifications,not only high production requirements,but also not conducive to the allocation of indirect costs,cost accounting is more difficult,accounting results accuracy will be greatly reduced.The introduction of activity-based costing(ABC)will greatly solve this problem.Its characteristics lie in better understanding the production process through activity analysis.Therefore,we choose "activity" as the object of cost calculation,collect and distribute indirect costs under different motivations effectively and reasonably,and solve the uneven distribution in traditional cost accounting methods by providing more objective cost information.Problems,effectively help management decision-makers identify and eliminate "non-value-added activities",improve "value-added activities",optimize "activity chain" and "value chain",thus forming a cost management system which combines cost accounting and cost management control.This paper takes Hualing Xianggang as the research object.Based on the related research foundation of activity-based costing at home and abroad and the theoretical knowledge of activity-based costing,it carries on the analysis of the current situation of Hualing Xianggang's cost accounting.Through literature review,comparative analysis and field investigation,it analyses the current situation and problems of Hualing Xianggang's cost accounting,and discusses the feasibility of implementing activity-based costing in Hualing Xianggang.Furthermore,the operation cost process design of Hualing Xianggang was carried out,and the differences between the cost accounting method and the original cost accounting results were compared and analyzed,and then the application evaluation of the cost accounting method was carried out.Finally,the difficulties and suggestions of implementing the activity-based cost analysis method in Hualing Xianggang are put forward.The application results show that the activity-based costing method solves the problem of balanced distribution of intermediate cost in Hualing Xianggang Wide and Heavy Plate Plant and effectively improves the accuracy of cost information.The proposed proposal of implementing activity-based costing method guides the operation decision of Hualing Xianggang to a certain extent.At the same time,this paper also provides reference for the wide application of activity-based costing method in iron and steel industry.Real success stories.