Application Of Activity-based Costing In Production Cost Management Of T Aluminum Company

Against the background of the rapid development of the market economy,various companies are paying more and more attention to how to optimize the allocation of resources and make asset expenditure more efficient in cost management.For auto parts manufacturing enterprises,how to accurately calculate the cost of products has become an important task for business development.Such enterprises have many production links,complicated production processes,many and specific types of production equipment,high levels of mechanization,and the subsequent equipment repair and maintenance costs,which have made the proportion of manufacturing costs in product costs increase year by year.The trend is that such a situation does not meet the assumption that the traditional cost method is applied,"direct costs account for a large proportion of product costs." As an advanced cost accounting method,ABC can not only overcome the disadvantages of traditional cost accounting methods.It can also improve the accuracy of cost accounting to a large extent.Moreover,in the era of a highly digitized modern society and the Industrial Internet,it is also more conducive to the implementation of the application of the activity cost method,which is of great significance to the field of cost accounting in China's manufacturing enterprises.T Aluminum's main business is the manufacture of core chassis parts for automobiles.This article takes T Aluminum Company as an example to conduct a field survey on the process of its production cost generation and formation,as well as production cost management and accounting methods and technological processes,and summarizes what problems currently has in cost management.And how the problem came about,explore and analyze whether it is feasible and necessary to introduce activity-based costing in the company.Then according to the actual situation of various aspects of the obtained T aluminum company,the activity cost method was deeply applied to the company's production cost accounting process,and it was divided into six operation centers based on the learned production process flow,which were smelting centers.,Forging center,heat treatment center,machining center,cleaning center,inspection center,and then properly identify resources according to the situation of product consumption resources,and then according to the determined resource drivers,the product consumption resources are collected to a certain operation center,and then According to the determined operating drivers,they are grouped into the operating costs of specific products,so as to optimize the construction of production cost management schemes,and compare and analyze the differences in product costs calculated using the two methods of activity-based costing and traditional costing.From the comparison results,it can be concluded that the use of the activity-based costing method can more accurately calculate the cost.Compared with the traditional method,the activity-based costing method has more obvious advantages.Then it is proposed that the activity-based costing method is not only a cost accounting tool,but also cost management the wrist of.By analyzing the operations in the production process of the product,the value-added and non-value-added operations are identified,and the related operations are maintained,reduced or even eliminated accordingly,and the cost behavior of the product is revealed to ensure that the related operations can be strictly controlled.It can be seen that the introduction of ABC in T Aluminum not only makes the product cost data more realistic,but also makes the company more effective and accurate when making decisions on product pricing,profit analysis,and performance evaluation.Finally,it proposes safeguards to make ABC It can be promoted in T Aluminum Company,and it is concluded that other manufacturing companies such as auto parts can use for reference when using the ABC method.