The Application Design Research Of Time-Driven Activity-Based Costing In Company A

Cost management has always been an important part of an enterprise’s production and operation,and an important means for enterprises to gain competitive advantage in the fierce market competition.Since the introduction of the Activity-Based Costing method,it has proved that it is an advanced cost management method in the past few decades,but its application in China is not extensive,indicating that the Activity-Based Costing still not suit Chinese enterprises.However,scanning the literature research in China and comparing the practice of the enterprise,we can find that the research is generally concentrated in the service industry,such as logistics,finance and other service industries.Later,some scholars extended it to the traditional manufacturing industry,the application of the Activity-Based Costing method to building materials manufacturers has not been sufficient.Therefor,Taking Company A as an example,this paper explores the problems of cost management and explores the application of Time-Driven Activity-Based Costing in the context of fierce market competition,trying to improve its cost management and assisting cost leadership strategy.First of all,this paper expounds the related theoretical basis and the basic principles of Time-Driven Activity-Based Costing,and reviews and summarizes relevant studies.Then,the status quo of Company A is introduced,and the problems of cost management are pointed out.In view of these problems,this paper believes that the application of Time-Driven Activity-Based Costing method in Company A can improve its cost management problems to a certain extent and improve its cost management.Secondly,from four aspects,this paper analyzes the applicability of the Time-Driven Activity-Based Costing method in the Company A,and expounds the design principles and steps of the time-driven activity cost method in the Company A application,and provides guidance for the actual implementation Time-Driven Activity-Based Costing method in the Company A.Thirdly,this paper implements the Time-Driven Activity-Based Costing simulation in A company,establishes the conceptual model and combines its actual production data to show the application process of Time-Driven Activity-Based Costing method,and then compares the results of the three costing methods and makes an analysis of capacity utilization to analyze the application effect of time-driven activity costing method in Company A.Finally,summarize and reflect on the application design and simulation implementation process of time-drive activity cost method of Company A,point out the possible problems of Company A implementation,and propose countermeasures for the smooth implementation of Time-Driven Activity-Based Costing in Company A.Form basic conclusions,and reflect on the shortcomings in the research,and look forward to the future application of Time-Driven Activity-Based Costing.