Research On The Application Of Activity-Based Costing In SD Company

At present,with the development of information technology,the market competition of manufacturing enterprises in our country is becoming increasingly fierce.If enterprises want to be invincible in the market competition,they must strengthen the cost management and turn the advantage into the competitive advantage.With the introduction of high and new technology,the manufacturing expenses begin to occupy a larger proportion in the product cost.Traditional cost accounting methods are used to check the cost of enterprises Therefore,it is impossible to allocate cost scientifically and reasonably,which leads to the loss of reliability of cost accounting.Activity based costing has become an inevitable choice for enterprises.This paper mainly uses the method of literature research and case study to carry out the research.This paper introduces the necessity and feasibility of the application of Activity-Based Costing in SD Company based on the specific situation of SD Company.After that,through the on-the-spot investigation in SD enterprise,as well as the visit to the financial staff and production department staff of SD enterprise,this paper makes an in-depth study on the product characteristics,production process of SD enterprise's products at the present stage and the current accounting situation of SD enterprise's product cost accounting by using the standard cost method,and finds out the shortcomings in its current cost accounting,such as unreasonable distribution of manufacturing expenses.the cost information is distorted.Then through the SD enterprise to establish a complete set of activity-based cost system and the traditional cost method of data for comparative analysis,to solve the SD company cost management problem at this stage.In the end,the paper puts forward some suggestions on how to implement ABC in SD Company.