The Application Of Activity Based Costing In SP Company

Due to the continuous improvement of production technology,in order to enhance the competitive position of the enterprise in the same industry and improve the efficiency of production to buy a large number of advanced machinery and equipment,resulting in the product cost of direct and indirect costs of the proportional relationship between the constant change in the proportion of indirect costs are rising,and direct costs accounted for in the following decline,This leads to the problem that the traditional cost method is not suitable for the current enterprise cost management requirements.On the one hand,the use of a single cost allocation standard cannot reasonably allocate manufacturing costs;On the other hand,inaccurate cost information can mislead managers,turn core productivity into products with lower profit margins and even losses,and provide incorrect data support for business decision.Activity-based costing,as an advanced cost management method,may provide more timely,accurate and overall cost data as well as more abundant financial and operational information to the company than SP Company's current cost management system.Therefore,the application of the activity-based costing in SP Company is deemed as an effective approach to solve the company's current problems in terms of its cost management system and improve the level of cost management.This thesis draws on a large number of domestic and foreign research results,starting with the related theory of activity-based costing,and introduces the idea of cost management on the basis of clarifying the concept of activity-based costing.Based on the analysis of the cost management of SP company,this thesis mainly introduces the basic situation of SP company and the present situation of cost management,and explains the necessity and feasibility of implementing activity-based costing by SP company.Then,according to the SP company's product process to confirm the work,divided into indoor warming operation center,pretreatment operation center deep processing operations center,such as 7 major operations centers,and according to resource motivation and operational motivation to carry out analysis;then in the SP company implementation of activity-based costing,get super pressure instant sea cucumber,frozen instant sea cucumber and salted sea cucumber three kinds of sea cucumber operating costs,The calculation result of activity-based costing and the current costmethod are analyzed,comparing the correlation between the calculated results and the output of the two kinds of cost method,the relationship between the activity-based costing method and the output is more fitting than the current cost method,and finally,the operation is optimized to achieve the goal of activity-based cost management according to the increment of the operation.