Application Of Activity-based Costing Method In BG Machinery Manufacturing Co.

Nowadays,the market competition is becoming more and more fierce.If enterprises want to maintain a favorable position,they need to grasp the lifeline of cost,not only to pay close attention to the cost of enterprises,but also to grasp its changing law.After 1980,the cost composition of products was greatly changed due to the high automation based on high-tech.The proportion of direct materials and direct labor is decreasing,but the proportion of manufacturing costs is increasing.At the same time,the buyer-led product market has changed to seller-oriented market,and consumers' demand for individualized products is increasing.At the same time,the buyer-led product market has changed to seller-oriented market,and consumers' demand for individualized products is increasing.In this case,the traditional cost method based on quantity is no longer applicable.The result of the traditional cost accounting method is not only the information distortion,but also the decision deviation.The steel industry has been hit hard by the 2008 world financial crisis,reflected in a sharp drop in steel demand and rising raw material costs.How to guide the steel industry out of the predicament is a new problem that we urgently need to so.This paper introduces the background of the topic,the significance of the research and the research results of domestic and foreign scholars.In addition,it introduces the basic theory of activity-based costing.In this paper,BG Machinery Manufacturing Company is taken as the research object,the company now has a large number of machine equipment,high automation has been achieved in production,but the traditional cost method is the main accounting method,which leads to the deviation in the process of distribution of manufacturing costs,the lack of clarity in the treatment of cost control and the poor executive power of cost management.Therefore,this paper analyzes the present situation of the cost accounting of the BG machinery manufacturing company.It is necessary and feasible for the company to use Activity-Based Costing.Therefore,by analyzing the current situation of cost accounting in BG Machinery Manufacturing Company,this paper discusses the necessity and feasibility of applying Activity-based costing,and according to the unique management characteristics and production process of BG Machinery Manufacturing Company.The specific scheme of the application of activity-based costing in the company is designed.This paper selects seven products of the company as the accounting object,and recalculates the cost of these products according to the accounting procedure of activity-based costing,and compares the difference of product cost under activity-based costing and traditional costing.Then,under the two methods,the differences between product cost and product profitability are compared,and the reasons are explored.In order to ensure the smooth implementation of activity-based costing,the corresponding measures are put forward.The last part of the paper summarizes the whole content of the paper and analyzes the deficiencies.