Application Of Activity-based Costing In Tianjin XPP Food Company

Since entering the information era,China's automation,artificial intelligence and other technologies have developed rapidly,and the production environment has also undergone tremendous changes.The production model has also gradually transformed from traditional manual operations to automated production.Tianjin XPP Company is a beverage processing company that has been undergoing a transition.Its indirect costs account for an ever-increasing proportion of costs and the different production processes of its milky tea products have led to a very unreasonable cost price for the company currently that using traditional cost accounting methods.,there is a drawback of cost information distortionThroughing an internship at Tianjin XPP Food Company,in-depth understanding of the status quo and issues of company costing,in view of the drawbacks of the traditional cost method accounting distortions currently used,starting from the actual cost of XPP milky tea products,and integrating the production characteristics of the XPP company,the application of the activity-based costing method was proposed.Finally,suggestions were given based on possible problems with the ABC in Tianjin XPP Food Company.This paper is divided into five chapters:The first chapter briefly introduces the research background and significance of this article,domestic and foreign literature review,research content and methods;the second part summarizes the basic content of the ABC method used in the study.The third part introduces the industry and company introduction of Tianjin XPP Food Company,which is mainly studied in this paper,and lists the process flow charts about main milky tea productions of three series,and focuses on the analysis of the current status and existence of company cost accounting,as well as analysis of the prerequisites and feasibility of adopting the ABC.The fourth part is the key research section of this article.Firstly,the overall objectives and principles of applying the ABC are proposed.Secondly,by synthesizing the industry characteristics of the XPP Company and taking into account various factors such as the technological procedures,a set of cost driver options suitable for the company is developed so that the operation center can be rationally divided,and then theABC can be used to calculate and count the data of product cost information.In the end,the results of traditional nuclear algorithms compare the costs calculated by the activity-based costing method.The results show that the cost information calculated by the activity-based costing method is significantly better than the cost information calculated by the traditional cost method,and summarize the effect of implementing ABC.The fifth part is the conclusion and outlook.The purpose of this paper is to reduce the production cost,reasonably price the product,and effectively increase the company's revenue.