Application Study Of ABC In EDMI Ltd

Activity-Base Costing(ABC)was born in the middle of the 20 th century.Its theory and practice are becoming more and more mature.Activity-based costing(ABC)reduces costs by accurate cost information,improving management processes,and reducing non-value-added operations,thus increasing benefits.With the development of our country entering a new era and against the background of "made in China 2025",the application of ABC will be promoted with new value and significance.EDMI(Shenzhen)company is a subsidiary of EDMI Group,productive enterprises focus on the research and development of smart meters,Company has always attached great importance to the cost accounting and management,however,as the product with the customer,the change of the cost structure,as well as members of the competition,the company main product costs continue to rise,the cost information distortion,the product cost of this problem is more and more serious lack of competitiveness,cause the order quantity,the enterprise development.Based on the identification and analysis of the problem and make sure the company application of traditional cost accounting method is difficult to match the competition market environment,in order to solve this problem,the introduction of more advanced homework cost method,popularization and application,purpose is to promote the company total cost management,improve the company's management level,this will cost management in EDMI(Shenzhen)company has realistic significance for improving.This article mainly EDMI(Shenzhen)company as an example,aiming at the problems the company cost management,gathered a large number of domestic and foreign research literature about the homework cost method,the competitive advantage,value chain analysis,cost drivers and other related theory and research.This paper also analyzes the applicability of ABC in EDMI(Shenzhen)company from the aspects of cost information distortion,product pricing decision and overall cost control.By referring to these domestic and foreign research results and combining with the practical experience of some enterprises at home and abroad in applying ABC,the author designs and arranges the application of ABC in the company.In implementation,on the basis of the theory of cost drivers,identify different cost drivers,identified nine resource category,set up ten homework center,according to the resource allocation of resources to the drivers work center,according to the operation cost to the product cost,cost drivers distribution calculation of different operation stages of the product cost information,finally calculated the product cost,and cost data with existing traditional cost accounting method of cost data for comparative analysis,and confirm the homework cost method to calculate the result of more reasonable,more valuable to management for decision making.When evaluating test results,in view of the existence of the grass-roots staff resistance,management attitude,lack of financial personnel ability,such as security measures will create a good work atmosphere,persistent support for management,increasing the ability of financial personnel training.Conclusion,this paper proves that the method not only improves the credibility of cost data,but also improve the company's cost control consciousness,the choice of cost drivers,but also for the cost control direction has obvious orientation,so as to achieve a comprehensive cost management,cost information is more precise and the product cost is that the aim of more competitive.In this paper,there is little breakthrough in theory,but more attention is paid to the application of ABC in enterprise practice.