Research On The Application Of Enterprise Environmental Cost Management Under Activity-based Costing

Faced with a series of problems such as increasingly serious environmental pollution and exhaustion of resources that have threatened the interests of the entire society and humankind,countries have reached consensus on such measures as protecting the natural environment,increasing the efficiency of resource use,and increasing investment in environmental pollution control.In order to achieve the goal of building a socialist harmonious society,promote the structural transformation of economic development,and accelerate the transformation of economic growth,China must raise the issue of environmental cost management to a higher status.The Chinese government advocates "low carbon development,energy conservation and emission reduction" policies.In order to realize the harmonious coexistence between man and nature,it is necessary to establish a development model of a green economy.The rationality of the collection of environmental costs and the accuracy of accounting are increasingly important in determining product costs,which will directly affect the cost of preventing and controlling environmental pollution.However,the traditional cost method separates the link between the product and the environmental cost and cannot exert its effect on environmental cost control.Therefore,companies need to redesign a new method that can reflect the cost drivers,namely,the ABC.At this stage,although the ABC has received more theoretical support,there are few companies that apply it in practice.This article is divided into six parts for research.First of all,it defines the definition of ABC,conducts research on how to implement and measure,and clarifies the advantages of ABC.Second,combined with the definition and classification of environmental costs,the theory of environmental costs is elaborated,and the feasibility and necessity of introducing the ABC into environmental cost management are pointed out.Third,analyze the status of China’s corporate environmental information disclosure and environmental cost control,and indicate the problems in the enterprise’s environmental cost management.Taking a specific coal company as an example,combined with various factors such as the production process of the coal company and the composition of environmental costs,an environmental cost management system based on the ABC was constructed from the aspects of environmental cost accounting and environmental cost management.Finally,it points out the possible obstacles that the company adopts the ABC in the process of environmental cost management and puts forward corresponding policy recommendations.With increasing emphasis on environmental issues and the importance of environmental cost management,how to manage and control environmental costs is crucial for guiding companies to perform environmental responsibility.Therefore,the use of scientific and effective environmental cost management methods is an important guarantee for the company’s ongoing operations.Activity-based costing can clearly demonstrate environmental costs.The results can enable business managers to understand how environmental costs should be accounted for and managed,thereby reducing unnecessary environmental expenditures,improving the effectiveness of environmental cost management,and achieving improved economic efficiency.