Research On The Application Of Activity-based Costing In Power Plant A

With the continuous deepening of power system reform,China has introduced the "Price Bidding"into the power industry,which would lead to increasingly fierce competition among the power generation enterprises.The power products have strong homogeneity,and the focus of competition among enterprises is reflected in cost control.The cost will directly determine the competitiveness of enterprises in the power generation industry.Therefore,reasonable and effective cost control is particularly important.At present,most of the power generation enterprises in China use traditional cost accounting method to carry out the cost accounting.The cost data obtained from the traditional cost accounting method can not accurately reflect the cost of the product,and it is too general to analyze the real causes of the cost,which is not conducive to the cost control of the enterprise.Activity-based costing is developed on the basis of traditional cost accounting method and can provide enterprises with more detailed cost information.Through the intermediary of the "activities",the consumption of resources and the cost of product can be effectively linked,revealing the real causes of the cost,and providing more accurate information for enterprises to control costs.This paper studies the related literature of ABC(Activity-based costing),discussed the related concepts of ABC,the differences between ABC and traditional cost method,and the conditions required by the enterprise to implement the ABC.Based on the related theories,took the A-power plant as an example to study the activity cost.By analyzing the business process of the power plant and the current cost accounting methods,the importance and operability of ABC were demonstrated.Then,according to the production process,established the related framework,and applied the ABC to the accounting of A-power plant,so that the enterprise can obtain accurate cost information,reduce cost further,strengthen management,and improve the economic benefit.The research contribution of this paper lies in:Introduce the advanced cost calculation system of the ABC into the power generation enterprises,and provide basis for cost accounting and cost control of the A power plant.At the same time,it has implications for other power generation companies.