Research On Application Of Activity-Based Costing In LM Engine Manufacturing Company

With the rapid development of modern social economy and high-tech,the environment of enterprises has been affected to a certain extent.First,in the production process,the degree of automation is high,to a certain extent,it makes the labor cost gradually reduced;Second.people increasingly tend to be more diversified demand,also prompted the diversification of production development,will make the expenses and costs increase,and at the same time there are a lot of sharing costs without science,need to find ways to reduce the cost.operation cost method can effectively solve these problems,so the cost of operation law gradually aroused pceople's attentionI.M engine 1anufacturing company produces a variety of acro-engine related products,and in the production process,the process is very complex,it is more suitable for the cost accountine with the help of activity-based costing.In this study,the main theoretical basis is activity-based costing theory.LM company as an example,specific analysis and research Firstly,it discusses ihc deficiencies of the existing cost accounting of the case company.and then discusses the feasibility of the practical application of activity-based costing.which can not only effectively solve manyp problems existing in the original cost accountine process,but also requires the company to implement activity-based costing insteado of the original cost accounting method due to its production characteristics.At the same time.LM company internal environment makes the application of ABC has more sufficient conditions.On this basis,this paper proposes the design of LM ABC accounting system.The study of ABC accounting system has certain significance.This paper focuses on the specific implementation of the activity-based cost management of LM company,and makes a relatively complete plan.On the whole,this plan takes the relevant activities of the production of two kinds of engine products as an example,and specifically implements the accounting of activity-based cost method as well as the analysis and control of costs.This paper also puts forward the implementation guarantee measures for LM company to apply activity-based costing,so as to provide some reference and guidance for its specific implementation of activity-based costing.