Application Research Of Activity-based Costing In WJ Limited Company

In recent years,the production technology and technology of nonwovens have been developing continuously,and the products have been used more and more widely.With the gradual enhancement of people’s awareness of environmental protection and the escalation of consumption,coupled with the change of social environment such as the aging of population and the liberalization of the second child policy,the demand for nonwovens has become more and more vigorous,and the nonwovens industry has risen rapidly.At present,China’s non-woven industry chain is becoming more and more mature,and the scale of the industry is growing steadily.In order to improve the competitiveness of nonwovens enterprises,how to scientifically calculate the cost has become the key point that enterprises need to consider.Studying the application of ABC in non-woven enterprises can enrich the research of ABC,and open up a new way for our non-woven enterprises to control costs and manage companies.WJ Co.,Ltd.is a private non-woven fabrics manufacturing enterprise.According to the current cost accounting situation,the target enterprises adopt the traditional cost calculation method,and take the types of finished products as the cost object for the next accounting,and take one month as the cycle to calculate the product cost.Manufacturing costs are allocated among products according to the proportion of output.Production costs generated in the production process are not allocated between semi-finished products and finished products.The process of cost accounting is relatively simple.However,with the gradual diversification of non-woven products produced by the company and the improvement of mechanization level,if the original cost accounting method is still used,the products with complex technology,less output,simple technology and larger output will be greatly different from their real costs.It is obvious that it is not scientific to use traditional accounting methods to get the product cost of enterprises.This paper takes WJ Co.,Ltd.as an example to study the application of activity-based costing.By using the methods of case analysis and comparative analysis,this paper first describes the rise and development of activity-based costing from a theoretical point of view,and clarifies the principle of activity-based costing.Then,combining with the detailed characteristics of non-woven fabric field,technical and technological characteristics and other factors,a set of cost motivation options exclusively for WJ Co.,Ltd.is formulated and a reasonable operation center is established.The corresponding activity-based costing model is outlined;thirdly,the corresponding activity-based costing and product production costs are calculated,and the differences between the original accounting methods,analysis of differences and the impact on business decision-making are compared;finally,the matters needing attention in the application of activity-based costing are summarized,which provides some experience for other non-woven enterprises to apply the activity-based costing method.