Research On Activity Cost System Optimization Of X Equipment Manufacturing Enterprise

Since the 1990 s,Activity-Based Costing(ABC)has received much attention because of its activity-based accounting and the ability to allocate indirect costs accurately.The activity-based costing method is not only highly valued in the academic and theoretical circles,but also applied to actual cost management by many enterprises in the practical field,especially in the manufacturing industry.However,with the automation of manufacturing environment and the variability of market demand,the process of production is becoming more and more cumbersome.The number of activities and cost drivers involved in the activity-based costing method is increasing,and the costs of collecting and processing of related information have risen sharply.As a result,not only the cost calculation system has become very complicated,but also brings high implementation costs,which greatly hinders the application of the activity-based costing method.Therefore,how to reduce the number of activities and optimize the activity cost system become crucial.X equipment manufacturing enterprise applied the activity-based costing method to cost management in the early stage.However,like most manufacturing companies,it also faced the same problem.With the increase of product types,the optimization and improvement of manufacturing systems,the activity cost system of X enterprise becomes more and more complicated,and a large number of activities and cost drivers make the collecting and processing of information difficult and costly,and the activity cost system must be optimized to solve this problem.Therefore,this paper should focus on searching the cost driver merger method of simplifying the activity cost system without sacrificing excessive cost accuracy,so as to solve the dilemma faced by enterprises and improve the efficiency and effectiveness of the activity cost system fundamentally.This paper mainly adopts the case study method,takes the X equipment manufacturing enterprise as the research object,and starts research on the above problems.After a comprehensive review of the related research on cost driver merger,we found that the existing methods of cost driver merger still have some shortcomings,and there are cases where the essence of cost driver merger is ignored and the merger error is difficult to control.In order to solve the problem,this paper proposes two methods,the factor analysis method and the homogeneity merger method based on correlation,based on the idea of cost driver correlation and homogeneity in the existing literature.After applying to X enterprise respectively,we analyze and compare the application results based on the error degree and the number of cost drivers.The results show that both methods can achieve the purpose of simplifying the ABC system and ensure cost accuracy.In order to illustrate the rationality and superiority of the methods further,the paper compares them with the existing merger methods,proved that the two methods are efficient and feasible.Based on the above research,this paper finally determines the best solution for the cost driver merger of X enterprise.The merger process not only ensures the rationality of the assignment of activity costs,but also ensures the controllability of product cost errors before and after the merger.Significantly reduced the complexity of the ABC system,and ultimately achieved the purpose of optimizing the X enterprise activity cost system.