Research On Cost Of P Food Company Based On Time-driven Activity-based Costing

Small-and-medium-sized enterprises(SMEs)are playing an increasingly important role in national economics,and one large percentage of SMEs in all industries are Food processing industry.People always want to eat well.With the development of national economics and the improvement of residents’ living standard and quality,we have higher requirements in various food items and their different tastes.All industries have leapt forward since we followed the policy of reform and opening.By huge demands of the food market,the development of food processing industry in China is very quickly.However,more and more development issues occur in food processing industry.Thus,Production cost is one of the key to the company cost management success.The premises of successful enterprise costs management is to calculate costs accurately,from which company managers can get more useful accounting information and make good decisions.Correct cost information will help managers do reasonable pricing,arrange new production plan and buy automated equipment.Activity-Based Costing(ABC)is becoming perfect within the decades of researching.But its practical applications are still rare.The main reason is that ABC is such a complex and costly exercise only several managers will use it in their real enterprises.Therefore,Time-Driven Activity-Based Costing(TD-ABC)is more practical and much easier to operate and do cost management.This article are going to take P Company as an example,use TD-ABC into real production activities and to compare the differences among the Manufacturing Cost Theory,ABC and TD-ABC.And give the enterprise provides an effective accounting management method,and puts opinions and suggestions on the establishment of relevant cost accounting system.