Research On Application Of Time-Driven Activity-Based Costing In The Improvement Of Cost Accounting In YM Company

Information distortion exist in the domestic manufacturing enterprises by using traditional cost accounting methods,which cannot accurately reflect the different profitability of different types of products and is not conducive to cost control.Facing the enormous test of market environment,domestic manufacturing enterprises must strive to reduce costs,seek management innovation and improve operational efficiency in order to survie and develop.Based on the method of literature reading analysis,qualitative and quantitative analysis method and case investigation analysis method,this paper analyzes the manufacturing company YM company on the basis of fully studying the related theory of time-driven activity cost accounting at home and abroad.By analyzing the problems encountered in YM's current cost accounting,combined with the time-driven activity-based costing method in the aspects of accurate cost accounting,business process reengineering,idle capacity utilization and production efficiency improvement,and its concise and simple implementation,and the advantages of low operating cost and flexible application,proving that it is necessary and feasible to improve the cost accounting system of YM by using time-driven activity-based costing method.Through the analysis of YM company's organizational structure and process flow,this paper selects the production workshop as a pilot to design the time-driven activity-based cost accounting improvement process.In the implementation process,different cost drivers are adopted according to the difference of resource consumption,and the time equation is used to distinguish the difference of resource consumption under different process requirements of different products,and the unused capacity parts are counted.By using the time-driven activity-based costing method to calculate the cost of the production workshop in detail,and comparing the accounting results with the current YM company's costing results,it is found that the time-driven activity-based costing method can more accurately calculate the indirect costs and count the unutilized production cost proves that the current cost accounting system can be improved by using the time-driven activity-based costing method.Based on the accurate cost information,the company can make decisions on product pricing and idle capacity utilization.It is hoped that this paper can be helpful for manufacturing enterprises to apply the time-driven activity-based costing theory to guide the practice of enterprises,and it can also provide some reference for managers to make effective decisions with accounting information.