Application Of Activity-based Costing In Cost Accounting Of FX Tire Manufacturing Company

In recent years,China's tire industry began to move towards the development stage of high quality and low growth rate.The factors such as price fluctuation of raw materials,stricter environmental supervision and upgrading of industrial structure have accelerated the integration of the industry,and the competition in the tire manufacturing industry has become increasingly fierce.Market competition is mainly reflected in the three aspects of product cost,product quality and sales,among which product cost competition is undoubtedly the basis and key of market competition.Therefore,in order to enhance the competitiveness of each tire factory,it is necessary to focus on the cost of products and find ways to reduce the cost of products and increase the company's profits.Activity-based costing(ABC)is a scientific cost management method,which has been practiced and applied in many enterprises in China.However,compared with other industries,the application of ABC in China's tire manufacturing industry is still very limited.Based on FX company as the research object,the application of homework cost method in reference to the existing research,on the basis of theory and practice of comprehensive field investigation of FX company,analyzes the company's current situation and existing problems of cost accounting,design FX company application on the concrete scheme of homework cost method in cost accounting,at the same time analyzed the homework cost method in process optimization,cost pricing and cost control of the specific application.The results show that the accounting process based on activity-based costing reveals the distortion of the original cost information of FX.Activity-based costing analysis of activities in the production process of products can obtain more real cost information,identify value-added and non-value-added activities,optimize the production process,provide new ideas for the company's cost control,and help the management to develop a more market-oriented product pricing strategy.In a word,the application of activity-based costing can provide more reliable information and direction for the company's medium-and long-term strategy,and improve the company's market competitiveness.