Application Research Of Activity-Based Costing In A Water Supply Enterprise In Zhenjiang City

Cost management is always the core issue that enterprises attach great importance to,and the level of cost directly affects the operation and performance of enterprises.With the continuous develpoment of China's system reform,water supply enterprises are also slowly joining the tide of system reform.Water supply enterprises will soon face more development challenges,which requires enterprises to continuously improve their overall competitiveness and produce more high-quality,low-cost tap water.However,the current situation is that the traditional cost accounting and control can no longer meet the needs of enterprise development,the cost accounting is not accurate enough,and the cost control effect is not obvious.Water supply enterprises need to solve the current dilemma urgently,and need to adopt innovative models to improve the disadvantages and limitations of traditional cost accounting and control.Activity-based costing,as an emerging management method of cost accounting,to a certain extent,can inspire water-supply companies to focus on operations and accurately calculate costs through cost drivers.However,there are few cases in which domestic enterprises can apply the activity-based costing method at present.They mainly stay in theoretical research,and the practical application is not widespread.Based on the above background,this thesis starts from the future development management of the enterprise,introduces the new cost management method of activity-based costing method into the cost accounting of water supply enterprises,and conducts exploratory application research.First of all,this thesis not only describes the background and significance of the urgent need to solve the cost management of water supply enterprises and the study of activity-based costing,but also expounds the theoretical research of activity-based costing by scholars at home and abroad.Second,this article describes related basic concepts,including standard cost,activity-based costing method,and cost control.And other concepts,highlighting the advantages of activity-based costing method;furthermore,describe the implementation steps of activity-based costing method and apply it to the case of water supply companies.At the same time,based on this,an activity-based costing method solution is designed and applied to the cost control of water companies In order to enable water supply enterprises to control costs from the source,a good application effect has been achieved.It is concluded that the activity-based costing method can help water supply companies in cost accounting and control,and enhance their overall strength.Finally,in order to make the activity cost method more effective,relevant safeguard measures are proposed.