Research On Cost Accounting Of FT Auto Air-conditioning Company Based On Activity-based Costing

With the rapid economic development in modern times,companies are pursuing the maximization of profits.In the case of similar product quality,the cost management of products is particularly important.With the continuous optimization of production technology and machinery equipment,the gradually improved level of enterprise automation,and the increasing proportion of manufacturing expenses in the total cost of products,for the enterprises which manufacturing an important part of automobiles--air conditioning systems,the traditional cost accounting method can only allocate manufacturing costs through a single standard,which will lead to certain errors in the cost accounting.The introduction of the activity-based costing can make up for this shortcoming.It can track the consumption of every link in the manufacturing process,provide managers with more reliable cost information,and help enterprises carry out the cost management more effectively to improve the market competitiveness of enterprises.From the perspective of topic selection and research significance,this article mainly uses research methods such as literature analysis,field investigation and comparative analysis.First of all,based on the research and analysis of relevant literature at home and abroad,FT Automotive Air Conditioning System Co.,Ltd.is selected to be the case study in this paper,combining with the development status of China’s manufacturing industry.In the study of the product characteristics,manufacturing processes and cost accounting of the company,the author finds the shortcomings of the current conventional cost accounting method and then analyzes the necessity and feasibility of the FT company’s implementation of the activity-based costing.Secondly,the author optimizes the cost accounting method which is based on the method of activity-based costing and according to the company’s product manufacturing process,an operation center is established and the detailed design and analysis of the manufacturing cost accounting of the seven products are made.Finally,the comparison of traditional accounting method and the activity-based costing,and the resource consumption are analyzed in this paper.In order to ensure that the activity-based costing can be reasonably and effectively applied in FT Automotive Air Conditioning System Co.,Ltd.,this paper also puts forward some guarantee measures for it to implement this method.It is of great importance to gain the support of the company’s management and the coordination and cooperation of various departments,and accurately target the cost driver according to the principle of cost-effectiveness.It is also necessary to improve the overall quality of financial personnel,improve the internal assessment system of the enterprise,and improve the management level of the enterprise’s information technology,so as to actively optimize and prudently implement the method gradually.It can be seen from the application of the activity-based costing in FT that enterprises should continue to improve and optimize the cost accounting method with the development of the times.The activity-based costing can provide more accurate product cost information,and then help enterprises to accurately price products,so that managers can make more scientific decisions,which will also provide the positive significance for the future development of FT Automotive Air Conditioning System Co.,Ltd..