Research On The Application Of Cost Budget Management System Based On Activity Based Costing In CS Stainless Steel Company

At present stainless steel industry has huge over-capacity in China,but the most excess products are low-end product.As our government is now promoting supply-side reform,we should remove the inventory of low-end products and also need to focus on the high-end products with low-energy and low-cost.The investment on "green" high-end stainless steel products will have great development in the future.We try to combine activity based costing method with comprehensive budget management and introduce into CS stainless steel Company in this paper.It will be helpful to accelerate transition more efficiently and adapt future direction of development of stainless steel industry much better.We take CS stainless steel Company as the research object in this paper.In past time they used traditional cost method is calculate cost of product,the result came out superficially.The cost control measures set by management were also not work.It will be benefit to narrow discrepancy between actual cost and budget and ensure the effectiveness of administrative decision as we combine activity based costing method with comprehensive budget management and introduce into CS stainless steel Company.First of all,in this paper we analyze the current situation of CS stainless steel Company and conclude that it is feasible to put cost budget management system based on activity based costing into practice in CS stainless steel Company.Then we establish cost budget management system based on activity based costing in CS stainless steel Company according to execution process of activity based costing method.By using the principle of activity based costing method to allocate the cost of products,and then build cost budget management system with corresponding evaluating means on the basis of activity costs.Finally through comparing the discrepancy between before and after the implementation,improve the accuracy of cost accounting,make company management decision more targeted and ensure the company develops healthy and stably.