Application Of Activity-based Costing In QDXY Company

In recent years,the geosynthetics industry has developed rapidly,which has further intensified the competition among enterprises.Faced with this situation,enterprises have begun to change modes of production and actively improve automation equipment,increasing the total cost of manufacturing.Although the cost structure has changed greatly,the geosynthetics manufacturing enterprises have paid little attention and still use the traditional cost method to calculate the product cost,leading to the distortion of cost information.It can be seen that the cost accounting method is no longer suitable for geosynthetics manufacturing enterprises.The method of activity-based costing is more reasonable.It can allocate manufacturing expenses through activity center and cost driver,so the cost result is more accurate.This paper is composed of six chapters.The first chapter is the introduction,which outlines the meaning and background of the topic as well as the framework of the paper,illuminated by related theories and literature at home and abroad.The second chapter is the theoretical basis of activity-based costing.It mainly introduces the related concepts,principles and calculation steps of activity-based costing,and makes a comparative analysis between activity-based costing and traditional costing.The third chapter discusses the status quo and problems of QDXY company’s cost accounting.It briefly introduces the business model and main financial situation of QDXY company,analyzes the current situation of cost management of QDXY company and presents some problems found in the company such as unreasonable manufacturing expenses,weak awareness of cost management and single management body.The fourth chapter focuses on the application research of Activity-Based Costing in QDXY company.After analyzing the feasibility and necessity of implementing activity-based costing,it is found that QDXY company can use this method to calculate product cost.By combining the production characteristics and process flow of the product,it determines the specific implementation plan and implementation steps.Then three main geogrid products of QDXY company selected as the research object,through the establishment of activity center and the determination of cost driver allocation rate to calculate the cost of the product,it finally proves that the implementation effect of activity-based costing is good,for it can not only enhance the accuracy of cost information and improve the competitiveness of QDXY company,but optimize the cost management of the activity center and the performance appraisal of the enterprise.The fifth chapter introduces the safeguard measures of implementing activity-based costing in QDXY company.The company is required to constantly improve and perfect different aspects such as the implementation system,technical guarantee system of activity-based costing,the staff assessment system,and responsibility guarantee system and stick to cost leadership.The sixth chapter is the conclusion and future outlook.