Application Of Activity-based Costing In Hengshui Baijin Composite Material Technology Limited Company

Nowadays,With the economy society progress,and the economy develop so fast,and automated production is also used so much.The production environment of global companies is also undergoing drastic changes,which promotes the transformation of enterprises,which makes the traditional cost method is no longer suitable for the development trend of the economic.The activity-based costing method,which uses cost drivers for resource allocation,emerged in accordance with the development of the times,and was introduced into domestic from abroad and gradually adapted and developed.This article firstly read a large amount of literature,introduces the development history of activity-based costing since its appearance and the research and application of domestic and foreign scholars in various industries and enterprises,and introduces the related concepts and theoretical basis of activity-based costing;secondly,introduces Baijin basic situation,process flow and cost control status;then analyze according to the company’s data,carry out the specific system design of the operation process according to the actual situation of the company,and then cost the product Calculate,and finally allocate the calculated total consumption resources of each cost library to the corresponding products.The product cost calculated under the activity-based costing method is compared with the product cost calculated under the traditional cost method,and it is found that the unit cost of the two products is very different under the two methods.If the company still uses the traditional cost method for pricing there may be a risk of loss in pricing,and it is necessary for companies to adjust their pricing strategies.Based on the previous analysis,there are problems in the current cost management of enterprises such as the single allocation standard of manufacturing expenses and the untimely adjustment of cost forecasts.Therefore,enterprises can adopt the activity-based costing method to trace the true consumption of the enterprise through cost drivers,and the calculated product cost is closer to the truth.Cost helps companies to set prices reasonably,and also proposes cost-guarantee measures based on the cost drivers of the procurement process,the cost drivers of the production and processing processes,and other aspects to help companies maximize their benefits.