Research On The Application Of Activity-based Costing

With the continuous improvement of the mechanization level of modern enterprises,the requirements for product accuracy are higher and higher,and the proportion of manufacturing expenses is rising.The traditional manufacturing cost method,which allocates manufacturing expenses according to a single standard such as material and machine hours,has become increasingly unable to meet the needs of enterprise cost management.This mode focuses on cost accounting and ignores cost control and analysis,which is not conducive to the reasonable setting of enterprises and the implementation of cost responsibility.The integration of target cost method and activity-based cost method is one of the hot issues in the field of cost accounting.The combination of them can not only make the target cost reasonable,but also distribute the indirect cost of products accurately with the activity as the intermediate link.Through the analysis of cost saving and exceeding of each activity link,the cost responsibility can be implemented and the purpose of cost control can be achieved.This paper provides a new idea for enterprise cost management through the application research of D enterprise target activity-based costing.In this paper,based on the research status and related theories of the target activity-based costing by domestic and foreign scholars,D enterprise is selected as the research object of the target activity-based costing.First of all,it introduces the relevant background and operation status of D enterprise.Aiming at the current situation and existing problems of D enterprise’s cost accounting,it designs the framework of target activity-based costing and implements based on the in-depth understanding of D enterprise’s business process and various activities in the production process,including the establishment of target cost of direct labor,direct materials and manufacturing expenses,and the division of activity and activity center 。 Through the decomposition of target cost,the target cost of each activity link of the product is set,and then the summary calculation and variance analysis of activity cost are carried out,the causes of cost deviation are traced,and the corresponding cost responsibility is implemented.This shows the superiority of target activity-based costing compared with the current manufacturing cost method of D enterprise,and provides a new idea for cost management of D enterprise.Finally,the paper puts forward some supporting suggestions for the current situation of D enterprise,so that the target activity-based costing can operate effectively in D enterprise.