Application Of Activity-based Costing In D Auto Parts Manufacturing Company

With the development of automobile manufacturing industry,the proportion of indirect cost in product cost is increasing.The purpose of this paper is to explore the necessity and feasibility of the application of activity-based costing in company D,and based on the data of activity-based costing accounting,the enterprise’s cost management is reduced to the level of activity,so as to carry out more refined cost management.This paper explores the application of activity-based costing in D auto parts manufacturing company by field investigation,literature research and case analysis.The full text consists of six parts.The first two parts are introduction and overview of related theories.The third part introduces the basic situation,organizational structure,production process and cost accounting status of company D,and puts forward the necessity and feasibility analysis of applying activity-based costing in company D.The fourth part is the specific steps and application evaluation of establishing the ABC accounting system in company D.It elaborates the application process and analyzes the difference between the traditional cost method and activity-based costing in company D.The fifth part is the role of activity-based costing in enterprise cost management,carries out the activity management according to the data obtained from activity-based costing and puts forward the specific plan.The sixth part puts forward the suggestion of implementing ABC in company D.The results verify the D auto parts manufacturing company the necessity and the rationality of the application of ABC costing accounting system.Meanwhile,the ABC accounting data are also connected with the enterprise cost management,which provides a breakthrough for D company to conduct more sophisticated cost management.