Application Of Activity-Based Costing In N Power Grid Corporation

The power industry is the basic industry of country and is closely linked to the level of economic development.In February 2002,after the promulgation of the"Notice on Printing and Distributing Power System Reform Programs" by the State Council,the monopoly of the power industry was broken,making the grid companies independent and becoming the main power transmission and distribution business organizations.However,due to the relatively stable profits of power grid companies,they pay little attention to cost accounting and control,and the cost management is relatively weak.In 2015,when the new round of electricity price reform comes,our country requires further reductions in electricity prices,so that the majority of enterprises can receive dividends and reduce operating costs.Therefore,it is urgent for grid companies to reform their cost management models.As an advanced cost accounting method,the Activity-Based Costing is particularly suitable for companies with a large proportion of manufacturing expenses.Although it originated in the manufacturing industry,it has been widely used in many industries in nowadays.This thesis attempts to apply the Activity-Based Costing to the power industry.Combining the grid inspection process and business characteristics,the ABC is used to analyze the cost calculation of the new business of the grid company——Intelligent Inspection and design the cost accounting model,attempts to provide a new mode of thinking for the grid companies to update the cost accounting model.This thesis is mainly divided into the following six parts.The first part is an introduction,which mainly elaborates the research background,topic selection significance,research route and innovation points of the thesis,specifically discusses the cost accounting of the domestic and foreign power industry in the research status,and lists the successful cases of the application of ABC in the foreign power industry,developing the thoughts of the thesis.The second part introduces the N Power Grid Company,including its specific business operation mode and drone instruments used in the business,etc.,so as to intuitively explain the various aspects of the new business.Also,briefly describes the past cost accounting method and the final product cost allocation results under the old business model and analyze the problems.The third part briefly describes the framework of the implementation of the ABC in the N Power Grid Company;and sets up activity centers in combination with actual cases and related concepts of the ABC to confirm the cost drivers,which makes abstract concepts easy to understand by integrating theory into examples.The fourth part simulates the application of the ABC in the N Power Grid Company,uses th e ABC to distribute the contract,and finally obtains the product cost of the N Power Grid Company under the ABC,then making a comparison with the product cost calculated by the current cost accounting method,which directly shows the accuracy of the ABC in cost accounting.The fifth part briefly introduces the problems found in the application of the simulation of the ABC and puts forward related improvement suggestions.The sixth part draws the relevant conclusions about the application effect of the ABC in the N Power Grid Company,and points out the shortcomings of this thesis and the prospect of future improvement.The ABC framework established in this thesis is relatively complete,actively responding to the call for the electricity price reform,and making feasible suggestions for power grid enterprise to reduce costs.It has made some contributions in expanding the application scope of the ABC,and adapted to the actual situation of the N Power Grid Company,which has a certain scientificity and rationality.