Application Of Activity-Based Costing In A Manufacturing Company

Because of the widespread application of science and technology in manufacturing enterprises,the automation of enterprises has replaced labor,which has led to significant changes in the cost structure of manufacturing enterprises.How to control their own cost is a problem that all enterprises have to face,which makes the traditional cost method challenged.The traditional cost method has defects in the distribution of indirect costs,which makes the product cost information untrue and inaccurate,and makes the decision-making of enterprise managers no longer accurate.Taking manufacturing company A as an example,this paper carefully analyzes the problems of traditional cost method in the cost accounting of the company's products.Through the research on the related theory of activity-based costing,it is concluded that manufacturing company A is more suitable for the accounting method of activity-based costing.Then,the feasibility of Applying Activity-based Cost Management in manufacturing company a is studied in depth,which provides a theoretical basis for the introduction of activity-based cost management in manufacturing company A.at the same time,the activity-based cost management system is constructed for all links of production and operation of manufacturing company A,from product R & D and design to sales.The cost of resources is comprehensively analyzed with activity as the center,and the time before the cost is found Because of the consequences,and from the source of the expenses to do a good job in cost control.At the same time,it can reduce the cost of manufacturing company A and improve the overall benefit and profit of the company.In addition,according to the research on the application of activity-based cost management in manufacturing company A,this paper provides some reference for similar enterprises to build the activity-based cost management system.In order to solve the problems existing in the cost management activities of enterprises,such as improving the profits and management efficiency of enterprises.Therefore,it is of great significance to use Activity-Based Costing in the cost management of manufacturing enterprises.