Research On Cost Management Of P Power Company Based On Activity-based Costing

In recent years,China’s electricity price is subject to national macro-control,power products lack of difference,power market competition is fierce,enterprises want to achieve the goal of profit maximization,it is necessary to control the cost.Therefore,cost is very important for hydropower enterprises,and enterprises need to use different accounting methods to achieve a higher cost-effectiveness principle,so as to achieve their goals.At present,the cost management of hydropower enterprises in China is too simple,there are some problems such as the traditional cost method may violate the fine management,and the generation cost is difficult to be managed by different groups in the process of cost accounting.Activity-based costing(ABC)makes up for the shortcomings of traditional costing by dividing different activities into different resource costs.Therefore,it has become an urgent problem for China’s hydropower enterprises to change the current situation of inaccurate cost accounting and unscientific cost accounting process.Because of the traditional cost method in the process of cost accounting.Taking P Power Company as a case study,this paper introduces activity-based costing accounting method to improve the accuracy of the company’s cost information and corporate benefits.First of all,the brief introduction,organizational structure,power generation process of P Power Company as well as the financial status and power generation cost accounting status of P Power Company are described.Through trend analysis and structural analysis of the data,problems existing in the cost accounting of P Power Company are concluded.In addition,the traditional cost accounting method and generation cost control status of P Power Company are described.It is found that P Electric Power Company has some problems and drawbacks,such as the violation of fine accounting by traditional cost method,the influence of depreciation provision on the accuracy of cost accounting,the difficulty of power generation cost calculation by different groups,and the weak awareness of staff cost management.Secondly,the relevant data of P Power Company in 2020 are selected to formulate the application scheme of ACTIvity-based costing suitable for P Power Company.At the same time,the results of traditional costing and activity-based costing accounting for P power company generation cost are compared.Finally,under the two costing methods,activity-based costing is more reasonable and accurate.Finally,in order to ensure the smooth implementation of ACTIvity-based costing in P Power Company,it is proposed to improve the cost accounting system to ensure the accuracy of cost information calculated by enterprises and make their cost management decisions more reasonable.Moreover,the selection of reasonable activities and cost drivers,relatively accurate determination of indirect costs,is conducive to the distribution of indirect costs,better reflect the financial status of enterprises.Determine cost control target according to operation center.The reasonable allocation of all kinds of enterprise resources,strengthen the enterprise cost control,reduce the cost of power generation,improve enterprise benefits.Finally,strengthen and enhance the awareness of ABC management and other measures.