Research On The Application Of Activity-based Costing In Group A

As the process of economic globalization continues to accelerate,the degree of informatization is getting higher and higher,and the competition among enterprises is becoming increasingly fierce;the country has begun to focus on environmental protection development,making it more difficult for manufacturing enterprises to develop.With the rapid development of science and technology,the speed of product update and iteration is accelerated,resulting in a decrease in product competitiveness.Under this severe situation,enterprises are more aware of the importance of cost control,especially with the support of computer information technology,cost management has become more refined.Effective cost management of enterprises can reduce costs and provide customers with products and services of higher quality and lower prices.The traditional cost management mode obviously cannot meet the management needs of the current enterprises.The cost management mode combining modern information technology and modern cost management thinking has become an inevitable trend,that is,the ERP system is used in cost management.This paper takes Group A as an example to study the construction of its cost management system.First of all,it studies and analyzes the current situation of cost management of Group A.With the help of the theoretical basis of the combination of activity-based costing and ERP management ideas,it shows that the combination of the two is more advantageous.At the same time,it introduces the necessity and feasibility of using the ERP system to manage the operation cost.Then,it sorted out the overall production and processing process of Group A,and focused on the production process of Group A’s main products.According to its characteristics,11 operations were divided into 6 operation centers,and the way of resource consumption by operations was analyzed to determine the cost drivers.Adhering to the Based on the principle of "product consumes work,work consumes resources",we build a cost model for work and calculate product cost.By comparing the product cost results calculated by the traditional accounting method and the activity-based costing method,the existing differences and reasons are analyzed.Finally,the corresponding safeguard measures are put forward through the problems existing in the application of activity-based costing under the ERP system of Group A.In this paper,Group A uses the activity-based costing method for cost accounting under the ERP system,which solves the unreasonable manufacturing cost of products in the production process and improves the accuracy of product cost accounting.At the same time,it also provides a reference for enterprises to use the ERP system to use the activity-based costing method under the background of the digital age.