Research on the Application of Activities-Based Cost Method in L Manufacturing Enterprise

The experimental object of this paper is two products on the same production line in the transformer workshop of L enterprise. This paper first analyzes the current situation and problems of product costing under the traditional cost method. Secondly, under the guidance of the activities-based cost method theory, the whole production process is divided into six job centers according to the production process of transformer products, the job motivation rate is calculated, and the product activity cost is attributed. Finally, the product costs under the two methods are compared and analyzed. This paper concludes that compared with the traditional cost method, the activities-based cost method improves the accuracy of product costs and facilitates the implementation of complete cost control. The research results are intended to provide guidance and direction for cost management reform for enterprises in the same industry.