What Is Activity-Based Cost Accounting?

Cost accounting is an accounting activity that calculates all production costs and expenses in order to obtain the total cost and unit cost of the product under the conditions of the commodity economy. Modern cost accounting is to overcome the distortion of accounting information caused by price changes caused by inflation. In the case of changes, the procedures and methods for the confirmation, measurement and reporting of related accounting objects using the current cost of assets as the measurement attribute. It uses currency as the main measurement unit to predict the cost and consumption of related economic entities in the production and operation of products. , Decision-making, control, accounting, analysis and evaluation of value management activities. Modern cost accounting is a new type of accounting theory developed on the basis of inheriting traditional cost accounting. It is an extension and expansion of traditional cost accounting in the context of price changes. It effectively combines cost accounting with production and operation, and has a different accounting from traditional cost. Procedures and accounting methods can reflect changes in asset values in a timely manner as the economic environment changes, and have a high degree of decision-making relevance.

cost accounting

(A new type of accounting theory)

Cost accounting, as the main course of accounting, is an important part of accounting. Cost accounting is also one of the core courses of the accounting major, but the theory and methods of cost accounting and their application areas are different from other accounting courses. Cost accounting is a professional course that integrates knowledge, skills, and techniques. For students, although they have the accounting skills, it is still not easy to master the course of cost accounting, especially the cost. It s even harder to master the calculation method in a limited time. However, there are some problems in the current cost accounting teaching process.
1. Problems facing current cost accounting teaching

A. Does not match the student's existing cognition and experience, and does not value the individual experience of the student

At present, the teaching content of cost accounting is just to let students understand the production process and basic production costs of the enterprise. The traditional product calculation methods such as variety method, batch method, step method, etc. are used to calculate and prepare the cost of the product. Report. The traditional cost accounting teaching content system, one is to introduce the basic theory of cost accounting, which mainly includes the meaning, content, production, development and cost accounting work organization of cost accounting, but lacks the goals of cost accounting; the second is cost accounting, including product cost accounting General procedures, production cost collection and allocation method, product cost calculation method and cost statement preparation method. However, it lacks the introduction and experience of the product manufacturing environment and does not match the existing knowledge and experience of the students. The students do not have a personal experience of the production process and organizational management methods. The students cannot choose according to the actual needs of different manufacturing environments and cost management. Different costing methods. Students who have completed this part of the accounting will still not be able to perform cost accounting and prepare cost statements based on the characteristics, types and management requirements of different production organizations. Product costs are only calculated. As to whether the cost information provided meets the needs of the regulatory authority, little consideration is given. The teaching of cost accounting is also not in line with the characteristics of the strong applicability of cost accounting courses, which runs counter to the goal of training applied accounting talents.

B. Cost accounting teaching content system is seriously lagging behind the objective manufacturing environment

In the early 1980s, the cost accounting course was separated from the cost accounting part of industrial enterprises in the original "Industrial Accounting" course. At that time, the full cost method was used, and its teaching content followed the accounting model under the planned economy. The content is mainly reflected in the calculation scope is limited to the calculation of production costs of industrial enterprises, and the teaching content of cost accounting has remained unchanged for many years. With the advancement of science and technology and the widespread application of new science and technology, the traditional production environment has changed. The cost accounting teaching with the traditional manufacturing environment as the background and the product production cost as the core is very incompatible with the actual needs of society.

C. Ignore the important role of cost accounting practice teaching in higher vocational education

The existing classroom teaching focuses on imparting knowledge, focusing on teachers and textbooks; focusing on knowledge transfer and abilities training. As a result, teachers lack sufficient knowledge of practical teaching. The percentage of lesson time used for practical teaching in the curriculum teaching plan is small, the form of practical teaching is single, and the technical means are backward. The relatively weak practical ability directly affects the graduate's job adaptability. For many years, many students majoring in finance and economics have difficulty in immediately completing their jobs after graduation. How to strengthen the cost accounting practice teaching and improve the students' practical operation ability has always been a topic of concern in accounting teaching. Cost accounting teaching has always followed the "theory-practice" teaching model. Before graduation, you will have a short-term internship in an enterprise or administrative institution. When you return to school, you will write an internship report, experience or summary. In this way, the theoretical teaching and the practical teaching are artificially split into two pieces. Without effective connection, students cannot link theory with practice. As the students in the school have never been exposed to cost accounting work before, they often feel that the cost accounting theory is very abstract in the theoretical study, and the cost accounting theory knowledge cannot be understood deeply, or even half-understood. Feeling unable to start, lack of ability to find problems, analyze problems, solve problems, the training and training of students' practical ability can not be guaranteed.

2. Principles for solving the problems of cost accounting teaching.

A. Professional quality of modern professional cost accounting management talents

Including: master the basic theories of occupational cost accounting, operational procedures, basic skills of management and organization of cost accounting work, etc. Non-professional qualities include: honesty and trustworthiness; pragmatic innovation; adherence to principles. In the design and implementation of the cost accounting practice teaching plan, content, form, and means, it is necessary to give full consideration to the training of students 'professional quality, while paying great attention to the cultivation of students' non-professional quality.

B. Knowledge-based, ability first

Occupational cost accounting, as the main course of the accounting major, is a highly technical applied discipline, and the importance of practical ability teaching should be emphasized even more. On the one hand, we must attach importance to theoretical teaching, so that students have solid knowledge and creative thinking in cost accounting; on the other hand, we must pay attention to the use of a variety of practical teaching forms and methods in the professional cost accounting classroom, so that students have a strong adaptability to the actual Ability to work and a positive spirit of innovation.

C. Adapting to the principles needed for the development of cost accounting management

Due to the changes in the manufacturing environment of enterprises and the innovation of management theory and methods, cost accounting has undergone unprecedented changes. First, the cost accounting technology and methods are constantly updated. Computerized accounting has replaced or is replacing manual bookkeeping, and real-time cost reporting becomes possible with the establishment of intranets. Second, the scope of cost accounting has been continuously expanded. No matter whether it is various industries, professional organizations or government agencies, more and more efforts have been invested in cost management such as cost control. ^[1]