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The application of activity-based costing in the cost calculation of thermal-power enterprise

ABSTRACT
The advantages of Activity-Based Costing (ABC) include promoting the basic budget of activities and improving the management of activities, process and activity chain (value chain). ABC method, as an important tool of cost management in management accounting, extends the management of cost to the whole value-chain in the enterprise, and it also effectively changes the limitation of the focus of the law of manufacture costing on the study of the process concerning the making of certain products, thus offering adequate help to the enterprise in establishing systematic cost management. This paper, starting from the construction of thermal-power enterprises and through an analysis of the application of ABC method in improving the quality and increasing the efficiency of the thermal enterprise, aims to point out the ways to eliminate the non-value-added activities so as to improve the management of value chain of the construction of the thermal-power enterprises by setting up multi-thermal-resource network operation center, thermal provision center and thermal-power enterprises.
KEYWORDS
PAPER SUBMITTED: 2020-05-25
PAPER REVISED: 2020-06-28
PAPER ACCEPTED: 2020-07-13
PUBLISHED ONLINE: 2020-09-12
DOI REFERENCE: https://doi.org/10.2298/TSCI200525254Z
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