Abstract
Since the present costing methods used in the refinery industry have major deficiency in costing products accurately and they cannot produce correct cost information for semi-finished products, an Activity-Based Costing (ABC) system is proposed. The designed approach and associated system for refineries is discussed in this paper. A costing model based on activity-chain is introduced and the key techniques, such as the arithmetic of Retroactive Costs, the strategy to cost attribution of multi-products, are proposed. The system was used in more than 20 refinery factories in the past three years successfully. The comparison between the application of ABCM and that of the traditional costing method is also detailed in the paper.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
6. References
Peter B.B. Turney, (1996) ABC The Performance Breakthrough: 85–86
Ou Peiyu, Wang **xin, (2000) The Application of ABC in the Chinese Manufacture Industry. Accounting Research
Ou Peiyu, Wang **xin, (2002) Study of Activity-based Cost Control, Chinese Soft Science
Cokins, G., (1999) “Using ABC to become ABM”, Journal of Cost Management: 29–35
Wang **, (2000). Research on Theory and Application of Activity-Based Costing. Dongbei University of Finance & Economics Press
Han Qing-lan, **ao Bo-yong, (2004) A Fuzzy Evaluation Method of Activity Performance Based on Value-Chain Analysis, Wuhan University of Technology(Social Science Edition):439–442
Ding Rijia, (2003) Activity-Based Costing Management System: No.010308-09
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2008 Springer-Verlag London Limited
About this paper
Cite this paper
Wang, C., Shan, L., Zhou, L., Zhang, G. (2008). Study on the Application of ABC System in the Refinery Industry. In: Yan, XT., Ion, W.J., Eynard, B. (eds) Global Design to Gain a Competitive Edge. Springer, London. https://doi.org/10.1007/978-1-84800-239-5_76
Download citation
DOI: https://doi.org/10.1007/978-1-84800-239-5_76
Publisher Name: Springer, London
Print ISBN: 978-1-84800-238-8
Online ISBN: 978-1-84800-239-5
eBook Packages: EngineeringEngineering (R0)