Thinking refinery costing applications

Of: Wang Meili Sun Yanbo Wei Qiusheng

[Abstract] refinery operating cost method of achieving the refinery costing theoretical innovation. This paper discusses the status of refinery costing, activity-based costing analysis of refinery problems in the Application, and for the shortcomings of its proposed refinery Application of ABC in the future recommendations for improvement in the hope of the refinery's in-depth Application ABC to play a certain role.

[Keywords:] operating costs; cause; Information system; FMIS

Cost management is to enhance the competitiveness of enterprises, enhance the economic efficiency of enterprises in the eternal theme. By the international impact of the macroeconomic situation, crude oil price from $ 147 all the way down to 40 dollars, the economic development of the world which can not be expected to influence the formation of a particular the spread of international financial crisis, not only inhibited the growth of consumer demand, but also to the growth of the domestic economy has brought greater pressure. refiners to limit production and slow moving, so that the cost of management of oil refining enterprises face serious challenges again. the introduction of activity-based costing the concept of cost management for the oil refining enterprises provides a new mode of thinking, the future development of the refinery has important practical significance.


First, the operation cost Management Theory

ABC (Activity Based Costing, ABC) is a method designed to compensate for the shortcomings of traditional cost management efforts to provide timely, accurate and relevant cost Information, and use this Information for decision-making, control, management of new cost management. 20th century, 80 years, ABC took the lead in the Western developed countries and development together, it is to work (activity) for the cost object, in accordance with the cost drivers (cost driver) cost-sharing, so that more accurate cost Information, more detailed and in-depth to the operational level.

20th century, early 90s, at home and abroad on the traditional method of calculating the cost of a heated discussion in the hope of the traditional cost management methods and new ideas. In a foreign country, Cooper and Kaplan (1991) established the first formal job cost position, and promote the cost-management innovation. Yu Xu Ying (1995) first introduced the operating cost of the Western theories. for enterprise cost management of any actual problems, building tree source (1995) that should be re-cost management, and reconstruction intrinsic motivation is to build the core of cost responsibility system. From the 90 years since the last century, the basic idea of ​​ABC is to infiltrate the company's production, marketing, organization, management, assessment and other sectors, but the drastic changes in economic and technological conditions of the operating environment the core of cost - cost drivers to identify and classify Applications in the economy is difficult to make a breakthrough, there is no ideal to achieve the desired effect.

Operating cost management accounting elements of the four involved are: resources, operations, cost object, cost drivers. Which is the cost of the first three elements of the bearer. Resources refers to production operations and products for the expense; job is job Cost management is the core, is an organization of resources to outputs and the cost of work; cost companies need to measure the cost object is the object; cost driver is the cost of lead changes in production factors, reflecting the cost of operating the consumption or work requirements.

The ultimate goal of job analysis is to improve the value of the output, output value of the formula can be expressed as follows:
Output value = operating efficiency × job value = amount of work / resource cost × output function / operation volume
Institute of Management Accounting 90s of last century the United States investigate and understand the business case for implementing the operations that cost management, implementation and adoption of operational cost management company from the 90's show gradual upward trend, the current evaluation and management of enterprises by the proportion of operating costs over 80%. These enterprises will be operating cost management and operational analysis for strategic decision-making, and achieved remarkable results. For domestic enterprises, operating costs in understanding and mastering the principles and methods of management, the use of its improved operating efficiency, control costs, the fine management would be beneficial to enterprises to improve their market competitiveness and adaptability.


Second, refining the introduction of Activity Based Costing

Refinery Costing theory began in 2001, this theory methods of Research, innovation and the refiner cost accounting method, cost accounting management to extend the area of ​​production and operation, as the consumption of oil refining enterprises to reduce costs, improve value-added job offers theoretical basis.

(A) of the oil refining unit costing methods
Oil refining equipment long process, exists between the upstream and downstream devices in close contact interaction between devices, and mutual constraints. Refiners refinery production characteristics of the decision of the special nature of cost accounting, oil refining production processes and various other industries , determine its cost accounting methods exist personalization features. reposted elsewhere in the Research Papers Download http://www.hi138.com
Accounting refining the finished product characteristics: the general costing refiners are in the manufacturing cost, based on an accrual basis, according to a raw material to produce a variety of products, in accordance with the principle of actual cost, technology coefficient as the basis for the cost of carry-over of finished goods distribution.

Semi-finished products accounted for refining characteristics: cost accounting for oil refining unit is the total production from the device point of view, determine the coefficient of device technology, the technology factor of production and refining units based on the consumption expenditures of all divided into different products.

Refined products accounting methods problems: the continuity of the process of refining a joint product characteristics and its products, determine the cost of refined oil products has been assessed by technical coefficients, technical factors constrain the rationality of the accuracy of refined oil products cost allocation. At present coefficient of refining the technology Industry began in the 80s of last century, the Application time is longer, it reflects the cost Information is not accurate enough, did not accurately reflect the distribution of product benefits, loss of refinery production and business activities to guide and provide economic decision-making role.

Accurate cost accounting methods can not provide refinery production and management decision-making information is currently refining costing greatest weakness. As a cost accounting method, can only roughly reflect the cost of composition, does not reflect the efficiency advantages, apparently formed a lack of cost information, cost Improved accounting methods have been imperative.

(B) of the refinery operating cost method, the origin and development
Refinery operating cost of the study and practice first started in PetroChina Dalian Petrochemical, Dalian Petrochemical in Hua Youbo conjunction with the joint efforts of Research and development operations based on cost management and decision support system. The system according to Dalian Petrochemical Process Industry production characteristics, the establishment of a sub-step operation costing, planning, control of the theoretical model, the operating cost management to achieve the theoretical innovation.

In 2005, Dalian Petrochemical refinery costing on the basis of Research results, the oil refining business in China have launched a refinery operating cost management information system application and development. After nearly 3 years of practice, refining the preliminary costing has established a relatively complete information management system, made some application results, and realized the sharing of resources and financial systems.

Refinery operating cost management information system is the role of cost management and refinery operations is expected to achieve the real purpose - as much as possible to eliminate "non-value-added jobs," improvement "value-added jobs," provide useful information there is a gap. At the same time due to system management constraints, the application prospect of refinery operating costs not clear, oil refining operations costing the impact of staffing has delayed the pace of refinery operating costs of the application.

Refinery operating cost management problems in the development, management of the refinery operating costs fully play its role, embodied in the following areas (see Figure 1).


1. Job management information system defects
Speed ​​of information Industry, rapid technological development, technology refresh cycle gradually shortened, but the refinery operating cost management information system was built in the early 21st century, technology has lagged behind in current information systems technology, especially in database management and stability and there is a big gap between the existing software. As refinery operating cost management information system in a very long time trial stage in development, so the upgrade patches more unstable, the phenomenon of frequent system shut down for no reason, to the system effective run a lot of inconvenience.

2. Lack of job cost accounting methods
Refinery operating cost operating cost using a step by step management, product costing carried forward step by step to achieve the cost, which is costing a great progress, the content of its accounting more precise, detailed and scientific. However, the device the form of a joint product of oil refining output production, the choice of motivation is very difficult, so using the original unit product cost factor computing devices in the process of a job costing main motivation, but also to work to bring the accounting methods of costing less than .

3. Management system disadvantages
Accounting manual specifies the cost accounting method for oil refining, oil refining enterprises in the FMIS (Financial Management Information System) technology commonly used in the coefficient method, according to a uniform specification carried over product cost, while operating cost accounting staff are often part-time finance staff to done, the financial officer's knowledge of the lack of run production, even if the operating cost calculations are correct, can not be linked with the actual production run of the proposals put forward to guide the production. Although refinery operating cost management information system operating for a long time, but the distance its real role and achieve the purpose of operating the added value and long road still arduous tasks.

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