The Application of Activity-Based Cost Restore in the Refinery Industry

With the development of more detailed cost management in the refinery industry, managers pay more attention to cost controlling. The combination of activity-based costing and the cost restore will play a very important role in cost controlling in the refinery industry. The application of ABC and the cost restore makes the structure of cost more clear-cut in each procedure and product in refineries. This paper introduces the implementation of cost restore based on activity in refineries and proposes a new arithmetic of cost restore and the further application of cost analysis based on cost restore information. Also, the traditional theory of cost restore and the application of activity-based cost restore in the refinery industry and the method of directly traced costs are discussed in this paper.