MFCA Application Aiming To Analyze The Cost Of The Steel Production Process in Thai Nguyen Iron and Steel Corporation

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 3

Year of Publication : 2020

Authors : Nguyen Thi Kim Huyen

10.14445/23939125/IJEMS-V7I3P121

How to Cite?

Nguyen Thi Kim Huyen, "MFCA Application Aiming To Analyze The Cost Of The Steel Production Process in Thai Nguyen Iron and Steel Corporation," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 3, pp. 153-158, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I3P121

Abstract:

This study used the Material Flow Cost Accounting (MFCA) method to focus on identifying the wastes in steel production at Thai Nguyen Iron and Steel Joint Stock Corporation (TISCO) by approaching the Material Balance equation. Research analyzed the input cost (including cost materials, energy cost, and system cost) in steel manufacturing prosses in TISCO and found that from 56.58% - 96.94% total cost has been allocated as the cost of positive, 3.06% - 43.42% in the negative product. The results of the MFCA analysis provided initial calculations that not only evaluated material losses in the company in monetary terms, but also helped TISCO executives can see one of the parts of the difference between conventional accounting and material flow cost accounting. Since then, TISCO has the cornerstone to search, to apply measures to use the most cost-efficient and reduce emissions to the external environment, thus correctly and fully calculating the price of positive products.

Keywords:

Material Flow Cost Accounting, MFCA, TISCO, steel manufacturing prosses, positive product, negative product.

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