The Study Of YZ Medical Appliance Company Based On Activity-based Management

With the continuous improvement of technology and the improvement of production efficiency, the manufacturing industry of our country has been developing rapidly since the reform and opening up. But in recent years, due to increasingly fierce market competition, it's an important way to reduce the cost to the medical device production enterprise that they want to win a place in the market competition and enhance their competitiveness. But the traditional costing method has its own defects, errors in the labor intensive or indirect cost proportion of products with small calculation is not large, the indirect costs account for a large proportion of cases may result in inaccurate calculation of the products in the cost, thereby affecting the pricing of products. ABC overcomes the shortcoming that the traditional manufacturing cost method in indirect cost responsibilities are not clear shortcomings, and make the past some uncontrollable indirect costs in the cost of operation law system into a controllable.This article introduces the theory of activity-based costing and activity management as well as compares activity-based costing with traditional budgeting method. In this article chooses cost-cause as independent variable, as to forecast direct cost of activity,this method has unexampled superiority in terms of the justification whether cost-cause is excellent or not. Using activity method in pay-off analysis of the medical device production enterprise conquer the weakness of traditional costing method, and accurate information of repairing cost is provided. This article also using the theory of activity management to describe the process of the medical device operation, then optimizes activity chain according to activity analysis and determines key activity, finally eliminates or decreases activity that not enhances value. By using ABC, the satisfaction of customer is promoted, and the cost of production is decreased and controlled.