Research On The Key Technology Of Activity-Based Costing Management System

According to the new marketing competence, the manufacture enterprise is forced to provide products with superior TQCSE (Time, quality, Cost, Service, and Environment). The cost of products is the result of all effort of enterprise. On calculating the effort of providing products with superior TQCSE and making right decisions based on cost information, the traditional cost system is no longer suitable and the Activity-Based Costing become a new alternation.Activity-Based Costing (ABC) is a new technology of cost calculation and management. It has been widely used in enterprises all over the world since it was proposed in late 1980s. In recent years, the implementation of modern information technology has promoted the application of ABC. At the same time, it also needs more flexible ABC calculating model. However, the existing two stages ABC calculating model cannot meet this need, it is urgent to develop a multistage ABC calculating model and the related management system.Focused on the ABC management system, the dissertation researches the modeling, calculating and analyzing method of multistage ABC calculating model. The main contents and contributions of the dissertation are as follows:1. Resource, activity, cost object, cost driver, periods and organizations are key elements of multistage ABC calculating model. The dissertation summarizes the relating research works of the elements and extends the content of them. The account is introduced to multistage ABC calculating model and the allocating path is enriched. Using the objected-oriented (O-O) method, the 0-0 model of each element is developed.2. On the base of the 0-0 element model, the rules of building the multistage ABC calculating model are proposed. And then, the dissertation provides algorithms to test the integrality of the calculating model and the existence of reciprocal cycles in it. The allocating layer is used to describe the allocating properties of calculating model, and the algorithms of getting the current allocating layer and allocating the total calculating model are provided. In order to deal with the exchange of different calculating models, the collaborative resource account and collaborative cost object account are established.3. Based on the multistage ABC calculating model, the dissertation researches the cost-volume-profit (CVP) analysis, capacity loss analysis and variance analysis methods and their applications.The dissertation founds a multi-product activity-based CVP analysis model withactivity capacity constraints, and discusses the solution of the model and its application in production. A method of judging the bottleneck with activity capacity utilization is presented, and a single product activity-based CVP analysis model is established. Extend use of the CVP analysis model in outsourcing decisions and total capacity constraints of different activities are provided.An activity capacity model is proposed in the dissertation. In this model, the capacity-loss is divided into structural capacity-loss and insufficient demand capacity-loss. A calculating method of both types of capacity-loss of individual activity and total ABC system is provided. A decision-making method based on the capacity loss and cost information is presented.A new variance breakdown method according to the multistage ABC calculating model is provided, and a new variance called cost driver variance is defined. Using the cost driver variance, it can relate the variance to the cost drivers and make the variance analysis more detail and efficiency.4. The dissertation analyzes the implementing environment and styles of ABC. Based on the analysis, the dissertation puts forward the structure of two-level ABC management system and the multistage ABC calculating model is the core of it. Using component technology, a prototype of ABC management system was developed. In order to dynamically integrate the ABC management system with ERP and other management information system, an integrating solution using the middleware technology is provided and developed. Supporting the decisions of enterprise is a key function of ABC. The dissertation researches the decision support system (DSS) of ABC management system. The database structure of DSS is analyzed and the model-base is established with ABC analyzing tools.5. A case of ABC implemented in a manufacture center is provided. The dissertation makes detail analysis on how to design the multistage ABC calculating model. The prototype of ABC management system is used in the case. The system is correctly run and integrated with other management information system of the manufacture center.