Study On Application Of Activity-Based Costing Theory In Enterprise In Our Country

Based on the concepts of flexibility in tactics, integration and system, the paper makes a relatively systemic research of activity cost theory and its application by means of combination of qualitative analysis and quantitative analysis and brings forward application and method improvement of the relevant theory. First, the paper analyzes the activity costing method from aspects of accounting and technology, improves its application basis, puts forward its pilot model and presents its choice flow chart. The improvement of universal cost model in application is advanced, namely using a reduced multilevel price margin approach to construct a simple model of multiple-variety cost-volume-profit analysis so as to improve the model of activity cost. Secondly, the paper makes a systematic analysis of the intrinsic mechanism between balanced Scoreboard and activity-based budgeting, linking balanced Scoreboard, activity-based budgeting, activity-based management and the enterprise's strategy to the enterprise's daily operations, builds a frame of vertical integration of cost control system based on activity-based budgeting, improves the standard cost system, presents activity based costing system and makes a study of the difficulty — standard amount of resource expenditure. In addition, the paper creates the activity-based budgeting base model that is, for the most vital optimal sales volume prediction, to construct the demand function of various enterprise products/services, to develop the profit function of product mix and determine the optimal sales volume mix. Furthermore, the paper makes a systemic research of the mutual merge of activity cost and relevant theories such as economy value added, balanced Scoreboard and theory of constraints in order to bring advantages of activity cost into play better. In case study, take a transformer corporation JS as the subject, quantify and evaluate its current costing system, building the simplified pilot model of activity cost of JS company. In addition, take ZW Company, an advanced manufacturing enterprise using JIF for example, count wasting of resources caused by each activity's surplus capacity and obtain breakeven point and breakeven margin. Furthermore, take YDB company for example and make use of ABO—EVA integration system. At the same time take ZW Company as the subject, make use of improvement method of activity cost under constraint conditions, simulate living examples and result in truthful cost information.