The Research On Theory And Application Of Activity Based Management

With the rapid development of science and technology, the competition environment that the modern enterprises confront with has occurred a great deal of changes. The proportion of manufacture expense rises, which enable the tradition method that single cost drive assignment has been used can't provide accurate cost information. Then the activity-based management emerges as the times requires, which provide a new cost management method. It not only has solved the indirect expense assignment problem, but also has provided advanced cost management idea. Further more, the information using the ABC management can help the management and the strategic decision.The purpose of this paper is to probe into the theory and the application of ABCM. Base on cost drives and the core of comprehensive cost management, and under the instruction of strategic cost management, we discuss the operation and the strategic application of ABCM. From the aspects of suppliers' management, the product development and design, flow design and improvement, quality control and management, the product structure and the customer productiveness analysis, we has analyzed the entire value chain cost management. The ABCM enhances accuracy of product information, the validity of suppliers' management and the reliability of customer profitability analysis.It provides the use for references to application in China that overseas advanced management method is introduced. Finally, we have analyzed some questions of ABCM application including the application present situation, the analysis of application influence factor and also put forward some proposals of the activity-based management in our country's application. We believed, under the joint effort of theorists and Practice circle, ABCM application by all means will get a new height step by step in our country.