Research On Activity-based Cost Management In Provincial Grid Enterprises

With the deep development of electric power's reformation, the provincial grid system enterprises separate government functions from enterprise management enterprises . On the one hand, in the competitive environment, the provincial grid enterprises must have perfect internal management system to enhance corporate value and make it develop well . On the other hand, grid enterprises operate the energy goods and power supply service, which is about the people's livelihood and national stability. Thus, provincial grid enterprises undertake the social responsibility. That means provincial grid enterprises must supply safe and stable power for people. In the provincial grid enterprises'main business, transmission and distribution business are the key. At present, the cost calculation doesn't separate in the transmission and distribution link. This article is based on a research of this problem.This article firstly elaborates the research's background and significance of provincial grid enterprises ABCM and summary the ABCM research in home and abroad. Secondly, it discusses the basic theory and related theory about this study. It includes ABCM, all-around budgetary management and the objective management theory. Thirdly, it analyzes the overview, the features of production and management, the status quo of cost management of provincial grid enterprises. Besides, it raises the question of cost management and analyzes the reason. Next, for the status quo of provincial grid enterprises, it discusses the way how to construct the ABCM system in detail. In the construction dissertation, it elaborates the necessity and feasibility to apply ABCM in provincial grid enterprises firstly. Then, it analyzes the active-based cost elements of provincial grid enterprises and establishes activity pool. Thereby, it obtains the active-based cost of provincial grid enterprises. Finally, taking the H provincial grid enterprise case analysis for using activity-based cost management, it discusses the effects to grid enterprises after applying the ABCM. These effects have four points. They include the effects of business process, cost calculation, cost control, cost management for provincial grid enterprises.