Research On The Activity-Base Costing And Its Applications To Enterprises

Cost management is always of great importance for determining enterprise beneficial results. How to effectively control the cost has been become the key to save energy, to increse beneficial results, and to be sustainable development. The traditional enterprise product cost is based on the product, which being as the cost accounting objective, and the quantity factor is the only basis for distributing indirect cost, allthese make the product cost produces error. Activity -based Costing (short for ABC) is just able to make up for the existed defects of the traditional cost accounting. ABC is base on the activity, which being as accounting objective. According to cost drivers, it determines and measures the activity quantity, and then uses the activity quantity as the basis for distributing the indirect cost. Therefore, ABC reduces the distributing scope of indireet cost, solves to a certain extent the distortion problem of traditional cost information, so as to supply more rational decision for the enterprise production and sales, and to apply the cost information more scientifically. In addition the far reaching importance of implementation of ABC is not only limited to the enterprise itself, but also in the aspect of controlling and preventing state-owned assets from running off, ABC is able to account the beneficial results more scientifically, to feed back the correct information to the governments, so that the govermments can carry out the effective management and control, and prevent few persons from embezzling public funds by using the traditional cost accounting method, and protect the state property effectively.The research is aimed at the practical situation of domestic enterprises, especially the state-owned enterprises, in which existed generally resoucces squander, high cost remaining unchanged, and the market competitiveness drop. Through the study of the above mentioned problems and upon with the basis of the ready-made research results of internal and external experts and scholars, it intends to open up the coneicte contents of ABC and to go further into the implementation methods and related means of the enterprises practical applications.The main results and contributions of the dissertation are as follows:1. Starting with the producing basis of ABC, the meaning of ABC, activity, cost, cost drivers, resources, accounting periods, etc. are studied in the dissertation, furthermoce, the contents of these elements about ABC are developed extensively, the theoretical basis is provided for the real usages of ABC in enterprises.2. Through the analysis of application status quo of ABC, the analysis of comparison between ABC and cost accounting in manufacture, the dissertation announces the necessity of application of ABC in enterprises.3. By means of analyzing the suitabe conditions of ABC, feasibilily, misunderstanding of applications, and the usage slatus quo at home and abroad, and the case analysis, the dissertation provides the valuable thinkings and methods for solving cost information distortion problem and pratical applications of realizing strategic cost management.