The Research On The Integration Of Cost Design And Activity-based Cost Management

In 1980's, human society begins to enter the information society. The new economy, with the features that the IT high speed develops, the marketplace competes to globalization, the market demands diversifies, has produced enormous effect on the main behavior of enterprise management of production cost. World economy displaying the developing trend unifying, producing automation level degree improved obviously, high and new technology achievement adopted broadly. The enterprise's competition in the field of resources of human talents, marketplace etc is unparalleled fierce, the product's economic cycle memorial comes down, consumer's need presents to diversify a trend.Under this background of times, to create and to keep advantage of cost management has already become the important problem of every enterprise's existence and development. Facing fierce market competition, the modern enterprise being able to absorb advanced management of production cost theory and method quicker, apply to the enterprise management of production cost practice middle, who only is capable to do the initiative gaining competition, will win a marketplace. While enterprise producing management environment is being changed, also some significant management of production cost has also proposed that higher demands of changing in enterprise happened in the enterprise cost management.Enterprise cost management breaking the limitation of tradition needs to take not only producing procedure but also service after sales and R&D procedure. That the Japanese Cost Design (CD) as representative and taking USA Activity-based Cost Management(ABM) as representative are the two kinds advanced management of production cost is coming into being under the new economy impingement. CD emphasizes the root of cost and replies on the cost management of product's design and development procedure. ABM emphasizes the management of producing procedure. There is some difference in the two managements, but there are some common characters in the two cost management. The writer design the integrated model of this two cost manage by using the foreign study result for reference, comparing the advantage and vice, linking the cases.Chapter One: CD which is called"Japanese sharp secret weapon"by America helps Japanese company cost down so as to compete and defeat west company with new product. CD has own creation and development course. The writer introduces the producing background, basal principle and procedure of CD, gives a thorough analysis valuation of merit and defect.Chapter Two: in this chapter, the writer introduces the producing background and its basal principle and procedure of ABM, gives a thorough analysis valuation of merit and defect.Chapter Three: cross analysis of CD and ABM. There are some common characters although some origin and defect exist. The paragraph analyzes thoroughly the cross of CD and ABM based the last paragraphs.Chapter Four: the design and putting in effect of integrated model of CD and ABM. This is the emphasis of the paper. The writer has designed the integrated model of CD and ABM .This model has implemented step to the person having carried out comparatively detailed introduction together on front chapters and sections basis. In this chapter, the writer's basis analysis in above-mentioned chapters and sections, the form adopt a diagram has designed integrated model of CD and ABM, and has carried out simple explanation on this one pattern according to putting step into practice.Chapter Five: the integrated model of CD and ABM case study in XA agricultural machinery factory. The chapter is that the pattern designing that CD and ABM take place fuse applies the previous chapter to the XA agricultural machinery factory concretely finally.Chapter Six: our enterprises can learn from this paper .Theory come from practice and drive progress of practice as well.The integrated model of CD and ABM exploits advantage of the both so as to improve the managing level and promotes the economic effect. There are some contributions in this paper, such as: the writer discusses the two advanced model and creates a new model that merges the CD and ABM. The writer hope this integrated model can help today's enterprises adapt to the fierce competition. Certainly, there are some defects, such as: the CD is the combination of engineering and the accounting union, engineering among them technicality is very strong , the author is not use engineering technical aspect in this paper because of her structure of knowledge.