The Study Of Purchasing Cost Management Of Manufacturing Business Based On Activity-Based Costing

Since the modern purchasing grew, the objection and drawback of the traditional cost management have been shown, which the traditional cost accounting system can't solve reasonably. Therefore the problem of developing a purchasing cost management of manufacturing business system is primarily focus.Among the long theoretic studies, Activity-Based Costing (ABC )which can offer more accurate cost information for decision makes has received most attentions.Through linking the performance of particular activities to the resources consmued by those activities, ABC information can provide considerable insight into how different customers or products affect consumption of acttivities and drive total costs. It alsocan serve as a useful tool in analyzing the value chain and identiyfing opportunitises for cost reduction and value ehanacement. So the research of applying Activity-Based Costing method in purchasing cost management of manufacturing business has significance both in theory and practice.The thesis is researehed by means of quantitative and qualitative analysis. mainly analyzes the purchasing cost accounting and purchasing cost control in manufacturing business.Firstly, the studies of purchasing cost accounting and Activity-Based Costing are summarized and analyzed in detail based on a review of prior empirical literature about them. sums up the concept system of ABC, and analyzes the necessity and feasibility of applying the ABC to purchasing cost management of manufacturing business.Then, the paper analyzed the costing structure of purchasing cost management of manufacturing business under the ideology of Total Cost of Ownership(TCO). On the basis of the study above, the purchasing cost accounting of manufacturing business to a system is put forward, and the method and strategy of purchasing cost control is discussed.After the discussion of conceptual basis, a case study of Activity-Based Costing using in purchasing cost management of manufacturing business is provided to support the usefulness of using a simple Activity-Based Costing model to accounting and controling purchasing cost in manufacturing business.At last of the paper, are the main achievement of the study and the problems requiring further studies are discussed.