The Application Of Activity-Based Costing Method In Telecom Industry

Since the 1980s,with the marked competition and the information technology developing fast,the production technology and the management methods having had the huge transformation,much new management thought and the management methods emerged. The modern enterprise essentially becomes a series of collective work to satisfy customer needs,and the enterprise activities become"the activity chain", from one to the other and from inside to outside. From the process angle, understanding cost and the activity relations, is advantageous to the calculation and the management. The Activity-Based Costing is precisely in such rationale, creating the comprehensive research to study traditional method, which distorts the product actual cost since it uses the direct man-power and so on as the expense assignment standard to compute production cost.This thesis begins with the conception of ABC, expounds the results of the ABC research in modern theory fields,and then studies the case of using ABC in CDDX Co., Ltd. This thesis embarks from CDDX Co., Ltd. itself, and introduces company situation, from the organizational structure, production route to the production process. Then it expounds the company tradition cost accounting method and the existing question, using Activity-Based Costing as the calculation model. It designs Activity-Based Costing system in the view of CDDX Co., Ltd. activity chain constitution, calculates one order cost and compares with the traditional cost, then summarizes that the Activity-Based Costing can bring progress for CDDX Co., Ltd. at the present stage, and puts forward some management suggestion.CDDX Co., Ltd. utilizes Activity-Based Costing not only to reconfirm the majority of products cost, but also to carry on the brand-new appraisal on enterprise activity flow, which guides the enterprise to discover its own way for improvement and to guarantee CDDX Co., Ltd. growing trend. The thesis proves Activity-Based Costing can apply to the agricultural products processing enterprises. Activity-Based Costing theory from manufacture enterprise is suitable for the company like CDDX Co., Ltd.It has not been a long time since ABC development in China, and the number of enterprises using are still very low. Although the need of ABC in enterprises is huge, the realization and practice are not enough. So it is very hard to research it in this thesis. But I believe that thanks to our continuous thinking and exploration, we would be in great effect.