Applied Research Of Activity-Based Costing Based On ERP Environment

Due to the current dynamic market situation, the shorter and shorter product life cycle and the increasingly marketing fierce competition, many companies decided to increase management standard and cost control level via implementation ERP system. But the ERP system did not change the traditional costing method features' essences. Most of the ERP system's cost calculation module still uses traditional costing method which have big and limited limitations, meanwhile, the whole enterprise's running is speeder and speeder, this two reasons make the traditional department costing calculation method's weaknesses were exposed to view. Activity Based Costing (ABC) recognized around the end of eighties of twenty century, ABC costing method raise the revolutionary changes to the enterprise's management which has been improved by theory and field testing. Activity-based costing is costing method that assigns costs first to activities and then to the product's use of activities. An activity is any discrete task that an organization undertakes to make or deliver a product or service. Activity-based costing is based on the concept that products consume activities and activities consume resources which totally difference to tradition costing's fixed and individual costing distribution. The complication of activity-based costing's data management is far excess the human being's capacity, if there is no IT support, activity based costing can not realize.Based on current company used Kingdee K/3 ERP system, with existing basic and logistic data, via attached software to establish activity-based BOM to realize the most efficiency co-operation of activity-based costing method and ERP. The main contents are as followings: Chapter one introduced requiring background and researching purposes of the study; chapter two focus on ERP management system's principle, current ERP system costing module's effective running status and generally explain the active-based costing calculation's principle; chapter three summarized the most popular ERP products' ABC modules working principle and pointed out their shortages; chapter four introduced ABC method improvements and reference samples, gave active-based costing BOM standard definition, via active-based costing BOM to realize ABC method successfully implement in ERP system; chapter five detailed ABC costing module establishment based on ERP system, and give detailed description of ABC costing method running status in Uniarc limited; chapter six is the conclusions of the article which pointed out the innovation point and shortages of the research, meanwhile, clearly the future research direction.The main invention points of this thesis are:1. This thesis given standard definition of activity based BOM. Based on current used ERP system, increasing the activity, costing motivation, target product and other relevant elements, and according to individual product consumed activities and individual activity expense to combine the target product's consumed activity-based cost, this ERP costing calculation method based on activity-based BOM were established and tested.2. Along with enterprise's practiced situation, after the practical implementation the mentioned activity based costing method I got the final conclusion which is activity-based BOM can efficiently help the enterprise to realize ABC costing method to improve the costing management standard.