Research On Time-driven Activity Based Costing Method Based On Standard Costing System

When managers implemented ABC (Activity-based Costing) in their company large scale, they found it is difficult, They had to give up halfway because of rising cost and dissatisfaction. Time-driven activity-based costing (TD-ABC) solved this problem successfully. However, The practical application could not make them satisfied. Research revealed that TD-ABC has it's Unique weakness. It could not achieve advance cost control, procedure cost control. TD-ABC did not present Specific method of cost control. When managers Estimated the important data, it lead to "Principal-agent" issue easily.The paper has summarized and absorbed the internal and external research achievements. studied the theory of Time-driven Activity-based Costing and Standard Costing.and analyzed the merits and shortcoming of them, The author adopting the Standard Costing improve Time-driven activity-based costing's shortcomings in the modern enterprises. And created the new cost method Time-driven standard activity-based costing(T-SABC)The paper is divided into six part:The first part has summarized and absorbed the internal and external research achievements The second part analyzed advantages and shortcomings of Time-driven activity-based costing. The third part showed Standard Costing and it's enlightenment to TD-ABC. The forth part presented Time-driven standard activity-based costing. We designed the cost accounting system and Cost control system. In The fifth part i have also used the theory in the business reforming of Sippican company, It has enriched and tested the theory of Activity-based Standard Costing after putting it into practice in the enterprise and also summarized much beneficial experience. The sixth part summarized and forecast all above.It explains that the Time-driven standard activity-based costing is a new method and way for improving cost management system of the modern enterprises after having analyzed in theory and proved in practice. It has important meaning for reducing enterprise cost and improving it's products competitive power.It also has considerable reference value to cost management and cost control of Chinese enterprises.