Operating Cost Management In Manufacturing Enterprises Application Of Empirical Research

With rapid development and using of electronic information technology since 1980's, the mode of production, the competition environment of enterprises took place a graveness change. As a result, innovation happened in enterprise management, and Activity-Based Costing Management (ABCM) emerged on the conditions, which provide a new cost management method. It not only has solved the indirect expense assignment problem, but also has provided advanced cost management idea. Further more, the information using the ABC management can help the management and the strategic decision. The purpose of this paper is to probe into the theory and the application of ABCM.Existing early and widely used by many corporations with great achievements in foreign countries, the advanced cost management system has not been maturely studied in our country, even the complete setup has not been formed. This paper combines the limitation of traditional cost management , analyze the historical background of ABCM, elaborate the concept system of ABCM, coordinate the primary theory superficially, about account, control, budget, analyze, outstanding achievement assessing of ABCM.In this paper a furniture making company has been chosen as the research object. The opportunity , challenge and the currently problems that the furniture making company face under the furious competition environment have been analyzed firstly, for explaining the pressing require about introducing a advanced cost management method in this company. ABCM has applied to the manufactory after. The affirmation of applying ABCM through a great deal of investigation and data analysis has been consented. The chapter 4 of this paper makes a detail discussion of the implementation process from following aspects: the preparations for carrying out ABCM, implementation scope designing of ABCM, accounting steps, comparison between ABC and traditional costing methods, control and decision-making methods to solve problems by using ABCM. In the end of chapter 4 , the experience about application of ABCM in M Furniture Making Company has been summarized, in order to affording a reference for helping enterprises to raise the quality of the cost information and acquire the cost advantage from the root by using ABCM. The purpose that introduces the advanced theory and methods of ABCM overseas, is providing a direction about ABCM application for our country, so that, some questions of ABCM application have been raised in the end of this paper. We believed, under the conjunct effort of theorists and, enterprises, ABCM application will get a new height step in our country.