The Operating Cost Method Is Applied Research, Manufacturing Enterprises

In this paper, the latest theory and pratical application about the manufecturing cost accounting method is analysed systematically. By comparing the manufecturing cost accounting method and the traditional cost accounting method, it is indentified that both methods requir their suitable environments and special situations. According to both methods the process to direct expense is the same, and the both methods connected with each other is a whole cost accounting system, but the manufecturing cost accounting method is more accurate for collecting all consumed resource by all manufecturing centres and allocating the manufecturing cost to every product by its individual rate gained through its motivation. Today, it is more important for enterprises to control and allocate indirect expense because of requiring about cost controlling and raising market compentence, then the manufecturing cost accounting method fit these requirings. And in this paper, it is concluded that it is very necessary for manufecturing enterprises in our country to use the manufecturing cost accounting method by analysing and researching the necessity and feasibility of the manufecturing cost accounting method, and by analysing application of this method all over the world. And then, in this paper, connecting with the problems occurred during the process of the application of the manufecturing cost accounting method, the research is advanced deeply, and it is pointed out that the designing principle, transaction procedures and internal controls of the the manufecturing cost accounting method, and it is meaningful for guiding the practice. Finally for promoting indeed the application of the manufecturing cost accounting method in our country, more much research and application about the manufecturing cost accounting method is advanced in shanghai electricity instrument group, and the key elements and measures for expanding the manufecturing cost accounting method are summerized.