Costing In The Hz Company's Application

With advances in economic system reform of China and further acceleration of the globalization, the state-owned construction enterprises have shook off the traditional shackles, removed the label of the monopolistic industries and involved into the fierce competition in the market. Some enterprises which are in the period of the transition have the low technical level and incomplete management method because of the deep-rooted traditional concept and the heavy historical burden, hindering the enterprise into the new situation of the rapid development. Searching more scientific and effective management tools and methods has been at the top of the list. Activity-Based Costing as an advanced management tools for modern enterprises has been extensive research and application in abroad. This Activity-based Costing Management method introduces the concept of the activity into the system of the operation and management system and regards it as a basic unit of management. According to the central idea of products consuming activity and activity consuming resource set up the accounting model based on value chain in terms of resource driver and activity driver. On this basis, a set of comprehensive management system is established, which is composed of administration organization, material management, budgetary planning, cost control, performance appraisal and evaluation. To convert the enterprise's overall strategic objectives into a scientific, effective, comprehensive and systemic process, it will allocate the resource and create the value.However, the aim of the investigation to this field are main confined to the necessity and feasibility in our country at present, practical applications and further research in the corporation, especially the state-owned construction enterprises within the period of transition are not sufficient. This dissertation is a case of HZ Corporation, as analytical models, combining with the feature of this industry and the internal situation of this company, to explore intensively the feasibility and application of the ABCM in the state-owned construction enterprises from the reform of the organization, Activity-based Materials, Activity-based Costing, Activity-based Budget, cost control and performance appraisal and evaluation. Compare with the traditional management module confirmed its advantage and necessity of ABCM. Trying to build an integrated management system of the enterprise combine with the strategy, activity and management, to achieve the integration of the strategy and management based on ABC. Making the administration into the product activity and penetrate the ABC into the every part of the management within accounting, controlling, evaluation and stimulation. This dissertation absorbs the essence of the research from the predecessor, while show the opinion and view from the author. It not only presents an efficient solution against with the failing to control and disorder of the management which are an obstacle for the current state-owned construction enterprises, but also lay a sound foundation for this advanced management system in China.