Operating Cost Management Information System Based On Advanced Manufacturing Mode Analysis And Design

The technology revolution beginning and intense market competition from the eighties of the 20th century have been making the manufacturing environment change constantly. Under current manufacturing environment, the product direct labor cost has decreased sharply in relation to the total cost, and the overhead cost makes up most of the cost of product; therefore the product cost information calculate from only one allocation rate becomes more and more inaccurate and incapable of meeting the needs of management. To solve the problem, Activity-Based Costing came into being; the advent of ABC has become a good solution of cost information distortion resulting from sole allocation rate.Activity is the focus in the activity-based costing. It can compute product costing by determining activity's costing and assign its cost to products. The basic idea of activity based costing is that products consume activities and activities consume resources. By ABC's point of view, the produce process is thought as a series of activity sets designing for consumers' needs. And then the activity sets form a activity chain. At first, resource expenses are summed up to activity cost pools. Secondly, multi-drivers sum up resource expenses to products.Activity based costing processes dynamic reflection by tracing all activities. ABC classifies activities as "value-added" and "non-value-added" activities. Through dynamically analyzing activities, enterprise can improve product design, eliminate non-value-added activities, and enhance activity efficiency and reduce resource spending. It can make enterprise's efficiency and competence more strong. This is activity-based management content.Firstly, this paper expounds the generating background of ABC through analyzing the inadaptability of traditional cost accounting methods to the variations in social environment. Then the fundamental concept of ABC and its ordinary accounting procedure are explained. Secondly, combining with the actual situation of our country, the thesis analyses the possibility and necessity of using ABC in our enterprises.Finally, the paper analyses the possibility and necessity of using ABC in our enterprise. And according to the example of YUNNAN COPPER INDUSTRY CO.LTD, a plan for the application of ABC to China advanced manufacturing enterprises is suggested.