A Study On The Impact Of The Implementation Of Activity - Based Costing On Enterprise Performance

With the rapid development of economy, new management ideas and technologies emerge in response to the needs of time. The level of automation, diversification and intellectualization in enterprise’s production and operation management has been improved continuously. Enterprises’equipment ability and production status have changed, which lead to the complication of cost structure and the highlight of cost control. In the current market environment, machines have replaced most of the manual operation. The proportion of direct costs like direct labor cost has fallen sharply due to the great changes in technology while indirect costs are relatively increased, which is not consistent with the assumption in traditional cost method that direct costs account for a larger proportion. The traditional cost management method has many deficiencies in analyzing the relationship between resources,activity and product costs. This means that if the traditional cost method is continually used to calculate the cost, the serious distortion of cost information will arise, which will cause errors in decision-making and the lost control of cost. The development of market economy makes the enterprise cost management pay more attention to optimize the allocation of resources and capital output efficiency.In order to improve the traditional cost management system, a series of new cost management methods have been put forward in the US-led Western developed countries, and Activity-based Costing(ABC for short) is one of these representatives. ABC theory has been improved continuously, and it is no longer a simple calculation method. It is playing an increasingly important role in many aspects, like production management, product pricing, profitability analysis, performance evaluation and strategy improvement. However, relevant theoretical research at home and abroad are mostly confined to discuss how to implement ABC and its application in a single case. A few scholars have begun to study the relationship between the implementation of ABC and corporation performance, but there is a division of the empirical research that whether ABC can improve corporation performance. Survey data shows that researches of ABC are mostly based on the background of developed countries. Therefore, it has a important significance to study the effect of ABC under the background of developing countries.Based on the analysis of the background of ABC, theory and practical application, ABC theory, performance theory and some other related theoretical bases,This paper did the empirical research through choosing 27 listed companied implemented ABC and 27 listed companies unimplemented ABC from Shanghai Stock Exchange and Shenzhen Stock Exchange as research sample. Meanwhile, this paper built new financial performance evaluation system by introducing EVA and other indexes based on the traditional performance evaluation system. This paper did partial correlation analysis and linear regression analysis to research the effect of the implementation of ABC on enterprise performance. Studied have shown that the implementation of ABC has a significant positive correlation with enterprise operation ability and value growth capacity, while the significance between ABC and profitability, debt paying ability as well as development ability is not strong. Finally, this paper put forward relevant research proposals according to the empirical results and enterpries’ actual situation in our country.