The Method Based On Activities Responsibility Cost Variance

In the background of social environment constantly changing and computer integrated system formulating, the overall quality control and activity-based costing sprout. Meanwhile, the activity-based costing method provides a brand-new idea for solving the allocation of indirect costs. Although the activity-based method has great application potentials, but it is now still only be used for determining the manufacturing cost. How can we approve this approach to make it play a bigger role? In this paper, I would connect standard cost method with activity-cost costing, simultaneously integrates responsibility cost. When dealing with the internal control of standard costing system and the activity-based costing to allocate manufacturing cost, I hope this paper could explore a new road, in which implementing standard management and distinguishing the objects in the accrual basis.Based on the present existing domestic and foreign research results, this paper did a theoretical research on the standard cost method, the activity-based costing method and responsibility cost method. After the detailed analysis comparison, I discovered that the theory itself was not completely in opposite, but they were supplement each other. In this regard, this paper integrates responsibility cost and activity-costing method together with the formulating of standard cost method, which aims to reserve and absorb their advantages and overcome the deficiency. This paper is looking forward to providing a beneficial exploration for the cost management of modern enterprises.This paper adopts normative research and case study combining method, and mainly including four parts. Foreword Part of the article clearly quotes the topic selecting motivation, present status quo and research train of thought. It also illustrates the gist of the paper. In Part One, the paper theoretically expatiates the activity-based costing method, standard cost method and responsibility cost method. It also includes detailed presentation on these method key points and analysis on merits and drawbacks. In Part Two, this paper discusses how to integrate the standard cost and responsibility cost. It further discusses on responsibility cost variance method, which regard standard cost as benchmark, using the method of reorganizing the duties of each responsibility center. In Part Three, the paper's innovation is to concentrate on the integration of responsibility cost variance method and activity-based costing. In clarifying the accrual basis relationship base, after constituting the standard cost, integrating the activity-based costing, improving the enterprise economic performance by eliminating the value-added work in enterprise product cost, case analysis was used. In Part Four, it summarizes the application significance of responsibility cost variance, the possible upcoming problems and solving countermeasure.