Analysis And Design Of Activity Based Costing System

At present, Shanghai Telecom is at a critical moment of implementing strategic transformation. Precise management driven by data and facts and supported by information is a means of optimizing resource allocation and finally achieving strategic transformation. While conventional costing models adopted by Shanghai Telecom are far from sufficient in depth and breadth and difficult to quantify the multi-dimensional cost-accounting data, such as products and customers. The multi-dimensional management accounting reporting system, based on products, customers, activities and cost elements, can be developed by implementing activity-based costing approach toward cost effectiveness and cost control.This paper gives a brief introduction about the development objective of activity-based costing analysis system and clarifies its functional and nonfunctional requirements through studying the activity-based costing methodology, integrating with business processes of Shanghai Telecom and conducting a detailed demand analysis; Meanwhile, this paper puts forward the general thoughts of the overall system construction, system technical framework, design of network topology and system frame diagram according to the current network status of the company and the business characteristics, designs major functional modules of the system in detail, and gives a brief description of the design of the database; Finally, this paper introduces the situation of the team organization and the processes of the system testing and describes the implementation effect.Since the activity-based costing analysis system was put into operation, it has solved the major problem in costing accounting for most telecommunication enterprises. The activity-based costing analysis system, as an efficient means of system support, permitted the accountants to switch their roles from mere report to report, control, analysis and participation so as to analyze the cost effectiveness of the elements including products, customers, network and activities and the situation of resources allocation from a professional perspective. Moreover, it has not only met the needs of enterprise financial transformation and cost control but also strengthened the decision-making support for business transformation and precise management focused on value.