Research On Enterprise Quality Costing Under The Activity-based Costing

The development of economic globalization increased competition between enterprisesat home and abroad. This forced enterprises by reducing cost and improving quality toincrease its competitiveness, so as to improve the ability of existence and development. Sinceour country introduced quality cost management theory30years later than that of westerndeveloped countries, it has a lot of problems both in theory and application. The concept ofquality cost understood unclearly, cost subject setting not reasonable, accounting methodsoutdated, thus enterprises are unable to accurately calculate the quality cost, and make full useof quality cost data. This can not bring substantial cost savings and quality improvement toenterprise.This paper will give details on the theory of COQ and the significance of cost accounting,and then puts forward a new type of cost accounting method, the Activity-Based Costingmethod (Activity-Based Costing, ABC). Firstly, from activity point of view, this paperanalyses the limitations of current quality costing method in time、object and level, and thenbuilt the COQ-ABC quality costing model, and make an analysis on the general application ofCOQ-ABC model in enterprise. Finally, by using the COQ-ABC, this paper calculates thequality cost of this enterprise in2010January9kinds of main products. Then by comparingthe current cost data, it sums up the feasibility and superiority of activity quality costingmethod. The outcome of the thesis is to provide references for our country enterprise, to helpimprove the level of the quality cost management in China enterprises.