The Research On The Application Of Activity-Based Costing In War Industry Research Institute

The low level of cost management has been one of main question that baffles enterprises development for many years, while the Theory of Activity-Based Costing is a theory of cost management adapted to modern production organization, it provides important sense to research its system and application to enterprise for enhancing the level of Chinese enterprises cost management.Since the last century 80’s, Robin Cooper and Robert S. Kaplan have conducted a comprehensive and in-depth analysis about Activity-Based Costing (ABC), which began to be researched deeply and applied to business management widely. With the increasing high-tech enterprises and transforming of the domestic market from a seller’s to a buyer’s, China gradually also have the condition of using Activity-Based Costing, Chinese scholars started to attach importance to research the theory of Activity-Based Costing and to apply it to domestic enterprises.1. ObjectiveThis paper attempts to find out an effective approach to enhance cost management for war industry research institute.2.ContentsThis article is divided into six chapters:The first part is a general introduction which gives an introduction of the backgrounds, methods and significance;The second part looks back historical evolvement of cost calculation in war industry research institute, demonstrate the necessity of actual cost calculation mode improvement; The third part is about the theory and application of Activity-Based Costing, This part is a theoretic basis of this paper; The forth part is the overview of A institute; The fifth part calculates with ABC costing method and compares with the traditional method;In the end, in light of a research institute’s reality, this thesis puts forward the idea that Activity-Based Costing adapted in institutes gets the calculation result closer to the reality and distribution of manufacture cost preciser than traditional costing approach, which provides a reliable basis for institutes’cost control and products strategic decision with preciser cost information, then guarantees institutes’survival and development in current economy situation.3.The main contributionOn the base of theory research, using demonstration research means, the paper applies the Theory of Activity-Based Costing to A War Industry Research Institute.