Applied Research Of Activity-based Costing In A Co. Based On ERP Environment

Product cost structure changed because of tremendous changes in business enviro-ment: the proportion of direct labor costs greatly reduced, and the proportion of indir-ect costs significant increased, these changes make the "quantity-based" traditional costaccounting methods can not accurately reflect the product cost.Therefore, how to ma-ke up for the deficiencies of traditional cost accounting methods, introduce a more re-asonable cost accounting methods, not only to meet financial reporting requirements,but also to supply cost information for internal cost control and decision-making, bec-omes a issue that need to be solved in cost management field. ABC can gather and allocate indirect costs more accurately to calculate a more accurate product cost, it’s gainful for controlling products’ actual cost and improving product competitiveness. BothERP and ABC are advanced management ideas, the purpose of this study is to effectively combine the two to play their respective advantages and integration.This article described the basic theory of ERP and the basic theory of ABC, onthis basis, we analyzed the theoretical basis and the advantages of the integration ofERP and ABC. And then introduced the current situation of A company’s cost accoun-ting and the problems existed, the problems existed because of traditional cost methodof manufacturing, this method made to inaccurate product cost information,andanalyzed the necessity and feasibility of the implementation of ABC in A company. T-hen designed the A’s ABC system from three aspects: the design of contents of ABCsystem, the design of the implementation way of ABC system, and the design of dataplatform of ABC system. Finally, described the implementation of A’s ABC system.Through in-depth research, we argues that it’s feasible to build activities and info-rmation platform to achieve ABC based on the exiting ERP system in A company.The ABC is better than traditional cost method of manufacturing, it can effectively improve cost management.