The Activity-based Cost Management Improvement Research Of ZL Company Based On ERP

With the continuous progress of science and technology and sustained economicdevelopment the process of economic globalization is promoted the competitiveenvironment enterprises faced will become increasingly severe enterprises arelooking to reduce the cost of the strategy. Cost reduction must be established on thebasis of accurate cost information current information on the degree of automationcontinues to improve this constantly changes enterprise’s product cost structurewhich makes a big step rise of the proportion of indirect costs obviously the laborhours for the allocation of indicators of traditional cost method is no longer adapted tothe current environment enterprises urgently need a new costing model andmanagement methods.The ZL road machinery company is a typical manufacturing enterprises with ahigh proportion of indirect costs its cost management has many deficiencies anddefects in particular the cost accounting is still using the traditional cost methodwhich seriously distort the cost of enterprise products. Therefore for the ZL roadmachinery company cost management of the status quo this article uses theadvanced theories and methods of today’s cost management to research ZL roadmachinery company cost management improvement program. Firstly there will be aliterature review of ERP theory today’s domestic and foreign cost control theory toexplore the ERP cost management issues. Secondly this article discusses theactivity-based costing (ABC) and ERP and operating costs combine to explore thefeasibility to lay a theoretical foundation for this thesis. Thirdly combined with thespecific case of ZL road machinery this article thoroughly analyzes the status of itscost management and problems that is we need to focus on resolving problems.Finally this article will give an improvement research on the ZL road machinerycompany cost concepts costing methods cost and procurement managementproducts into the cost management improvements on the basis of advanced ERPsystem theory and activity-based costing theory.Meanwhile it puts forward therelevant part of the cost improvement program. This article focuses on the use of thetheoretical knowledge of the operating cost method to build the ZL road machinerycompany activity-based costing system based on ERP system and elaborates thespecific implementation methods and procedures. The implementation of the programwill improve the ZL road machinery company cost management to some extent.