The Research About Accounting The Administrative Cost Of Local Government In ABC

The government function of our country is changing with theeconomic and social environment transformation in domestic andinternational aspects, with the administrative government turning to theservice government. With the influence, the traditional administration ofgovernment also turns to the performance management of government. Inthe central and local government of our country, the local governmentundertakes the responsibility of providing the public goods and servicesdirectly. According to the new government functions, the governmentneed not only to provide high-quality public goods and services to publicbut also to publish the information about the cost of public goods andservices to public for government performance evaluation. But thetraditional accounting system of the government in our country do notcount the government cost. The cost of local government in narrow sensealways refers to the administrative cost of local government. As a result,how to count it effectively becomes one of the difficulties in ourgovernmental accounting reform.This paper mainly adopts normative researching method. Activitybased costing can be used in the administrative cost of local governmentaccounting in our country through summarizing the researchachievements of domestic and foreign government cost accounting. As anadvanced cost accounting method, ABC has a certain advantage in distribution of the indirect costs. The indirect costs account for a largeproportion in the administrative cost of local government,such as the coston official business, post and communications, travelling, vehicle fees,meetings, entertainment, etc. So it has certain advantages that using ABCto account for the administrative cost of local government.The article mainly discusses the feasibility of using ABC to accountfor the administrative cost of local government and how to use it. Theconclusion is that it can not only provide reasonable basis for thedecision-making of cost control but also strengthen the utilization ofadministrative resources that using ABC to account for the administrativecost of local government. It will provide a mandatory system guaranteefor the administrative cost of local government accounting byestablishing the administrative cost of local government accountingsystem as soon as possible and collecting it into the scope of dailymanagement system in local government.