Application Study Of ABCM In Pharmacy Industry

The management of cost is the key of the success of enterprises, the idea, the technology, the method, and the model of the cost management in one company, which directly affects the success or failure of the company, so it is a crucial factor on an enterprise development. Based on Activity-Based Costing (ABC), ABCM is applied widely in some enterprises in the developed countries, and evolved to be a scientific and effective cost management method and methodology. Pharmacy industry of our country is facing that the management and marketing environment has already changed greatly, the cost management system urgently needs reform, and ABCM is the best choice.This article tries to combine the theoretic with practice, probed into a tentative application study of ABCM in our pharmacy industry. Firstly, through the detailed analysis of this thesis background, explains the motivation and meaning of this theoretic studying. Secondly, by the introduction of working mechanism of ABCM, it analyses the realization procedure and the managerial advantages of ABCM system. Thirdly, through the research of the current competition and the current cost management in the pharmacy company of SPF, it showed the necessity of ABCM implementation in SPF pharmaceutical enterprises, then it is analyzed theoretically that the feasibility of carrying out ABCM in the SPF pharmaceutical enterprises. Fourthly, with the case of application of ABCM in SPF’s production system, which also prove that it is feasible practice. I eventually hope this study would put forward some meaningful and referential ideas for the other enterprise in using ABCM system.