The Application Of ABC In Enterprises

With the continuous development of social economy and science and technology, happened toturn the world upside down change of Chinese enterprise production and management environment.Therefore, the traditional cost calculation method cannot satisfy the need of enterprise management,but the traditional method to provide cost information has been a serious distortion. In this situation,a new method of cost accounting of ABC also emerge as the times require, ABC to work as thecenter, accurate accounting the cost drivers on enterprise cost, which make up the defects oftraditional cost exists in some extent. Since90’s of last century, scholars in our country the theory ofactivity-based costing conducted extensive research, and obtained a certain result, but the cost is notwidely used.This paper first describes the research background and significance of the ABC, and expoundsthe theoretical study of activity cost method of domestic and foreign scholars, the paper presents aconceptual framework of abc.Secondly, this paper introduces the basic concepts needed to work cost method, and composedof these basic concept system, and then puts forward the operating cost method of accountingprinciple and application advantages of activity based costing.Thirdly, this paper introduces the calculation steps of ABC, lists the calculation process of theactivity-based costing method, and establishes the model of abc. In addition, this paper chooses amanufacturing enterprise, application steps will design and build the model into the case. Draw aconclusion: the cost of operation law calculation can better show the accuracy of the costinformation, the traditional cost accounting model is no longer suitable for the new businessenvironment.Finally, this paper put forward the application prospects of ABC, and their suggestions on theapplication of activity based costing aspects, further promotion for the ABC put forward their ownviews.