Research On Application Of Activity-based Costing In Calculation The Cost Of Vocational Institute Of Safety Technology

Higher vocational education is an important part of the national education system.It has already occupied the proportion of fifty percent in the field of higher educationsystem of China. The issues of lacking of educational expenditures and taking theinefficient use of them, however, have existed for the long term, which affected thesurvival and development of higher vocational institutes. Therefore, Cost of highervocational education has become the hot issue focused on by government, institutesand colleges, student and students their parents.Hunan Vocational Institute of Safety Technology is a vocational institute whichtrains technical talents of production safety. But the measure used by HunanVocational Institute of safety technology is simply to replace costs. At present, as thehigher vocational education enters into the connotative development, it seems vital toimprove the efficiency and strengthen the self-competitiveness to the healthy andsustainable development of the institute.The development strategy of HunanVocational Institute of Safety Technology requires to explore and research theactivity-based cost method.Case analysis method is applied in this article, and the operation cost methodapplied in Hunan Vocational Institute of Safety Technology as homes has beenstudied.First of all, it gets an understanding and summarizes the development status,basic theories and practice conditions of activity-based costing in the domestic andoverseas; Secondly, the paper shows a comprehensive understanding of HunanVocational Institute of Safety Technology as the basic situation, the problems existingin the current education cost accounting according studies and analysis, the necessityapplying activity-based cost method on the basis of the problems above, the analysisto the feasibility of application. Furthermore, according to the organizationalfunctions of Hunan Vocational Institute of Safety Technology and the standardoperational procedures for cost calculation, the paper fulfills the practical design ofeducation cost by using activity-based cost accounting, including defining projectresources defining, reassuring main operation, analyzing resource motivation andaccumulating resources expenditure, establishing the operations center anddetermining the operation motivation, accounting cost diver rate and completing thecost allocation, five steps. etc. On contrast analysis of the result of the traditional cost accounting method and activity-base costing, the security cost method which isapplied successfully on the institute is mentioned. In the end, it summarizes the wholeprocesses to the paper research and practical design, and puts forward suggestions forthe further research.