Application Of Activity Based Costing On Cost Management In S Enterprise

S Enterprise is a communications equipment manufacturer, S Enterprise began to introduce target costing from 2000, combined with their own management practices and product features in the original budget, the cost control and responsibility assessment with effective combination for S enterprise cost management work to make a contribution.In recent years, with rapid development of domestic enterprises, S company also faces integration circuits and other factors of production constantly updated, development of new products and gradually increase the difficulty with other unfavorable factors, so enterprise is facing tremendous pressure to control costs.The theory research and application of methods to explore the future on the S company, based on the development trend of the home and abroad modern cost management theory and practice research, explore the ABC method applied to S communications equipment manufacturer, first, we divide operation to determine the activity center, on charges related to the imputation confirmed the calculated standard costing, again through the optimization of work to confirm product activity-based budget, analysis of the process of the product, given activity chain improvement scheme and give S enterprise safeguard measures of activity-based cost management in the implementation. Finally on the basis of activity-based costing of s enterprise target cost method to be improved the applicability of conclusions, in order to realize business goal of reducing the cost and improving the efficiency.