AH Manufacture Industry Costing Research Based On Activities-based Cost Method

With the rapid development of modern science and technology and the use of advanced mechanized production equipment is the large scale introduction of all types of manufacturing enterprises, China’s market economy benefit from, the business environment has been greatly different from the past, mechanization production model leading enterprises from labor-intensive to technology-intensive. The new market economy system and the new production environment, the subtle influence of the ideology of enterprise decision-makers. Cost management has always been a key factor in determining the enterprise can achieve maximum benefit at this stage, and in order to achieve business goals, managers tend to take certain measures, such as, improve product quality, improve customer service, research and development and more active competitive products and other means. Automated production methods brought new production environment, but also changed the cost structure of the product, the cost of the traditional method for producing an enormous impact.Firstly, domestic and foreign scholars on activity-based costing to do research were introduced, and a brief introduction to the theoretical framework of activity-based costing and basic concepts. Meanwhile, the cost of the current management situation of China’s manufacturing has been described, and pointed out that the current cost management drawbacks, leads to more appropriate for the current economic environment than the operating cost management system. Think this case, the job has been worth the cost method application value. Then use the qualitative analysis of the activity-based costing in the necessity and suitability of machinery manufacturing industry applications, a qualitative analysis shows. Finally, AH business-related information obtained by the author in the practice stage, according to the theory of activity-based costing, re-design a suitable operating cost management system. Through the study of the case found that: First Costing in manufacturing within the country already has the conditions for the application, the application environment is maturing; the second is Costing in terms of cost information for the application to provide real and efficient business has a positive effect, by Compare the cost difference between the rate of job costing methods designed with the traditional cost accounting methods between that activity-based costing for enterprises to provide accurate, real cost to information have a huge advantage. Finally, the article analyzes the conclusions of the foregoing, the follow-up studies were discussed and proposed directions for further research.