D Institute Of Research On Application Of Activity-based Cost Management System

To meet the request of market economy development, production mode was changed from mass production mode to various and small amount of production mode in the past. This changed production mode raised the indirect costs rate directly. Also, due to high pressure of increasing market share racing, more and more high-tech, good quality and high value-added products were manufactured which promoted indirect costs accounted rate too. For better controlling the product cost and increased enterprises profit, more and more military enterprises including Research and production integration enterprises started to implement some modern and advanced management methods likes budget management, project management, and EVA assessment system what are supported by accurate accounting information. Normally, research and production integration enterprises need invest much state funds, and accurate cost information to meet accounting management requirements. But, simple traditional common indirect cost allocation methods is hard to provide the more detailed and accurate cost information so that enterprises could not conducive the cost forecasting, decision making, analysis, evaluation and improvement. Also it will impact to make decision and pricing significantly for enterprise. However, using activity-based costing can not only improve the accuracy of cost collection but also optimize the management processes through job analysis. Whether operating costs are, reasonable controlled, it need to provide reference standards costs. If the standard cost was refined from assessment of operations centre, factory efficiency would not been improved. Based on the practices combined activity-based costing and the standard costing method, analysis of product cost formation process of work motivation and consumption motivation, by calculating actual cost and standard cost for each job level, variance analysis and performance assessment, researching and production enterprise integration detailed cost accounting, construction cost management upgrading of activity-based cost management system, for those research and production integration enterprises and those much variety and small batch products mixed line production enterprises, this document will be very significance and useful on detailed cost accounting and cost management.