The Application On Activity-based Costing In CableManufacture Enterprises

To survive and develop, enterprises should make profits. The way of making profits is selling their products or services with a price which higher than the cost. In market-oriented economy, the price of products is determined by the market, the enterprise can only control their production costs. In terms of cost, Enterprises focus on two things: the accuracy of cost information and the rationality of the Incurred costWhen making cost strategical decisions, enterprises mostly rely on accurate cost information. Each enterprise pay close attention to getting accurate cost information. The rationality of the incurred costs is the thing which enterprises also concerned. Enterprises need to know is there any useless cost or waste.The main purpose of this article is to solve enterprises’ two big problems by introducing the activity-based costing. The way is taking a specific company--MX Cable Company as an example, and realizing activity-based costing to solve the two big problems exist in MX Cable Company.Research idea: the first chapter is introduction, mainly introduce the basic knowledge; the second chapter is a comprehensive introduction of activity-based costing. Including the concept and intrinsic quality of activity-based costing、Operation Chain Theory and Value Chain Theory of activity-based costing. The third chapter: firstly, introducing the current situation of MX Cable Company and cable industry; next, making the introduction and analysis of cost accounting and control status in MX Cable Company. Then find out the problems. The fourth chapter: introducing the feasibility and necessity of application in MX Cable Company with activity-based costing. The fifth chapter: expatiating the details the application of activity-based costing in MX Cable Company, in order to solving the two major problems which the company faced. The sixth chapter: This article puts forward suggestions about practical application of activity-based costing.Research method of this article is case study which is taking well-developed theory to the first line of management. The greatest contribution of this article: by studying the feasibility of activity-based costing in a specific cable company, this method can be used in the whole industry theoretically.