Application Research Of Activity-Based Costing In China Unicom Network Unit Accounting

In 2008,China telecom industry ushered in the third merging and restructuring.China Unicom and China Netcom merged to form China United Network Communications Co.,Ltd.(hereinafter referred to as "China Unicom"),with China Mobile,China Telecom formed the situation of tripartite confrontation,the three operators have become full right to operate the business of Telecom enterprises,market competition intensified.China Unicom,as in the United States,between Hong Kong and Shanghai three separately listed large state-owned enterprises,in the face of a resource is not balanced,the saturation of the market,the macro environment of slowing down development,facing the inevitable profit decline,the development of the company entered the bottleneck period,slowing revenue growth,profit margins continue to shrink.Under such a big background to want to increase profits will need to reduce enterprise unnecessary costs,so as to enhance the ability of cost refinement management,realize the value of the network management.China Unicom Company actively explore the effective method of cost management.This article through the literature review from three aspects: the research of ABC.1.ABC is the cost related to the production and operation of enterprises in the process of subdividing operations based on the theory of "cost drivers," as the basis,through the analysis of cost motivation,calculation method of all the indirect costs of product cost using different ratio of distribution cost,it makes up for the shortcomings of traditional accounting methods of.2.Chinese Unicom cost management fundamentally,target cost management using China Unicom,cost benchmarking,balanced scorecard and other cost management theory of.3.to the study of application of ABC in China Unicom enterprise,to clarify the evolution and development of Chinese Unicom cost management process.At present,China Unicom Group in the whole network company internal network unit implementation of refinement accounting.Although the implementation of network accounting for a period of time,but there is still a cost allocation method of traditional imputation is too simple,the accounting results distortion,difficult to guide business decisions and other issues,this paper proposes to avoid these problems,combined with the operation is the cost method to improve the refinement of network unit accounting.In detail on the ABC network accounting unit Chinese Unicom refined empirical analysis,first on the ABC network accounting unit of refined design,refined network unit cost includes cost management cost and investment in the construction of network line the cost of the line network,the various resource consumption according to origin attribute in the business occurs is assigned to each sub network unit,and then Homework drivers of cost accumulation in certain departments(Operations Center)the consumption of resources,main types,thus forming each network unit cost.Next to a local network of branch carries on the concrete operation as an example of activity-based costing and Unicom company refine network accounting unit uses,and compared with the calculated in accordance with the traditional costing method of the network unit cost,which confirms the effectiveness of activity-based costing application in the detailed network accounting unit.At the end of the paper,the conclusions of the study and implementation of the recommendations can be network units are considered for quasi profit center performance evaluation,service network element of inputs and outputs directly linked,to carry out the analysis of marginal cost benchmarking,and improve the network cost line branch of the efficiency,realize China Unicom network company value of business strategic objectives.