Application Of Activity-based Costing Method In G Company's Cost Management

The theme of the paper was based on the background which is that Internet and e-commerce industry developed unprecedentedly and the fierce competition.The paper chose G company as the case which is pursuing e-commerce and e-paying and designed the application of activity-based costing method in its cost management.G company developed fast and cost increased a lot in recent years.The management staff realized they need to change their traditional cost management.They should introduce the advanced methods to save costs and to achieve depth analysis to the company's business and customer.Thus,the companies will not be eliminated by the fierce competition.Activity-based costing method is an advanced cost management method and cost accounting object is the company's business or its products.Not only it can achieve the full range of information on cost certainty,but also play a significant s help for the management of the company's performance appraisal.According to current problems on cost management of G company,the author analyzed the necessity and feasibility of activity-based costing in implementation of G company.Then the author followed the theoretical basis of activity-based costing and combined with G's specific business to determine the accounting elements of the job and designed the activity-based costing procedures and implementation for G company.Finally,the problems of activity-based costing at G company's implementation may be appeared and advice on those issues.If the Internet companies engaged in e-commerce can use activity-based costing to achieve cost management,there are a lot of benefits.On the one hand,it can achieve cost management effectively.On the other hand,it will have a direct role in helping company's management such as performance appraisal and making the right business decisions.This paper discusses the feasibility Costing in G company's implementation and detailed program design,and is of certain significance in the practice.