The Application Research Of Activity-based Costing Method In Jixiang Life Insurance Limited Liability Company

With the economic globalization,the three financial sectors of banking,securities and insurance have brought more and more vitality to the world economy.Although China's insurance industry lags behind the development of the bank ing and securities,the current domestic insurance market expands unceasingly,and more and more insurance companies have joined the market,leading to the industry development and the fierce competition.How to gain the competitive advantage and realize the long-term survival and development for the insurance company becomes the management problem that the enterprise managers need to solve urgently.The method of Activity-Based-Costing can introduce diversifying allocation standard to distribute the indirect cost,which will improve the accuracy of cost analysis.Therefore,this paper mainly discusses the application of Activity-Based-Costing in Jixiang life insurance Limited liability Company.This article first gives a comprehensive and systematic summary of the basic theory of Activity-Based-Costing,including its emergence and development,its basic concepts,its theoretical foundation and basic procedures,and analysis of it current development at home and abroad,and then presents the research question and research methods in this paper.Next,the article introduces the fundamental principles as well as the necessity and the feasibility of application in insurance company.Then,it points out the existing problem about the current cost accounting method of Jixiang life insurance,which will cause the product cost information distortion.It not only elaborates the overall train of thought of Activity-Based-Costing,but also summarizes the company business processes and divides the activities,including the preliminary preparation,data collecting and the detailed design of implementation plan.With the cost of the operation center of Jixiang life being calculated by using Activity-Based-Costing,and compared with the traditional cost accounting results and improve the Activity-Based-Costing can improve cost management of Jixiang life.Finally,the paper puts forward the guarantee measures for implementing activity-based costing,which lays a solid foundation for the company to adopt activity-based costing.This article is intended to provide guidelines for the Jixiang life to promote the cost management processes by proposing the application of the Activity-Based-Costing method that is based on the analysis of the existing cost management method of the company.The application of the Activity-Based-Costing method can aslo be a good reference for other insurance companies in the nation.