Application Research Of Activity-based Cost On JB Education Consulting Company

Since our country started to implement the strategy of developing the country by relying on science and education,the education enterprise developed vigorously.And then people's consciousness and concept of education has also been improved.Besides,people's request and expectation to education come higher,so that all kinds of education consulting company set up promptly.Coupled with the high-speed development of science and technology all these factors make the competition environment of education consulting industry increasingly fierce.Facing the fierce market competition and the industry situation of survival of the fittest,education consulting company needs to take effective countermeasures to improve the company's efficiency.On the one hand,profit is an effective measure of efficiency;on the other hand,cost and profit of enterprises are closely related,so strengthening cost management of enterprises is especially important to improve the market competitiveness of education consulting companies.The cost information providing by the traditional cost calculating method has been unable to meet the current needs of enterprise cost management.Activity-based cost is a kind of cost-calculating method based on activities,it has changed the traditional cost method with the concept of product as the center.Activity-based cost track and allocate costs for the center with activity,so it can provide more accurate cost information for the decision-making of enterprise operational management.In the west countries,activity-based cost method has been widely used in the manufacturing,finance,insurance,and service industries.While the application of activity-based cost of our enterprises is not very common,the application of manufacturing is more,in other industries the application is still in the preliminary stage.However,we believe that with the intensification of enterprise competition and the change of government functions,the application of ABC in China will be more and more.This paper combines theoretical research and case studies.Based on the theory of activity-based cost,this paper selected the JB education consulting company as a typical case analysis.Firstly,this paper introduced the relevant theories of ABC,sort out its related concepts and implementation steps,and analyzed its advantages and disadvantages.And then discussed the current situation of JB education consultancy.The existing problems in the current cost method are as follows:cost accounting model can not accurately reflect the cost information,cost allocation doesn't consider cost drivers and rely too much on the financial and accounting methods,lack of management accounting methods.We can see that the application of ABC has the necessity and feasibility from these problems in JB education consultancy.Secondly,from five aspects:the division of the activity and activity center,the collection of resource cost and determine the resource drivers,selection of operating cost drivers,calculating operating activity cost distribution rate and calculating the cost of this activity to design the the application framework of ABC on JB education consultancy.Then compared and analyzed the different impact of the ABC method and traditional method on the cost management based on the data calculating.Also,comparative analysis method has been used to compare the different influence between activity-based cost and traditional cost on the cost management of JB education consulting firm,highlighting the advantages of activity-based cost and its application value.Finally,the paper discussed the problems of applying the activity-based cost and gave relevant suggestions.Based on the application framework design of ABC method in JB education consultancy,this paper has applied the ABC method in the new field,and changed the old ideas that only used the ABC method in the manufacturing.Moreover,this paper has drawn lessons from for other education consultancy to the apply the ABC.It not only helps experts and scholars to study the application field of ABC more deeply,but also puts forward a new method for other enterprises to strengthen cost management and improve the enterprise accounting information quality.