Research On The Actvity-based Cost Pattem And Its Application

Activity Based Cost (ABC) pattern, which originated from USA and is spreading the Northern American and the Europe, is a new model in the field of cost management. It exhibits outstanding ability in costing and cost control. This paper makes tangible, deep research on the theory structure of the respective design method from the angle of strategy and tactics and it's feasibility in China from the levels of strategic viewpoints.This paper paves the way to analyze the origination of the ABC and its principles. After that, strategic idea it reflects is discussed in the chapter two. Chapter three focuses on designing the form of Activity Based Cost System (ABCS), which is composed by the ABC, ABCM and performance value system. Then the paper designs the application process of ABC from the tactics views combining the case analyzing of the ABC experimental enterprises.We believe that the micro economic and technology environment, the management conception in society and the microenvironment of production and operation in an enterprise decide the present form of cost in our country. But all the existence is not reasonable. The unsatisfactory present cost status in our enterprises and the development of economic and technology make the reform necessary.Although reform is necessary, is the form of the ABC adapts to our enterprises? This is the key problem in the last chapter.In conclusion, Activity Based Cost is promising in China, but as the present status is concerned, although some big enterprises are partly applying the ABCS in ERP, there is still a long way for us to go in spreading.