The Study On The Development Mechanism Of Activity-based Costing System And The Application To Management Accounting

Activity-Based Costing System is a kind of new method of costing to adapt to the modern environment. It allots the overhead expenses based on tusk, which changes the method to allot the overhead expenses based on indirect manual work. It inaugurates a new era of costing and management.The article introduces the mechanism of Activity-Based Costing System and the development status quo of management accounting. Moreover it integrates the development of Activity-Based Costing System and management accounting. It also summarizes the contribution of Activity-Bused Costing System to the management accounting abstractly and analyses the improvement of Activity-Based Costing System to the management accounting methodically. Further, the article discusses the difficulties and the conditions of application and analyses the foreground of the system. Also, the article puts forward the advices for practice and popularization of Activity-Based Costing System.