The Study Of Activity-Based Cost Control

The market in China is global more and more in company with our county's being admitted to WTO and the competition among enterprises becomes severe increasingly. In order to be success in the competition, an enterprise must introduce new and high technologies and manufacture diversified goods to meet the diverse needs of consumers. Therefore, the Activity-Based Costing Control comes into being and develops in the new conditions of the manufacturing industry in future China.On the basis of wide research on theories and literatures of cost control at home and abroad, the theory of Activity-Based Control is established and applied to practice in the thesis.The theory of Activity-Based Control include several aspects, such as the establishment of cost control standard, calculation and analysis of the costing variances, the performance evaluation of Activity Center and Activity-Based management. The target cost of the competitive products is ascertained in advance according to the market, and then the standards of Activity-Based Cost Control are deduced. Standards changes are important as they may follow the fact of the real market in order to reflect the new conditions and targets. Then the actual cost of products and Activity is calculated through activity-Based costing and the cost variance between the standards and the actual cost is analyzed. Finally, the Activity Center is not only the cost center of Interval Cost but also the center of performance evaluation. The Activity Center is evaluated by Interval Cost Method. Reducing the cost ofactivities, the Activity-Based Cost control is more effective and pertinent to control the cost of an enterprise.The theory of the Activity-Based Cost Control is applied in water-pipe shop of Beijing hydraulic Machine Factory, and the result indicates that the theory is applicable and practicable. On the basis of study and application of the theory of Activity-Based Cost Control, the following conclusion can be drawn. The Activity-Based Cost Control is an advisable method for highly automatic advanced manufacturing environment of modern enterprises. The conditions for the application of Activity-Based Cost Control in China is immature, but the trend to apply Activity-Based Cost Control is evident...