Activity-based Costing And Application Analysis In Oil Manufacturing

In 1970s, highly- automated and advanced manufacturing enterprises were born on the basis of electronic technology revolution; it brought about great revolution in management conception and management technology. Great changes have taken place in the structure of product cost, which makes traditional "Cost-calculation on the basis of quantity" not reflect the consumption of product cost accurately or offer correct accounting information for decision and control in enterprises. Activity-based costing (ABC) is a cost calculation based on activity. It resolves the defect of traditional cost calculation ultimately and gives accurate information to enterprise cost management at the same time. It's a tendency in the development of cost accounting science that traditional cost calculation on the basis of quantity changes to modern cost calculation on the basis of activity. Therefore, studying and spreading ABC in our country has great significance in theory and reality.Using the method of qualitative analysis and quantitative analysis, the standard study and case analysis, this paper studied the AMCM by comparing the traditional cost management with the ABC management On the basis of the introduction to the theory of ABC and cost management, according to Rong Sheng's situation , combining the analysis of ABC result , this paper made a further study on the idea of ABC offering Rong Sheng's accurate cost information and how to exert the function to the decision making .The paper has proved that ABCM can be spread and applied to the cost calculation and decision making . According to its actuality, this paper provides its proposals in oil manufacturing.