The Research On The Application Of Activity Based Cost Management In Manufacturing Company Of The Automobile

Activity Based-Costing (ABC) is a management information system based on the activities. Activity Based Cost Management (ABM) is a kind of innovative costing management method, which bases on ABC. From ABC, ABM will concentrate its work on the activities and will proceed from the outside customer's angle, try one's best to offer more value to customer through the activities. Besides, proceed from one's own angle of enterprise, try one's best to obtain more profits from the value that is offered to customer, and realize the competition advantage of the cost.This paper is under the research on study and application of ABM in Dongfeng Automobile Corporation. Regarding the automobile frame department at Branch Company of Dongfeng Automobile Corporation as the research object, the paper designs and implements the activity-based management system in the automobile frame department, get more accurate cost information through the implementation of ABC, and concrete management is improved and proposed from this, then the management style of ABC/ABM in the automobile frame department is established, which was the strong foundation for the establishment of that in Dongfeng Automobile Corporation.This paper is divided into four sections as follows.Section one of this paper opens with the analysis of the development and the current situation and basic meaning which the enterprise implement ABM of management in the world, and then introduces the characteristic and thought about study.Section two introduces the characteristic and the technological process and cost accounting current situation of the automobile frame department, finish designing ABC account system in account, card and form, and adjust personnel organization system on ABC account system.Section three shows the implementation of ABC and ABM concretely. Through the application of ABC's method of the automobile frame department, it compare different cost accounting systems in the automobile frame department, analyses the cost variance of the products, and finds out the questions existing in management now.The last section builds a costing management standard, set up the activity appraising system that is based on the balance score form and analyses the application bottleneck and countermeasure on ABM.