Activity-Based Cost Method Design Of Application Module And The Establishment Of Its Mathematical Model

Nowadays the accounting theory and industry circle is seeking one kind of new cost management method. At the same time, the starting point and focal point of business management shift from the traditional" product " up to " activity "in the practical operation, and carries out the Activity - Based Management (ABM). Before, the method of only " product " serving as cost management core is ambiguous, but ABM decomposes the cost management of products onto every step of activity, thus it positively controls the product cost from the details to the integer of production. Compared with the traditional cost calculation method, Activity-Based Cost (ABC) method has many changes in the foundation of distribution ( cost driver ).It not only exists the quantitative changes, but also does the qualitative changes. It is not only confined to traditional cost calculation which adopts the single quantity distribution criterion simply, but it adopts many units (called multi-unit or multi-dimension) to distribute the cost; It is not only limited to distribute the cost in many units, but also gathers financial varieties and non- financial varieties in an organic whole, and especially emphasizes the financial varieties.This text is divided into seven parts totally. It described primarily ABC's output background data in introduction. The second part introduced the theoretical foundation of ABC and study purpose, and so on. There is an information system based on ABC in the third part. The research of this aspect was still seen seldom in the domestic. It described the steps that a company applies ABC in practice. The fourth part is the second part inside. It is mainly about cost calculation and computing steps.In the fifth part, it tried using mathematical method to combine the homogeneous costs. By way of the homogeneous cost pools, we can gather all homogeneous costs. This can cut short the workaday records greatly and the business accounting work, and reduce the costs. It-2-tried to design the mathematical model of Activity-Based Cost calculation after understanding" the basic principle of activity-based cost. At the same time, it gave out a new model-comparison mathematical model. It pushed forward one step at the aspect of the real application compared with the former mathematical model. And this mathematical model dissolves many scientific methods such as JIT and optimization method etc. Therefore it makes the Activity-Based Cost method stride out one step to the practical application again.The sixth part is a real example of applying ABC method. It mainly described hoe to use ABC method to compute cost in practice.At the final part of this article, it did the total evaluation of ABC method. It pointed out the advantage; However, it analyzed the shortcoming of this kind of method. But it gave out the improving method to its shortcoming-combining ABC and PVA(Process Value Analysis).