Design On Activity-based Costing Management Based On Economic Value Added

Activity-based Costing (ABC) is a cost calculation way on the basis of activity. It resolves the defect of tradition cost calculation ultimately and gives advanced basement to enterprise cost management at the same time.While, as a kind of advanced cost management system, activity-based costing pays attention to the resources expenses only, but at handle the funds cost method to exist the serious blemish. Particularly nowadays in the economic environment raising a loan to conduct under, the funds cost is an important part in the business enterprise management that can't be neglected. The funds cost occupies the bigger proportion in the business enterprise expenses, so it has a very big influence to the cost. In order to acquire more accurate product and the service cost information, we have to consider the funds cost in product or the service costs. If make use of the funds cost that the traditional finance data computes, the same will result in the product cost distort. The funds cost that computes through the EVA accomplishment evaluation system removed the traditional finance data to the influence that the funds costing distort. Therefore, will be computed the funds cost allotment of by the EVA in homework the calculating product cost removes the traditional finance data and traditional costs to check the distortion influence of system to the product cost.This text mainly studied on the principle of the Activity-based Costing Based on Economic Value Added method, and carry on the certain research and evaluations towards the Activity-based Cost Based on Economic Value Added calculation system and cost control system.