Research On Application Of Activity

This paper describes manufacturing companies are choosing and putting in practice Activity-Based Costing in the new economic and market age. Companies achieve lean manufacture, aimed transmission and accurate price through using ABC in designing, manufacturing and marketing. This paper mainly researches the ABC application in manufacturing companies using a case of garment factory. Through analysis the activity workflow, establish the accounting system, cost centres and calculating system which is suitable for the aim of management and satisfy company's need of plan, control and decision under the way of JIT manufacturing , activity-based costing and Enterprise Resource Planning (ERP) software, and offer some improving recommendations and solution.This paper includes three parts. Part one mainly introduces the significance of the subject and the research way of this paper and provides an overview of the developing history of activity-based costing, and also study the applied theory of activity-based costing and Just-in Time (JIT) manufacturing approach in manufacturing companies. Part two provides the case that Meilian Garment company how to analysis business using strategy activity-based costing driver and achieving activity-based costing through Just-In Time manufacturing approach and Enterprise Resource Planning software, and this company has achieved that accurately allocation and price and cost & profit management through using the above ways. Finally, in Part three, this paper analysis and study the questions when the company performs Activity-Based Management and gives some solutions and suggestions while companies using Activity-Based Costing.