The Research Of Applying Activity-based Costing Method To Supply Chain Cost Accounting

In the recent years, going with supply chain management (SCM) received more considerable attention from researchers in various disciplines of business, more and more corporations realized that the supply chain cost accounting is also an important problem which the traditional cost accounting system can't solve reasonably. Therefore the problem of developing a supply-chain-oriented costing system is primarily focus.Among the long theoretic studies, Activity-based costing (ABC) which can offer more accurate cost information for decision makers has received most attentions. Through linking the performance of particular activities to the resources consumed by those activities, ABC information can provide considerable insight into how different customers or products affect the consumption of activities and drive total costs. It also can serve as a useful tool in analyzing the value chain and identifying opportunities for cost reduction and value enhancement. So the research of applying activity-based costing method in supply chain cost accounting has significance both in theory and practice.Firstly, the studies of supply chain cost accounting and ABC are summarized and analyzed in detail based on a review of prior empirical literature about them.Then, the paper analyzed the costing structure of supply chain under the ideology of ABC. On the basis of the study above, the principle and process of integrating supply chain and ABC to a system is put forward.After the discussion of conceptual basis, a case study of ABC using in SCM is provided to show how organizations in a supply chain used a simple ABC model to support SCM cost accounting.At last of the paper, the main achievement of the study and the problems requiring further studies are discussed.