The Implicated Research Of Small And Medium-sized Manufacturing Enterprise Activity-based Costing In ERP Environment

Large manufacturing enterprises got more supports by the government, more financing way, its strength in finance attracting a large number of highly qualified personnel. Their cost management is relatively standard, earlier were using the Balanced Scorecard, ERP and other advanced management tools. For comparison, small and medium manufacturing enterprises are constrained by inherent weakness such as the financial and human resource, cost management tools obsolete, arbitrary management, weak cost management, theorists and practitioners less involved in the management of issues related to SMEs, so Cost management of small and medium manufacturing enterprises has been lagging behind the level of processing.One fact that can not be ignored:the world's existing large enterprises are derived from the development of SMEs. International economic field that SMEs will be the leader of economic development in the 21st century. Small and medium manufacturing enterprises in China has become an important force to promote national economic development. Therefore, invest in the inherent law of development of SMEs, research how SMEs can become bigger and stronger, how to do better in cost management and grow into large enterprises, for the modern society, has important economic value.This paper analysis the status small and medium manufacturing enterprise appling the ERP and activity-based costing based on describing the ERP and activity-based costing theory, constructing activity-based costing management system in small and medium manufacturing enterprise applying ERP. This paper takes Ding Ding dyeing Textile Co., Ltd. as an example, compares the difference in calculation results between the traditional cost accounting methods and operating costs, analysis and reveals a totally different cost decision direction, pointing out that ABC is conducive to small and medium manufacturing enterprises in profitability analysis and can help them find lucrative business customers.This article further explores how to introduce activity-based costing in Ding Ding's ERP system, illustrates the improvement steps of the existing ERP system,the implementation process in introduce ABC, and point out the key issues to note in this company to promote ABC.