The Research On The Application Of Activity-Based Costing In War Industry Research Institute

The low level of cost management has been one of main question that baffles enterprises development for many years, while the Theory of Activity-Based Costing is a theory of cost management adapted to modern production organization, it provides important sense to research its system and application to enterprise for enhancing the level of Chinese enterprises cost management. This paper entirely looks back the development background and course of the Theory of Activity-Based Costing, expatiates basic concept, main content,and distinguish from the traditional cost accounting, proceeding of found system of Activity-Based Costing and its application in cost management.On the base of theory research, using demonstration research means, the paper applies the Theory of Activity-Based Costing to XX War Industry Research Institute(XXWIRI)and establishes the system of Activity-Based Costing. It rectifies the distortion of cost information, offers reliable information to our country's nation defense investment decision-making, and finds out an effective approach to enhance cost management for war industry research institute. At the same time, the paper sets up Responsibility Accounting System on the base of Cost Accounting, it breakthroughs traditional accounting's modus operandi, and makes Cost Accounting and Responsibility Accounting become a same system. It not only greatly reduces account-cost, but also gets a new syncretic model of Cost Accounting and Responsibility Accounting.