A Research On The Application Of Activity-Based Costing In Telecom Enterprise

The cost of Telecom product has always been Telecom Enterprise's problem. Compared with the manufactory, Telecom Enterprise has more indirect cost and public cost. So it's more complicated in cost accounting and cost management. Telecom Enterprise in our country is using traditional cost accounting to calculate cost. But this method can't allocate cost for each department and specific product accurately. So there are errs and misinterpret in calculating and analyzing business cost. This article use Activity-Based Costing to help Telecom Enterprise to construct a more scientific cost accounting system. ABC can also improve the cost accuracy.This article analyses the present cost form and accounting way of Telecom Enterprise and points out the main problem. On the basic of understanding the concept and principle of ABC profoundly, the text works on the necessity and feasibility of carrying out ABC in Telecom Enterprise. The article thinks over the entirety enterprise and fully analyses the working mechanism of Telecom Enterprise. We can allocate cost fees for various telecom net and then for specific telecom product by using ABC. This new cost accounting method not only helps Telecom Enterprise to calculate cost correctly but also to fix a price and make decision. Mean- while, the article points out troubles Telecom Enterprise might come across when carrying out ABC and give some relevant advice.Finally, the text summarizes research work herein, and points out the study direction in the future.