Application Of Activity-Based Costing Based Upon Process

With the continuously changing of production environment, market competing and manufacturing cost structures, the traditional cost accounting is not able to describe the actual cost information and supply adequate and exact information. Enhance, a new cost accounting system---Activity-Based Costing(ABC) did emerge which penetrated deeply into the activity levels and provided more scientific and reasonable methods of cost accounting and cost management.First the article reviews the ABC theory system, including developing history, basic concepts, general calculating procedure and activity-based costing management, to gain basis theory support which is demanded. Secondly, we analyze the feasibility to implement ABC in mid & small-sized fastening enterprise, and under the most current management status --- gained ISO9001 Certificate , and Process concept exacting among all employees and working procedures everyone involved, focusing on activity identifying and methods, establish the module of activity identifying and activity dictionary, also set up a calculating cost procedure of ABC based on Porcess Concept.In the case study, the article implements the roadmap of ABC based on process to calculate some products'cast of fastening enterprice COP, compare and analyze the difference of ABC and traditional costing, and implement theABC cost information to support detailed for daily and strategic decision-made, such as cost diference analisys, product profit analysis, resource allocating and process improvement performance review, and so on.Finally, the article draws the researching concludes and limits, also give some suggestions on the following researching...