Research On The Mode Of Activity-Based Costing Management Based On ERP

China's economy is changing from being partially opened to the full liberalization with China's accession to the World Trade Organization (WTO), and China's enterprises are entering the broader areas of the world and facing more fierce competition in the international market. China's business environment changes require the enterprises to develop fast. The most challenge that the business leaders and managers are facing is not successful but'how to continued succeed'. With the growing global competition, we are experiencing the technology explosion, and the enterprises are forced to produce high-quality products, provide outstanding customer service and maintain the lowest cost as much as possible. If one organization wants to achieve its objectives effectively, managers must understand the entire value chain that the organization involves in. According to a survey report that the American Association of Productivity made: in the 20th century the world'major companies considered increase as the most important factor, and they change it to cost in the 21st century. So the management and control of the cost has attracted the close attention of foreign enterprises, and it is one of the key factors to the continued success. Accurate and detailed cost information is the essential foundation that the enterprises make the business decision and development strategy. Cost is the foundation of success. As one important branch of enterprise management, cost management has an increasing status and role in the increasingly fierce enterprise competition. The concept, technology, methods and modalities of cost management have direct impacts on the success of the enterprise, and they are key constraint for the enterprise development. It is difficult to imagine that an enterprise without scientific cost management can succeed in the fierce competition. This is the direct reason that an increasing number of enterprises make scientific cost management as the orientation of enterprise management. The enterprises'concern to the cost management promotes the development of this subject. And the importance of cost management is continuously enhanced with the development of organization. Cost management is at a critical period of transformation in the driven of competition environment. How to innovate the management system and improve the relevance of the cost management information, how to build the cost management system and combine the advantage of resource-based cost and management-based cost, and how to create the longtime competitive advantage, are an urgent important issue for Chinese enterprises.Activity-Based Costing Management is to improve customer value and increase enterprise profit, and is a new centralization management of whole process based on the Activity-Based Costing. With the activity cost measure, it makes the costing go to the activity level, tracks all activities and reflects dynamically, analyses the cost chain, supervises the effective implementation of activities, and constitutes an integrated enterprise management system with the strategic program, budget, performance management reports and other management elements. The core theory of Activity-Based Costing Management is Activity-Based Costing. Activity-Based Costing is a cost calculation that its core is activity, its clue is the resource flow, and its media is cost driver. Activity-Based Costing chooses suitable resource drivers as the allocation basis to confirm and measure the consumed resource, and allocates the activities cost to cost objectives (products or service) according to the activities amounts and activities cost. The theory foundation of Activity-Based Costing is cost driver theory. Activity-Based Costing analyses the state of cost by the activities. On the one hand, it combines the activities with the relevant cost consumption to identify the caused factors of cost. On the other hand, it combines products with consumed activities to provide more accurate cost information. The basic principle is: activities consume resources, products consume activities; production leads to occurrence of activities, activities lead to occurrence of cost. With the maturity of the theory and the practice, Activity-Based Costing with its careful theory structure and operation with the practice has extended to the whole process of enterprise management and formed a new Activity-Based Costing Management. Activity-Based Costing Management is even more widespread concerned with accurate cost information, improving business process, inventory valuation, product pricing, manufacturing or purchasing decision, performance evaluation, and providing perfect information for resources decision and combination decision.Enterprise Resource Planning is a management platform which is built on information technology, and provides the means of decision-making for the enterprise with systematic management thought. Both of ERP and Activity-Based Costing Management are advanced management thought and methods. If they can be effectively combined and exert their strengths and advantage of integration, they will provide true and accurate cost information, control cost effectively, and improve the enterprise competitive advantage of cost.So, the article first introduced the basic knowledge of ERP and Activity-Based Costing Management and their development at home and abroad, analyzed the need and theoretical basis of the integration of them, and come to the benefit of the integration. And then constructed the Activity-Based Costing accounting system based on ERP, analyzed the accounting mode, brought forward the accounting model and steps, and designed the accounting contents and information process. And then analyzed the characteristics of modern cost control and the cost control in ERP, used the excellent thought of Japanese Cost Design Model for reference, and put forward Activity-Based Costing Control Model in stages of product design and manufacturing. Finally, an enterprise application case and practice had proved the feasibility and the importance of the management system.