The Research On The Applying Of Activity-Based Costing In Environmental Cost Management

Since 1950's, with the rapid development of global economics and increasing population, it led to the serious problem of resource exhausting and environmental pollution, which had seriously threatened the human being's living and development especially in China. Environmental issues have not just been the field which Green Peace Organization and other social groups and Academia concern about, and also been a field of Government action. More and more governments began to intervene the enterprise's activities by legal and economical means.。Under this background, environmental cost occurs.As the proportion of environmental costs in product is increasing, the accuracy of checking environmental costs is directly related to the investment decisions of controlling the environmental pollution. Environmental costs include both production costs and non-production costs. However, nowadays, with the growing of R & D, design, marketing and other non-productive activities, the traditional method of calculating the product cost can not reveal the concoction of environmental costs and the product, so it can not provide the effective ways of controlling and evaluating environmental costs. Therefore, the enterprise needs to find a new way to reflect the impact of cost drivers and reduce the damage to the environment, which is called Activity-based Costing.On the basis of summarizing the domestic and the international researches, this paper adopts many methods (such as case study, compared research) to analyze the application value of Activity-based Costing in the environmental cost checking and management and hope to make a little devotion to manage and reduce the environmental costs effectively.First of all, this paper summarizes the characters of the research harvest inside and outside; then comment the concept and classification of environmental cost, which provide a basic theoretical for following study; Thirdly, the related data of Shaanxi Hua Dian Pucheng Limited Liability Company are attained by the on-the-spot investigation and other channels, then the paper analyzes the application of Activity-based Costing in the environmental cost checking. Fourth, the paper analyzes the application of Activity-based Costing in the management and control of environmental cost; finally, the paper analyzes the Obstacles of using Activity-based Costing and presents some suggestions. In the end, the paper analyzes the future of the application of Activity-based Costing of environmental cost management.