The Application Analysis Of Activity-based Costing In Agribrands Purina Feed Co.,Ltd

Along with the world economic incorporation and drastic global competition, productive condition of low level in China hasn't been able to meet the request of quick economic development. Inefficient productive model has been obstacle that productive enterprise become advanced corporation. As the revolution of electron technology, many productive enterprises that have used robotization have been developed and have largely impacted old management idea and technology. Advanced management technology such as the Activity-Based Costing has made large-scale spread in the world. It is advantage that ABC is based on activity and resolve the shortage of traditional costing at all. At the same time, ABC has good foundation to solve costing management. It is certain direction that ABC will replace traditional costing in the accounting cost science. So our productive enterprises should make use of the chance to change the old management model, enhance efficiency and increase productive gain in order to extend international competition. Now, it is great significance that ABC will be researched and generalized in China.At the end of 1930's, American accountant E . Kohler presented the idea of ABC, but before the middle of 1980's, ABC couldn't be wide concern in the accounting range. When two professors from Harford University Cooper and Robert Kaplan wrote a series of thesis about ABC,ABC was gradually recognized and slowly prefect in the innovation and practice. Along with the introduction of advanced management technology from developed country, accounting field in China gradually recognized and accepted ABC. Though the introduction and studying of accounting expert, ABC was widely known by our management field. But in China, traditional corporation not only hold large amount, but also ABC seldom be studied and exerted, so it will need long time that ABC is actualized by management field.This thesis begin from the shortcoming of ABC , indicate it is feasible and necessary that ABC will be implemented in China. Though the result of the ABC researching in modern theory fields, analyzing the real situation of the system development and growing trend. After knowing the whole, appropriate condition and implement procedure of ABC, the thesis introduces analysis to implement ABC in Agbrand Purina Feed Co.,Ltd. First, knowing general situation, organizational frame ,productive model of feed and technology procedure, expounding process and bring issues that traditional cost is used in Purina company, what condition Purina company implement ABC. Second, according to the structure and productive procedure of Purina company, author implement systemic design to activity costing rule and process variance analysis between ABC and traditional cost by the counting result of two ways. By ABC, Purina company reduce productive cost and increase profit. Final, expounding the elements implementing ABC in Chinese corporation, confirming that the theory of ABC can be applied in China. Therefore, though ABC is continually researched, it certainly occur substantial change to the counting model of cost in domestic enterprises.