Research On The Application Of ABC To Middle-small Manufacturers

Chinese enterprises, special middle-small manufacturers, are facing a very difficult circumstance nowadays, for some reasons caused by many facts of native and oversea. And this status will continue for a long time from now on. Chinese enterprises, special middle-small corporations, must enhance their ability of management to avoid risk.Activity-based Costing is very popular in enterprises in North America and Europe. This theory was rising in 1980s. It is one of the best management tools, and it is also benefit for accounting. Experts of ABC believe that activities consume resource and products consume activities, so that all products or services of an enterprise can be decomposed into some activities, put the resource of the enterprise into these activities by activity-drivers and then put these activities into all products by cost drivers. In this way, Activity-based costing can make all cost of an enterprise to be distributed rightly and accurately.The purpose of this paper is to help the native enterprises to enhance their level of management by the analysis of the cases and introduce of the theory. In this paper, we firstly introduce the theory of Activity-based costing, and we will provide case study as well.The means of this paper is to integrate the character analysis and number analysis, and to combine the analysis and case study. Penman achieves the case by researching and participating case carrying on. Especially in the case, penman and the employees of the corporation finished as a consultant.ABC has been introduced to our country for 20 years, but it is still used very limited among domestic company. The reason is mainly in that administrates of corporations do not know the theory or the effect. So we should enter the enterprises to help them to solve the problems by new management means. Therefore, the study of this paper, differ from normal theory research, carry on ABC in corporations really, compare the result of ABC with traditional costing system, and achieve a more worthy conclusion.