The Study On The Application Of Activity-Based Costing In H Film Company

In the "knowledge economy" era, the development of the third industry and the universal application of information technology have made earth-shaking changes in terms of business operations and productions. It also has impacts on the method of enterprising management. Those changes have taken a tremendous challenge to the enterprise cost management in theory and practice. Accounting, as an important aspect of management, has to be improved to adapt the changes in the management. The invention and development of Activity-based costing, which opened up a new realm in cost accounting and management, is the outstanding performance in this reform.ABC is a completely new enterprise management theory and method which rose is the late 1980s and was first applied in advanced manufacturing enterprises.ABC is a management information system based on the activities and takes a more reasonable standard to distribute cost. It not only objectively reflects the real cost of products but also provides reliable basis for such decision as product line decision, order decision, price decision, developing and servicing client.Although Activity-based costing in the western developed countries has been deeply researched and widely used, the theory in China is still in the introduction and research stage. So far, there is no research with ABC in H film company, but I believed that ABC has its application condition and the value in this company, simultaneously it may provide some suggestions for this company's leaders.Based on sufficient investigation and analysis on the problem of the cost management in H film company, this paper discusses the necessity and the feasibility on the application of ABC in this company. Then According to H film company's technical process, I design ABC, carry on the comparison and the analysis to the result, and point out that ABC can provide more reasonable and reliable cost information. Finally, based on ABC, I carry on the pricing decision for the new product and put forward some proposals for this company.