Research On A Comparative Study Of Traditional Costing Method And Activity-based Costing Method Impact On Business Decision-making

With the economic globalization, the demand of the market is constantly changing, the enterprises are competitive fiercely, more and more enterprises increasingly recognize that accurate of costs is critical in the long-term development of the enterprise and the maximize value of life. Different accounting methods provide the different cost information on the enterprise. The business of operators are pay more attention to the cost information, the accurate of the cost information' direct influence managers to make business decisions and judge the demand of market. So the trend of the costs development, even to combine the traditional costing method with the strategic theory. This article mainly on traditional cost and activity-based costing, seeking both to compare the calculated cost information to business decisions, and discuss the question and solution of the traditional costing method to be used in our country's enterprises.The main content of this paper can be divided into three parts:The first part is the introduction, to describe the background and significance of thesis and the ideas of the researchment and innovations.The second part is to compare the the traditional costing method and the activity-based costing. First of all, this part illustrate the supply and demand theory of cost information to analysis, discuss the importance of business decision; secondly, to analysis the concept, calculation principle and issues analysis of the traditional cost method and the activity-based costing; thirdly, to compare these two cost methods in the suitable environment, business decisions and cost information.The third part is the feasibility of the Activity-based costing and perspective analysis of the application. This part is to explains the importance of the activity-based costing in the activity-based costing. This part is to analyse the reason of the activity-based costing method which is not used extensively in our country's enterprises,discuss how to optimize the activity-based costing,and provide some suggestions to the activity-based costing method which is used in our country's enterprises.