Research On Activity-based Costing Management Information System In Project Manufacturing Enterprise

With the scientific and technological progress, automation and informatization become more and more in manufacturing enterprises, customer demand for products is showing a gradual trend of personalization. Against this background, manufacturing enterprises based on the project production mode are growing up. In project manufacturing enterprise there are low repeatability of their products, mass task on client oriented design, many unpredictable factors in the manufacturing process and difficult cost management, meanwhile, product development, design and production process are constantly changed according to customer demand. This kind of manufacturing mode has changed the proportion of cost constitutes in project manufacturing enterprises:the direct material and labor costs which are the main original costs constitutes are significantly lower proportion, and then proportion of indirect costs are higher than the proportion of direct material and labor costs, and the proportion of indirect costs are showing upward trend. However, the traditional cost management methods no longer meet the new manufacturing mode and the new cost proportion, while the Activity-Based Costing as a new cost management method originated from United States inl980's. Activity-based costing is suitable for the enterprise which has variety product and small quantity, but also a higher indirect cost proportion; which matches the production characteristics and cost proportion of project manufacturing enterprises. Activity-based costing is used in project manufacturing enterprises which will make the cost much more refined and clear, and good for the project cost forecasting and control, then provide more accurate cost information for the enterprise decision-makers.Thesis gave an overview of the national and international development situation of Activity-based costing, and elaborated the project manufacturing enterprise concept and the definition and characteristics of Activity-Based Costing. Related concepts were introduced and then the Activity-Based Costing calculation principles and accounting steps were explained.One of the difficulties for implementing Activity-Based cost in project manufacturing enterprise is that a large volume of data acquisition and cockamamie calculation, and then difficult to complete only by handwork. To solve this problem, based on the theories and methods of mechanical manufacturing, Activity-Based Costing and information technology, thesis described the production characteristics and cost management features of project manufacturing enterprises, analyzed the disadvantages of existing cost managements applied in the project manufacturing, then the project manufacturing enterprises cost management system was analyzed and selected. According to the requirement of project manufacturing Activity-Based cost management, discussed Activity-Based Costing combining with management information technology; based on management information technology theory and analysis method, carried out the system analysis of Activity-Based Costing management in project manufacturing enterprise. Then the overall framework of Activity-Based Costing management information system and cost prediction, cost control, cost accounting as well as cost analysis were presented.Activity center and cost driver are tow core concepts of Activity-Based Costing, which is another difficulty for implementing Activity-Based cost. Work Breakdown Structure (WBS) concept was combined with project manufacturing to set up the project manufacturing WBS model, then according to WBS analyzed result the enterprise preliminary activity center and the cost driver were created, and based on the preliminary activity center and the cost driver two products cost were accounted as the Activity-Based Costing application model.Finally, based on B/S (Browser/Server) structure, Microsoft SQL Server2000 as the database platform and Visual Basic.NET 2003 for development tool, the project manufacturing enterprise cost accounting module was researched and developed, and carried out some functions of the Activity-Based cost accounting information system.Through the above analysis, research and programming, offered a reference for the ABM further implementation in project manufacturing enterprise, introduction ABM information system in project manufacturing enterprise, got more detailed cost information for enterprise, and heiped make a favorable decision.