The Application Research Of Activity-based Costing In Hunan Branch Of Tietong Telecommunication Corporation

As the three domestic telecom operators has began to progressive operate and further their step on the all-service operation ,the difference on product and service between the camp of fixed-line telephone and mobile telephone starts to slowly weaken or even disappear.To win the superiority in the future's market,besides from finding ways to improve the quality of the product and service to gain more earnings, strengthening on cost management and control to improve the core competence of the corporation is another effective path. Currently the Hunan branch of China TieTong Telecommunication Corporation has adopted the traditional cost accounting system which exist error and distortion on measurement and analysis of cost. Accordingly the result of cost accounting can't support the decision-making on product,price,budget,and other aspects of management which urgently need to introduce a new cost accounting model and management method. However , whether the Activity-Based Costing which serves as an advanced cost accounting model and management method is applicable for the telecom companies in China or not. The author tried to combine with the actual work of telecom companies, selected and studied on the Activity-Based Costing ,then simulated the cost acconting in Hunan Branch of The China Railway Communication in order to provide a new model which could introduce the Activity-Based Costing to telecom enterprise.The paper introduced the background on the research project and reviewed the related theories on the Activity-Based Costing , analyzed the distortions of cost information which cost acconting brought in Hunan branch of China TieTong Telecommunication Corporation , discussed the urgency of the implementation of the Activity-Based Costing,elaborated the basic principles of the Activity-Based Costing. On this basis , combined with the actual work of cost control in Hunan branch of China TieTong Telecommunication Corporation, designed the activity center and Cost drivers for it , created the Activity-Based Costing system that suit for the company .Besides analyzed the cost accumulation and cost allocation of customer service center. Compared the traditional cost accounting and the Activity-Based Costing.To operate the Activity-Based Costing successfully in the company. The author bring forward that the company must renew their ideas,restruct organization structure, establish the team for project implementation, optimize the foundation systems.