Activity Based Costing Applied Research In The Chemical Fiber Industry

With the widespread of high-tech in the chemical fabric industry and theimprovement of automation and productive organization system, the traditionalcost-calculating method is facing with great change. Meanwhile,Activity-Based Costing lays its foundation in the chemical fabric industry.This paper will discuss the application of Activity-Based Costing in thechemical fabric industry, explaining its impact on improving management anddistributing sources. It also summarizes fundamental theories and methods ofActivity-Based Costing and guides its application on enterprises in theory.In addition, it analyzes the present situation of cost management in thisindustry, makes some comments on the present cost-managing models, and pointsout the necessity and possibility of adopting Activity-Based Costing in thechemical fabric industry.Taking Lilong Chemical Fabric Company as an example, this paper studiesthe design of Activity-Based Costing system and pricing strategies. Based onthe research of Activity-Based Costing, it addresses some problems concerningthe effective application and provides some suggestions, aiming at adoptingthis method to chemical fabric enterprises.