Based On The Operating Cost Method Of Manufacturing Enterprises

The idea of Activity-based costing was proposed in 1940s in America. It has developed 60 years, many overseas companies have already successfully put into effect, most of them have gained the effect of cost reduction, promote their competence. ABC method is also confirmed that it's more scientific than traditional cost method. Along with joining of WTO and gradually opening, manufacturing industry in our country has to face the big challenge that is how to promote its competence and how to shorten the distance between overseas companies. If they want to solve this problem, they have to study overseas company's advanced method of cost management, because cost management is key to promote firm's competence. So our country's company have to know how to generalize ABC method, how to solve this problem is the purpose of this paper.The first chapter gives an introduction of Activity-based costing development process, indicates the practical historical value of ABC method. And then introduces this paper's researching purpose.The second chapter introduces ABC method's fundamental theory, focuses on fundamental principle, calculate theory and mathematical modal, furthermore, compare ABC method with traditional costing method.The third chapter discusses the necessity and feasibility on the application of ABC in manufacturing industry, concludes that application of ABC method in manufacturing industry is essential and feasible.The fourth chapter is based on ABC method's fundamental theory and principle design principle, furthermore, design the general accounting procedures of ABC method in manufacturing industry.The fifth chapter takes TX limited-liability Company for example as the case study. Through analyzing on current situation of cost calculating in TX limited-liability Company, it proposes the general procedures of the applications on ABC. And introduces the details of how to use ABC in Electronic Assembles Factory which is a factory in TX limited-liability Company in detail. It also test the application results on ABC , analyzes difference between the ABC and the traditional cost accounting method.