Activity-based Costing In The Application Of China's Manufacturing Enterprises To Promote Analysis

Most of manufacturing companies in our country, still generally use the output of products, machinery hours& artificial person that can be obtained directly as the indirect cost allocation basis at present. Such distribution method seems not to be suitable for cost accounting of enterprise's purpose today. When the new manufacturing companies of the new and high technology is emerging in an endless stream constantly.True causality between wrong distortion products and manufacturing expense has transmitted the distorted information of cost of goods. Influence efficiency and exactness of enterprise's decision seriously.The ABC has provided a new kind of indirect expense distribution method to enterprise. The ABC starts up with cost drive , calculate the work distribute the manufacturing expense according to the work consumed by products. Such distribution method reduces the subjective supposition influence in the expense allocation process. Reflect the true consumption causality relation between expense and products. Provide the decision- makers more reliable products information. The ABC has been applied in developed countries in enterprise practice. Its validity and accuracy has manifested. But in our country, the ABC is not widely applied in manufacturing enterprises at present. Some companies have succeed in implement the ABC, the more results of application of ABC are unsuccessful. The cost increase of ABC implementation doesn't result the contribution of manage and accurate product information. Investigates is various. Different idea about the ABC , practice problems of collection information , enterprise manage pattern, limit the application of ABC. High cost and the gap between local accounting GAAP and ABC are also make the application become more difficult in manufacturing enterprises in our country.In this paper, we start with the conception and theory of ABC and manufacturing cost, by the case study of ABC implementation to investigate the ABC operation benefit , environment the companies face and the reasons of difficulties. On this basis, propose some suggestions and measures which can facilitate the process of ABC implementation in manufacturing companies, also resolve the problems in ABC practice. Expand the scope of application of ABC. To push the Chinese manufacturing companies obtain more advantages in product cost information and manage improvement.