Operating Cost Management System And Its Application

According to the clue from theoiy to application, this paper firstly reviews the evolution of Activity-based Cost Management Accounting and explained its future view, theoretical foundation, important role and research significance in Management Accounting. Then the principal framework including three advanced developing section is set :Activity-based Costing(ABC),Activity-based Cost Management(ABCM),Activity- chain and Value-chain management, and the basic content of Activity-based Cost Management System(ABCS) is expounded. From different perspectives of primary application and developing application ,this paper focuses on exploring the specific application of ABCS theory and method to Decision and Executive Accounting, Performance Improvement, Customer Value Analysis, Quality Management and Enterprise Process Redesign. On the basis of local circumstance of ABCS application, it presents the fundamental condition and explores the designing procedure of the application of ABCS in China. Lastly, supported by the typical case of the application of ABCS in Handan Steel Company and Xi抋n Farm Machinery Factory, it discusses the enlightenment on the extending application in large-scale enterprises in China.