The Calculation And Analysis Of Indirect Costs Based On The Mrp Ii Abc Method

Overhead cost audit and cost management are long existing and very difficult problems. There are two traditional solutions to the problems, one is to broadly proportion the overhead expense in terms of number of products , and materials cost to products; another way is to put the hard-proportion overhead cost into the profit and loss within one period. These solutions put companies far beyond the elaborated management theory that advocated by managers in the tough competition environment. The Activity Based Costing theory (ABC theory) is a good way to solve the problems, but the harsh information requirement and high cost of implementation hold back its extensive use. With the actual requirements of enterprises, the thesis talks about the management and analyze theory that is based upon MRPII. This theory is established on the Concurrent ABC and integrated with MRPII. Help industry companies achieves the ABC management for overhead cost management. This theory is a better way to solve the problem mentioned above. We will discuss this theory following.Design and establish Concurrent ABC system Based on the ABC conception framework. The first we will get the message including activity, driver and overhead cost from MRPII The Integrating ABC system will compute the overhead cost of conduct and process, analyze and control the cost procedure at last.Making the MRPII estimation and MRPII application turn-up to be the information resource of ABC. It consist the activity cost database design, the analyses, quantification, collection of activity and driver.Design and establish Concurrent ABC system, which consisting main elements definition and confirmation, match of main elements and MRPII data, determine the proportion way, calculation and analyze of the overhead cost of product.Integrating ABC system and MRPII system to establish an integrated cost information system. These methods promotes the precise rate of overhead cost of products when we audit the cost, and advocates the cost control and analyzemethod that become the base-bone of cost procedure and cost infrastructureoptimization.We take K Company as model, design and realize the industry overhead cost audit and management. Due to the MRPII & ERP theory are popular and used wildly, this theory is a good reference to the other kinds of enterprise.