Erp-based Activity-based Costing Applied Research In The Securities Business

Activity-based costing first appeared in the late 1980s. The method has found wide application in manufacturing enterprises and is quickly developing in service enterprises. In China, researches on ABC in manufacturing enterprises start just not long ago, and few on service enterprises. With the wide application of ERP, it becomes a focus to fix the ABC into the ERP system. This research combines ERP, ABC and securities companies together for the first time. It aims to apply the ABC to securities companies.This research starts from the analysis of effect of ERP on enterprises, analyzes the feasibility of applying ABC to ERP system, and proposes the characteristics of ERP-based ABC. It combines the characteristics of securities companies' costs, analyzes the feasibility of applying ABC to securities companies. With the help of theory and experiences of ABC application in manufacturing enterprises, this research proposes the complete method of applying ERP-based ABC to securities companies for the first time.This research applies the theoretical analysis results to GF Securities Company, selects a typical branch, and combines ABC with securities companies for the first time. The research starts from the activity processes analysis, then defines activities, allocate costs, determines cost drivers, plausibly allocates the joint cost in the branch to specific clients and build up a complete set of ABC accounting system.This research proposes the theory and method of applying ERP-based ABC to securities companies. It facilitates specifying cost accounting in securities companies, strengthening customer relationship management, improving method of commission pricing and performance evaluation method. It is also an enriching and development of ABC theory.