Activity-based Costing And Standard Costing Comparison And Integration

Activity-based Costing method and Standard Costing method is paid close attention to on the present theory circle and practice circle. Because under the environment of new manufacture, that is under the CIMS background, it produced Just-In-Time Production System(JIT), Total Quality Management(TQM), Activity-based Costing(ABC) method. ABC can use to solve the problem of distribution of the indirect cost, at the same time it has offered a new train of thought. ABC only apply to the calculation of the manufacturing expense, even though it has great potentiality. Because of this, it must be considered that how to connect the two costing methods, thus, the connection not only keep the advantage of Standard Costing System on the inside controls, but also can fully play the function of the distribution of manufacturing expense. This thesis proceeds from the theory of modest Cost Management Accounting. It has summarized and absorbed the internal and external research achievements. This thesis has studied on the theory of Standard Costing and Activity-based Costing and analysed the merits, shortcomings and other aspects of these two cost methods. From comparing and analyzing, it can be found that they are not contradictive but supplementary to each other, so it leads the thought of the Activity-based Costing into the establishing of Standard Costing, and puts forward the amalgamation of the two costing methods .It not only have reserved and absorbed the merit of Standard Costing and Activity-based Costing but also overcomed the shortcomings of each costing method. It also has considerable reference value to guide cost management and cost control of Chinese separate enterprises.The thesis can be divided into four parts: Part one is the foreword of the full thesis. It points out clearly the motive of the selected title, the study of current situation and the research train of the thought. Part two has analysed and comparedthese two cost methods. It compared the theoretical foundation, the characteristic of calculation, the procedure of calculation, basic function, merits and shortcomings. From this it can be seen these two costing methods are supplementary to each other. All this is the basis for the following amalgamation. Part three has put forward the amalgamation of ABC and Standard Cost methods. Here is the place of innovation. Part four points out the necessity and urgency of these two methods, and instance analysis explain the amalgamation deeply.