YB Company Study On Application Of Activity - Based Costing

The Activity-Based Costing (abbr. ABC) is on the basis of such theories, to research the reason of wrong original cost calculating by the direct labor. Based on the combination of the practices and theories, this thesis studied the case of using the ABC in the work in YB co,. Ltd, researched the detail using procedure of this method in the middle-sized manufacturing enterprises in our country, and the strength and weakness it brought to the company, proving that Chinese plants have the conditions of implement.A modern enterprise is an assembly of orderly activities for the customers' need in essence, that comes to a "Activity-chain". We should learn the relation of costs and activities with the processing, that is regarding the costs as the costs of activities, rather than the productions costs. Then, the activities are the factors of evaluating the profit, and we analyze the information of activities costs, estimate the value of the activities benefiting for the enterprise.This thesis is beginning with the conception of ABC, expounds the result of the ABC researching in modern theory fields. Having introduced the developing history of ABC, analyzes the real situation of the system development and growing trend, puts up a question of whether it could being used in Chinese plants. This section makes us totally know about ABC; then introduces the applicable conditions of ABC and the details of the implement procedures, and makes the readers grasp the process; then the thesis introduces YB Company in detail. Following with the expounding the situation and the problems with using the original cost calculating, and the abilities of applying ABC in YB Company. After the surveying, the thesis has a system design of ABC about the Value-chain in YB Company. At last, it has a margin analysis according to the products costs calculating by ABC and the original costs, concludes to that ABC could bring the improvement to YB Company at recent period. Using this method, YB Company not only could refine almost all products cost, but also had a totally evaluating of the supply-chain and value-chain, found out its own situation in the market, set up the competitive advantage among the competitors, ensured YB Company's continued advance of situation in the plastic steel field. At the same time, the thesis also proves that Chinese manufacturing plants have the basis of applying the ABC, the basic ABC theory could be practiced in Chinese enterprises.It is not a very long time since the ABC development in China, and the number of theplants using it is less. Although the need of it in enterprises is very great, but the realization and practice are not enough, so it is very hard to research it in this thesis. But we believe that if we continued thinking and discovering, it would be in great effects.