Applied Research Of Activity-based Costing In OEM Factories

With the form of global market and more and more fierce competition, requesting much thinner specialization , there are more OEM (original equipment manufacturer) factories than before. Product types are also gradually turned from large amount and little diversity to little amount and much diversity. The traditional cost management method (such as standard costing method) is hard to have advantages. Experts of Activity-Based Costing believe that activities consume resource and products consume activities. Firstly,ABC puts all cost of enterprises into different activities by resource factors and then puts these activities into all products by reasonable activities cost factors. In this way, it basically solves the defects of traditional costing, and provides good foundation for enterprises cost management. Therefore, great theoretical and practical significance has been attached to the study and spreading of ABC in our country.Through studying costs calculation and management status in KZ company ,this thesis is try to research the practical method based on ABC in OEM factories in typical KZ company.The study is based on ABC including analysis on applied background, applied study of operating costs calculation and applied study of operating costs management and analysis on applied effects. Through application and implementation of ABC, factories can quote externally, promptly and exactly, and can determine outsource fee to find no-added-value activities by reducing cost.Meanwhile, in manufacture factories especially in the high technology ones in our country ,as an advanced management method,ABC has certain applied value on improving the accuracy of cost information, cost controlling and management and decision-making.