South Central Transmission Machinery Product Costing Improvement Research Based On The Activity-based Costing Method

With the globalization of economic and the development of information technology, the business environment and management mode, which Chinese Enterprises are facing, have a great and thorough-going change. Because the companies compete from with their rivals to with their cost, traditional costing methods can not meet the requirements of enterprises. The activity-based costing is becoming an effective way to solve the problem. To address this issue, the domestic group of scholars introduces the theory of activity-based costing to our country and setting off a wave of reaching reactivity-based costing. Many advanced foreign companies have implemented reactivity-based costing method and achieved far-reaching implications, but few Chinese enterprises have carried out activity-based costing and make success. With China's accession to WTO, different industries are opening to the outside world gradually. At the same time, manufacturing enterprises are confronted with the challenge of advanced foreign enterprises. In order to improve their competitiveness and reduce the gap with foreign firms, they must learn the advanced cost management methods——Activity-based CostingCost management is the key to improving the competitiveness of enterprises, so we need to find a way that activity-based costing method can be widely used in China's manufacturing industry. ABC marks the trend of modern cost management, we have found the development both encouraging and worrying. Based on the analysis of principles of operating costs, this article make a analysis and improvement with regard to the Activity-based Costing of South Central transmission machinery works of aviation industries. This analysis aimed to provide a reference for the majority of Chinese manufacturing enterprises in the implementation of activity-based costing effectively, then the enterprises can win a favorable position in the future competition...