The Research On Activity-Based Costing Improve Cost Accounting System In The Environment Of ERP

Cost management and cost control is an eternal topic in enterprise management, especially in the present situation, technology is more developed, management mode is more informational, and the competition is more intense, take the cost advantage is very important in development of enterprise. The environment of production and management thoughts are changed, the method of cost control should be changed with it. Enterprise resources planning and Activity-based costing are the two advanced thoughts and tools in modern business administration.The ERP come form America to fit the requirement of market competition, was summarized by the base of practical experience. It fuses material flow, fund flow, information flow together well, improves the management efficiency greatly. At the present time, the method used by the ERP system to calculation cost and control cost is standard cost method in our country. With the improve of economic and the integrative trend of world economic, domestic corporations are exposed to the significant change of production and management environment, such as the enormous progress of technique, more serious competition, the change of capital intensity, more advanced manufacturing mode and so on, all of these changes cause traditional method of cost calculation supply inaccurate cost information, so business management need an advanced method of cost calculation such as ABC to improve cost information. The ABC collect and allocate cost on the basis of activity, it changed traditional mode which allocate cost by output as the only basis but use diversified cost drivers to make sure the procedure of cost allocation more reasonable and the cost information more accurately. In the method of ABC, the value and cost are created from activity chain which formed by closely linked activities. The value and cost produced by one activity will move to the next one with the promotion of production. The resources expenses that compose the cost of every activity are different, so the basis of allocate and added value are different too. By calculate the quantity and rate of added value may detailedly analyze the concrete conditions of every activity, its action and status in the whole activity chain. By this way, we may find the channels to reduce cost and help the managers improve production, distribute resources appropriately, enhance competitiveness of enterprise.For that reason, firstly, this article study theories systematically on ERP and ABC in home and abroad, then analyze the theoretical basis and feasibility of their combination and the improvement brought by combination on the basis of predecessors’study. After come to the conclusion that the two could be merged together, the step of ABC based on ERP and the improvement on accounting voucher, account, accounting reports for merge together are further discussed. At last, design accounting reports that can calculate cost and express added value of activities to help the managers analyze every activity, find ways to reduce cost and improve production, optimize enterprise resources, enhance competitiveness of enterprise,.At last of this article, the writer explain the probed problems in article and details of cost calculation combine a specific example by real data which derived from the accounting reports of enterprise, and design the cost calculation based on ABC according to the specific situation of enterprise. After organizing the basic data, make all kinds of reports according to the steps of calculating product cost. Find out the information about added value of every activity from the reports to find the strategies that will help enterprise reduce production cost. Further, it will help enterprise find more efficient way to allocate resources and arrange production, enhance enterprise value and market competitive ability.