Research On The Problems Of Activity-Based Costing Application And Development In Our Country

As a high-tech products and services’cost accounting method, Activity-based costing method(ABC) is favored by companies in the early1980s.It has been widely used in the United States. In recent years, with increasing levels of China’s science and technology, information technology is changing our traditional concept of cost accounting. The achievement and spreading of automation cause significant changes in corporate cost structure and the market competition is increasing. All these factors lead to higher requirements on enterprise cost management, which the traditional cost method can’t meet well. So China began to introduce the activity-based costing. Demonstrating an unparalleled advantage, Operating cost method has a certain value, however, the extensive of its application in China is far from abroad, why not? This research explores the reason of inhibiting the development of activity-based costing with the case and finally puts forward countermeasures.The paper is divided into six parts, the perspective of this study is determined on the basis of the review of previous studies and explores the reason of inhibiting the development of activity-based costing in our country.From the basic theory, the text analyzes the advantages and the application value of activity-based costing, which leads to its discrepancy with reality of not widely used, next analyses the reasons and finally propose countermeasures. The overall structure of the article is as follows:The first part is an introduction part, which introduces the background and significance of this study,literature review that summaries the results of previous studies and finally indicates this research ideas, innovation and limitations of this paper.The second part expounds the basic theory,which points the background of the activity-based costing and introduces the concept system, applicable conditions and accounting processes of activity-based costing.As the main part of the article, The third part which is on the basis of analysis of the advantages and application value of activity-based costing inquiries the reason of not wide use of it.The part4is Case Overview, which takes the XJ Electric successful application of activity-based costing for example. It first compares difference of XJ Job Costing and original traditional cost approach, highlights the value of the activity-based costing, and then analyses the problems that XJ is encountered with and the corresponding Solutions. This article will give some inspiration to practitioners.On the basis of the analysis in the third and the fourth two parts, the fifth part puts forward corresponding countermeasures respectively, from a macro (that is guided by the government) and micro (enterprise) two levels.The sixth part summarizes the advantages of activity-based costing, the key to successful implementation and points out that though activity-based costing has some limitations, but it still has a big role in value, if it is guided properly, its development will become an irresistible trend.The innovation of this paper is its research point of view, many enterprises in our country starting research from the application point of the activity-based costing, that studies how the operating cost method is used in our enterprise, however, after20years of development and research, the range of applications in China is still small and the development is still slow, the reason is the lack of internal and external environment that is the support for the implementation of activity-based costing, we need fundamentally solve this problem, the government, enterprises must unite to improve the environment, this article wants to cause practitioners and government attention that contributes to environmental improvement of the implementation of activity-based costing.