Application Of Activity-basedcosting Management In H Manufacturing Company

With the rapid development of science and technology,enterprises are facing fiercer competition.In order to keep a position in the fierce competition enterprises must go advance with the times.With the improvement of automation,Machine replaced the artificial gradually.The cost structure of the product has undergone major changes,traditional cost accounting method could not meet the requirements of modern enterprises.The Activity-Based Costing Management exactly to fetch up the shortcomings of traditional cost management.The article introduces background of Activity-Based Costing Management at first, and then present research status of the theory at home and abroad.Secondly, in this paper, H company still use traditional cost accounting method to calculate the cost of products,H company only use quantity as the allocation criteria in allocation of manufacturing costs,and this leads to distort the cost information of products.Again,by comparing the results of the two methods on the share of indirect cost, concluded that the reform of traditional cost accounting method is necessary. And then, to design appropriate Activity-Based Costing Management for all aspects of the company,for example: product design, procurement, manufacturing, sales and other links.Reasoning the importance of Activity-Based Costing Management in management decisions、cost control and other aspects of H company. While with the use of activity analysis and performance evaluation to improve employee`s awareness on cost controlling and resource consumption.In short,Activity-Based Costing Management could help companies to add value,and to improve the competitiveness in the fierce market.Finally, this paper analyzes the obstacles of H manufacturing company on Costing manage under the existing conditions, and puts forward the costs of enterprises in line with the management and control of the practical requirements of recommendations for improvement, in order from both internal and external enterprises to implement sustainable development strategies and cost management, inaddition,this thesis expect to provide medium manufacturing enterprises with some advice, and to improve competitiveness the of enterprises in the competitive market.