Study On Activity-based Costing Applied Among Small And Medium Enterprises

The globalization of economy and markets has become an extremely significant factor of business competition nowadays. Especially after 2008 when the global financial crisis hit China’s entity economy, causing the unsatisfying performance of product market,the cost and price fights among manufacturing enterprises has been even more severe. As most of the local enterprises are using traditional cost calculation method to calculate its cost while the figures got are no longer accurate enough,this method is apparently out of date. And the small and medium manufacturing enterprises have suffered most. Therefore,to reflect the accurate cost effectively and efficiently,and to keep an enterprise thriving and prosperous in a longer time, a new cost calculation method is to be implemented.This paper aims to discover a new cost calculation method based on the case of XX. It discusses the concept,basic principles and calculating procedure of activity cost. Then there comes the existing cost managing model of XX and the necessity and feasibility of using activity cost method.This paper compares the traditional method and the activity cost calculation method and finds out the advantage of the new method over the traditional one.