An Applied Research Of The Strategic Activity-based Costing Method Of HA (Heng’an)

With the repaid growth of economy and the integration of global market, the21st centurysees the replacement of industrial economy by knowledge economy. The informationrevolution, supported by computer, communications and internet technologies has exerted atremendous impact on the society, brought huge shock to the methods and techniques ofmanagement and left unprecedented challenges to corporate cost management. Nowadaysmarket competition is heating up among enterprises, corporate production and managementdecisions have been isolated from the scope of the enterprise, and gradually extended to theoutside, and therefore only consider internal production processes can not keep up withcontemporary management needs. It should be combined with the enterprise value chain, putthe cost management up to the strategic level, consider the corporation’s internal and externalcost together.From the present situation of operating costs management and value chain research, thepaper will describe the theory about cost management and value chain, and introduce a newmorden method-strategic costing method, the combination of the value chain analysis andoperating cost management. After a theoretical analysis, combined with the HA basicoverview of the company, the management cost status, problems and cause analysis, and thenthe HA companies strategic value chain analysis, the paper stand on the perspective of internaland external value chain, account the enterprise value chain costs by operating cost analysis,get the inappropriate enterprise cost management program through cost ananysis andperformance evalution so as to design a strategy costing application in HA, which will addvalue and gain a competitive advantage for HA, achieve the greatest degree of loweringoverall costs by strategic business integration and centralized configuration of resources. Atthe same time, HA’s example will provide a reference for similar corporations on how tooptimize the value chain strategy costing and achieve the best cost management.