Activity-based Costing Application Research Under ERP Environment

Cost management is the very important part of enterprise management, cost accounting is the foundation of cost management, its basic function is provides accurate cost information to managers so that managers could make the correct decision-making. Nowadays market competition is increasingly fierce, cost become the key of success in enterprise competition. Now the current enterprise managers have higher demand of cost information about timeliness, accuracy and careful level. The traditional cost accounting method couldn’t meet these needs. This requires enterprises to use information technology and the advanced cost accounting method to provide timely, accurate and detailed cost information. The activity-based costing could provide enterprises with more accurate cost information. The implementation of the activity-based costing need a large amount of statistical work and administration cost, then we can use modern information technology solve this problem effectively. This paper makes a point that use the activity-based costing to control cost under ERP environment, then ERP and the activity-based costing could band together effectively. It has very important significance for enterprises to raise their competitiveness and the long-term development.This paper analyzes the activity-based costing and ERP theories of management, put forward the thought of combination. Design the activity-based costing management module of the ERP environment, combined with the case of companies’ own tentative case application. By studying we got the following conclusions:In the ERP environment, implementing activity-based costing management is feasible. Company has a large manufacturing cost to total cost ratio, product variety, has the certain computerization basis, etc. In the ERP system has been applied to the company add module operation cost, can improve the efficiency of operating cost management, to avoid a large amount of tedious manual statistical work and collaborate, to make the product cost more close to the true level.Activity-based costing management in the ERP environment has more advantages than traditional cost accounting. Traditional cost accounting method only uses one allocation rate of manufacturing cost in cost accounting, and in fact each product throughout the production process of depreciation cost, expenditure on power consumption, the relevant supporting services are different, the consumption of the cost of manufacture is different also, traditional cost accounting method of manufacturing cost allocation more rough. Activity-based costing management is to the allocation of resources to the activities, the activities redistribution to the product, on the distribution of manufacturing expense more careful, more accurate.