Research On The Application Of Total Cost Management Based On Activity-based Costing In China Unicom Of Hebei

Since the separation of enterprises from government in 1998,the state has implemented a series of important reorganization protocols in order to learn from advanced enterprise management concept and method of overseas and domestic,as well as constantly optimize the environment of competition in telecom industry,which ultimately formed a co-existence competition pattern of three telecom operators of China Mobile,China Telecom and China Unicom.Three major telecom operators are all having the qualification for all-service operations,so that in the telecommunications market where the user tends to saturation,the homogeneous competition is very fierce.In the current market economy environment,the competition of telecommunication enterprise is fair and sufficient;the enterprise will take an invincible position in the competition and obtain a permanent development if it can provide the best service for the user with the lowest price.Therefore,the major operators are always exploring the effective ways to make the correct business decisions,which then bring more users for the enterprise,and maintain a steady growth in corporate income.The current telecommunications market has become saturated;the intensity of the competition for telecom operators can be imagined.For the development of the company's business,the investing proportion of operators in marketing,network construction and maintenance and other aspects are staying at a high level;due to the fierce competition,the situation that incremental rise but income decline is happened occasionally.Few years ago,the telecom market was in a rapid development period,with a rapid growth in revenue,and the cost management of enterprises was extensive;In recent years,the telecom market gets saturated,income growth is slow and even reversed,the enterprise shall start from the aspect of cost management,and explore how to strengthen enterprise cost management,as well as mine resource use efficiency,if it wants to continuously improve business profitability,and take a leading position.As an advanced cost management concept and method,Activity Based Costing(ABC)has formed a mature theoretical system in foreign countries,now has a large number of application examples.According to the theory of "costing driven",ABC has centered on “activity”,to distribute consumed resources to activities according to the consumption of resources and a special distribution principle;then allocate the activity cost to the cost object(product)according to theconsumption to the activity by cost object(product).The calculation process of activity based costing can be summarized as follows: Resource-activity–object.In accordance with the principle of "who benefits,who bears",the total cost management can optimize the cost structure of enterprise,invest enterprise resources rationally,and achieve the purpose of advancing quality and efficiency of enterprises through the rational costing allocation.Through the application of ABC theory and calculation method,the shared resources is allocated reasonably,cost accounting data becomes more clearly and accurately,which will contribute to establish the concept of cost benefit and responsibility of cost users,to guide the rational use of resources,reduce business costs,and improve income profit margin of enterprise.This paper is starting from the introduction of activity-based costing,total cost management and other advanced cost management idea,expounds the necessity and feasibility of implementation of total cost management based on activity based costing in China Unicom of He Bei,analyses the problems existed in the traditional enterprise cost management accounting of China Unicom of He Bei.By introducing the realization process and application of total cost management in China Unicom of He Bei,this paper is to provide a reference for other telecom operators in implementation of cost management innovation and development of cost decreasing and benefit increasing.