Research On Activity Based Costing Based On Economic Value Added

With the change and development of science and technology,enterprise manufacturing mode transition,management accounting is increasingly important.From the beginning of the 20 th century,a great change of the management accounting,from the initial emphasis on financial orientation management decision analysis to seek to maximize shareholder value.Economic Value Added,homework cost method,the balanced scorecard management tools,such as promoting the development of the management accounting in China.Based on EVA,ABC is the advanced concept and method of modern enterprise cost management.Cost management is based on operation center,and the cost of product distribution is scientifically provided,providing timely and accurate cost information.This paper reviews the theory of activity-based costing and economic value-added,and constructs a case study framework.Firstly,it analyzes the implementation basis of EVA based on EVA,divides FH's product cost into direct operating cost,indirect operating cost,direct capital cost and indirect capital cost.Secondly the product cost can be divided into direct operating costs,indirect costs and the cost of capital,the author further cost of capital can be divided into direct capital cost and indirect cost of capital.Depend on the method of direct cost of capital through product-capital allocated to the benefit object and the indirect cost of capital method through the homework-capital dependence method assigned to cost objects.At the same time,the cost-The author analyzes the key factors such as the division of the operation center and the determination of the capital ratio and so on.Finally,according to the analysis of the relevant information of the enterprise,confirm the capital cost rate,confirm the main operation,set up the operation cost base,allocate the operation cost and allocate the capital cost;A step to complete the EVA-based activity-based costing system design.This paper uses the method of case study to research FH company deeply,and expatiates the steps of using Activity Based Costing and economic value-added.The paper analyzes the current situation of cost management,determines the cost of capitaldetermines the main operations,establishes the operating cost database,allocates the operating cost and the capital cost,introduces the economic added value into the activity cost method,and calculates the cost difference between the current On the basis of the cost and the improved activity cost method.Cost variance analysis,profitability analysis and product pricing decision analysis are carried out to broaden the application scope of management accounting and demonstrate that activity-based costing based on Economic Value Added is an effective cost management tool.