Research On Application Of Activity Based Costing In Advertising Media Enterprises

With the China state-owned enterprises comparison,advertising-media company,small scale,which is mainly composed of small and medium sized or natural person investors created,and business model is not fixed,but also the lack of unique advantage of state-owned enterprises have.Although the advertising media company,products sold in the market is very good,but also has strong competitiveness;but from the current situation of China's economic development shows that only low price products to occupy the dominant position of market economy.So,in the current situation of China's economic development,in the management of advertising-media companies in the important economic status of cost control to occupy the irreplaceable significance.China's many small-and-medium-sized advertising-media companies,and not a professional cost management methods,which is based on the accounting function of the cost of accounting for a single business enterprises,accounting can meet the management needs,but such as advertising companies,this new type of service industry has a large number of different business,and even a lot of business is tailored for customers,if so many different business to take a unified accounting,then a large number of non-direct allocation of the cost will be unreasonable,the result is cost information distortion,and managers cannot be based on the correct cost of information on the business to optimize the management,and ultimately lead to managers to make an incorrect decision,and even lead to business failure.Activity-based costing was proposed and applied in western countries in the twentieth century,when western industry found that product costs were disconnected from reality and that the concept of activity-based costing was widely concerned in order to accommodate cost management and reality.Some new consulting firms have been effectively applied,and China has also been in the past 10 years on the work cost of the research and application of the popularization and promotion.The activity-based approach looks at the cost of an enterprise from a management perspective,which enables enterprise cost management to be able to address cost management issues based on more accurate cost information that ultimately enables companies to stand out in the context of intense modern competition.This paper analyzes the current situation of cost management in S company,found that most of the product is the virtual product,rely on highly automated production equipment and modernization,and the employee have to do is work operation automation equipment with their own level of knowledge on the products that the customer wants,in the operation of automation equipment the workload is very easy to quantify and reasonable allocation,but notto simply quantify the workload as some labor-intensive enterprises in the product design,so the reasonable distribution of wages in the product is the current enterprise cost accounting needs to be improved.This paper mainly studies how to improve enterprise cost management by ABC,in the process of making S advertising media company A in advertising as an example,based on the actual data of A advertising and analysis,using the activity-based costing method in the enterprise in the production process of each cost re the definition and collection,the original definition of period expenses according to the actual conditions of reasonable return for the production cost of the product,and to work for the distribution of degree based cost allocation,the real cost of products compared to the original cost accounting method to achieve the maximum reduction,improvement of the cost of using activity-based costing management,finally enable management to real cost effective management of the enterprise based on the business,increase business value.This paper demonstrates the feasibility and effectiveness of activity based costing(ABC)in this kind of enterprises with knowledge and technology as the main production cost.