An Application Research On Target Activity-Based Costing Management In Company A Under ERP Environment

In the context of economic globalization,the requirement of manufacturing enterprises should be more precise and meticulous in costs control.With the change of enterprise production mode and the intensification of market competition,traditional cost control methods are difficult to adapt to the new era.Therefore,if traditional cost control methods are adopted continuously,the cost information will be distorted and the cost control efficiency will be low.In this context,the accounting scholars explore new cost control methods constantly,the target costing and activity-based costing were put forward in different periods,however,both of them have not been widely used in manufacturing enterprises.The birth of ERP become a effective tool which the enterprise managers use enterprise information for business management,making a combination of the information technology and enterprise management idea,and exploring a cost management which could adapt to the new manufacturing environment.This paper focuses on the research direction,analyzing advantages and disadvantages and limitations in target costing and activity-based costing,attempting to use these two methods comprehensively in the environment of EPA,so as to the paper conforms to the demand of the cost management of manufacturing industry.This paper will explore the theory of target activity cost management and study the feasibility of this method with specific cases.Company A is a typical manufacturing enterprise,its production mode has experienced mixed production from less variety and mass production to multiple varieties and small batch,it is a representative of the cost management requirements of manufacturing companies nowadays.Through the implementation of the target cost management of Company A,we found that the target activity-based costing management can solve the problem of limitation in cost management pattern effectively,even it can adapt to the current mode of production in the manufacturing enterprises satisfactorily,it can improve not only the accuracy and scientifically of its cost management,but also the cost management of ideological change.In theoretical research,the method of the two cost theories integrated by target activity-based costing management would provide a new direction for cost management's theoretical research in the future.