A Study Of Department Performance Evaluation Based On ABC-EVA Model

In recent years,with the progress of science and technology and economic development,the market demand of all kinds of products is expanding,and the competition faced by enterprises is becoming more and more intense.At this time,improving the reliability of internal performance evaluation and ensuring the long-term and healthy development of enterprises become the key to China's manufacturing industry.Activity-Based Costing(ABC)has attracted much attention for its unique concept,that is,job consumption resources and product consumption operations,and can improve the accuracy of departmental cost information.However,because of the neglect of capital cost,it is easy to cause enterprise management failure.Economic added value(Economic Value Added,EVA)can effectively overcome the defects of the activity-based costing and improve the accuracy of the cost information because of the deduction of the cost of capital cost occupancy in the calculation.Therefore,the research based on the integration mode of ABC and EVA(ABC-EVA mode)has certain theoretical and practical significance.At present,the research on ABC-EVA integration theory mainly stays at the product level,and whether the integration theory can be extended to the Department and how to use the integration theory to evaluate the performance of the Department are all problems to be solved and the main research content of this paper.This paper takes the evaluation of departmental performance as the research content,and follows the idea of "problem analysis-literature review-Theoretical Overview-Model Construction-Empirical Research-summary and prospect".It adopts the literature analysis method,comparative analysis method,modeling analysis method,principal component analysis method,and based on the ABC-EVA model to evaluate the performance of the Department.The type is discussed in depth.Through literature analysis and research topic,this paper first expounds the process of product cost accounting based on ABC-EVA model,and introduces the function relationship between cost,income and profit by introducing the "quantity and profit model",and puts forward the concept of "department operation weight".Secondly,the bridge between the cost of product and the performance of department is built by using the weight profit model and the work weight of the Department,and then the department performance evaluation model based on ABC-EVA model is built.Finally,combined with specific cases,principal component analysis is used to verify the feasibility and effectiveness of the lower level industry performance evaluation model.Through the study,this paper draws the following conclusions: the construction of the model enhances the innovation of the evaluation index of the department performance and the hierarchy of the model;the evaluation model is feasible and effective in practice.