The Research About Analysis Of Municipal Government Administrative Cost Based On ABC

Under the trend of increasing fiscal transparency and reducing government expenditure,the administrative cost of reasonable arrangement of all levels of government,especially municipal government,becomes critical.This paper puts forward the view that the government cost of municipal government should be re-calculated based on ABC with theoretical feasibility.It also investigates the administrative cost profile and cost trend of the national municipal government,and chooses the T City with good national representativeness.The case selects the Transportation Bureau and the Education Bureau with different administrative operations features.Through the analysis of the activity-based costing model,it is found that each department should establish a separate model function center with the characteristics of their respective administrative services.In addition,the comparative of the cases can obtain: Different municipal departments has different operation center division;its characteristics determine the mode of business entry model;the cost items are allocated according to the motivation of the job center with no fixed allocation.It proves the feasibility of differential control management.The research result is to set up a cost management system of government ad ministrative.The department uses the activity-based costing to manage the adminis trative cost,and the value added to analyze the direction of the cost control.Thissystem consists of three parts: data cost table,activity-based cost model group and corresponding value-added data analysis.The significance is that the system serves for the budget management and the financial sector.It can point out the value added and non value-added costs in the cost items,and make the cost management of the government focus on controlling the non value added cost.