Application Of Activity-Based Costing In Zhongte Equipment Manufacturing Company

With the rapid development of the economy and society,the competitive tension among corporations at home and abroad is getting increasingly heavy.Apart from that,the pace of the development of Chinese economy has slowed down as well under the influence of the continuously declining trend of the economy worldwide.Under such a circumstance,it will be far from practical for the our domestic manufacturing industry to pursue the chance of development,relying on the original extensive developing pattern-high investment and high consumption.Thus,a growing number of corporations have gradually changed their mind with the help of the relative policies made by the government,searching for an intensive developing pattern with high-tech and low-consumption.Meanwhile,they start to pay much more attention to managing and controlling the internal production cost.Under such a background,Activity-Based Costing,which this paper explores,can exactly help the modern corporations to cut down the cost,promote the efficiency,boost the economic benefits and improve the management mode.Via the exploration,ABC has got itself indeed the ability to replace the traditional method of calculating the production cost and provide the corporations with more precise cost-accounting mechanism,as well as offering them scientific reference when making strategic decisions.To our regret,currently,the researches on ABC abroad keeps far ahead of the ones at home.Thus,I decide to start this exploration with research theories and practical experience abroad.Then,combined with relative research achievements by domestic experts,I will analyze and explore the existing issues and faults of cost accounting in Zhongte Equipment Manufacturing Company,with the intention of finding out the necessity and feasibility of ABC in this corporation.Furthermore,I will also make a design and interpret some specific procedure and steps,based on the application system of ABC in such a corporation,including the identity and optimization of the increment task,the selection of scientific and reasonable resource drivers along with activity drivers,the effective distribution of indirect production consumption,the calculation of the entire cost.Then,with the gained data,I will compare and analyze the difference between traditional costing and ABC in both the accounting procedure and final result,with the purpose of confirming the superiority of ABC along with the feasibility of its application in relative manufacturing enterprises via the most visual statistics.Meanwhile,it may also help create a chance for the enterprises to solve the existing issues of cost accounting and offer some improving measures for reference.Of course,I also get myself the hope of making for the popularity and application of ABC at home,as well as proffering my slight assistance to the scientific development of our domestic equipment production corporations and the realization of the Chinese dream.