Research On Improvement Of Cost Management Based On Activity-Based Costing For China Telecom Corporation Limited CS Branch

China Telecom Corporation Limited began its financial transformation since 2009,for the purposes of innovation in Accounting and Financial Management,it required not only the improvement in accounting level,but also the combination of Financial Management and Business Operation.In this way,the Finance Department should spend more effort on Business Decision and Value Management form a financial perspective,so greater demands were being placed on the Cost Management level of China Telecom.China Telecom Corporation Limited CS Branch is using Traditional Costing in accounting,it has a lot of deficiencies.On the one hand,the Product Cost can not be accounted,on the other hand,its Cost Management does not match its business decision,the budget,the control and the performance assessment for Cost are separated form Business Operation.Because of Traditional Costing is not suitable for the company which has a high proportion of indirect cost,such as the telecom carriers,this is the root cause of these problems.Activity-Based Costing is an advanced method in Cost Accounting and Cost Management,which is especially applicable for companies with high proportion of indirect cost.This paper used the theory of Activity-Based Costing,based on the work experiences in China Telecom Corporation Limited CS Branch,firstly discussed the necessity and feasibility of Activity-Based Costing should be adopted to this company,then designed an Activity-Based Cost Accounting system which can be used in China Telecom Corporation Limited CS Branch,and take the case of a Sales Department of this company by using Activity-Based Costing in Cost Keeping.After that,this paper put forward the improvement measures of Cost Control and Cost Budget with the optimization of Activity Chain and Activities,finally it proposed the desired result for improvement of Cost Management in China Telecom Corporation Limited CS Branch.Based on the improved design of Cost Management,this paper further discussed the application and supporting measures for implementation of Activity-Based Costing Management.By using Activity-Based Costing,the Product Cost can be accounted in China Telecom Corporation Limited CS Branch,and more feasible Cost Control System can be established,make it possible for the combination of Cost Management and Business Operation,which can achieve a higher level of Cost Management.Through this research,it can provide some experiences for the use of Activity-Based Costing Management in Telecom Carriers.