Research On Cost Management Of China Tower Corporation S Branch Based On Activity-based Costing

In the context of the speed-enhancing and price-cutting initiatives in communication industry,there is an urgent need for China’s three major mobile operators to reduce costs and increase benefits with each passing day.As main customers of China Tower Corporation S Branch,three major mobile operators conduct cost pressure directly through the business pricing model based-on cost plus.So there are new requirements for the cost management of China Tower Corporation S Branch.At this stage,S Branch is still using traditional cost accounting model and management method.Due to lack of in-depth analysis of cost drivers and innovation of cost management concept,a series of problems have arisen: inaccurate product cost accounting,unreasonable means of budget management and inefficient cost control of outsourcing.Activity-based costing is a modern management accounting method,which helps to improve the accuracy of accounting and strengthen the management of cost drivers.Based on the theory of activity-based costing,this paper will conduct a case study of China Tower Corporation S Branch,in order to optimize the cost management model.Firstly,with the help of comparative analysis,this paper points out the problems and reasons of product cost accounting mode,budget management and outsourcing cost control.Then,this paper describe the necessity and feasibility of implementation of activity-based costing.Secondly,this paper improves the cost accounting mode based on activity-based costing,defines the basic principles,designs specific operation steps,selects tower of a single site as a sample for calculation and evaluates the implementation result.It comes to the conclusion that activity-based costing can make the product cost more accurate.Finally,based on the optimization of cost accounting,this paper puts forward the relevant management measures of budget control and outsourcing cost management.At the same time,the desired effect is analyzed.This paper came to the following main conclusions: 1.The introduction of activity-based costing is necessary and feasible.2.The introduction of activity-based costing is conducive to the establishment of a more accurate single-station product cost accounting system.On this basis,building a cost management system based on activity and cost driver helps to control the cost scientifically and reasonably under the guidance of strategic targets.China Tower Corporation S Branch can also promote the cost management level,further enhance the core competitiveness,improve customer satisfaction and thus enhance market competitiveness.