Implementing an activity-based cost system

• Main Authors: Fen-jung Chen, 陳芬蓉
• Other Authors: Mei-lun Wu
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/76999982178028839832

碩士 === 東吳大學 === 企業管理學系 === 96 === The business environment is changing rapidly today. Customers want to have diversified products. So, It is important to get accurately product costs. Traditional volume-based systems distort product costs. Activity-based costing let the company to acquire more accurately cost and make better decisions. In this paper, I analyze an equipment-manufacturer who want to implement an activity-based cost system . The implementing steps and performance are listed below: 1. There are seven steps to construct activity-based cost system. 2.Activity-based cost system assign the costs of direct labor and manufacturing overhead into job-related costs and product-related costs, which will calculate accurately product costs and let the company to make pricing decisions. 3. Activity-based cost system can calculate each customer’s sales revenue and sales cost, which can let the company to do customer-relationship management. 4. The improvement of operation procedures can improve the quality of product.