An Empirical Analysis of Activity Based Costing in Chinese Enterprises

Huijuan Lin; Yanglin Li; Wanxin Li

doi:doi:10.11648/j.jfa.20160405.17

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An Empirical Analysis of Activity Based Costing in Chinese Enterprises

Huijuan Lin, Yanglin Li, Wanxin Li

Published in Journal of Finance and Accounting (Volume 4, Issue 5)

Received: 19 September 2016 Accepted: Published: 19 September 2016

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Abstract

In recent years, with the rapid development of China's economy, the progress of productive forces and economic system led to the shift from a seller's market to a buyer's market, the single species mass production mode to the varieties and labor intensive industry to technology intensive industry. Therefore, production based on sales have become the norm, once high profits caused capital investment along with the releasing capacity and increasing production, the competition between the enterprises gradually bases on the cost. Therefore, with the needs of business development, a new cost accounting system - activity based costing came into being. Activity based costing is based on the cost driver, which could allocate the indirect manufacturing costs more reasonable, then achieve the purpose of further cost control. In many western developed countries, activity based costing has been used in the enterprise. Although its application scope in Chinese enterprise is not very extensive, it has already got certain attention of many enterprises in China.

Published in	Journal of Finance and Accounting (Volume 4, Issue 5)
DOI	10.11648/j.jfa.20160405.17
Page(s)	301-309
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Activity Based Costing, Cost Driver, Indirect Manufacturing Cost

References

[1]	Zheng superior. CPAs operating cost management research [D]. Hangzhou University of Electronic Science and Technology, 2015.
[2]	Chen Hongrong Costing in applications for SMEs [J] Market Modernization, 2015, No. 78611: 254-255.
[3]	Kaplan, Robert•S and Atkinson, Advanced management accounting, 3rd edition, Upper Saddle River, NJ 07458: Prentice Hill, 1998
[4]	Dai Peng Empirical Study Costing in manufacturing companies use the [D]. Suzhou University, 2012.
[5]	George Stabs, (1971). Activity cost accounting and input output accounting.
[6]	Kaplan, Robert•S and Atkinson, Advanced management accounting, 3rd edition, Upper Saddle River, NJ 07458: Prentice Hill, 1998.
[7]	Eric Kohler, (1954). Dictionary of Accountants.
[8]	Cooper, R Does Your Company Need a New Cost System, Journal of Cost Management, Spring 1987, pp. 45-49.
[9]	M. Guimaraes, M. Alger, R. Yamada, M. Anderson, C. Hannegan, C. Schonholz, J. Adams, B. Sachs. Time-driven activity-based cost accounting methodology to improve cost-effectiveness in vascular and interventional radiology service at a large university academic medical center [J]. Journal of Vascular and Interventional Radiology, 2016, 27 (3). 11-12.
[10]	Waters Peter M. Value in Pediatric Orthopaedic Surgery Health Care: the Role of Time-driven Activity-based Cost Accounting (TDABC) and Standardized Clinical Assessment and Management Plans (SCAMPs). [J]. Journal of pediatric orthopedics, 2015, 35 (5). 1-2.
[11]	Christian Nowak, Christian Linder. Do you know how much your expatriate costs? An activity-based cost analysis of expatriation [J]. Journal of Global Mobility, 2016, 4 (1). 67-68.
[12]	Lo, W, Kuo, M-e. Cost impact of float loss on a project with adjustable activity durations [J]. The Journal of the Operational Research Society, 2013, 64 (8). 45-47.

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APA Style

Huijuan Lin, Yanglin Li, Wanxin Li. (2016). An Empirical Analysis of Activity Based Costing in Chinese Enterprises. Journal of Finance and Accounting, 4(5), 301-309. https://doi.org/10.11648/j.jfa.20160405.17

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ACS Style

Huijuan Lin; Yanglin Li; Wanxin Li. An Empirical Analysis of Activity Based Costing in Chinese Enterprises. J. Finance Account. 2016, 4(5), 301-309. doi: 10.11648/j.jfa.20160405.17

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AMA Style

Huijuan Lin, Yanglin Li, Wanxin Li. An Empirical Analysis of Activity Based Costing in Chinese Enterprises. J Finance Account. 2016;4(5):301-309. doi: 10.11648/j.jfa.20160405.17

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@article{10.11648/j.jfa.20160405.17,
  author = {Huijuan Lin and Yanglin Li and Wanxin Li},
  title = {An Empirical Analysis of Activity Based Costing in Chinese Enterprises},
  journal = {Journal of Finance and Accounting},
  volume = {4},
  number = {5},
  pages = {301-309},
  doi = {10.11648/j.jfa.20160405.17},
  url = {https://doi.org/10.11648/j.jfa.20160405.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20160405.17},
  abstract = {In recent years, with the rapid development of China's economy, the progress of productive forces and economic system led to the shift from a seller's market to a buyer's market, the single species mass production mode to the varieties and labor intensive industry to technology intensive industry. Therefore, production based on sales have become the norm, once high profits caused capital investment along with the releasing capacity and increasing production, the competition between the enterprises gradually bases on the cost. Therefore, with the needs of business development, a new cost accounting system - activity based costing came into being. Activity based costing is based on the cost driver, which could allocate the indirect manufacturing costs more reasonable, then achieve the purpose of further cost control. In many western developed countries, activity based costing has been used in the enterprise. Although its application scope in Chinese enterprise is not very extensive, it has already got certain attention of many enterprises in China.},
 year = {2016}
}

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TY  - JOUR
T1  - An Empirical Analysis of Activity Based Costing in Chinese Enterprises
AU  - Huijuan Lin
AU  - Yanglin Li
AU  - Wanxin Li
Y1  - 2016/09/19
PY  - 2016
N1  - https://doi.org/10.11648/j.jfa.20160405.17
DO  - 10.11648/j.jfa.20160405.17
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 301
EP  - 309
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20160405.17
AB  - In recent years, with the rapid development of China's economy, the progress of productive forces and economic system led to the shift from a seller's market to a buyer's market, the single species mass production mode to the varieties and labor intensive industry to technology intensive industry. Therefore, production based on sales have become the norm, once high profits caused capital investment along with the releasing capacity and increasing production, the competition between the enterprises gradually bases on the cost. Therefore, with the needs of business development, a new cost accounting system - activity based costing came into being. Activity based costing is based on the cost driver, which could allocate the indirect manufacturing costs more reasonable, then achieve the purpose of further cost control. In many western developed countries, activity based costing has been used in the enterprise. Although its application scope in Chinese enterprise is not very extensive, it has already got certain attention of many enterprises in China.
VL  - 4
IS  - 5
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Author Information

Huijuan Lin

Beijing Institute of Technology Zhuhai Campus, Zhuhai, China
Yanglin Li

Beijing Institute of Technology Zhuhai Campus, Zhuhai, China
Wanxin Li

Beijing Institute of Technology Zhuhai Campus, Zhuhai, China

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APA Style

Huijuan Lin, Yanglin Li, Wanxin Li. (2016). An Empirical Analysis of Activity Based Costing in Chinese Enterprises. Journal of Finance and Accounting, 4(5), 301-309. https://doi.org/10.11648/j.jfa.20160405.17

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ACS Style

Huijuan Lin; Yanglin Li; Wanxin Li. An Empirical Analysis of Activity Based Costing in Chinese Enterprises. J. Finance Account. 2016, 4(5), 301-309. doi: 10.11648/j.jfa.20160405.17

Copy | Download

AMA Style

Huijuan Lin, Yanglin Li, Wanxin Li. An Empirical Analysis of Activity Based Costing in Chinese Enterprises. J Finance Account. 2016;4(5):301-309. doi: 10.11648/j.jfa.20160405.17

Copy | Download

@article{10.11648/j.jfa.20160405.17,
  author = {Huijuan Lin and Yanglin Li and Wanxin Li},
  title = {An Empirical Analysis of Activity Based Costing in Chinese Enterprises},
  journal = {Journal of Finance and Accounting},
  volume = {4},
  number = {5},
  pages = {301-309},
  doi = {10.11648/j.jfa.20160405.17},
  url = {https://doi.org/10.11648/j.jfa.20160405.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20160405.17},
  abstract = {In recent years, with the rapid development of China's economy, the progress of productive forces and economic system led to the shift from a seller's market to a buyer's market, the single species mass production mode to the varieties and labor intensive industry to technology intensive industry. Therefore, production based on sales have become the norm, once high profits caused capital investment along with the releasing capacity and increasing production, the competition between the enterprises gradually bases on the cost. Therefore, with the needs of business development, a new cost accounting system - activity based costing came into being. Activity based costing is based on the cost driver, which could allocate the indirect manufacturing costs more reasonable, then achieve the purpose of further cost control. In many western developed countries, activity based costing has been used in the enterprise. Although its application scope in Chinese enterprise is not very extensive, it has already got certain attention of many enterprises in China.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - An Empirical Analysis of Activity Based Costing in Chinese Enterprises
AU  - Huijuan Lin
AU  - Yanglin Li
AU  - Wanxin Li
Y1  - 2016/09/19
PY  - 2016
N1  - https://doi.org/10.11648/j.jfa.20160405.17
DO  - 10.11648/j.jfa.20160405.17
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 301
EP  - 309
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20160405.17
AB  - In recent years, with the rapid development of China's economy, the progress of productive forces and economic system led to the shift from a seller's market to a buyer's market, the single species mass production mode to the varieties and labor intensive industry to technology intensive industry. Therefore, production based on sales have become the norm, once high profits caused capital investment along with the releasing capacity and increasing production, the competition between the enterprises gradually bases on the cost. Therefore, with the needs of business development, a new cost accounting system - activity based costing came into being. Activity based costing is based on the cost driver, which could allocate the indirect manufacturing costs more reasonable, then achieve the purpose of further cost control. In many western developed countries, activity based costing has been used in the enterprise. Although its application scope in Chinese enterprise is not very extensive, it has already got certain attention of many enterprises in China.
VL  - 4
IS  - 5
ER  -

Copy | Download