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An Empirical Analysis of Activity Based Costing in Chinese Enterprises

Received: 19 September 2016     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), 2016. 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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    AU  - Huijuan Lin
    AU  - Yanglin Li
    AU  - Wanxin Li
    Y1  - 2016/09/19
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    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
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    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  - 

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Author Information
  • Beijing Institute of Technology Zhuhai Campus, Zhuhai, China

  • Beijing Institute of Technology Zhuhai Campus, Zhuhai, China

  • Beijing Institute of Technology Zhuhai Campus, Zhuhai, China

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