Research on the calculating manufacturing expense based on activity-based costing method in weapon manufacturing enterprises

By analysis of the characteristic of the weapon equipment manufacture enterprises that the proportion of manufacturing expense to the production cost is large, in allusion to the problem that traditional allocation method based on direct labor-hours can not calculate the manufacturing expense accurately, the activity-based costing (ABC) method is proposed, necessity is analyzed and the specific steps are presented. Compared with the traditional method, the advantage of ABC method that can calculate more accurately is demonstrated by a practical example. By the application of ABC method, relationship between cost and benefit should be considered is pointed out.