Abstract
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.
Original language | English |
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Pages (from-to) | 17-20 |
Number of pages | 4 |
Journal | Beijing Ligong Daxue Xuebao/Transaction of Beijing Institute of Technology |
Volume | 26 |
Issue number | SUPPL. |
Publication status | Published - Jun 2006 |
Keywords
- Activity based costing
- Manufacturing expense
- Weapon and equipment manufacturing enterprises