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

Yu Hang Ren*, En Jun Xia, Jian Jun Wang

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    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 languageEnglish
    Pages (from-to)17-20
    Number of pages4
    JournalBeijing Ligong Daxue Xuebao/Transaction of Beijing Institute of Technology
    Volume26
    Issue numberSUPPL.
    Publication statusPublished - Jun 2006

    Keywords

    • Activity based costing
    • Manufacturing expense
    • Weapon and equipment manufacturing enterprises

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