Research on Implementation of Activity Based Costing in the Petrochemical Enterprises in China

摘要

Based on the production characteristics and management requirements, we discuss how to put the Activity Based Cost Management (ABCM) into practice in petrochemical Enterprises in China. We demonstrate Activity Based Costing procedures, describe the principles of identifying activity or activity center, and introduce some other needed techniques for the implementation of Activity-Based Costing in petrochemical enterprises. And we show the integrated model of Activity Based Cost management designed for a Petrochemical enterprise. Finally, we investigate the effectiveness of ABCM implementation.