An Analysis of Cost Optimization in Promoting Activity-Based Costing Management

摘要

The rapid development and application of modern science and technology cause the market environment to change from gradually to abruptly, at the same time, the global financial crisis has not receded, all the nations actively seek to protect the environment and keep the sustainable economic development. In this new business environment, traditional cost management is not enough to achieve the strategic goal while Activity-based Costing Management can, by analyzing the value chain, distinguish value-added activities and non-value-added activities and measure the value-added costs and non value-added costs accurately to reduce the number of intermediate links that can lower the cost, and to provide strong impetus for the maximization of enterprise value along the value chains.