The conclusion of traditional cost method

Activity-based costing fundamentally solves the defects of traditional costing. Compared with traditional costing, activity-based costing has not only changed quantitatively, but also changed qualitatively. It is no longer limited to the single quantity allocation benchmark used in traditional cost calculation, but adopts multiple allocation benchmarks. It is not only limited to multiple distribution standards, but also integrates financial variables and non-financial variables, with special emphasis on non-financial variables (product parts number, adjustment and preparation times, transportation distance, quality inspection time, etc. ). This quantitative and qualitative distribution basis, as well as the combination of financial variables and non-financial variables, can make activity-based costing provide "relatively accurate" product cost information, because it improves its correlation with the actual consumption cost of products.

However, activity-based costing can not meet the management's demand for cost information. Similar to the existing methods, its value also depends on environmental conditions. It should be remembered that activity-based costing still provides historical cost information, which is only indirectly related to management decision-making, so it must have additional conditions to play its role in decision-making. In addition, although activity-based costing greatly reduces the subjective allocation of existing methods in product cost calculation, it does not fundamentally eliminate them, that is, because the basic data of activity-based costing is not arbitrarily allocated, in addition, as far as the core content of activity-based costing-cost collection library and cost driver selection are concerned, activity-based costing can not be perfect. To sum up, applying the theory of activity-based costing to practical operation may not completely avoid some cost problems, which will inevitably bring the color of artificial distribution, which is also the place where activity-based costing needs to be continuously improved in the future development process.